Cleveland-Cliffs Inc (CLF) 2025 Q3 法說會逐字稿

Good morning, ladies and gentlemen. My name is Donna, and I am your conference facilitator today. I would like to welcome everyone to Cleveland-Cliffs' third-quarter 2025 earnings conference call. (Operator Instructions)

女士們、先生們，早安。我叫唐娜，是今天會議的主持人。歡迎大家參加克里夫蘭克利夫斯 2025 年第三季財報電話會議。（操作員指示）

The company reminds you that certain comments made on today's call will include predictive statements that are intended to be made as forward-looking within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual, actual results to differ materially. Important factors that could cause results to differ materially are set forth in the reports on Forms 10-K and 10-Q and news releases filed with the SEC, which are available on the company website.

本公司提醒您，今天電話會議上發表的某些評論將包括預測性陳述，這些陳述旨在根據 1995 年《私人證券訴訟改革法案》的安全港保護規定作為前瞻性陳述。儘管公司認為其前瞻性陳述是基於合理的假設，但此類陳述受風險和不確定性的影響，可能導致實際結果有重大差異。可能導致結果出現重大差異的重要因素已在提交給美國證券交易委員會的 10-K 和 10-Q 表格報告和新聞稿中列出，這些報告可在公司網站上查閱。

Today's conference call is also available and being broadcast at clevelandcliffs.com. At the conclusion of the call, it will be archived on the website and available for replay. The company will also discuss results excluding certain special items. Reconciliation for Regulation G purposes can be found on the earnings release, which was published this morning. At this time, I would like to introduce Lourenco Goncalves, Chairman, President, and Chief Executive Officer.

今天的電話會議內容也可在 clevelandcliffs.com 上觀看和直播。會議結束後，會議內容將存檔並上傳至網站，可供重播。該公司還將討論不包括某些特殊項目的結果。可以在今天早上發布的收益報告中找到有關 G 規則目的的對帳資訊。現在，我想介紹董事長、總裁兼執行長 Lourenco Goncalves。

Thank you, Donna, and good morning, everyone. Our third-quarter results were a clear indication that a significant rebound in domestic steel demand has started. And the automotive sector is leading the way.

謝謝你，唐娜，大家早安。我們的第三季業績清楚地表明，國內鋼鐵需求已經開始大幅反彈。汽車產業正處於領先地位。

It's now widely accepted and understood that tariffs are here to stay. Particularly the Section 232 tariffs on steel, autos, and derivative products. These tariffs are not a negotiating tool. And the only effective way to avoid tariffs is manufacturing in the United States.

現在人們普遍接受並理解關稅將繼續存在。特別是第232條針對鋼鐵、汽車和衍生產品所徵收的關稅。這些關稅不是談判工具。而避免關稅的唯一有效方法就是在美國進行製造。

Without that, third quarter was our best auto steel shipment quarter since the first quarter of 2024. That's a very encouraging sign for what's coming in 2026 and beyond.

除此之外，第三季是我們自 2024 年第一季以來汽車鋼材出貨量最好的一個季度。對於 2026 年及以後的發展而言，這是一個非常令人鼓舞的信號。

Over the past quarter, Cleveland-Cliffs was able to lock in two or three-year agreements with all major automotive OEMs covering higher sales volumes and favorable pricing through 2027 or 2028. These are not small renewals. These agreements represent strategic commitments to domestic steel sourcing by the most relevant auto OEMs.

在過去的一個季度中，克利夫蘭克利夫斯與所有主要汽車原始設備製造商達成了為期兩年或三年的協議，涵蓋到 2027 年或 2028 年更高的銷售量和優惠的價格。這些都不是小更新。這些協議代表了最相關的汽車原始設備製造商對國內鋼材採購的策略承諾。

Many of these customers have told us directly that they want to reduce their exposure to tariffs and to foreign volatility. They want stability and resilient supply chains. With a total of nine automotive-grade galvanized steel plants, five of them designed to produce exposed parts in all specs and width, Cliffs is the natural partner for the car manufacturers expanding production in the United States.

許多客戶直接告訴我們，他們希望減少關稅和外國波動帶來的影響。他們希望獲得穩定且有彈性的供應鏈。Cliffs 共有 9 家汽車級鍍鋅鋼廠，其中 5 家專門生產各種規格和寬度的外露零件，因此對於在美國擴大生產的汽車製造商來說，Cliffs 是理想的合作夥伴。

President Trump's trade agenda has steel and automotive as part of its core. These two sectors are not just economically relevant, they are fundamental to national security. Rebuilding this strength is essential to sustain America's industrial independence and to improve our national defense readiness.

鋼鐵和汽車是川普總統貿易議程的核心。這兩個行業不僅與經濟相關，而且對國家安全至關重要。重建這一實力對於維持美國的工業獨立和提高我們的國防準備至關重要。

The same industrial base that builds advanced vehicles and powertrains for civilian use, supported by domestic steel production, can also provide the engineering capability, supply chain depth, and logistics expertise required to support the American military.

在國內鋼鐵生產的支援下，製造民用先進車輛和動力系統的工業基礎還可以提供支援美國軍方所需的工程能力、供應鏈深度和物流專業知識。

There is no question that the resurgence of the US auto sector supported by domestic steel is a matter of great urgency. While others two companies are still building or promising to build new capacity to be ready in 2028, 2029, or later, Cliffs is ready for 2026.

毫無疑問，依靠國內鋼鐵支撐的美國汽車產業的復甦刻不容緩。其他兩家公司仍在建造或承諾建造新產能，以便在 2028 年、2029 年或之後投入使用，而 Cliffs 已為 2026 年做好了準備。

Our state-of-the-art automotive-grade galvanizing steel plants, Spartan and Dearborn in Michigan; Middletown, Cleveland, and Columbus in Ohio; and Rockport, Indiana Harbor, Burns Harbor, and New Carlisle in Indiana are all up and running.

我們最先進的汽車級鍍鋅鋼廠，位於密西根州的斯巴達和迪爾伯恩；俄亥俄州的米德爾頓、克利夫蘭和哥倫布；以及印第安納州的羅克波特、印第安納港、伯恩斯港和新卡萊爾都已投入營運。

Cliffs has plenty of capacity right now, and the multi-year contracts we have signed with our automotive clients should give us the demand we need to make all these plants work at full capacity and at full employment levels.

Cliffs 目前擁有充足的產能，我們與汽車客戶簽訂的多年期合約應該能為我們提供所需的需求，使所有這些工廠都能滿載運轉並實現充分就業。

This quarter also reminded the automotive OEMs why steel, and Cliffs steel in particular, is irreplaceable. When lightweighting became a major trend several years ago, some automakers jumped on the aluminum bandwagon, chasing immaterial and expensive lightweighting gains while ignoring very meaningful technological advances in the production of high-strength steels and, more importantly, the enormous supply chain risks they were assuming.

