Albert Realini

Albert Realini sought clarification on the $425 million in total proceeds expected from asset sales, specifically asking if this amount excludes larger-scale assets and if the timing for selling those larger assets is contingent on the finalization of the POSCO partnership.

Answer

CFO Celso Goncalves confirmed that the $425 million target relates to the sale of idle plants, with $60 million already received and the remainder under discussion or contract. He clarified that larger assets, such as Toledo HBI and FPT assets, are *in addition* to the $425 million. These larger asset sales are currently on hold because POSCO is evaluating Cliffs' entire footprint, and Cliffs does not want to jeopardize the larger POSCO opportunity. If the POSCO partnership does not materialize, Cliffs would resume efforts to sell these larger assets, for which there has been meaningful interest. CEO Lourenco Goncalves added that some of the transactions contributing to the $425 million are already binding contracts, not just discussions.

Albert Realini sought clarification on the $425 million in total proceeds expected from asset sales, specifically whether this amount includes larger-scale assets and if the timing of these sales is contingent on the finalization of the POSCO partnership.

Answer

EVP and CFO Celso Goncalves clarified that the $425 million pertains to the sale of idle plants, with $60 million already received and the remainder under discussion or contract. He stated that larger assets, such as Toledo HBI and FPT assets, are separate and in addition to the $425 million. These larger asset sales are currently on hold due to POSCO's interest in Cliffs' entire footprint, but would be pursued if the POSCO opportunity does not materialize. Chairman, President, and CEO Lourenco Goncalves added that some of the discussions for the $425 million are already binding contracts, moving towards closing.