Good morning, ladies and gentlemen. My name is Kevin, and I am your conference facilitator today. I'd like to welcome everyone to Cleveland-Cliffs second quarter 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. 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 results to differ materially. Important factors that could cause results to differ materially are set forth in reports on Forms 10-K and 10-Q and news releases filed with the SEC, which are available on the company website. 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 in the earnings release, which was published this morning. At this time, I'd like to introduce Celso Goncalves, Executive Vice President and Chief Financial Officer. Good morning, everyone. Our second quarter marked the continued execution of our key capital allocation objectives, including the largest free cash flow-driven debt reduction in company history. During the quarter, we generated $633 million in free cash flow on $1.1 billion of Adjusted EBITDA. This cash generation in Q2 is more than double what we generated in Q1, even after paying around $300 million of cash taxes in the second quarter. Consistent with our stated priorities, we use this cash to aggressively pay down debt and opportunistically buy back stock. During the quarter, we fully redeemed the remaining $607 million of our most expensive secured notes well in advance of its maturity and took advantage of volatility in the debt markets to attack other tranches of bonds in the open market, repurchasing another $307 million in principal outstanding notes at an average discount of 8% to par. These repurchases focused on our 2029 and 2031 guaranteed unsecured bonds, as well as our 2026 secured notes. On the revenue front, our volumes and selling prices were both up sequentially from Q1 to Q2, leading to a record quarterly sales revenue of $6.3 billion. Our Q2 steel selling price averaged $1,487 per net ton, representing an over $40 quarter-over-quarter increase, primarily driven by substantially higher slab prices sold to other steel mills and favorable April fixed price sales contract renewals, as well as continued robust spreads for cold rolled, coated, and plate products sold on an index basis. Looking ahead, in the third quarter, although pricing will likely be impacted by falling commodity index prices, lower spot prices will be heavily mitigated by our industry-leading use of fixed price contractual arrangements. Our next round of fixed price contract resets will occur on October 1st, with roughly 1.7 million annualized tons up for renewal. Given our unique product offering and technical capabilities, we expect to see continued substantial increases in fixed contract prices in this upcoming renewal, even with the recent downtrend in commodity steel prices as a backdrop. From an operating standpoint, our Q2 Adjusted EBITDA was down sequentially quarter-over-quarter, primarily due to the increased cost that we foreshadowed on our last earnings call. With over 200 million MMBtus of annual consumption, Cleveland-Cliffs is one of the largest direct consumers of natural gas in the U.S. Even though we're meaningfully hedged at all times, we still experienced a substantial impact from elevated natural gas prices throughout the entire quarter. Other rising input costs included electricity, scrap, and alloys, as well as higher repair and maintenance spending. Cost increase was also driven by higher idle costs, up nearly $200 million from Q1, which was driven in large part by the expanded scope of the outage at our Cleveland Works facility. Along with the reline of Blast Furnace Number Five in Cleveland, which is generally only done once every 20 years, we took advantage of the downtime to perform other important repairs and maintenance in related areas of Cleveland Works, including the wastewater treatment plant and the on-site powerhouse. With the additional work being done, we now plan to have Cleveland Works back at full capacity in August, aligning with improved automotive steel demand. With the bulk of the work behind us, we expect our excess and idle costs to decline meaningfully in the third quarter. In terms of working capital, while our gross inventory values increased as a result of higher costs during Q2, our total steel inventory volumes were actually reduced by 230,000 tons in the second quarter and has declined about 400,000 tons so far this year. As costs for several of our primary inputs have declined recently since the end of Q2, and with Cleveland Works back in full operation in Q3, we expect working capital to be a meaningful source of cash in the second half of the year. Even with the current lower price of commodity-grade steel in the market, we expect to continue generating strong free cash flow for the remainder of the year. There are several factors that will continue to support our cash generation going forward under the current environment. One, the fixed price nature of nearly half of our order book will keep our average selling price elevated despite lower spot prices. Two, fixed price contract resets occurring on October 1st are going up, not down. Three, lower operating repair and maintenance and idle costs going forward. Four, the expected release of working capital that we have built up over the past 18 months. Five, lower CapEx spending as we have no major capital projects on the horizon for the foreseeable future. This will all allow for continued robust free cash flow generation, opportunistic share buybacks, and aggressive debt reduction. With net debt well below 1x our last 12 months Adjusted EBITDA, we continue