本季也提醒了汽車原始設備製造商為什麼鋼鐵，尤其是 Cliffs 鋼鐵是不可替代的。幾年前，當輕量化成為主流趨勢時，一些汽車製造商紛紛加入鋁製車身的行列，追求非物質且昂貴的輕量化收益，而忽視了高強度鋼生產方面非常有意義的技術進步，更重要的是，他們承擔了巨大的供應鏈風險。

A huge fire at the nation's largest automotive aluminum-producing mill this past quarter revealed the fragility of that shift. Vehicle models that were years ago moved away from steel and toward aluminum are suffering the most.

上個季度，美國最大的汽車鋁生產廠發生的一場大火暴露了這種轉變的脆弱性。多年前就已不再使用鋼材質而改用鋁材質的車型受到的影響最為嚴重。

The silver lining is that switching back to steel is now under serious consideration by the most affected OEMs. Recent trials of conforming parts with our steel using equipment originally designed for aluminum are showing very promising results.

值得慶幸的是，受影響最嚴重的原始設備製造商正在認真考慮重新使用鋼材。最近，我們利用最初為鋁設計的設備對符合我們鋼材標準的零件進行了試驗，結果非常令人滿意。

This is a huge win for American-made steel and a validation of everything we have been saying for years. Domestic steelmaking, and particularly Cliffs steel, is the backbone of the American automotive supply chain. We fully expect that aluminum’s participation in the automotive space will continue to shrink, with Cliffs being the biggest beneficiary of the trend.

這是美國製造的鋼鐵的巨大勝利，也是對我們多年來所說的一切的驗證。國內鋼鐵生產，尤其是 Cliffs 鋼鐵，是美國汽車供應鏈的支柱。我們完全預期鋁在汽車領域的參與度將繼續縮小，而 Cliffs 是這一趨勢的最大受益者。

The resurgence of US manufacturing, enabled and supported by the Trump administration, has made Cliffs very attractive to a number of major global steel producers. These steelmakers supply steel within their respective countries to important clients, and these clients are now moving production to the United States.

在川普政府的推動和支持下，美國製造業的復甦使得 Cliffs 對許多全球主要鋼鐵生產商來說極具吸引力。這些鋼鐵製造商在各自的國家向重要客戶供應鋼鐵，而這些客戶現在正在將生產轉移到美國。

Exporting steel into the US is no longer a viable option for these foreign steel companies. Like their steel-consuming customers, these folks need a physical presence in the United States.

對這些外國鋼鐵公司來說，向美國出口鋼鐵已不再是可行的選擇。就像他們的鋼鐵消費客戶一樣，這些人需要在美國有實體存在。

Cliffs is a fully integrated steel company. It’s starting from mining iron ore and going all the way downstream to the production of high-end finished products, and that is all based in the United States. This foreign interest in Cliffs is fully aligned with President Trump’s agenda of strengthening America’s industrial base and attracting foreign investments.

Cliffs 是一家綜合性鋼鐵公司。從開採鐵礦石開始，一直到下游高端成品的生產，這一切都在美國進行。外國對 Cliffs 的興趣與川普總統加強美國工業基礎和吸引外國投資的議程完全一致。

With all that, a few months ago we were approached by a major global steelmaker who wants to leverage our footprint in the United States to enable a smooth onboarding for their downstream industrial clients, moving production from their country of origin to the United States. During the third quarter, we entered into a memorandum of understanding with this global steelmaker, and we expect to make a formal announcement in the next few months. I will not take any questions on this subject today.

儘管如此，幾個月前，一家全球大型鋼鐵製造商與我們聯繫，他們希望利用我們在美國的業務，為其下游工業客戶提供順利的入職培訓，將生產從原產國轉移到美國。第三季度，我們與這家全球鋼鐵製造商簽署了一份諒解備忘錄，預計在未來幾個月內正式宣布這項消息。今天我不會回答有關這個問題的任何問題。

Separately, we have made excellent progress selling properties that no longer fit into our production footprint. I am pleased to report that we are under contract or agreements in principle for eight of these sites with a combined total value of $425 million. The proceeds of these sales will go directly towards debt reduction.

另外，我們在出售不再適合我們生產範圍的資產方面取得了巨大進展。我很高興地報告，我們已就其中八個站點簽訂了合約或原則性協議，總價值達 4.25 億美元。這些銷售所得將直接用於減少債務。

As for our larger operational asset sales process run by JPMorgan, this is currently being deprioritized given the comprehensiveness of our MOU with the global steelmaker. We are not quite pencils down on this process, but advancing our negotiations under our MOU is now our top priority.

至於摩根大通負責的更大規模的營運資產銷售流程，鑑於我們與這家全球鋼鐵製造商簽署的諒解備忘錄的全面性，目前該流程的優先順序已被降低。我們還沒有完全確定這一進程，但推進諒解備忘錄下的談判現在是我們的首要任務。

While our US business is on a clear path to recovery, we complete on November 1 our first year of ownership of the Canadian steel company Stelco. The picture in Canada remains disappointing.

雖然我們的美國業務正在明顯復甦，但我們在 11 月 1 日完成了對加拿大鋼鐵公司 Stelco 所有權的第一年。加拿大的情況仍然令人失望。

Roughly 9% of our total sales come from Stelco in Canada, and that market continues to lag our expectations. There's only one cause to the problem. The Canadian government has been completely unwilling to act against dumped steel into Canada. Imported steel penetration into the Canadian market stands at a ridiculous and absurd 65%. The Canadian government could easily resolve the problem by replicating what the United States has done under Section 232. Impose meaningful tariffs, close loopholes, and enforce the implementation of these anti-dumping countermeasures.

我們總銷售額的約 9% 來自加拿大的 Stelco，而該市場仍落後於我們的預期。問題只有一個原因。加拿大政府根本不願意對傾銷到加拿大的鋼鐵採取行動。進口鋼材在加拿大市場的滲透率高達65%，真是荒唐至極。加拿大政府可以效法美國根據第232條款所採取的做法，輕鬆解決這個問題。徵收有意義的關稅，堵塞漏洞，並強制實施這些反傾銷對策。

With other regions of the globe moving in the right direction, even the European Union has recently tightened its quota and tariff regime. Canada stands alone in doing nothing.

隨著全球其他地區朝著正確的方向發展，甚至歐盟最近也收緊了配額和關稅制度。加拿大是唯一沒有採取任何行動的國家。

A bailout loan, as the one given by the Canadian government and the province of Ontario to Algoma, one of our Canadian competitors, is not a fix for the problem. Trying to weaken Section 232 in the United States just to bring back Canadian steel into the American market is even worse.

