March 2022

Global metals & mining review

Aluminum
▪ Sierra Aluminum, a division of Samuel, Son & Co., has announced plans to construct a new 300,000 sq. ft. secondary aluminum
casting & extrusion facility in Mexicali, Mexico, and will install new aluminum extrusion lines at its facilities in Riverside and
Fontana, CA. The greenfield extrusion facility in Mexicali will expand Sierra’s extrusion capacity and will add value-added
capabilities including anodizing and painting. The facility is expected to be complete in 2023
▪ The Russian invasion of Ukraine and U.S. sanctions against Russia have impacted supply chains and disrupted the global
aluminum industry. Rusal, the world’s biggest producer of aluminum outside of China, has halted its production of alumina in
Ukraine, which it uses to feed its smelters in Russia. Several major global players in the industry, including U.S.-based Alcoa,
European-based Norsk Hydro and international trading company Trafigura, have announced they will no longer buy raw
materials from or sell products to Russian businesses
Steel
▪ U.S. Steel has announced plans to invest $60 million to insource pig iron capabilities at its facility in Gary, IN. The investment
will provide the Company with an annual capacity of 500,000 tons of pig iron, supplying its Big River Steel facility with ~50% of
its required iron units. The investment will allow the Company to more effectively manage costs and increase blast furnace
efficiency without reducing overall steel output. The Company expects to begin pig iron production by the 1H of 2023
▪ Cleveland-Cliffs has announced it will indefinitely idle the #4 blast furnace at its Indiana Harbor Works facility in East Chicago,
IN. Following the successful implementation of several operational improvements, including the addition of significant amounts
of hot briquetted iron to blast furnaces and the maximization of scrap usage in BOFs, Cliffs will idle the furnace, which has an
annual capacity of ~2.1 million tons. The decision to idle the furnace will reduce the number of blast furnaces Cliffs operates
from 8 to 7, but will not impact full-year 2022 steel shipment volumes
Copper, Lead and Zinc
▪ Nyrstar has announced it will resume zinc production at reduced capacity at its Auby smelter in France. The restart will allow the
Company to capitalize on European zinc premiums which are at all-time highs. Premiums have been pushed up by a
constrained supply due to production cuts and soaring energy costs. The restart of the smelter, which has an annual capacity of
160,000 tonnes, will allow Nyrstar to manage production across its 3 European sites to fulfill existing consumer commitments
Specialty & Alloys
▪ Allegheny Technologies (‘ATI’) has announced the termination of Uniti, LLC, its joint venture (‘JV’) with Russian-based VSMPO-
AVISMA. The JV was terminated as Uniti’s reliance on Russian raw materials and products would no longer be allowed due to
U.S. sanctions, forcing American companies to import titanium from elsewhere. The JV was focused on selling a range of
commercially pure titanium products to industrial end-markets including power generation, chemical and petroleum processing
and automotive. The nearly 20-year collaboration is expected to be ended before the end of 2022
Mining, Scrap and Materials
▪ Empire Services Inc., a subsidiary of Greenwave Technology Solutions, has announced it will install a second auto shredder at
one of its 11 facilities across North Carolina and Virginia. The shredder will double annual capacity, generating an additional $8
– $15 million in revenue over the next 18 months. Greenwave also plans to install a downstream processing system to recover
millimeter-minus pieces of metal in its shred residue, generating an additional $10 – $20 million in revenue over the next 2 years
▪ Moffatt Scrap Iron & Metal Inc. has constructed a non-ferrous metal recycling plant at its facility in Ontario, Canada. The new
system will allow the Company to capture, process and recycle shred residue from its automobile shredder to increase its non-
ferrous metal recycling volumes. The plant is designed for future expansion and was installed in Q1 of 2022

Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc.,
Member FINRA/SIPC and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed
securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department.
The information contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete and it should not be relied upon as such. This report does
not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general
information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual person or entity. 1
Economic commentary
Construction Put In Place – Annualized and Seasonally Adjusted (through January 2022)
$1,000
According to the U.S.
$900 Census Bureau, January
$838.9
2022 construction spending
$800 totaled $1,677.3 billion, up by
$838.4
8.2% YoY
Billions of Dollars