to be focused on maintaining conservative leverage levels going forward. With that, I'll now turn the call over to our CEO, Lourenco Goncalves. Thank you, Celso, and good morning, everyone. Cleveland-Cliffs became a steel company on March 13, 2020, the day we completed our acquisition of AK Steel. Two of our favorite things about AK Steel were its industry-leading weighting toward the automotive end market and its leading capabilities in research and development. Automotive not only consumes a lot of highly customized flat-rolled steel, but also demands strict specifications and a long approval process to qualify material. There is no such thing as commodity steel in automotive. That's true in Europe, in Japan, in South Korea, and obviously here in the United States as well. That being said, the supplier base of steel to automotive clients everywhere in the entire world is limited to a few steel companies really able to support all the specs the car manufacturers need, usually one per country or geographic region. That background aside, within a week of the completion of our AK Steel acquisition in March 2020, the entire automotive production ecosystem shut down for the first time ever in its century-plus-long history. After a three-month-long interruption, automotive production began to resume, but not nearly to the levels we had seen for the prior decade, despite a very strong demand for cars associated with the restrictions imposed by COVID-19. While the automotive sector was slowly coming back to life, we acquired ArcelorMittal U.S.A, the other major steel player in the automotive space, making Cleveland-Cliffs the largest supplier of automotive steel in North America by a very wide margin. Next, a wave of supply chain issues began to hit the sector, with widespread shortage of microchips being the most visible problem. That reversed in the initial pace of recovery and have hampered automotive production to this day. In the six years leading up to 2020, North American light vehicle production averaged more than 17 million units per year. Comparably, in the past two years, the industry has only produced 13 million units per year, a 24% decline at a time when consumers demand for cars was growing. During this time period, other steel consuming markets have grown, most notably construction, and we have benefited from that, as evidenced by our record earnings results in 2021. That said, our mini mill peers are much more leveraged to the construction market than we are, and they have benefited from that more than we have, particularly in their downstream businesses. This is now about to change. As we read through the current economic conditions in the country, which include 40-year high inflation levels and rising interest rates, yet consistently low unemployment, we have all the ingredients for the dynamics of the past two years to shift in our favor. It has been over two years of construction outpacing automotive, but that's no longer the case. The North American automotive industry could have produced 8-10 million more vehicles than they actually did over the past two years. As a result, a relentlessly growing pent-up demand for cars, trucks, and SUVs has developed. The best indicator of this trend is the Manheim Used Vehicle Value Index, which has nearly doubled in that time period and remains near all-time highs. On top of that, the average age of a light vehicle on the road in the U.S. has grown to 12.2 years, the highest it has ever been. Also, very importantly, the unemployment rate has remained low at 3.6%, about the lowest it has been in 53 years. This means that individuals not only have the income to buy a new car, but in most cases, they also need that car to commute to work. A car is not a house, and a loan to buy a car is less sensitive to interest rates than that of a mortgage. If you have a paycheck, you can buy or lease a car and make the monthly payments. Unless the fight against inflation leads into high levels of unemployment, every car that can be produced over the next several years has a buyer. It's just a matter of having the materials needed to produce the cars. The most prevalent material in a car is steel, which makes up roughly half the weight of the vehicle. Over the past two years, we at Cleveland-Cliffs have made the investments necessary to meet this coming onslaught of demand, and we are ready with the most advanced technical capability the industry can offer, including a brand-new blast furnace at our Cleveland Works operation. All of our automotive customers have indicated to us that their supply chain issues are easing, and we are seeing tangible proof of this through our own channel checks. The production pace of the first half of this year has been nowhere near its full potential, let alone the prior decade average. Starting the second half of 2022, we expect to get more automotive volume. With more volume and base load for our mills, our costs should naturally improve. The incoming volume improvement comes from both internal combustion engine vehicles and electric vehicles. We are not only the largest supplier of steel to the automotive sector, but we're also the largest supplier of each one of the individual car manufacturers currently transitioning from ICE vehicles to EVs. Higher fuel prices have only increased the consumer's appetite for EVs. If you as an investor believes in this EV transition, Cleveland-Cliffs is who you need to be with. That's not just because of the long-standing quality products we have historically supplied for ICE vehicles, but also because our broad offerings of advanced