加拿大政府和安大略省向我們的加拿大競爭對手之一 Algoma 提供的紓困貸款並不能解決問題。為了讓加拿大鋼鐵重返美國市場而試圖削弱美國的第 232 條，這更糟。

Stelco, under our ownership, does not want to and should not depend on selling steel into the United States for its survival. Stelco could thrive exclusively by selling steel in Canada.

在我們的所有權下，Stelco 不想也不應該依賴向美國銷售鋼鐵來生存。僅透過在加拿大銷售鋼材，Stelco 就能實現繁榮發展。

While I confess my inability to convince the several Canadian government officials I regularly speak with, I continue to expect Prime Minister Carney to make a move in the right direction. Let's see how long it takes, or if I will need to be more persuasive.

儘管我承認我無法說服經常與我交談的幾位加拿大政府官員，但我仍然希望卡尼首相能夠朝著正確的方向邁出一步。讓我們看看需要多長時間，或者我是否需要更有說服力。

Meanwhile, the US government continues to grow as our partner. During the quarter, we were awarded a five-year, $400 million fixed-price contract by the Defense Logistics Agency of the US Department of War. This contract covers up to 53,000 net tons of grain-oriented electrical steel, which the US government intends to store for national security purposes.

同時，美國政府作為我們的合作夥伴不斷發展。本季度，我們獲得了美國陸軍部國防後勤局授予的一份為期五年、價值 4 億美元的固定價格合約。該合約涵蓋最多 53,000 淨噸的取向電工鋼，美國政府打算出於國家安全目的儲存這些鋼。

The award underscores Cliffs' position as the only US producer capable of supplying this critical material, GOES, grain-oriented electrical steel, further reinforcing the strategic importance of our electrical steels to the nation's defense and energy infrastructure.

該獎項強調了 Cliffs 作為唯一能夠供應這種關鍵材料 GOES（取向電工鋼）的美國生產商的地位，進一步鞏固了我們的電工鋼對國家國防和能源基礎設施的戰略重要性。

Also, we recently learned that our two projects receiving grants from the Department of Energy at Middletown, Ohio; and Butler, Pennsylvania were not included on the cancellation list that ended more than 200 other projects.

此外，我們最近獲悉，我們兩個獲得能源部資助的俄亥俄州米德爾頓和賓夕法尼亞州巴特勒項目並未被列入其他 200 多個項目的取消名單中。

As such, we will proceed with the Butler project on schedule, and we will also continue to work with the DOE on the new scoping of the Middletown project, which is critically important, as that blast furnace will be reined in the next four to five years.

因此，我們將按計劃推進巴特勒項目，並且我們還將繼續與能源部合作確定米德爾頓項目的新範圍，這至關重要，因為該高爐將在未來四到五年內得到控制。

Last but not least, the growing strategic value of rare earth elements has prompted us to revisit this potential within our mining portfolio. We view this effort as both an opportunity and as our responsibility. Comprehensive reviews of our ore bodies and tailing basins have identified two sites, one in Minnesota and one in Michigan, where geological surveys show evidence of rare earth mineralization.

最後但同樣重要的一點是，稀土元素日益增長的戰略價值促使我們重新審視我們在礦業投資組合中的這一潛力。我們認為這項努力既是機遇，也是我們的責任。我們對礦體和尾礦池進行了全面審查，確定了兩個地點，一個在明尼蘇達州，一個在密西根州，地質調查顯示了稀土礦化的證據。

We continue to assess our potential on both sites. Advancing this initiative would position Cleveland-Cliffs squarely within the nation's pursuit of critical material self-sufficiency. We believe America's industrial foundation must never depend on China or any other foreign source for essential minerals.

我們將繼續評估這兩個站點的潛力。推動這項措施將使克利夫蘭-克利夫斯在國家追求關鍵物質自給自足的道路上處於有利地位。我們認為，美國的工業基礎絕不能依賴中國或任何其他外國來源取得必需礦產。

Cleveland-Cliffs is committed to contributing to our independence from foreign powers on critical materials. With that, I will turn to our CFO, Celso Goncalves, for his remarks.

克里夫蘭-克利夫斯致力於幫助我們在關鍵材料上擺脫對外國勢力的依賴。接下來，我將聽取我們的財務長 Celso Goncalves 的評論。

Thank you and good morning, everyone. Our third-quarter results were driven by steady operational execution and much better-than-expected pricing, supported by automotive strength.

謝謝大家，早安。我們的第三季業績得益於穩定的營運執行和遠超預期的定價，以及汽車產業的強勁表現。

Our adjusted EBITDA on the quarter improved to $143 million, a 52% increase over the prior quarter, driven by margin expansion from higher realized prices and improved mix. Our steel shipment volumes were 4 million tons in the quarter, a reduction from the prior quarter as a function of summer slowdowns and our continued discipline in the broader market.

本季我們的調整後 EBITDA 增至 1.43 億美元，較上一季成長 52%，這得益於更高的實際價格和更好的產品組合帶來的利潤率擴大。本季我們的鋼材出貨量為 400 萬噸，由於夏季市場放緩以及我們繼續受到更廣泛市場的約束，比上一季有所減少。

Fortunately, as a result, our mix shifted favorably toward automotive, which drove our average selling price to $1,032 per net ton, up $17 per net ton over the prior quarter. This improvement in price is entirely driven by automotive shipments, moving from 26% to 30% share and coated volumes moving from 27% to 29% share.

幸運的是，我們的產品組合因此向汽車領域傾斜，這使得我們的平均售價達到每淨噸 1,032 美元，比上一季每淨噸上漲 17 美元。價格的上漲完全是由汽車出貨量推動的，汽車出貨量份額從 26% 上升到 30%，塗層出貨量份額從 27% 上升到 29%。

On the cost side, we continue to deliver great results as our unit costs adjusted to the much richer automotive mix. Our continued cost performance was almost entirely driven by the footprint optimization activities we announced earlier this year and have fully implemented at this point.

在成本方面，隨著我們的單位成本適應更加豐富的汽車組合，我們繼續取得優異的業績。我們持續的成本表現幾乎完全是由我們今年稍早宣布並目前已全面實施的足跡優化活動所推動的。

The third quarter was the first full quarter we operated with these operational efficiencies in place, and our projected annual savings of $300 million from these maneuvers remain on track.

第三季度是我們實施這些營運效率後的第一個完整季度，我們預計透過這些措施每年可節省 3 億美元，這一目標仍將保持下去。

We also continue to take further action to reduce both SG&A run rate and capital expenditure budgets. Our CapEx budget for 2025 is now $525 million, down from our original expectation to begin the year of $700 million. This is reflective of dramatically reduced spend at Stelco, as well as the now changing DOE projects at Middletown.

