Algoma Steel Group Inc. · NASDAQ:ASTL
Algoma Steel — SPAC Merger (July 2021)
14 slides from Algoma Steel's SPAC merger presentation, Jul 8, 2021
Slide 1: Proposed Transition to Making Greener Steel: July 2021 Update
Investor Presentation Proposed Transition to Making Greener Steel July 2021 Update on Government Financing and Carbon Benefits of the Proposed EAF Transformation July 2021
Slide 2: Disclaimer (1/2)
1 Disclaimer (1/2) Disclaimer Legato Merger Corp. (“Legato”) is holding presentations for certain of its stockholders, as well as other persons who might b e i nterested in purchasing Legato’s securities, regarding its proposed merger with Algoma Steel (“Algoma” or the “Company”). EarlyBirdCapital (
Slide 3: Disclaimer (2/2)
2 Disclaimer (2/2) Market and Industry Data and Forecasts This document includes market share, ranking, industry data and forecasts that we obtained from industry publications and sur vey s, public filings and internal Company sources. Industry publications, surveys and forecasts generally state tha
Slide 4: Overview of Government Financing
Overview of Government Financing
Slide 5: Overview of the Green Steel Funding
Overview of the Green Steel Funding • Algoma has secured, subject to negotiation and execution of definitive documentation, a commitment from two Canadian government entities to provide financial support for the transformative EAF investment • The commitment is expected to provide for up to C$420 mi
Slide 6: EAF Transformation Expected to Be Fully Funded Pro Forma for the Merger and Government Financing
5 EAF Transformation Expected to Be Fully Funded Pro Forma for the Merger and Government Financing The Government commitments are expected to provide Algoma with sufficient capital to complete the EAF transformation with flexibility to deploy anticipated cash flows to value enhancing opportunities,
Slide 7: Legato / Algoma SPAC Indicative Timetable and Structural Considerations
6 (1) Anticipated dates of the stockholder vote and the close of the transaction are estimates and subject to change. Legato / Algoma SPAC Indicative Timetable and Structural Considerations Key Dates (1) Event June 21 Analyst Day Presentation July 7 Date of Filing of Preliminary Proxy Statement/Pros
Slide 8: Carbon Benefits of Proposed EAF Transformation
Carbon Benefits of Proposed EAF Transformation
Slide 9: EAF Transition Would Materially Improve Algoma's Environmental Footprint
8 Source: Company information. Note: All years refer to calendar year unless otherwise specified. Expected environmental benefi ts from the EAF are based on projected estimates for Algoma, using published data sources for similar technologies. (1) Based on current production versus forecasted produc
Slide 10: ... and Can Provide for Material Carbon Tax Savings
9 Source: Algoma Management, Canadian Output - Based Pricing System Regulations. (1) Emissions calculated based on historical emissions Intensities and planned steel production levels. (2) Carbon Pricing Mechanics are not established beyond 2022. Assumes carbon price increases from C$40/tonne to C$1
Slide 11: Supplemental Materials
Supplemental Materials ALGOMA — STEEL INC. —
Slide 12: Preliminary EAF Timeline and Capital Requirements
11 Source: Company information. Preliminary EAF Timeline and Capital Requirements Jan - 2024 Apr - 2024 2025 2026 Long - Term Construction Period Blast Furnace 7 (BF7) Coke Ovens 7,8,9 (CO7,8,9) Oxygen Steelmaking (BOF) Commission Ramp BF7/BOF/CO7, 8,9 EAF 1 | EAF 2 Full Grid Power Independent Mode
Slide 13: Glossary of Terms
12 Term Definition Basic Oxygen Furnace (BOF) Vessel used to convert liquid hot metal from a blast furnace into steel Blast Furnace (BF) Metallurgical furnace combining fuel, ores and flux to smelt iron ore to produce pig iron, which is fed downstream into a BOF Cogeneration Also known as combined h
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