$700 Gains are attributable to an

increase of 13.2% and an
$600 increase of 3.7% in
Residential Construction and
$500 Non-Residential
Construction, respectively
$400

$300

$200

$100
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
Residential Non-residential
Purchasing Managers Index (PMI) (through February 2022)
70.0
The U.S. manufacturing PMI
increased to 58.6 in
65.0
February, remaining above
50.0 for the 21st consecutive
ISM Purchasing Managers Index (PMI)

60.0 month
58.6
An index value over 50.0
55.0 indicates expansion in the
manufacturing sector

50.0

45.0

40.0

35.0

30.0
Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22

Source: Bloomberg, U.S. Census Bureau, Institute for Supply Management, U.S. Bureau of Economic Analysis

2
Economic commentary (continued…)
U.S. Capacity Utilization (through March 5, 2022)
2,000 90.0%
U.S. steel production
1,800 decreased throughout
75.0% February with capacity
1,600 utilization at 80.0%, down
from 81.1% in January
1,400
60.0%

Capacity Utilization (%)

Mills have produced 17.9
1,200 million tons in 2022 at an
Tons (000s)

average capacity utilization

1,000 45.0% of 81.1%

800

30.0%
600

400
15.0%

200

0 0.0%
Feb-21 May-21 Jul-21 Oct-21 Dec-21 Feb-22
Tota l P roduction Capacity Utilization
Oil & Gas Drilling Activity – U.S. 1 (through March 11, 2022)

100.0% 2,250

90.0%
2,000

80.0%
1,750

70.0%
1,500
Oil vs. Gas (Rig Count)

60.0%
% of Total Rig Count

1,250
50.0%

1,000
40.0%

750
30.0%

20.0% 500

10.0% 250

0.0% 0
2012 2014 2016 2018 2020 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Horizontal % Vertical Oil Gas

Source: Bloomberg, U.S. Census Bureau, Institute for Supply Management

1 Horizontal drilling data includes directional drilling wells

3
 Industry fundamentals
Steel Prices (through February 2022)
Steel HRC CRC HDG Plate Rebar Merchant

Monthly Avg. ($ / Ton) $979 $1,482 $1,395 $1,617 $920 $1,160

MoM % Change (23.9%) (12.9%) (16.7%) (0.2%) 0.0% (3.3%)

YoY % Change (8.2%) 21.1% 12.7% 73.7% 29.6% 45.0%

$2,000 $1,250

$1,750

$1,000
$1,500

$1,250
$750
U.S. $ / ton

U.S. $ / ton
$1,000

$500
$750

$500
$250

$250

$0 $0
Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22
HRC CRC HDG Plate Rebar Merchant

Base Metals Prices (through February 2022)

Base Metals Aluminum Copper Nickel Zinc

End of Month Price ($ / lb) $1.41 $4.47 $11.35 $1.65

MoM % Change 8.2% 1.5% 16.9% 3.9%

YoY % Change 58.0% 22.3% 41.2% 32.5%

$5.00 $15.00

$4.00 $12.00

$3.00 $9.00
U.S. $ / lb
U.S. $ / lb

$2.00 $6.00

$1.00 $3.00

$0.00 $0.00
Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22
Aluminum Copper Zinc Nickel

Source: American Metal Market

Note: Midwest quotes used for steel pricing

4
Industry fundamentals (continued…)
Monthly Steel Production (LTM through January 2022)

('000s M T) U.S. China Rest of World World Total

LTM Production 86,100 1,020,900 789,800 1,896,800
MoM % Change 1.4% (5.2%) 1.1% (2.3%)

YoY % Change 5.8% (9.4%) 0.3% (4.8%)

% of World Total 4.5% 53.8% 41.7% 100.0%

180 ,00 0

160 ,00 0
Monthly Production ('000s Tons)

140 ,00 0

120 ,00 0

100 ,00 0

80,000

60,000

40,000

20,000

0
Jan-19 May-19 Sep -19 Jan-20 May-20 Sep -20 Jan-21 May-21 Sep -21 Jan-22
U.S . China Rest of World

MSCI Ending Inventories & Average Daily Shipments (through February 2022)
10,000 300 .0