我們也將繼續採取進一步措施，降低銷售、一般及行政費用的運作率和資本支出預算。我們 2025 年的資本支出預算目前為 5.25 億美元，低於我們最初預期的 7 億美元。這反映出 Stelco 的支出大幅減少，以及米德爾敦的 DOE 計畫正在改變。

In addition, full-year SG&A expectation is now down to $550 million from our original expectation to begin the year of $625 million. These savings are reflective of overhead and incentive pay cost cuts in response to weaker demand conditions.

此外，全年銷售、一般及行政費用預期已從年初最初預期的 6.25 億美元降至 5.5 億美元。這些節省反映了為應對較弱的需求條件而削減的管理費用和獎勵工資成本。

Another upcoming item to highlight is the December 9 expiration of our onerous slab contract. For the past five years, we've been bound by a contract that valued imported slabs using the now irrelevant Brazilian slab index. That index no longer reflects the real cost or value of American steel, much less the value of our automotive-grade slabs produced at Indiana Harbor. With the contract expiring, we will reclaim that production internally using our melted and poured slabs to serve growing automotive demand.

另一個即將強調的是我們的重負性板塊合約將於 12 月 9 日到期。過去五年來，我們一直受一份合約的約束，該合約使用現已不再相關的巴西板坯指數來對進口板坯進行估價。該指數不再反映美國鋼鐵的實際成本或價值，更不用說印第安納港生產的汽車級鋼坯的價值了。隨著合約到期，我們將使用熔化和澆注的板坯在內部恢復生產，以滿足日益增長的汽車需求。

This past quarter, we also took advantage of the strong high-yield market and refinanced the entirety of our remaining bonds maturing in 2027, leaving us with a runway of more than three years with no upcoming bond maturities. Our next bond maturity is not until March of 2029, and those notes can be redeemed at par starting in March of next year.

上個季度，我們還利用強勁的高收益市場，對 2027 年到期的剩餘債券進行了全部再融資，使我們擁有了三年多的運行時間，並且沒有即將到期的債券。我們的下一期債券將於 2029 年 3 月到期，這些票據可從明年 3 月開始以面額贖回。

Together with the outstanding balance on the ABL, we have plenty of pre-payable debt to pay down with the incoming proceeds of property asset sales and future free cash flow. Our gross debt amount remains elevated, but we will have ample opportunity to pay it down over the coming quarters. That said, the composition of our debt and maturity runway leaves us with plenty of flexibility going forward.

加上資產抵押借款的未償餘額，我們還有大量預付債務需要用房地產資產銷售所得和未來的自由現金流來償還。我們的總債務金額仍然很高，但我們將有充足的機會在未來幾季償還債務。也就是說，我們的債務組成和到期期限為我們未來留下了足夠的彈性。

The primary end markets that we serve, transportation, manufacturing, and construction have been experiencing recession-like conditions over the past 12 months. We have navigated this with our operational improvements, footprint optimizations, and reductions in overhead and capital costs.

我們服務的主要終端市場，即運輸、製造和建築業，在過去 12 個月中一直經歷著類似衰退的狀況。我們透過改善營運、優化佈局以及降低管理費用和資本成本來解決這個問題。

The construction and general manufacturing sectors still remain relatively weak, but if history is any guide, those sectors will follow the trajectory of the automotive sector, which is now tracing upward. We have finally started to see a bit of restocking activity in the distributor and end-user markets, an indication that the new tariff reality for those buyers is setting in.

建築業和一般製造業仍然相對疲軟，但如果以歷史為鑑，這些產業將追隨目前呈上升趨勢的汽車產業的軌跡。我們終於開始看到經銷商和最終用戶市場出現了一些補貨活動，這表明這些買家正在接受新的關稅現實。

The signs of a real recovery are forming, and we need consistent demand and stable policy to keep it going. Once these policy changes give us the demand boost that we need, the foundation that we have laid with these operational improvements will propel us further to amplified EBITDA and cash flow. With that, I will now turn it back to Lourenco for his closing remarks.

真正的復甦跡象正在形成，我們需要持續的需求和穩定的政策來維持復甦。一旦這些政策變更為我們帶來所需的需求成長，我們透過這些營運改善所奠定的基礎將進一步推動我們擴大 EBITDA 和現金流。現在，請洛倫索致閉幕詞。

Thanks, Celso. Q3 showed the first clear signs that the tide is beginning to turn. Automotive is rebounding. Our cost actions are working, and trade policy is delivering measurable results. But we are not declaring victory yet. We can and will do better.

謝謝，塞爾索。第三季首次顯示出情勢開始轉變的明顯跡象。汽車業正在反彈。我們的成本行動正在發揮作用，貿易政策正在取得可衡量的成果。但我們尚未宣布勝利。我們能夠並且將會做得更好。

Our onerous slab contract will soon go away. Our automotive volumes will continue to increase. And we will finish what we have started. That includes the execution of the final agreement and the beginning of the work which will follow our transformational memorandum of understanding with our major global steelmaker partner. With that, I'll turn it back to Donna for questions.

我們的繁重的樓板合約很快就會消失。我們的汽車銷量將繼續增加。我們將完成我們所開始的事情。這包括執行最終協議以及開始與我們的主要全球鋼鐵製造商合作夥伴達成的轉型諒解備忘錄相關的工作。說完這些，我會把問題轉回給唐娜。

(Operator Instructions) Nick Giles of B Riley Securities.

（操作員指示）B Riley Securities 的 Nick Giles。

Thank you very much, operator. Lourenco, Celso, good morning and really nice to see all of these updates. Cliffs has been a national champion in the US metals and mining industry for over a century, so it's really good to see you taking the initiative on the rare earth side.

非常感謝，接線生。Lourenco、Celso，早安，很高興看到這些更新。一個多世紀以來，Cliffs 一直是美國金屬和採礦業的領導者，因此很高興看到你們在稀土領域採取主動行動。

My question is really, how quickly could you produce products in this vertical and could you look to be a vertically integrated producer? Would you look for a partner? Thank you very much.

我的問題是，您能多快生產這個垂直領域的產品，您能成為垂直整合的生產商嗎？您會尋找合作夥伴嗎？非常感謝。

Thanks, Nick, for the question. Look, we have the opportunity to develop the mining, assuming that all these original studies will play out as we expect, and we'll go from there. It's very clear that the US government is very quickly realizing the importance of having an industry for this type of minerals inside the borders of the United States. And that's also, in my opinion, opportunity for cooperation with Canada, another unexplored opportunity that we can develop with our northern neighbor.

謝謝尼克提出這個問題。看，我們有機會開發採礦業，假設所有這些原始研究都會按照我們的預期進行，我們將從那裡開始。很明顯，美國政府很快就意識到在美國境內建立此類礦產產業的重要性。我認為這也是與加拿大合作的機會，也是我們可以與北方鄰國共同開發的另一個尚未開發的機會。

So there are several ways to go with this thing, and the important thing is the geographical location would be good for both. We can do it inside the United States. We can do it in Canada because we're very close across the point, across the Great Lakes. So it's very easy to work within the United States or with Canada, but these are the two options I see going forward.

