Proxy Advisors Recommend Sale Of US Steel; Ascent Reports Financial Results; Materion Expects 10% Sales Decline And More: Monday's Top Mining Stories

Top Stories for April 1, 2024:

1. Institutional Shareholder Services (ISS) and Glass Lewis, independent proxy advisory firms, recommended U.S. Steel X shareholders approve the sale to Nippon Steel at the April 12 special meeting. 

ISS believes the transaction offers a significant premium from a competitive sale process, favoring Nippon’s all-cash offer over a riskier offer from Cleveland-Cliffs CLF. 

Glass Lewis also notes the deal’s value substantially exceeds U.S. Steel's stand-alone valuation prior to the announcement, viewing the all-cash purchase price as attractive and well-supported by a comprehensive solicitation effort.

2. Ascent Industries ACNT reported a decrease in net sales and a net loss for both Q4 and the full year of 2023, primarily due to reduced demand, destocking trends and increased costs. 

Q4 net sales dropped to $41.2 million from $54.2 million, with a net loss of $7.5 million, compared to net income of $4.5 million in the previous year. 

Full-year net sales fell to $193.2 million from $262 million, with its net loss increasing to $34.2 million from a net income of $17.6 million in 2022. 

Adjusted EBITDA was negative for both periods, reflecting lower operating margins.

Also Read: Steel Industry Continues To Consolidate As Companies Adapt To New Global Dynamics

3. Materion MTRN expects its first-quarter value-added sales to decrease by about 10%, forecasting sales between $255 to $265 million due to lower shipment volumes and a slight drop in order rates. 

Despite these challenges, the company is optimistic about recovering losses later in 2024 and will provide more updates in its May earnings call.

4. MP Materials MP was awarded $58.5 million to build the first fully-integrated rare earth magnet facility in America, a project supported by the IRS and Treasury through a competitive process overseen by the Department of Energy. 

This facility will produce neodymium-iron-boron (NdFeB) magnets, crucial for a wide range of technologies including electric vehicles and defense systems, with demand expected to triple by 2035. 

The construction began in Fort Worth, Texas, in April 2022, with commercial production starting in 2025. 

This move addresses the U.S.’s critical dependence on imports for NdFeB magnets, a national security concern highlighted by a Department of Commerce investigation.

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