high-strength steels is the perfect solution for battery-powered EVs. In addition, we are the only domestic producer of non-oriented electrical steel in the United States, where roughly 150 pounds are required per vehicle for use in the motor. Because of the growing demand of these steels, we are investing $30 million in our Zanesville, Ohio facility, a small investment to allow us to add another 70,000 tons of production of non-oriented electrical steels, NOES, effectively doubling our NOES capacity without impacting our industry-leading capability on GOES, grain-oriented electrical steels. With that, we will also be generating another 100 good-paying middle-class union jobs at Zanesville when this addition comes online in 2023. Going forward, these are the types of low-dollar, high-impact capital projects we will be focused on. That's a clear differentiation between Cleveland-Cliffs and other companies in our space. In their multi-year commitments to massive CapEx, each one of these other companies has announced several billion of dollars to build new mills, steel mills, and even aluminum mills. Cleveland-Cliffs did not and will not announce any of these mega-investments. When we acquired ArcelorMittal U.S.A, and based on our experience immediately after we acquired AK Steel, we knew we would have to spend significant money to bring in the assets to our own higher standards. That has been done and done very well. By now, we have all the equipment and technology in place to meet the needs of our most demanding customers in automotive and other sectors. Actually, our capital spending in 2023 should decline when compared to 2022. Our last big capital project was the Cleveland Works revamp, and we do not have any other capital project of this magnitude until at least 2025. Outside of automotive, it's clear that the stocking activity is underway at service centers, and they simply will let their inventories go very low. Other steel-consuming sectors have peaked for now, but automotive has not. A significant 45% of our sales are on fixed prices, and those prices are not directly correlated with the latest market prices. We have the leading market share in automotive, not because of price, but rather because of our technical capabilities and ability to deliver on time. This is why we expect more price increases in our upcoming renewal cycle, where we can get closer to a proper value for the full service and solution package we provide the automotive industry. These fixed prices will keep our cash flow strong through the rest of the year, along with the release of at least a portion of the $2 billion in working capital we have built over the past 18 months. This working capital release should come not just from lower input costs, but also from our own proactive management of raw materials. For example, we are now extending the ongoing idle at our North Shore swing facility to at least April of next year. With the increased use of scrap company-wide in our steelmaking operations made possible by the acquisition of FPT last year, the pellets from North Shore are not needed at this time. Rather than deplete this finite resource for the benefit of the Mesabi Trust and its so-called unit holders, we will keep North Shore idle until we decide otherwise. On a final note, we have begun our union negotiations with the United Steelworkers to renew our current labor agreement. The agreement expires September 1st, and it covers approximately half of our company-wide workforce. We have always valued the relationship with our unions and made it clear that we appreciate working together with them. Differently from others in our industry, we remain committed to our existing plant sites and to our unionized workforce. With all that, we expect the negotiation process to result in a fair and equitable agreement for both parties. Cleveland-Cliffs is about more than just making steel. Our mission is deeper. To revitalize manufacturing in the United States, and through that, support and enable a vibrant American middle class. We are not a steel company of the past. We are the present and the future of our industry, and we have the right people, equipment, and capabilities to prove that out going forward. I will now turn it back to the operator for Q&A. Thank you. We're now conducting a question-and-answer session. If you'd like to be placed in the question queue, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star one. One moment, please, while we poll for questions. Our first question is coming from Curt Woodworth from Credit Suisse. Your line is now live. Yeah, thanks. Morning, Lourenco and Celso. You know, first question just with respect to cost progression going forward. You know, you outlined the $200 million of costs for Cleveland this quarter, and it seems like the remaining $42 million was more on the energy side. Would you expect to get most of that $200 million back? And does that $200 million also include the implied loss of volume as well from the facility in the third quarter? Look, I will give you a generic idea on the answer, and then I'll let Celso handle the specifics. Okay, Kurt? We acquired assets, particularly the set of assets that came from ArcelorMittal, that were not in great shape. We knew that coming in. That's why we paid a price that was much more than the actual value of the assets. I'm sure you recognize that. This being said, all these big costs are behind us. Cleveland was the last one. When we shut down the blast furnace, we saw the opportunity due to a market that was less than ideal, let's call like that, to do things that are overdue, like