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Posted on Jun 29, 2024

B C D E G H N O Assumptions: Annual growth rate of price of steel 6.45% 6.84% (historical) Annual growth rate of operating costs

B C D E G H N O Assumptions: Annual growth rate of price of steel 6.45% 6.84% (historical) Annual growth rate of operating costs 6.75% Tax rate 35.00% Discount rate 15.50% Thin Slab Minimill 2 3 5 6 7 9 10 11 1 1986 987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Capacity(million of tons of steel) 0 0 0 Shipments (Exhibit 12A) Hot-rolled sheets (HR) (Exhibit 12A) 0.2 0. O. 0. 0.5 0. O. 0. 0.5 0.5 Cold-rolled sheets (CR) (Exhibit 12A) 0. 175 0.35 0.35 0.35 0.35 0.35 0.35 0.3 0.35 0.35 Revenue / ton Hot-rolled sheets (HR) (Exhibit 12B) 306.5 Cold-rolled sheets (CR) (Exhibit 12B) 390.5 Total revenue (shipment x rev/ton) Hot-rolled sheets (HR) Cold-rolled sheets (CR Operating costs / ton Hot-rolled sheets (HR) (Exhibit 12B) 225 Cold-rolled sheets (CR) (Exhibit 12B) 283 282858 Total operating costs (shipment x cost/ton) Hot-rolled sheets (HR) - Cold-rolled sheets (CR) Depreciate over 10 years Income Hot-rolled sheets (HR) Cold-rolled sheets (CR Total income Taxes Add back depreciation Subtract capital expenditures Subtract startup costs 30.00 Subtract working capital costs 30.00 Cash flows Internal rate of return (IRR) Discounted cash flows Sum of discounted cash flows (NPV) estment criterion: ** 25% ROA by year 57 Year 5 CF: Year 5 Assets: Year 5 ROA: CF analysis-thin slab CF analysis - Modernize CF analysis - Unmodernized +A B C D E F G H J K L M N O P Q R S T U V W X Y Z AA AB Assumptions: Annual growth rate of price of steel 6.45% 6.84% (historical) |Annual growth rate of operating costs 6.75% NOLAWN- Tax rate 35.00% Discount rate 15.50% Modernized integrated mill 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Capacity(million of tons of steel) 0 42 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 Shipments (Exhibit 12A) Hot-rolled sheets (HR) (Exhibit 12A) 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 Cold-rolled sheets (CR) (Exhibit 12A) 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 1.35 Revenue / ton Hot-rolled sheets (HR) (Exhibit 12B) 326 Cold-rolled sheets (CR) (Exhibit 12B) 154.5 Total revenue (shipment x rev/ton) Hot-rolled sheets (HR) Cold-rolled sheets (CR) Operating costs / ton Hot-rolled sheets (HR) (Exhibit 12B) 261.5 Cold-rolled sheets (CR) (Exhibit 12B) 34 Total operating costs (shipment x cost/ton) Hot-rolled sheets (HR) Cold-rolled sheets (CR) Depreciate over 25 years Income Hot-rolled sheets (HR) Cold-rolled sheets (CR) Total income Taxes Add back depreciation 0 Subtract capital expenditures 1873 Cash flows Internal rate of return (IRR) Discounted cash flows Sum of discounted cash flows (NPV) CF analysis-thin slab CF analysis - Modernize CF analysis - Unmodernized +A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC Assumptions: Annual growth rate of price of steel 6.45% 6.84% (historical) Annual growth rate of operating costs 6.75% Tax rate 35.00% Discount rate 15.50% Unmodernized integrated mill 0 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Capacity(million of tons of steel) 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 42 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 Shipments (Exhibit 12A) - Hot-rolled sheets (HR) (Exhibit 12A) 1.68 89'1 1.68 89'1 1.68 1.6 1.68 1.68 1.68 1.68 1.68 89' 1.6 1.6 1.68 89'L 1.68 1.68 1.6 1.68 1.68 1.68 1.6 1.68 oo Cold-rolled sheets (CR) (Exhibit 12A) 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1,08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 Revenue / ton - Hot-rolled sheets (HR) (Exhibit 12B) 325 - Cold-rolled sheets (CR) (Exhibit 12B) 453 Total revenue (shipment x rev/ton) - Hot-rolled sheets (HR) - Cold-rolled sheets (CR) Operating costs / ton - Hot-rolled sheets (HR) (Exhibit 12B) 300 Cold-rolled sheets (CR) (Exhibit 12B) 403 Total operating costs (shipment x cost/ton) - Hot-rolled sheets (HR) Cold-rolled sheets (CR) Depreciate over 25 years (no expenditure to dep.) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o Income Hot-rolled sheets ( Cold-rolled sheets (CR) Total income Taxes Add back depreciation 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 Subtract capital expenditures 0 Cash flows Discounted cash flows Sum of discounted cash flows (NPV) CF analysis-thin slab CF analysis - Modernize CF analysis - Unmodernized +B C D E F G H K M N O Exhibit 12B Modernized Unmodernized Thin-slab Minimill Integrated Mill Integrated Mill HR CR HR CR HR CR Operating assumptions Labor / hour $20.00 $20.00 $23.50 $23.50 $23.50 $23.50 co Scrap / ton $90.00 $90.00 $80.00 $80.00 $80.00 $80.00 10 Man hours / ton 75 2.65 2.85 4.50 3.90 5.85 Capacity Utilization 90.00% 90.00% 90.00% 90.00% 75.00% 75.00% Operation costs / ton Labor $35.00 $53.00 $67.00 $105.50 $91.50 $141.00 Ore 51 54 52 56 Coal 0 35 37.5 38 40.5 Energy 24 38 9 23 9.5 25 Scrap 100 102 13.5 9.5 19.5 15.5 Materials and supplies 56 72.5 71 93 72.5 95.5 Maintenance & repairs 10 17.5 15 26.5 17 29.5 Total costs / ton $225.00 $283.00 $261.50 $349.00 $300.00 $403.00 Revenue / ton $306.50 $390.50 $326.00 $454.50 $325.00 $453.00 Operating assumptions CF analysis-thin slab CF analysis - Modernize CF analysis - Unmodernized +