HAMILTON - Stelco Holdings Inc. ('Stelco Holdings' or the 'Company'), (TSX: STLC), a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America, today announced financial results of the Company for the three months and year ended December 31, 2022.

Stelco Holdings is the 100% owner of Stelco Inc. ('Stelco'), the operating company.

'In 2022, Stelco delivered, once again, the highest Adjusted EBITDA margin in the North American steel industry while delivering outstanding and unprecedented capital returns to our shareholders by retiring 29% of our outstanding common shares and paying cash dividends in excess of 10% of the share price at the start of 2022,' stated Alan Kestenbaum, Executive Chairman and Chief Executive Officer.'

'The fourth quarter was challenged by lower sales prices, shorter lead times and higher costs primarily due to increased input costs, a 'triple whammy',' continued Kestenbaum. 'Now, however, we are seeing a reversal of all of these factors with rising steel prices, as demonstrated by the CRU HRC benchmark having already increased by more than 37% from its early-December low, lengthening lead times, and input costs dropping significantly, all which should be reflected in the performance of the coming quarters.'

'As we noted through our guidance in Q3 of 2022, the fourth quarter was impacted by inflationary pressures on many of our key inputs, and the continuation of lower pricing and shorter lead times than we experienced earlier in 2022,' said Paul Scherzer, Chief Financial Officer. 'We achieved an Adjusted EBITDA of $82 million and an Adjusted EBITDA margin of 12%, which is down from 29% in the previous quarter, but we did see some stabilization in pricing late in the fourth quarter which will start to be reflected in our Q1 performance. For the full year, our Adjusted EBITDA margin of 34% handily beat our industry peers.'

'Testament to the overall success of our business and our ability to generate cash throughout this recent period of volatility, I am pleased to announce that we are again paying a quarterly cash dividend of $0.42 per share, which we raised last quarter' continued Scherzer. 'We were able to end the fiscal year with over $800 million in cash and preserved the strength of our balance sheet. This level of liquidity will provide our business with both optionality and opportunity to explore opportunities to deploy our capital in a manner that strengthens our business and maximizes value for our shareholders.'

About Stelco

Stelco is a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America. Stelco produces flat-rolled value-added steels, including premium-quality coated, cold-rolled and hot-rolled steel products, as well as pig iron and metallurgical coke. With first-rate gauge, crown, and shape control, as well as uniform through-coil mechanical properties, our steel products are supplied to customers in the construction, automotive, energy, appliance, and pipe and tube industries across Canada and the United States as well as to a variety of steel service centres, which are distributors of steel products. At Stelco, we understand the importance of our business reflecting the communities we serve and are committed to diversity and inclusion as a core part of our workplace culture, in part, through active participation in the BlackNorth Initiative.

Non-IFRS Measures

This news release refers to certain non-IFRS measures that are not recognized under International Financial Reporting Standards ('IFRS'), do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including 'Adjusted Net Income', 'Adjusted Net Income per common share', 'Adjusted EBITDA', 'Adjusted EBITDA per nt', 'Average Selling Price per nt', and 'Shipping Volume' to provide supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management uses these non-IFRS financial measures to facilitate operating performance comparisons from period-to-period, to prepare annual operating budgets and forecasts, and drive performance through our management compensation program.

Forward-Looking Information

This release contains 'forward-looking information' within the meaning of applicable securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategy, acquisitions, opportunities, budgets, operations, financial results, taxes, dividend policy, plans and objectives of our Company. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'targets', 'expects' or 'does not expect', 'is expected', 'an opportunity exists', 'budget', 'goal', 'scheduled', 'estimates', 'outlook', 'forecasts', 'projection', 'prospects', 'strategy', 'intends', 'anticipates', 'does not anticipate', 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might', 'will', 'will be taken', 'occur' or 'be achieved'. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances may be forward looking statements. Forward-looking statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. The forward-looking statements contained herein are presented for the purpose of assisting the holders of our securities and financial analysts in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our financial performance objectives, vision and strategic goals, and may not be appropriate for other purposes.

Forward-looking information in this news release includes: statements regarding current markets trends in respect of steel prices, lead times and input costs; expectations that the Company will benefit from current market trends; expectations that the Company's current level of liquidity will provide our business with both optionality and opportunity to explore opportunities to deploy our capital in a manner that strengthens our business and maximizes value for our shareholders; statements regarding the NCIB and that any purchase of common shares by the Company thereunder will result in a proportionate interest in the Company of, and be advantageous to, all remaining shareholders.

Undue reliance should not be placed on forward-looking information. The forward-looking information in this press release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions in respect of: our ability to complete new capital projects on schedule and within budget and their anticipated effect on revenue and costs; our ability to obtain all applicable regulatory approvals required in connection with new facilities; our ability to source necessary volumes of raw materials and other inputs at competitive prices; our iron ore pellet supply agreement providing us with competitively priced iron ore pellets during the term of the agreement; our facilities operating at design capacity; our ability to supply to new customers and markets; our ability to effectively manage costs; our ability to attract and retain key personnel and skilled labour; our ability to obtain and maintain existing financing on acceptable terms; currency exchange and interest rates; the ongoing impact of the COVID-19 pandemic on our business, operations, employees, customers, suppliers and the economy overall; the impact of competition; changes in laws, rule, and regulations, including international trade regulations; our ability to continue to access the U.S. market without any adverse trade restrictions; upgrades to existing facilities remaining on schedule and on budget and their anticipated effect on revenue and costs; relaxation of inflationary input costs; stabilization of the rising interest rate environment and growth in steel markets and industry trends, as well as those set out in this press release, are material factors made in preparing the forward-looking information and management's expectations contained in this press release.

There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date of this news release and are subject to change after such date. Stelco Holdings disclaims any intention or obligation or undertaking to update publicly or revise any forward-looking statements, whether written or oral, whether as a result of new information, future events or otherwise, except as required by law.

Contact:

Paul D. Scherzer

Tel: (905) 577-4432

Email: paul.scherzer@stelco.com

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