因此，有幾種方法可以實現這一點，重要的是地理位置對雙方都有好處。我們可以在美國境內做到這一點。我們可以在加拿大做到這一點，因為我們距離五大湖對岸很近。因此，在美國或加拿大開展工作非常容易，但這是我認為未來的兩個選擇。

Maybe just as a follow-up. I mean, what resources have you brought in to date to explore the opportunity and when is kind of the first mile marker in terms of a potential product mix or any economics? Should we be thinking about something early next year? I appreciate any color.

也許只是作為後續行動。我的意思是，到目前為止，您已經引入了哪些資源來探索這個機會，以及從潛在產品組合或任何經濟角度來看，什麼時候是第一個里程碑？我們是否應該在明年年初考慮一些事情？我欣賞任何顏色。

Look, we've identified two sites that have the most promising. We are working with the geologists to assess whether these deposits could become commercially viable. That's where we're at. And don't forget, as you said, we are a mining company, so this is not new territory for us. We understand mining into these lands more than anyone because I've been doing it for a long time.

瞧，我們已經確定了兩個最有前景的站點。我們正在與地質學家合作，評估這些礦藏是否具有商業可行性。這就是我們現在的處境。別忘了，正如你所說，我們是一家礦業公司，所以這對我們來說並不是什麼新領域。我們比任何人都更了解在這些土地上採礦，因為我已經做了很長時間了。

And we will see how we'll go from there, but that's a potential that we will not let go without putting a lot of effort and a lot of ingenuity into getting this done. Inside the United States or in partnership with Canada that has experience in mining, there's not-so-rare elements that are called rare earths.

我們將拭目以待下一步如何發展，但這是一個潛力，如果我們不付出大量努力和智慧，我們就不會放棄。在美國國內或與有採礦經驗的加拿大合作，存在著被稱為稀土的不那麼稀有的元素。

I really appreciate the update this morning and continued best of luck.

我非常感謝今天早上的更新，並祝你好運。

Lawson Winder, Bank of America.

美國銀行的勞森·溫德。

Thank you very much, operator. Good morning, Lourenco and Celso. Thank you for today's update. Could I ask just about your decision to deprioritize the asset sale process? How has that process gone to date and then has there been any interest and if so, in what assets?

非常感謝，接線生。早安，Lourenco 和 Celso。感謝您今天的更新。我可以問一下您關於降低資產出售流程優先順序的決定嗎？到目前為止，這個過程進展如何？是否有人感興趣？如果有，那麼對哪些資產有興趣？

Look, like I said, the process, we did not stop by any stretch. Actually, we closed on a portion of the sale for FPT during the weekend, so we have -- we didn’t close. We have a signed contract. I misspoke. It's not a closing yet, but it'll be a short closing.

瞧，就像我說的，這個過程，我們並沒有停下來。實際上，我們在周末完成了 FPT 的一部分銷售，所以我們——我們沒有結束。我們已經簽署了合約。我說錯了。這還不是結束，但這將是短暫的結束。

And the portion that we sold on FPT is not even a site that we explore for our own EBITDA, so it doesn't change at all the EBITDA that you generate from FPT. So we're very pleased that we have more than one party interested on that specific portion of FPT, including the Florida assets. And we are very excited with the opportunity to continue to sell the remaining portions of FPT as we go.

我們在 FPT 上出售的部分甚至不是我們為自己的 EBITDA 探索的網站，因此它根本不會改變您從 FPT 產生的 EBITDA。因此，我們很高興有多個團體對 FPT 的特定部分（包括佛羅裡達資產）感興趣。我們非常高興有機會繼續出售 FPT 的剩餘部分。

The other asset, Lawson, that we're considering selling would be our direct reduction plant in Toledo, Ohio, because as you might conclude on your own, but I will reiterate here, we have no interest in building a flat-rolled mini mill ourselves. I was keeping that HBI plant to supply Big River in case we had the opportunity to acquire US Steel, which did not play out.

勞森，我們正在考慮出售的另一項資產是我們位於俄亥俄州托萊多的直接還原工廠，因為正如您可能自己得出的結論，但我在這裡重申，我們對自己建造扁平軋製小型工廠不感興趣。我保留了 HBI 工廠，以便在我們有機會收購美國鋼鐵公司時為 Big River 提供產品，但這並沒有實現。

So as we did not acquire Big River through the acquisition of US Steel, I don't see any specific strategic value of keeping the direct reduction plant producing HBI with the strict goal of supplying flat-rolled mini mill producing more of a high-end type of flat-rolled products. That's not my problem anymore.

因此，由於我們並沒有透過收購美國鋼鐵公司來獲得 Big River，因此我認為保留直接還原工廠生產 HBI 並沒有任何特定的戰略價值，其嚴格目標是為生產更多高端扁平軋製產品的扁平軋製小型鋼廠提供產品。這不再是我的問題了。

So we still have a lot of interest in that specific plant, but this discussion with the MOU and the subsequent work that we're doing with our partner is showing that we might be doing other things with that plant, which I will not elaborate at this point.

因此，我們仍然對該特定工廠很感興趣，但與諒解備忘錄的討論以及我們與合作夥伴進行的後續工作表明，我們可能會對該工廠進行其他開發，目前我不會詳細說明。

So I'm kind of still considering alternatives, but I'm deprioritizing that because the MOU Trump's, no pun intended, Trump's opportunity of selling itself as a standalone unit, the Toledo plant.

所以我仍然在考慮其他選擇，但我降低了它的優先級，因為諒解備忘錄是川普的，沒有雙關語的意思，川普有機會將托萊多工廠作為一個獨立的單位出售。

Okay. Understood, that's very clear. If I could just follow up on your comment on FPT, so should we be looking for some sort of announcement on that sale of a portion or partnership?

好的。明白了，很清楚了。如果我可以跟進您對 FPT 的評論，那麼我們是否應該期待有關出售部分或合作夥伴關係的某種公告？

I just made it. We are under agreements to sell the Florida assets to SA Recycling, and that's the deal. So it's out. I just said it to you.

我剛剛做到了。我們已達成協議，將佛羅裡達資產出售給 SA Recycling，這就是交易內容。所以它出局了。我剛才跟你說了。

Can you provide any detail on economics at this point, or is it too early?

您現在能否提供任何有關經濟方面的細節，還是現在還為時過早？

No. But it's good. And if you apply a multiple to a site that generates zero EBITDA, you can pick one. So it doesn't change the economics of the rest. That's the importance of this sale. That's why I'm disclosing.