the powerhouse and the water treatment. We are at the Cuyahoga River and pretty close to Lake Erie, so we need to be very careful with these things, and we take our environmental commitment very seriously, as you know. You know, these are one-time things that don't happen often. Like I said, our next big deal might come in 2025. Between now and then, we have nothing. Anyway, Celso, please go ahead and comment on the point that Curt was asking. No, I think you covered it. I mean, when you know when you shut down a facility like Cleveland, you have the opportunity to fix everything. We took advantage of that in Q2. The fact that automotive has been slower here to start the year has given us time to catch up on maintenance. You know, as you stated, the facilities we acquired needed to be brought up to our standard. Then, you know, on top of that, we had some inflationary pressures like natural gas, as we all know, electricity, scrap and alloys. Those all spiked during the quarter, but have since come down. I'd say that the biggest cost impacts are now behind us. You know, you might have some flow-through in inventory in Q3, but we don't have any more of these major outages like Cleveland until 2025. Would you expect to recoup most of the $200 million this quarter? You know, I'm just trying to kind of get a little bit more color on unit cost progression into the quarter. Yeah. This cost will run through inventory Q3, if that's your question. Okay. Maybe just on a couple of cash flow item questions. You know, could you if we assume that steel pricing stays roughly where it is, even though the forward curve is actually shifted back into contango, what would you expect for working capital release in the back half of the year? And then if you can give us updates on your estimates for CapEx this year, next year, as well as cash taxes for this year. Yeah. Well, I'll do the CapEx, Celso will do the working capital. CapEx next year will be no more than $800 million. That should be a good guidance going forward. We are not going to starve our mules for CapEx, like others did before. You know, the Goncalves way is different. We do maintenance, and we take care of our equipment instead of being concerned about a specific quarter. We did what we had to do in Q2. Period. Full stop. That's good management. Going forward, we are not going to do big CapEx things because we don't need anymore. We already did. If you need a number, Curt, and I know you do, to plug in your model, I would plug an $800. An 800 handle type of number for CapEx, something between $800 million and $850 million on a going-forward basis. Okay. That's for CapEx. Working capital, Celso, please. Yeah. In terms of working capital, you know, we've built a lot of working capital since we acquired ArcelorMittal U.S.A, and that's, you know, now starting to reverse. Working capital is gonna provide a tailwind even, you know, even as pricing falls. Receivables, for example, will accelerate. You know, Q2 is probably the peak in terms of inventory cost. You know, we're replacing higher costs now with lower cost inventory. This is all gonna support, you know, healthy free cash flow generation going forward from this release of working capital. Okay, thanks very much. Thank you, Curt. Thank you. Next question is coming from Lucas Pipes from B. Riley Securities. Your line is now live. Thank you very much, and good morning, everyone. Good morning, Lucas. Lourenco, I believe in your prepared remarks, you commented on automotive volumes being up, and then also on total volumes, what you think might be a good ballpark for the remainder of the year. Thank you very much. I can't put a number. Bluntly, it's very difficult at this point to narrow down to a number. I can see trends. The orders are starting to come more consistently. Unexpected shutdowns are gone. The announcements of new EVs from the likes of our clients, each one of them, you pick one, and we are there. We are the biggest supplier of the one that you pick, are consistent with what they are ordering in terms of steel. There's a lot of development, the background, in our R&D department to advance the high-strength steels for enclosures of battery for EVs, as well as the specification of materials for the skins and the structure of these same EVs. Things are really moving back where they should move. One short-term indication is also that there's a big trend right now of car manufacturers being kind of the reality sinking in in Europe. It's clear that all this speech of the Europeans is just that, speech. They don't have natural gas even to heat their houses. We are starting to see reallocation of microchips and other things from Europe to the United States, and we are also seeing the growth in orders as a consequence of that. Even though I'm not giving you a number, Lucas, I'm giving you a lot of good indications that things are starting to turn, and we are ready for that. That's very good to hear. Thank you for that color. Lourenco, it was great to hear that the October pricing is going to be up. You know, I'm sure there are a lot of different components to this negotiation and resetting these prices. You know, when I think back to late last summer, pricing were at their record highs. You would think that led into the October pricing last year. What's maybe the biggest factor this year for the higher pricing reset? And can this carry forward into the January and April negotiations as well? Because, basically, Lucas, what people see on the spot price don't really bear a lot of contact points with what we are dealing on a daily basis with our car