250 .0
8,000
Ending Inventory ('000s Tons)

Avg. Daily Shipments ('000s Tons)

200 .0

6,000

150 .0

4,000

100 .0

2,000
50.0

0 0.0
Feb-19 Jun-19 Oct-19 Feb-20 Jun-20 Oct-20 Feb-21 Jun-21 Oct-21 Feb-22

End ing Inven tory Avg. Daily Shipments

Source: World Steel Association, Metals Service Center Institute

5
Industry fundamentals (continued…)
Ferrous Monthly Scrap Net Exports 1 Non-Ferrous Monthly Scrap Net Exports 1
$800 $400
$351.6

$700

$300 $200.2
$600

U.S. $ in Millions
$500
U.S. $ in Millions

$200
$400.5
$400

$100
$300

$200
$0

$100 ($23.7)

$0 ($100)
Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22

Ferrous Scrap
Aluminum Scrap Copper Scrap Nickel Scrap

Ferrous & Non-Ferrous Scrap Prices (through February 2022)

Ferrous ($ / ton) Non-ferrous ($ / lb)
Scrap Heavy Melt #1 Shredded Auto Aluminum Scrap Copper Scrap Nickel Scrap

Month Avg. Price $366 $429 $1.12 $4.28 $6.20

MoM % Change 0.0% 0.0% 12.3% 1.5% 12.2%

YoY % Change 9.3% 20.0% 65.4% 19.3% 22.2%

Scrap Spread $613 $1,189 $0.29 $0.19 $5.15

$500 $10.00

$400 $8.00

$300 $6.00
U.S. $ / ton

U.S. $ / lb

$200 $4.00

$100 $2.00

$0 $0.00
Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22
Heavy Melt #1 Shredded Auto Aluminum Scrap Copper Scrap Nickel Scrap

Source: U.S. Census Bureau, American Metal Market

1 Scrap trade data through 1/31/2022; $ in millions

6
Select KeyBanc Capital Markets equity research
KeyBanc Capital Markets’ top-ranked 1 equity research team covers numerous companies across the Metals and Mining
sector. Selected recent research notes are provided below. Click on the respective ‘tear out’ to read the entire note.

Nickel Alloys /
Carbon Steel
Aerospace

March 13, 2022 March 11, 2022

Weekend Warrior: Technical Forces Drive February MSCI: February Shipments Miss
Nickel Price Spike; What's Ahead? Seasonality; Inventories Decline; MoH Stable

March 9, 2022 February 28, 2022

ATI: The Titanium Plot Aggressively Thickens LXFR: Maintaining 2022E; Sector Weight

Steel

February 27, 2022 February 27, 2022

TMST: Strong Execution Continues; Steel Weekend Warrior: March Ferrous
Raising Price Target Scrap Market Rebounds Strongly

February 21, 2022 February 18, 2022

RS: Strength Creates Further Optionality; MTRN: Growth Execution Increasingly
Raising Price Target Evident; Upping Target to $106

1KeyBanc Capital Markets’ Industrial Research platform has consistently achieved a Top 3 ranking in Greenwich Associates annual survey of small / mid-cap fund
managers. In its June 2019 Analyst Awards, ThomsonReuters recognized Phil Gibbs as the #1 earnings estimator in the Metals & Mining sector

7
Capital markets update
Index Performance (through March 11, 2022)

Two of the three

50.0% KeyBanc’s Metals indices
have outperformed the
broader market over the
past 12 months
29.7%
25.0% 22.2% Global Producers are up
29.7%, while Service
Centers and Specialty
Metals are up by 22.2%
6.6% and down by (1.2%),
0.0% (1.2%) respectively

(25.0%)
Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22
Global Producers Service Centers Specialty Metals S&P 500

Investment Grade and High Yield Bond Spreads (through March 11, 2022)
1,400

1,200
Bond spreads widened
across all ratings last
1,000 month, driven primarily by
Spread to Maturity (Basis Points)

growing concerns and

uncertainty related to the
800 Russia-Ukraine conflict

600

492

400
336

200 197
139

0
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
A Index BBB Index BB Index B Index

