[Management View]
Cleveland-Cliffs Inc. management emphasized operational efficiencies, higher realized pricing, and improved shipment volumes as key drivers of financial progress. Strategic priorities include footprint optimization, cost reduction, and leveraging internal coke supplies for cost synergies.

[Outlook]
The company expects further EBITDA growth following the expiry of the Arcelor slab agreement in December 2025. Future plans include debt reduction through non-core asset sales and continued focus on cost-cutting and operational efficiency.

[Financial Performance]
Q2 2025 saw a $271 million increase in adjusted EBITDA quarter-over-quarter, driven by higher shipment volumes and reduced production costs. The average selling price rose by $35 per ton, and unit costs declined by $15 per ton, surpassing initial guidance.

[Q&A Highlights]
1. Question: How should we think about the cadence of cost reductions from here? (Line breaks here)
Answer: Costs were down $15 per ton in Q2, and further reductions of $20 per ton are expected in Q3. Full-year 2025 targets a $50 per ton reduction compared to 2024, driven by footprint optimization and efficiency improvements.

2. Question: Could you remind us about CapEx expectations in 2027? (Line breaks here)
Answer: No reline CapEx is expected until 2027. The Middletown project will not pursue hydrogen-based EAFs due to lack of availability, focusing instead on enhancing existing facilities with traditional resources.

3. Question: How should we think about free cash flow generation in the second half? (Line breaks here)
Answer: Q2 saw a $67 million cash outflow, but further working capital release is expected. Historical free cash flow generation has averaged over a billion dollars annually, with future cash flow directed towards debt reduction.

4. Question: Could you touch on the average selling price and volume expectations for Q3 2025? (Line breaks here)
Answer: Shipments are expected to remain at 4.3 million tons, with continued EBITDA improvement. The average selling price is influenced by a mix of fixed, CRU, and spot pricing, with detailed composition provided.

5. Question: Can you talk about automotive volumes in the second quarter? (Line breaks here)
Answer: Automotive volumes are growing, with OEMs increasing U.S. production and reducing imports. The company is well-positioned to support this growth, with significant capacity and capabilities in place.

6. Question: Are you seeing any opportunities in the appliance market outside the U.S.? (Line breaks here)
Answer: Section 232 tariffs have encouraged U.S. appliance production, creating opportunities for domestic steel suppliers. The company expects a larger market for fixed annual contracts as production returns to the U.S.

7. Question: Could foreign investment in Cleveland-Cliffs Inc. be an attractive opportunity? (Line breaks here)
Answer: The company is open to exploring non-core asset sales and other opportunities, with active conversations ongoing. The sum of the parts is considered more valuable than current market valuation.

8. Question: Can you provide further color on the non-core assets that could be sold? (Line breaks here)
Answer: The company is exploring the sale of non-core assets, with potential to generate billions in cash for debt reduction. Specific details remain confidential.

[Sentiment Analysis]
Analysts and management maintained a positive tone, focusing on cost reductions, strategic positioning, and future growth opportunities. Management expressed confidence in achieving financial targets and leveraging market conditions.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | Change |
|-------------------------|---------|---------|---------|
| Adjusted EBITDA | $271M | - | +$271M |
| Shipment Volume (tons) | 4.3M | 4.15M | +150K |
| Average Selling Price | $1,015 | $980 | +$35 |
| Unit Cost Reduction | $15/ton | - | - |

[Risks and Concerns]
Risks include exposure to higher imported steel penetration in Canada, underutilized automotive steel capacity, and potential economic slowdowns in key markets. Management is addressing these through strategic initiatives and market positioning.

[Final Takeaway]
Cleveland-Cliffs Inc. demonstrated strong financial performance in Q2 2025, driven by cost reductions and strategic positioning. The company is well-positioned to capitalize on market opportunities, with a focus on debt reduction and operational efficiency. Management's proactive approach to supply chain management and asset optimization supports a positive outlook for the second half of 2025.