SCHEDULE: Coghill Group Boosts Algoma Steel Stake to 5.4%

A group of entities and individuals led by Clint D. Coghill has disclosed a combined beneficial ownership of 5.4% in Algoma Steel Group Inc. as of June 30, 2025.

Summary

• A group of reporting persons, including Stoney Lonesome HF LP, Coghill Capital Management LLC, Drake Helix Holdings, LLC, CDC Financial, Inc., and Clint D. Coghill, has filed a Schedule 13G.
• The filing pertains to their beneficial ownership of Common Shares, no par value, of Algoma Steel Group Inc. (CUSIP 015658107).
• As of June 30, 2025, Clint D. Coghill and CDC Financial, Inc. are deemed to beneficially own an aggregate of 5,864,050 shares, representing approximately 5.4% of the outstanding shares.
• Stoney Lonesome HF LP and Coghill Capital Management LLC beneficially own 5,467,258 shares, representing approximately 5.1% of the outstanding shares.
• Drake Helix Holdings, LLC beneficially owns 381,522 shares, representing approximately 0.4% of the outstanding shares.
• The reported share counts include shares issuable upon the exercise of certain warrants and call options exercisable within 60 days of June 30, 2025.
• The percentages are calculated based on 104,933,802 shares outstanding as of June 30, 2025, plus the shares issuable from warrants held by the respective reporting persons.
• The reporting persons certify that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of Algoma Steel Group Inc.

Sentiment

Score: 7

Explanation: The filing is a routine disclosure of beneficial ownership, indicating a significant stake by an investment group. It is neutral in terms of immediate operational impact but reflects investor confidence.

Positives

• The disclosure of a significant stake by an investment group may signal confidence in Algoma Steel Group Inc.'s long-term prospects.
• The inclusion of warrants and call options in the beneficial ownership indicates potential for increased direct equity holdings by the group.

Risks

• The filing explicitly states the securities were not acquired for the purpose of changing or influencing control of the issuer, mitigating a potential risk of activist intervention.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding Algoma Steel Group Inc.'s future performance or operations.

Management Comments

• "The securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11."

Industry Context

This filing reflects an investment position in Algoma Steel Group Inc., a company operating within the steel industry. The accumulation of a significant stake by an investment group suggests a perceived value or strategic interest in the sector or the company specifically.

Stakeholder Impact

• Shareholders: Increased transparency regarding significant ownership. Potential for increased investor confidence due to a notable stake.

Next Steps

• Continued monitoring of Algoma Steel Group Inc.'s performance by the reporting persons.

Key Dates

Recommendation

This Schedule 13G filing is a routine disclosure of a significant passive investment stake. It does not contain new operational or financial information about Algoma Steel Group Inc. that would warrant a change in investment thesis. The disclaimed intent to influence control suggests a passive investment, thus a 'hold' recommendation is appropriate for existing investors, while new investors should base decisions on broader company fundamentals.

Keywords

Algoma Steel, Common Shares, Beneficial Ownership, Schedule 13G, Clint D. Coghill, Stoney Lonesome, Coghill Capital Management, Drake Helix Holdings, CDC Financial, Steel Industry, Investment