Source: Capital IQ

8
Capital markets update (continued…)
Current Rate Snapshot (as of March 14, 2022) USD Swap Curve Activity 1 (as of March 14, 2022)

Friday Prior Week Change 3.0%

1-Month LIBOR 0.40% 0.31% 0.09% 
3-Month LIBOR 0.83% 0.61% 0.22% 
SOFR 0.05% 0.05% 0.00% 
2.0%
Fed Funds 0.25% 0.25% 0.00% 
Fed Discount 2.75% 2.75% 0.00% 
Prime 3.25% 3.25% 0.00% 
US Treasury Yields 1.0%
2-year Treasury 1.75% 1.48% 0.27% 
5-year Treasury 1.95% 1.64% 0.31% 
10-year Treasury 2.00% 1.73% 0.27% 
Swaps vs. 3M LIBOR 0.0%
3M 1Y 2Y 3Y 4Y 5Y 7Y 10Y 30Y
2-year 1.96% 1.67% 0.29% 
Friday
3/11 Prior Month Prior Quarter YTD
5-year 2.03% 1.73% 0.30% 
10-year 2.08% 1.82% 0.26% 
Source: Bloomberg
The USD swap curve increased by the end of the second week
of March. The curve flattened as the short end and belly of the
curve moved more than the long end.

Rates recovered to levels seen prior to the drop experienced in

the second week of March, as the market focused on renewed
high-level talks between Russia and Ukraine and became
increasingly focused on the FED.

FED Speak & Economic News

• In February, the consumer price index (‘CPI’) increased 0.8% to 7.9% on an annualized basis, the fastest MoM change since January of
1982, while core inflation rose 6.4% on an annualized basis. Increased price pressures from rising geopolitical tensions between Russia and
Ukraine are expected to negatively impact real incomes and consumer demand, expanding upon already existing recessionary fears
• Real adjusted average hourly wages fell 0.8% in February, a decline of 2.6% YoY. The unemployment rate fell to 3.8% and 678,000 jobs
were added, contributing to a strong labor market. Despite low unemployment and the addition of new jobs, employers are scrambling to hire
to fill a historical high of ~1.7 vacancies per available worker
• Sarah Bloom Raskin, President Biden’s nominee to the Federal Reserve’s (‘FED’) Vice-Chair for Supervision, withdrew her candidacy for the
position. The withdrawal ended a partisan battle where Senators took issue with her views on climate policy and the fossil fuel industry and a
previously held role at a fintech company that received a FED master account while Raskin served on its board
• The FED approved a 25-basis point rate hike on Wednesday, March 16th, and indicated they would continue to aggressively pursue
additional rate hikes. Powell expressed the FED’s intent to implement a 25-basis point rate hike at each of the six remaining FED meetings in
2022 to contain inflation and prevent a stagflationary environment as the economy slows. The FED is ending its purchase of Treasuries and
mortgage-backed securities in March and expects to reduce the central bank’s nearly $9 trillion balance sheet in a predictable manner
• The U.S. heavily sanctioned Russia due to its actions in Ukraine, which has shocked global commodity markets. The sanctions include a ban
on Russian oil, causing gas prices to reach a record national average of $4.33 per gallon on March 5th, surpassing the previous record high
of $4.10 in 2008. Trading of nickel on the London Metal Exchange (‘LME’) experienced a dramatic increase in prices, leading the LME to
suspend its trading on March 8th

Source: The Wall Street Journal, Federal Reserve

1 Data sourced from Bloomberg; the curves were constructed using 3M USD LIBOR and US mid-market swap rates, which are not executable levels

9
Select recent transaction activity
Acquirer Target
Closed Highlights
(Parent) (Seller)

▪ AZZ has announced it will acquire Precoat Metals for ~9.4x LTM EBITDA of
$137 million, or ~$1.3 billion
Precoat Metals
Pending AZZ Inc. (NYSE:AZZ) ▪ The acquisition advances AZZ’s strategy of becoming predominantly a metal
(Sequa Corporation)
coatings company, expanding the Company’s position across the metal coating
value chain and will enhance the Company’s scale and margin profile

▪ AZZ Inc. has announced it will acquire Daam Galvanizing

Pending AZZ Inc. (NYSE:AZZ) Daam Galvanizing Ltd. ▪ The transaction of a leading privately held hot-dip galvanizing business will
increase AZZ’s market share in North American hot-dip galvanizing, expanding
its network to 42 facilities

▪ Speira has announced it will acquire Real Alloy Europe

Speira Real Alloy Europe
Pending ▪ The acquisition will provide Speira with additional scale in the European
(KPS Capital Partners) (Real Alloy) aluminum recycling and rolling market with the addition of 7 facilities and ~600
employees across Germany, Norway, France and the U.K.