manufacturers. By the way, pretty much all steel mills talk about the automotive industry. When I say that Cleveland-Cliffs is the largest, let me put numbers on that. Last year, we supplied 6.8 million tons of steel to the automotive industry. The automotive industry produced 13 million cars. 6.8 is bigger than 6.5, that would be half. We supplied more than half of the steel that the automotive industry acquired. We are really affected by the automotive industry. The results we have brought to this company since we built this company a couple years ago, are not short of a miracle, particularly because we are going against the backdrop of a main market that's not working properly. That's about to change at this point. They know that. They can't just try to negotiate the last penny in a moment that they are fighting for their own survival. They have one big competitor that came brand new to the sector and took over the electric vehicles chunk of the market. Now they are playing catch up. I'm telling you, they're playing catch up pretty fast, and we're helping them to play catch up. The price conversation exists, but it's not front and center when we are negotiating the bulk of their needs. They might for hot-rolled stuff that has less restrictions and things that's going in less critical parts of the car, they still have the ability to buy from others. For the real deal, they buy from Cleveland-Cliffs. They know that. We know that. That's the negotiation that's going on. Great. Lourenco, really appreciate the color. Thank you very much. Best of luck. I'll turn it over for now. Thanks, Lucas. Thank you. Next question today is coming from Michael Glick from J.P. Morgan. Your line is now live. Hey, good morning. You know, the market's obviously focused heavily on demand right now. I mean, I guess beyond auto, could you just talk about how the order book's been shaping up in recent weeks? You know, have you seen any pockets of weakness in demand in any of your non-automotive end markets? Yeah. Look, automotive is different, and I think I have spoken out enough about automotive at this time. Let's move to the other sectors. Service centers. Service centers, like always, they are still in the destocking mode. It's not really dead, but it's opportunistic. It's just what they need. Nobody's building inventories. And destocking has an end game. You end up with a low stock. It's coming soon, and when the stock is really low, what they do next, they buy. My optimism for the latter part of Q3 is big, like the other companies that pre-announced said the same thing. That's service centers. As far as manufacturing, it's a big broad sector, when I say manufacturing. There are parts of manufacturing that are red hot and are buying a lot, and we will supply some of them. There are other parts of the manufacturing spectrum that are much lower, particularly things that are related to construction. We are not a major player by any stretch, but we are starting to see things slowing down in construction. It's a mixed bag. The good thing for us, Michael, is that automotive has less to do with recession and a lot more to do with employment. Assuming that we don't go into a deep recession, and we still keep employment at decent levels, even if unemployment increases a little bit, we still have enough middle-class type of buyers and above to continue to buy the cars they want. You will continue to see people that are really obsessed with a few higher fuel prices to try to move and buy their first electric vehicle. These are all things that will benefit Cliffs going forward. I really encourage you to look going forward instead of just looking right now at what you see in the results or the press or the negativity or the political football. The fact of the matter is that we are, at this point in the United States, in a moment of people really considering buying cars. If the cars are made available, you are going to see a wave of acquisitions of cars that's unprecedented. The cars need to be available. It looks like they are becoming available. Understood. You know, maybe as we think about the balance sheet, you know, how should we think about your net or maybe even absolute debt target in this environment? Look, I think we got to what we had to get. We are consistently below 1x EBITDA, and we will continue to manage down this debt with cash flow. It's clearly our main priority to continue to knock down debt. I don't know if you noticed, but $6.3 billion in revenues is our record quarter. Our conversion to free cash flow was also outstanding. We put the vast majority of the cash generated to pay down debt. We started buying stock until the silly season started, and then we stopped buying stock, and then we focused only on debt. We'll continue to focus on debt. Like Celso said, we're gonna be very focused on paying down debt as always. We'll buy stock if the opportunities arise. I really believe that at this point, my opportunities to buy stock will start to be rarified. We're gonna be really focused on debt. Okay. Understood. Thank you very much. Thank you. Thank you. Next question is coming from Emily Chang from Goldman Sachs. Your line is now live. Good morning, Lourenco and Celso, and thanks for the update this morning. My first question is just around the asset portfolio and following the closure of Indiana Harbor #4, and I know you did mention this in your prepared remarks, ongoing commitment to each of your assets. Just to reconfirm, do you feel that the size of your portfolio is right-sized at this point with your assets now running more efficiently than they were