不。但這很好。如果您將倍數應用於產生零 EBITDA 的站點，您可以選擇一個。所以它不會改變其他國家的經濟狀況。這就是這次銷售的重要性。這就是我披露的原因。

That was an asset that for me was always completely irrelevant because I'm not going to put a mini mill in Florida to produce rebar or anything else. So that was not a site that was interesting from the get-go. It came as an addendum to what I was really interested in having, the real FPT, the FPT around Detroit and around prime scrap, and that's completely preserved.

對我來說，這是一種完全無關緊要的資產，因為我不會在佛羅裡達州建立一個小型工廠來生產鋼筋或其他任何東西。所以從一開始，這個網站就不有趣。它是我真正感興趣的東西的附錄，真正的 FPT，底特律周圍和主要廢料周圍的 FPT，並且完整地保存了下來。

And there are other companies, more than one actually, interested in acquiring the rest. And they both have the same thing in common. They don't want Florida. So we moved to Florida, but we're not going to review the number. But the number is extremely good and you'll see liquidity going forward. But you got to wait because this is just a signed agreement. It's not closing yet, so we can't disclose the number.

還有其他公司（實際上不只一家）有興趣收購剩餘的公司。它們都有共同點。他們不要佛羅裡達。所以我們搬到了佛羅裡達州，但我們不會審查這個數字。但這個數字非常好，你會看到未來的流動性。但你必須等待，因為這只是一份簽署的協議。目前尚未結束，因此我們無法透露具體數字。

Yeah, understood. All right, thanks very much for your responses. I appreciate it.

是的，明白了。好的，非常感謝您的回覆。我很感激。

Thanks, Lawson.

謝謝，勞森。

Phil Gibbs, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Phil Gibbs。

Hey, good morning.

嘿，早安。

Good morning, Phil.

早上好，菲爾。

Question is on the auto contracts. Did any of the new contracts kick in during this quarter or do any of the new contracts kick in during the fourth quarter?

問題是關於汽車合約的。本季是否有任何新合約生效？或第四季是否有任何新合約生效？

Yeah, we have some kicking in October 1. I'm simplifying as I'm saying 2026 because it's a short quarter. Fourth quarter, particularly in automotive, is not a quarter that we are excited about because, you know, we're going to have shutdowns through the end of the year. That's normal course.

是的，10 月 1 日我們會有一些活動。我之所以簡化為 2026 年，是因為這是一個較短的季度。第四季度，特別是汽車產業，並不是令我們興奮的一個季度，因為你知道，我們將在年底前停工。這是正常現象。

Sometimes we have -- I'm not sure about this year because they're really busy, but it's normal course for them to shut down around Thanksgiving as well. But we're going to see a lot of activity coming from these companies as the year turns to 2026.

有時我們會——我不確定今年的情況，因為他們真的很忙，但他們在感恩節前後關閉也是正常的。但隨著 2026 年的到來，我們將看到這些公司進行大量活動。

So we're super excited with everything that's happening with General Motors, Ford, Stellantis with this big announcement of $13 billion bringing back the plants that we were by far the largest suppliers. So all these things are coming to us at this point. We have Ford; we have Hyundai; we have Honda; we have Toyota in North America.

因此，我們對通用汽車、福特、Stellantis 所取得的一切進展感到非常興奮，並宣布斥資 130 億美元恢復我們迄今為止最大的供應商工廠。所以所有這些事情現在都發生在我們身上。在北美，我們有福特、現代、本田和豐田。

These are all happening and the good thing for you is that the common factors finally realized that it's not a good thing to wait and wait and wait and seeing that the Trump administration is not changing their tune. I think Secretary Luttig was very clear when he said the United States will be first in producing automobiles. Canada can be second.

這些都在發生，對你來說好消息是，共同因素終於意識到，等待、等待、再等待，看到川普政府沒有改變態度並不是一件好事。我認為，當盧蒂格部長說美國將在汽車生產領域佔據領先地位時，他的意思非常明確。加拿大可以位居第二。

So that shows resolve. So I like to see that, and that helps us in terms of getting our business moving in the right direction. So we are good.

這顯示了決心。所以我很高興看到這一點，這有助於我們的業務朝著正確的方向發展。所以我們很好。

Then just a follow-up on the cost side. What does the guidance imply for further unit cost reductions in the fourth quarter, and should we expect any more momentum in the first part of '26? Thank you.

然後只是對成本方面的跟進。該指引對於第四季單位成本進一步降低意味著什麼？我們是否應該期待 26 年上半年出現更多成長動能？謝謝。

I'll let Celso handle this one. Please, Celso.

我會讓 Celso 處理這件事。請你，塞爾索。

Yeah, sure. Hey, so if you look at the cost performance in Q3, adjusted for the increased automotive mix, we still expect cost to be down $50 a ton year over year when adjusted for this mix.

是的，當然。嘿，所以如果你看一下第三季度的成本表現，並根據增加的汽車組合進行調整，我們仍然預計，根據這種組合進行調整後，成本將同比下降每噸 50 美元。

You can see in our track record achieving cost reductions dating back to 2023. We achieved an $80 a ton cost reduction in '23. We were down another $30 a ton in '24, and then now in '25 our unit costs are still expected to be down $50 a ton. So we're not changing the guide there.

您可以看到我們自 2023 年以來實現的成本削減記錄。我們在 23 年實現了每噸 80 美元的成本削減。1924 年我們的單位成本又下降了 30 美元/噸，而現在，1925 年我們的單位成本預計仍將下降 50 美元/噸。所以我們不會改變那裡的指南。

Just as it relates to other Q4 kind of talking points and general guidance that I can give you, shipments should be similar as Q3, around 4 million tons. You have to consider seasonality with the holidays offsetting improved demand.

正如我可以給您的其他第四季度談話要點和一般指導一樣，出貨量應該與第三季度相似，約為 400 萬噸。您必須考慮季節性因素，假期會抵消需求的成長。

Auto shipments are expected to be similar. And then in terms of pricing, you probably have all the pieces that you need to calculate the ASP for Q4. So relative to Q3, Q4 cost should be relatively similar to Q3.

預計汽車出貨量也將類似。然後在定價方面，您可能已經掌握了計算第四季 ASP 所需的所有資訊。因此相對於 Q3，Q4 的成本應該與 Q3 相對相似。

Thank you.

謝謝。

Carlos de Alba, Morgan Stanley.

卡洛斯·德阿爾巴，摩根士丹利。

Yeah, good morning, Lourenco, Celso. Thanks for the update. Just following up on the auto contracts, can you maybe give us some comments on the volume growth implicit in these new agreements and potentially an indication of how much pricing may be moving up or down or staying flat? Definitely a very important piece of the business going forward.

是的，早上好，Lourenco，Celso。感謝您的更新。只是跟進汽車合同，您能否就這些新協議中隱含的數量增長給我們一些評論，並可能表明價格可能會上漲、下跌或保持不變多少？這絕對是未來業務發展中非常重要的一部分。

Look, directionally these contracts will generate a lot more margin for us, including margin per ton, and that's all I can share at this point with you.