Integrated Metal ▪ Integrated Metal Recycling (‘IMR’) has acquired Société des Métaux Recyclés
Recycling (‘SMR’)
Société des Métaux
3/3/2022 (Triple M Metal & ▪ The transaction provides IMR with additional ferrous and non-ferrous scrap
Recyclés (SMR)
ArcelorMittal Long recycling capacity, allowing the Company to unlock incremental market share
Products) and scale in the Montreal metal recycling market

▪ Ryerson has acquired the assets of Apogee Steel Fabrication

Ryerson Holding Assets of Apogee Steel ▪ The acquisition will expand Ryerson’s offering of value-added processing
3/2/2022
Corporation (NYSE:RYI) Fabrication Inc. capabilities in Eastern Canada through the addition of sheering, punching,
forming, laser cut processing and welding services

▪ Wisconsin Aluminum Foundry Company (‘WAF’) has acquired DEE, Inc.

Wisconsin Aluminum ▪ The acquisition will expand WAF’s production capacity of high-quality aluminum
3/2/2022 DEE Inc.
Foundry Company, Inc. castings through the addition of an established aluminum casting platform with
complementary manufacturing equipment and a skilled workforce

▪ NIM Group has acquired the Windsor, CO plant of Plateplus

Windsor, CO plant of ▪ The acquisition increases NIM Group’s offering of value-added capabilities,
2/28/2022 NIM Group
Plateplus, Inc. including the processing of hot-rolled coil into sheet and plate products, across
the Mountain region of the U.S.

▪ ArcelorMittal has acquired John Lawrie Metals

ArcelorMittal ▪ The acquisition will provide ArcelorMittal with access to high-quality scrap steel
2/28/2022 John Lawrie Metals
(ENXTAM:MT) to be used as an internal scrap supply for lower-emission EAF and blast furnace
steelmaking

Source: American Metal Market, The Daily Deal, MergerMarket

10
Select recent transaction activity
Acquirer Target
Closed Highlights
(Parent) (Seller)

Can Art Aluminum ▪ TorQuest Partners has established a continuation fund to acquire a controlling
Extrusion interest in Can Art Aluminum Extrusion from TorQuest Partners Fund IV
2/17/2022 TorQuest Partners
(TorQuest Partners ▪ The transaction extends TorQuest’s investment in the Company, allowing the
Fund IV) firm to capitalize on attractive secular trends

FABco LLC ▪ FABco has acquired Volunteer Rebar

2/8/2022 Volunteer Rebar ▪ The acquisition enhances FABco’s full-suite of construction materials and
(Argonaut Private
services offering by expanding the Company’s rebar fabrication capabilities in its
Equity) engineered bar segment

▪ Lion Equity Partners acquired Elkhart Tri-Went Industrial

Elkhart Tri-Went Industrial
▪ The acquisition provides Lion Equity with a strong platform for growth that
2/4/2022 Lion Equity Partners (Aalberts N.V. leverages design expertise and proprietary manufacturing capabilities to
(ENXTAM:AALB)) manufacture complex extruded aluminum components and fabricated copper
tube products

Source: American Metal Market, The Daily Deal, MergerMarket

11
Recent capital markets activity

Closed Company Gross Offering Size Highlights

▪ $300 million Senior Notes at 7.625% due 2030

Carpenter Technology
3/16/2022 $300 million Senior Notes ▪ The proceeds will be used to redeem in full its 4.450% senior notes due 2023
(NYSE:CRS)
▪ KeyBanc served as Co-Manager on the transaction