before? Yeah. Look, good morning, Emily. First and foremost, the shutdown of Indiana Harbor #4 was driven by our commitment to reduce our carbon footprint. We can only do that because Indiana Harbor #7 is a massive consumer of HBI. We use a much lower coke rate over there. We generate a lot less CO2 per ton of steel produced. We are able to serve the entire Indiana Harbor complex, plus Riverdale, just operating the Indiana Harbor #7 furnace. That's also because we melt a lot of scrap in Indiana Harbor and Riverdale. That's basically adapting the hot end to the size of the market that has been there and will be there in the future and doing that in the most environmentally friendly way. I believe that we are pretty optimized at this point. We don't have any intentions to reduce our footprint or grow our footprint. That's the footprint we have. Gains will be margin, like the one I just announced, this investment in Zanesville, just a $30 million investment to bring back a Sendzimir mill to produce more NOES, non-oriented electrical steels. That's the one that goes on the engines of the electric vehicles. We are doing that in Zanesville. We are not doing Butler. We're preserving our ability to continue to produce growth in Butler because the market for transformers is also fantastic. These are markets that are extremely hot right now, and we're the sole supplier of this type of steels, electrical steels. We're good. Great. That's very clear. A follow-up is just around gas and energy and electricity costs there. You know, they've clearly been elevated in the second quarter. How do you see that trending in the third quarters? Maybe if you could share how you think about sort of the hedging program in place and what sort of spot exposures you might have there. Yeah. I'll let Celso take that. Yeah. Hey, Emily. So you know, gas prices I think reached like a 14-year high, and they stayed at those levels throughout the entire, you know, the three months during the quarter. So the Q2, I think market price for gas average was like $7.50 per MMBtu, compared to, you know, less than $5 in Q1. We've seen those prices come down here, in Q3. So that's a benefit to us. You know, as I stated, we consume 200 million MMBtu across our footprint per year. Our philosophy is to remain 50% hedged at all times. So if you look forward to the back half of this year, we're already 50% hedged at much lower levels than spot. You know, we're not trying to speculate on price. We're not trying to make money off of hedging. We just wanna kind of mute the impact of these swings in volatility. That's kinda how we look at it. You know, and then we're exposed on the other half, but at least we're mitigated on the half that we're hedged. Great. Thanks, Celso. Thanks, Emily. Thank you. Next question is coming from Timna Tanners from Wolfe Research. Your line is now live. Yeah. Hey, good morning. Good morning, Tim. Good morning. I wanted to dial down a little bit more, if I could, on your utilization and your volume outlook for the second half. I know in the past you had said that to get above 4 million tons shipments per quarter, you'd need auto to come back. With the restart of Cleveland, could we be at that run rate by the end of the year and into next year? You know, with Cleveland, do you also see a bit of continued outage costs until those roll off into the fourth quarter? Yeah, the answer to the first question is yes. We are one of the reasons why we revamped Cleveland number five is automotive demand. We are seeing the demand shaping up and Cleveland Works is one of, if not the one, the flagship facility in the country to produce high-strength steels for structural portions of the vehicle. And some exposed as well, but we have other locations that are more dedicated to exposed parts. Automotive volume, yes. 4 million tons, yes. What was the rest of the. You know, utilization, these things are. We don't deal with these things. These are statistics things that they have very little to do with operational metrics. Volume, absolutely, you are absolutely right. The 4 million tons is target. I kind of missed one portion of your- Oh, yeah, just the lingering outage cost, given you're talking about an August restart, so assumedly perhaps some lingering inefficiencies into July, I guess. Yeah, we're gonna have some. Celso may be able to give you a little more color, but the bulk has been gone through the tank, so I don't know if- Yeah, it'll be back up and running in August. She's saying some of the lingering impact of the numbers flowing through the quarter. Yeah, it'll flow through here in Q3. You know, the biggest cost impacts are behind us. Okay, helpful. If I could follow up, Lourenco Goncalves, I know last quarter you talked a lot about the benefit of having your own raw materials, and I just love to get your perspective on kind of how quickly that, you know, that prime scrap price seemed to have faded. I mean, do you expect that that's temporary and that it'll still be, you know, tough to get, you know, prime grade material and alternative iron units going forward, and that can be an advantage as some of this excess build up in material and the pandemic time has rolled off? Yeah, look, we are seeing a lot less competition for prime scrap. Our ability to do closed loops with automotive continues to increase. At the beginning, we had to really fight to get the deals done. Now, apparently the competition is not really looking for prime scrap. They should have their reasons. To be honest with you, I don't care. For us, prime scrap is important. We prefer to use prime scrap. Prime scrap allows me