[Management View]
Cleveland-Cliffs management highlighted the successful negotiation of multi-year contracts with all major automotive OEMs, ensuring higher sales volumes and improved pricing through 2027 or 2028. Ongoing operational optimizations and footprint rationalization enabled a sequential adjusted EBITDA increase of 52% in Q3 2025 and continued cost reductions, with unit costs expected to be down $50 per ton year over year in Q3 2025, adjusted for mix. The company announced a pending formal partnership process with a major global steelmaker via a memorandum of understanding, indicating heightened strategic interest in Cleveland-Cliffs’ U.S. platform. Government engagement remains strong, as reflected in Cleveland-Cliffs’ $400 million electrical steel contract awarded in Q3 2025. Large proceeds from non-core property asset sales ($425 million) are designated entirely for debt reduction, and the upcoming expiration of the imported slab contract will further strengthen operational integration.

[Outlook]
Management confirmed unit cost reductions are on track, with $300 million in annual savings targeted from operational streamlining as of Q3 2025. Comprehensive geologic reviews and assessments of rare earth mineralization potential in Minnesota and Michigan are underway. The company deprioritized its broader operational asset sale process in favor of advancing negotiations tied to the global steelmaker MOU, with incremental asset sales generating liquidity but not affecting EBITDA contribution.

[Financial Performance]
Adjusted EBITDA for Q3 2025 was $143 million, a 52% increase from the prior quarter, driven by higher realized prices and improved product mix. Steel shipments were 4 million tons, down from the prior quarter, attributed to summer slowdowns and a disciplined market approach. Automotive steel shipments increased to 30% of total shipments, up from 26% in the previous quarter, contributing to improved pricing. The average selling price increased due to the higher automotive mix.

[Q&A Highlights]
Question 1: How quickly could you produce products in the rare earth vertical? Would you look to be a vertically integrated producer or seek a partner?
Answer: We have the opportunity to develop mining assuming initial studies play out as expected. The U.S. Government realizes the importance of having an industry for these minerals within the U.S. There are several ways to proceed, including cooperation with Canada. The geographical location is favorable for both countries.

Question 2: What resources have you brought in to explore the rare earth opportunity, and when can we expect potential product mix or economics?
Answer: We have identified two promising sites and are working with geologists to assess commercial viability. As a mining company, we understand these lands well and will put significant effort into developing this potential, either within the U.S. or in partnership with Canada.

Question 3: Why did you deprioritize the asset sale process, and what interest has there been in the assets?
Answer: The process has not stopped; we have a signed contract for a portion of the FPT sale. We are considering selling our direct reduction plant in Toledo, Ohio, as it no longer holds strategic value without the acquisition of U.S. Steel. The MOU with our partner is a higher priority.

Question 4: Can you provide details on the sale of the Florida assets to SA Recycling?
Answer: The Florida assets sale is under agreement but not yet closed. The sale does not impact our EBITDA as the site generated zero EBITDA. The number is very good and will be reflected in our liquidity once closed.

Question 5: When do the new auto contracts kick in, and what is the expected impact on volumes and pricing?
Answer: Some contracts start on October 1, but the full impact will be seen in 2026. We expect significant activity from these contracts, particularly with major automakers like General Motors, Ford, and Stellantis.

Question 6: What does the guidance imply for further unit cost reductions in Q4 and 2026?
Answer: We expect costs to be down $50 per ton year over year, adjusted for mix. Shipments in Q4 should be similar to Q3, around 4 million tons, with similar costs.

Question 7: Can you comment on the volume growth and pricing in the new auto contracts?
Answer: These contracts will generate higher margins per ton. Cleveland-Cliffs has significant capacity to produce the steels needed by the automotive industry, and we are ready to support the increased demand.

Question 8: Are there details on the type of rare earth mineralization and the timetable for feasibility studies?
Answer: We have identified promising mineralization and are assessing commercial viability. We will start in Michigan's Upper Peninsula and continue to investigate in Minnesota.

Question 9: How should we think about the electrical steel award from the U.S. Government?
Answer: It is a multiyear opportunity to build a strategic inventory of materials for national security. This partnership with the Department of War is economically beneficial and aligns with the Trump administration's strategic goals.

Question 10: What is driving the cost reduction efforts, and are there technological advances involved?
Answer: The cost reductions result from optimizing our footprint after acquiring AK Steel and ArcelorMittal USA assets. We have prioritized operational improvements across all assets.

[Sentiment Analysis]
Analysts were positive and appreciative of the detailed updates provided by management. The tone was optimistic, with a focus on strategic growth and operational efficiency.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 |
|-------------------------|---------|---------|
| Adjusted EBITDA | $143M | $94M |
| Steel Shipments | 4M tons | 4.2M tons|
| Automotive Shipments | 30% | 26% |
| Average Selling Price | $10.32/ton | $10.15/ton |
| Coated Volumes | 29% | 27% |

[Risks and Concerns]
Cleveland-Cliffs faces ongoing challenges in its Canadian operations, with Stelco underperforming due to Canadian government inaction on import penetration. The construction and general manufacturing sectors remain relatively weak, with limited restocking activity observed.

[Final Takeaway]
Cleveland-Cliffs demonstrated strong performance in Q3 2025, driven by strategic automotive contracts and operational efficiencies. The company is well-positioned for future growth, with significant cost reductions and a focus on high-margin automotive steel. The partnership with a major global steelmaker and the exploration of rare earth minerals further enhance Cleveland-Cliffs' strategic outlook. However, challenges in the Canadian market and broader economic conditions remain areas to monitor.