你看，從方向上看，這些合約將為我們帶來更多的利潤，包括每噸的利潤，這就是我現在可以與你們分享的全部內容。

These are good contracts, but we realized one thing, Carlos, that probably has been missed throughout this entire conversation. And I'm trying to -- in my prepared remarks, I'm now using your question, so thanks for the question, I will try to explain a little bit about what Cleveland-Cliffs really is in terms of the automotive industry.

這些都是很好的合同，但是卡洛斯，我們意識到一件事，在整個談話過程中可能都被忽略了。我正在嘗試——在我準備好的演講中，我現在正在使用您的問題，所以感謝您的提問，我將嘗試稍微解釋一下克利夫蘭-克利夫斯在汽車行業中到底是什麼。

We hear a lot about market share in automotives, gaining market share, losing market share. Let's understand one thing. Cleveland-Cliffs has so much more capacity to produce the steels that the automotive industry needs compared with any other supplier or any other wannabe supplier of automotive steel. That is not even a topic of conversation talking about market share, about these type of thing.

我們聽到很多關於汽車市場份額、獲得市場份額、失去市場份額的消息。讓我們來了解一下一件事。與任何其他供應商或任何其他想要成為汽車鋼材供應商的公司相比，克利夫蘭克利夫斯公司擁有更大的生產汽車行業所需鋼材的能力。這甚至不是一個談論市場份額或這類事情的話題。

We have five plants, food plants that are ready to supply a lot more exposed parts than we are supplying right now. Not because we lost market share, but because the car manufacturers were producing cars in places like Mexico, Canada, South Korea. And I'm talking about American car companies, even in Japan, American car companies. So that's the absurdity of the entire thing, and that's what's being corrected.

我們有五家工廠，食品工廠，準備供應比我們現在供應的更多的暴露部件。這並不是因為我們失去了市場份額，而是因為汽車製造商在墨西哥、加拿大、韓國等地生產汽車。我說的是美國汽車公司，甚至在日本，也有美國汽車公司。這就是整件事的荒謬之處，也是需要被糾正的地方。

So as they are being compelled, in the lack of a better term, to produce cars in North America, in certain cases like Stellantis, they are coming to their senses and coming back to the reality that North America is their main market and Cliffs is their main supplier. We are seeing the business coming back and coming back extremely stronger.

因此，當他們被迫在北美生產汽車時，在某些情況下，例如 Stellantis，他們開始意識到現實，即北美是他們的主要市場，而 Cliffs 是他們的主要供應商。我們看到業務正在復甦，復甦得異常強勁。

Just to give one set of numbers for you to think. Columbus Coatings, it's one galvanizing line ready for extra-wide exposed parts that produces today something between 280,000 and 300,000 tons a year. The line itself is able, as is, to produce 450,000 tons just by putting water through the line, and that is coming. And the site itself is perfect to double in terms of the capacity in that specific site because we have room to put another line side by side with the existing one to double from 450,000 to 900,000.

僅給出一組數字供您思考。哥倫布塗料公司 (Columbus Coatings) 是一條專門為超寬外露零件準備的鍍鋅生產線，目前每年的產量在 28 萬至 30 萬噸之間。這條生產線本身僅透過輸水就能生產 45 萬噸，而且這一目標正在實現。就該特定站點的容量而言，該站點本身非常適合翻倍，因為我們有空間在現有線路旁邊放置另一條線路，將容量從 450,000 翻倍到 900,000。

That's not a single site. And we don't need to invest to put the new line because we have idle capacity in Dearborn. The downstream Dearborn is the most modern galvanized steel plant in the world. It was built in 2013 by Severstal and acquired by AK Steel, and then we acquired AK Steel.

這不是一個單獨的網站。而且我們不需要投資鋪設新生產線，因為我們在迪爾伯恩有閒置產能。下游的迪爾伯恩擁有世界上最現代化的鍍鋅鋼廠。它由謝韋爾鋼鐵公司於 2013 年建造，後來被 AK Steel 收購，然後我們又收購了 AK Steel。

So Dearborn is ready for more. Middletown, same thing. Rockport, Rockport needs to be visited. It's all robotic. It's all automated. Has been like that for at least another 1 or 1.5 decades. So it's there.

因此，迪爾伯恩已做好了更多準備。米德爾敦，同樣的事情。羅克波特，羅克波特值得一遊。一切都是機器人的。一切都是自動化的。至少在接下來的 10 到 15 年裡，情況一直是如此。所以它就在那裡。

New Carlisle, that used to be called I/N Tek and I/N Kote by Inland and Nippon Steel long ago, is pretty modern and pretty well equipped to produce not only hot-dip galvanized and galvannealed, but also electrogalvanized, as well as Middletown.

新卡萊爾很久以前曾被 Inland 和 Nippon Steel 稱為 I/N Tek 和 I/N Kote，它相當現代化，設備齊全，不僅可以生產熱浸鍍鋅和鍍鋅，還可以生產電鍍鋅，就像米德爾頓一樣。

So we have -- and that's just exposed. If you go to non-exposed high-end, non-exposed, you have Cleveland. Cleveland Works is the most technologically advanced mill to produce high-strength low-alloy steels for the structure of cars here in the United States. And we have been doing that, but we have capacity for more.

所以我們已經——這只是暴露了。如果你去非暴露的高端，非暴露的，你就會有克利夫蘭。克里夫蘭工廠是美國生產汽車結構用高強度低合金鋼技術最先進的工廠。我們一直在這樣做，但我們有能力做更多。

So that's prevalent everywhere, Indiana Harbor; Burns Harbor; our joint venture with Washington Steel, Spartan, same thing. So that's nine plants ready to grow as this or add capacity as needed in the next three, four, five, six years.

這種現像在各地都很普遍，印第安納港、伯恩斯港、我們與華盛頓鋼鐵公司的合資企業斯巴達都是如此。因此，這九家工廠準備在未來三、四、五、六年內擴大規模或根據需要增加產能。

So this movement that was initiated by President Trump that will percolate for the next five, maybe ten years, will be all supported by Cleveland-Cliffs. And I'm explaining to you the capacity. So I'm not going to go into these little details on how much more the contract or this and that. These things are coming out as a wave of new business that we are ready to take right now.

因此，川普總統發起的這場運動將在未來五年甚至十年內持續下去，而克里夫蘭-克利夫斯將全力支持這項運動。我正在向你們解釋其容量。因此，我不會詳細討論合約金額或諸如此類的事情。這些事情正在形成一股新的業務浪潮，我們現在已經準備好迎接它們。

Sorry for the long answer. It was a good question. I decided to use it to explain details that probably are not well understood, but I hope after I made that explanation, we at least generate more questions that will keep us helping clarify the subject.