to use less coke. Using less coke, I generate less CO2, and that's a good thing. Prime scrap that I use coming from automotive to go back to automotive and the steel that I produce is great to create a closed loop solution with our clients, and there's a value on that. This value is being translated into our ability to renegotiate higher prices and the prices that we are currently in negotiations or already negotiated with our automotive clients. That's all positive. That's good. Okay, great. Thanks for the update. Thanks, Timna Tanners. Thank you. Next question is coming from Seth Rosenfeld from BNP Paribas. Your line is now live. Good morning. Thanks for taking our questions. Just one final one, please, with the outlook for electrical steel, please. I'd love to hear a bit more about some investment in Zanesville. It's gonna be a very low CapEx for meaningful expansion of your non-oriented capacity. Give me a bit more color with regard to the expected EBITDA contribution and ramp up timeline of that. Also, thinking about that facility, is there opportunity for additional kind of de-bottlenecking or low-cost expansion looking forward? Yeah, good morning, Seth. Look, Zanesville, Ohio, is currently the location that finishes some types of electrical steels that are all produced in Butler, Pennsylvania. That was AK Steel's way of doing business. They concentrated production in Butler, and they finished a portion in Butler itself and another portion in Zanesville. What we're doing with this investment, we are bringing back to operation the main piece of the Zanesville mill to produce the steel in Zanesville and a few auxiliary equipment to finish the steel produced at the mill to make Zanesville pretty much independent for this type of NOES specs. Zanesville will become a producing facility by bringing back a mill that's there, and it was idle for I don't know how many years. When we acquired AK Steel, it was already idle. We're bringing it back. That's why the investment is not big. We're not building a mill. We are basically bringing back to life a mill that was there, but it was not being utilized. I gave you the investment and the tons, $30 million for 70,000 tons, which is a pretty damn good relation. The next thing that's going to happen, as the demand for electrical steels continues to grow, we are going to do something similar in Mansfield. Mansfield is our facility that produces stainless steel. We continue to like and do well with stainless, but we are seeing more and more demand for electrical steels, and we are able to alleviate Butler even more by creating electrical steels capabilities in Mansfield. We are talking again a small investment and a big return. We are not done with that part yet. Zanesville is reality, Mansfield is where it stood. Thank you. Just one follow-up on that front. For Mansfield, if you were to expand more into electrical steel, would that come at the expense of lower stainless volumes? No, that's the key, because doing that would be easy. Like we did in Zanesville, we are creating capacity without giving away anything. That's where the science is. Great. Thank you very much. Thank you. Thank you. Next question is coming from Carlos De Alba from Morgan Stanley. Your line is now live. Yeah, good morning, gentlemen. We discussed the fact that your capacity is gonna remain around $800 million, and cash generation should be quite robust, even if prices continue to go lower. You will buy back maybe shares. Your net debt is already quite low. What about dividends? Is that anywhere in your plans for the foreseeable future? Good morning, Carlos. Look, of course, it's in our radar, but it's not a priority. It's not a priority. From the investor's standpoint, if they really want dividend, there are other companies in our space, great companies, by the way, that offer a consistent dividend, and they have stable business models. I strongly recommend dividend hungry investors to go to these companies. They are good companies. You're gonna do well there. On the other hand, if you want growth, and if you believe in the electric vehicle revolution that's coming, and I'm talking about the names that everybody knows, General Motors, Ford, Toyota, Nissan, Honda, you keep going. I am the biggest supplier of each one of these names that I just mentioned, by a lot. When I'm telling you, they are going toward electric vehicles, take it at face value. They are going toward electric vehicles, and we are working with them to go toward that. That's growth, and we will continue to grow, and we will continue to generate cash, and we will continue to marginally, I say marginally, because when we're down to 1x EBITDA, you were there, you got it. Yeah, I appreciate you recognize that our debt is low right now. We will continue to buy back stock because I've not for a second, I believe that investors as a whole, will all of a sudden all become big fans of Cleveland-Cliffs, understanding everything we are doing, so our stock price will continue to be mistreated by the market. That's where the opportunities are. That's how I built this powerhouse here in the last two years. Think about it. Think about where we were two years ago and where we are right now. Think about where we're going to be in two years. Is that a dividend that will put me there? No. It's execution, day in and day out, in the business, commercially, operations, and in the financial side. We are good in all that. What else, Carlos? Yeah. The other question is regarding your end markets, given that this is something that is gonna become increasingly important. In the second quarter, around 