SCHEDULE: Maple Rock Capital Shifts Algoma Steel Stake to Passive

Maple Rock Capital Partners and Xavier Majic have reclassified their 9.9% stake in Algoma Steel Group Inc. as a passive investment, amending a prior Schedule 13D filing.

Summary

• Maple Rock Capital Partners Inc. and Xavier Majic (the "Reporting Persons") have filed a Schedule 13G for Algoma Steel Group Inc.
• The filing indicates that the Reporting Persons beneficially own 10,430,818 Common Shares of Algoma Steel Group Inc.
• This ownership represents 9.9% of the outstanding Common Shares, based on 104,933,802 shares outstanding as of July 17, 2025.
• The filing amends a previous Schedule 13D, indicating that the Reporting Persons no longer hold the shares for the purpose of or with the effect of changing or influencing the control of the Issuer.
• Maple Rock Capital Partners Inc. is an SEC-registered investment advisor, and Xavier Majic is its Chief Investment Officer.
• The securities are held in the ordinary course of business and not for control purposes, as certified by the Reporting Persons.

Sentiment

Score: 5

Explanation: The filing is a standard disclosure of beneficial ownership and a change in investment intent from active (13D) to passive (13G). It does not contain positive or negative operational news, but the reclassification itself can be viewed neutrally or with slight concern/relief depending on prior expectations of activist involvement.

Positives

• The reclassification from a Schedule 13D to a Schedule 13G indicates that the investor is no longer actively seeking to influence or change the control of Algoma Steel Group Inc., which could reduce potential activist pressure on management.
• Maple Rock Capital Partners Inc. and Xavier Majic maintain a significant 9.9% stake, demonstrating continued confidence in the company as a passive investment.

Negatives

• The shift from an active (13D) to a passive (13G) investment stance by a significant shareholder might be interpreted by some as a reduced commitment to actively driving value creation or a lack of conviction in the need for strategic changes.

Risks

• No specific risks related to the company's operations or financial health are mentioned in this ownership disclosure filing. The primary risk is the interpretation of the investor's change in intent regarding their influence over the company.

Future Outlook

The filing does not provide specific forward-looking statements or guidance regarding Algoma Steel Group Inc.'s operational or financial performance. It primarily concerns the reporting persons' investment intent.

Management Comments

• The Reporting Persons determined that they no longer hold the Common Shares for the purpose of or with the effect of changing or influencing the control of the Issuer.
• By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and 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 is an ownership disclosure and does not provide information directly related to broader industry trends or competitors in the steel industry. It reflects an investment decision by a specific fund regarding a particular company.

Stakeholder Impact

• Shareholders: The reclassification from a Schedule 13D to a Schedule 13G indicates that a significant shareholder (Maple Rock Capital Partners Inc. and Xavier Majic) is no longer seeking to influence or change the control of Algoma Steel Group Inc. This could reduce the likelihood of activist campaigns or proxy contests, potentially leading to more stable, but less pressured, management.
• Management: Management may experience reduced pressure from this particular investor regarding strategic changes or control-related matters.

Key Dates

Recommendation

The filing indicates a significant shareholder, Maple Rock Capital Partners, has reclassified its 9.9% stake in Algoma Steel Group from an active (Schedule 13D) to a passive (Schedule 13G) investment. This suggests they are no longer seeking to influence or change the control of the company. While the continued substantial ownership (9.9%) indicates ongoing confidence in the company's long-term prospects as an investment, the shift to a passive stance removes potential activist pressure that might have driven short-term strategic changes or value realization. For investors, this news is largely neutral in terms of immediate operational impact but signals a change in the shareholder activism landscape for Algoma Steel. Without further operational or financial news, a "hold" recommendation is appropriate, acknowledging the continued significant ownership while noting the reduced likelihood of immediate activist-driven catalysts.

Keywords

Algoma Steel Group Inc., Maple Rock Capital Partners, Xavier Majic, Schedule 13G, Beneficial Ownership, Passive Investment, SEC Filing, Common Shares, Investment Advisor, Steel Industry