抱歉回答太長。這是個好問題。我決定用它來解釋那些可能不太理解的細節，但我希望在我做出解釋之後，我們至少會產生更多的問題，從而幫助我們澄清這個問題。

Great. Thanks for the additional information. And then, talking about the other opportunity that just came up for Cliffs on the rare earth space, are there any details that you have in terms of the type of mineralization, rare mineralization that you may have and what type of minerals potentially you could be producing? Also, is there a timetable for a feasibility study or preliminary economic assessment?

偉大的。感謝您提供的補充資訊。然後，談到 Cliffs 在稀土領域剛剛遇到的另一個機會，您能否提供有關礦化類型、您可能擁有的稀有礦化以及您可能生產哪些類型的礦物的詳細資訊？另外，可行性研究或初步經濟評估是否有時間表？

Look, I don't think that I want to talk about Heathrow Dysprosium or terbium or cerium or lanthanum, or neodymium or praseodymium in this call. But I am a chemistry person, so I would love to. But I don't think that would be a good thing for us today, Carlos. Let's take this offline and let's discuss.

聽著，我不認為我想在這次通話中談論希思羅鏑、铽、鈰、鑭、釹或镨。但我是化學家，所以我很樂意。但卡洛斯，我認為這對我們今天來說不是一件好事。讓我們離線討論一下。

The important thing is that they are there. We found them there, and we want to make it viable. We really believe that we have potential there and that it will be good for Michigan, for the Upper Peninsula primarily and there's even one site in Minnesota that we would go. Minnesota is not very friendly to us, but we still investigate there. But we definitely will start in the Upper Peninsula because we love the Upper Peninsula.

重要的是他們就在那裡。我們在那裡找到了它們，並且我們希望使它們可行。我們確實相信我們在那裡有潛力，這對密西根州、特別是上半島都有好處，甚至在明尼蘇達州還有一個我們會去的地點。明尼蘇達州對我們不太友好，但我們仍然在那裡進行調查。但我們肯定會從上半島開始，因為我們熱愛半島。

All right. Thank you, Lourenco. Looking forward to that conversation on more details when available.

好的。謝謝你，洛倫索。期待在有更多細節時進行討論。

Thank you.

謝謝。

Mike Harris, Goldman Sachs.

高盛的麥克·哈里斯。

Okay, let's try this again. Hopefully you can hear me this time. Just wanted to follow up on the electrical steel award that you highlighted and just to kind of help us, how should we think about that? Is that more of a kind of one-time opportunity or is this like the first of --?

好的，我們再試一次。希望這次你能聽到我的聲音。我只是想跟進一下您強調的電工鋼獎，並幫助我們了解我們應該如何看待這個問題？這更像是一種一次性機會，還是第一次--？

It's a one-time opportunity, Mike, but it's a multi-year one-time opportunity. The US government, the Department of War, made the decision to put in storage a safety reserve, strategic inventory of this type of materials that we produce. So we are going to build that inventory together with the Department of War.

這是一個一次性的機會，麥克，但這是一個多年的一次性機會。美國政府戰爭部決定將我們生產的此類材料儲存起來，作為安全儲備和戰略庫存。因此，我們將與戰爭部一起建立該庫存。

And we are very proud of this partnership. It's extremely good in terms of economic terms and in the long-term viability. Of course, we're going to prioritize that because it's national security. And it will take years to finish, and this probably is the first move into a direction that it's clear that the Trump administration is taking in terms of protecting the country with strategic inventories of things that could be under attack in a moment that's not very peaceful in the world. So it's all good, and we are proud of our partnership with the US government and particularly with this specific deal.

我們對這段合作關係感到非常自豪。從經濟角度和長期可行性來看，這是非常好的。當然，我們會優先考慮這一點，因為這是國家安全。這項工作將需要數年時間才能完成，這可能是川普政府採取的第一步行動，即透過戰略儲備來保護國家，因為在世界不太和平的時刻，這些儲備可能會受到攻擊。所以一切都很好，我們為與美國政府的合作，特別是這項具體協議感到自豪。

Okay, that helps. And then, just a follow-up to, and I think just a few minutes ago someone asked a question around the cost reduction effort, and you kind of pointed out the track record. I guess I was just curious, what we’re witnessing here, is that just you guys now have the opportunity to take out maybe stranded costs from the acquisitions, or are we seeing the benefits from, I don’t know, some process improvement or technological advances? Just kind of help me understand what we're witnessing with the cost reduction effort here.

好的，這有幫助。然後，只是後續問題，我想就在幾分鐘前有人問了一個有關降低成本努力的問題，而您指出了過去的記錄。我想我只是好奇，我們在這裡看到的是，你們現在是否有機會從收購中消除擱淺成本，或者我們是否看到了一些流程改進或技術進步帶來的好處？只是幫助我了解我們在這裡見證的成本削減努力。

Yeah, sure, Mike. Thanks for the question. Yeah, I think over time we've been proactive in terms of optimizing the footprint. We became a steel company in 2020, if you remember. We acquired AK Steel. We closed that deal March 13 of 2020 in the middle of the pandemic, and then we doubled down and we acquired the ArcelorMittal USA assets in the same year, closed on December 9 of that year.

是的，當然，麥克。謝謝你的提問。是的，我認為隨著時間的推移，我們一直在積極主動地優化足跡。如果你還記得的話，我們在 2020 年成為了一家鋼鐵公司。我們收購了 AK Steel。我們於 2020 年 3 月 13 日（疫情期間）完成了這筆交易，然後我們加倍努力，於同年收購了安賽樂米塔爾美國公司的資產，並於同年 12 月 9 日完成交易。

And for the subsequent years thereafter, we became a major steel company sort of overnight, and it took time to optimize the footprint. It came with a lot of assets. Many of them were very good. Some of them weren't so great.

此後幾年，我們一夜之間就成為了一家大型鋼鐵公司，並且花了一些時間來優化足跡。它附帶了很多資產。其中很多都非常優秀。其中有些並不是那麼好。

So over the last few years, we've been prioritizing optimizing the operations across all of our assets, and that's what's really driven the accomplishment on the cost side. And this year was really the completion of those efforts.

因此，在過去幾年中，我們一直優先優化所有資產的運營，這才是真正推動成本取得成就的因素。今年是這些努力真正完成的一年。

Okay, that helps out. Thanks a lot, guys, and good luck and continued success.

好的，這很有幫助。非常感謝大家，祝大家好運並繼續取得成功。

Thank you. I appreciate it.

謝謝。我很感激。

Thank you. That brings us to the end of today's question-and-answer session. I'd like to thank everyone for their participation today. You may disconnect your lines and log off at this time. Enjoy the rest of your day.

謝謝。今天的問答環節到此結束。我要感謝大家今天的參與。此時您可以斷開線路並登出。享受這一天剩下的時間。