26% of your sales went into infrastructure and manufacturing. Could you break this down, how much was infrastructure and how much was manufacturing, given the comment that you made earlier, on infrastructure is starting to maybe slow down a little bit? Yeah. Look, primarily manufacturing, because infrastructure, particularly to relate infrastructure to the infrastructure build, this thing is not really kicking yet. Plate is infrastructure, and we are doing well with plate, and that's a part of the business that we really appreciate. It's pretty much what we had before and things that we are conquering in our dealings with our clients. It's not the infrastructure build yet. We believe that this will come, but hasn't hit yet, so it's basically manufacturing. All right. Then finally, if I can, and listen, just maybe to address a little bit of the elephants in the room on the story. When you said that you are not gonna make a major investment until at least 2025, that potential electric arc furnace that you was discussing the last quarter is not gonna come before that? No, no. We are done. We already revamped. Since I acquired AK Steel, we already revamped one, two, three, four blast furnaces. Four blast furnaces in two years. We are done through at least 2025. We are in great shape as far as big investments. Just because you are mentioning big investments, I wanna make abundantly clear, we have no intention to build a mill, the electric arc furnace in Middletown. Oh, but you are working to get a permit. Yes. I have permits to mine stuff in Minnesota going through 2050. That's our long-term mindset. That's how I manage stuff. I have been doing that way my entire life. There's no EAF coming at Middletown. We are good with the footprint that we have. We are probably the most environmentally friendly blast furnace operator in the entire world. When I say blast furnace operator, I'm saying major supplier of automotive. Major supplier of automotive equals blast furnace operators. Keep this in mind. Think about Japan, think about Europe, think about South Korea, think about the United States. When you get to the United States, you get to Cleveland-Cliffs. All right. Excellent. Thank you very much. Good luck, gentlemen. Thanks, Carlos. Thank you. Thank you. Next question is coming from Karl Blunden from Goldman Sachs. Your line is now live. Hi, good morning. Good to see the progress on debt reduction and the limited CapEx going forward. Just to be a bit more granular on the debt reduction front, should we continue to expect full redemption of the 2026 secures this year? Just getting back to your comments from the Q4 call. Or when you look at the lower dollar price bonds like the unsecured, could that be a better use of cash for you? You know, I guess, you know, finally, maybe you don't have to choose, you have enough cash flow based on what you've outlined to do both. Hey, Karl, good question. My goal is to take out those 6.75 secured notes due 2026 at the earliest. You know, when we saw that our 2029s and 2031s, which are our largest and most liquid unsecured bonds, were trading at such a discount, we sort of redirected dollars towards that in the open market. We were really successful at picking those off, you know, in aggregate $300 million plus of those at a pretty good discount. If we continue to see things like that, the strategy can shift because we get more bang for our buck targeting those. Absent those opportunities, our 2026 secured notes remain our main priority for full redemption. Got you. That makes sense. Then just with regard to the other, senior debt in the structure or secured debt in the structure, at least, when you think about the ABL and re-reducing that balance there, where does that come into the list of priorities that, you know, do you anticipate over time getting that to be largely undrawn? Any comments there would be helpful. Yeah. The ABL is still pretty cheap, so we use that as liquidity. You know, we have other bonds that are more expensive and that are already callable. To the extent that those are available to be picked off, we'll continue to do that, especially if it's at a discount. We also manage our liquidity to keep our liquidity at least at $2 billion. Those are sort of the all the levers that we play with. You know, absent other opportunities to pick off bonds in the open market, we'll just use cash towards lowering the ABL amount. Thanks for clarifying. Appreciate the time. Thank you. Thank you, Carlos. Appreciate it. Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over to management for any further closing comments. Just appreciating the continued interest about our company and about our business. Please remember that I don't manage this company to get to report the results and tell only good news. Sometimes I'm gonna have to report maintenance. We're gonna have to report expenses. Thank God, I haven't had to report any accidents because we take care of our equipment, so we don't have that. That's a very predictable and boring company. It's a very predictable and boring company that continues to be seen ahead of the curve and around the corner. Right now, it's not even that difficult to see around the corner. The future is in automotive, in automotive is electric vehicles, and we're working on that. It's pretty much the entire industry going on toward that, and they're all buying from us. Things are getting exciting here at Cleveland-Cliffs. We'll talk again in three months. Thanks a lot. Bye now. Thank you. That does conclude today's teleconference webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.