Canam Steel Corporation ▪ $425 million Senior Secured Credit Facilities

$425 million Senior Secured ▪ The proceeds will be used to fund a distribution to the Sponsor, support working
3/11/2022
(American Industrial Credit Facilities capital needs and pay transaction fees and expenses
Partners) ▪ KeyBanc served as Joint Lead Arranger on the transaction

▪ $550 million Senior Notes at 3.125% due 2032

3/11/2022 Nucor (NYSE:NUE) $550 million Senior Notes ▪ The proceeds will be used to redeem outstanding 4.125% Notes due 2022 and
4.000% Notes due 2023, pay transaction fees and expenses and for general
corporate purposes

▪ $550 million Senior Notes at 3.850% due 2052

3/11/2022 Nucor (NYSE:NUE) $550 million Senior Notes ▪ The proceeds will be used to redeem outstanding 4.125% Notes due 2022 and
4.000% Notes due 2023, pay transaction fees and expenses and for general
corporate purposes

Source: American Metal Market, The Daily Deal, MergerMarket

12
Metals public operating & trading statistics
$ in millions, except per share data Prices
as of Market Enterprise LTM CY 2022 LTM CY 2022
Company Ticker 3/11/2022 Cap Value Sales EBITDA % Margin EPS EBITDA EPS EV / EBITDA P/E Ratio EV / EBITDA P/E Ratio

ArcelorMittal S.A. ENXTAM:MT $30.32 $27,571 $33,839 $76,571 $10,901 14.2% $13.44 $14,662 $10.56 NM 2.3x 2.3x 2.9x

Companhia Siderúrgica Nacional BOVESPA:CSNA3 5.13 7,078 9,629 9,079 4,404 48.5% 2.78 3,392 1.07 2.2x 1.8x 2.8x 4.8x
International Producers

Gerdau S.A. BOVESPA:GGBR4 5.99 10,215 11,695 15,526 4,491 28.9% 1.76 3,294 1.13 2.6x 3.4x 3.6x 5.3x

Grupo Simec, S.A.B. de C.V. NYSEAM:SIM 28.56 4,404 3,684 2,652 693 26.1% 2.94 683 NA 5.3x 9.7x 5.4x NA

Public Joint Stock Company Severstal LSE:SVST 0.06 50 1,592 10,094 5,220 51.7% 4.06 4,505 3.59 0.3x 0.0x 0.4x 0.0x

SSAB AB (publ) OM:SSAB A 6.31 6,497 6,101 9,872 2,275 23.0% 1.47 1,934 1.21 2.7x 4.3x 3.2x 5.2x

Tata Steel Limited 500470 16.98 20,406 26,274 26,813 5,479 20.4% 1.79 6,046 2.62 4.8x 9.5x 4.3x 6.5x

thyssenkrupp AG XTRA:TKA 9.56 5,951 3,542 39,103 2,310 5.9% 0.62 2,213 1.85 1.5x 15.5x 1.6x 5.2x

Average $10,272 $12,044 $23,714 $4,472 27.4% $4,591 2.8x 5.8x 2.9x 4.3x
Median $6,788 $7,865 $12,810 $4,447 24.6% $3,343 2.6x 3.8x 3.0x 5.2x

Cleveland-Cliffs Inc. CLF $25.86 $13,023 $18,625 $18,307 $5,746 31.4% $6.17 $4,341 $5.41 NM 4.2x 4.3x 4.8x
Domestic Produce

Commercial Metals Company CMC 40.43 4,955 5,605 7,320 925 12.6% 4.70 942 4.32 6.1x 8.6x 5.9x 9.4x

Nucor Corporation NUE 135.25 37,115 40,770 36,484 10,183 27.9% 23.44 8,693 19.86 4.0x 5.8x 4.7x 6.8x

Steel Dynamics, Inc. STLD 72.12 14,312 16,190 18,409 4,678 25.4% 15.67 3,900 13.67 3.5x 4.6x 4.2x 5.3x

United States Steel Corporation X 33.34 8,839 10,301 20,275 5,592 27.6% 14.48 4,296 10.04 1.8x 2.3x 2.4x 3.3x

Average $15,649 $18,298 $20,159 $5,425 25.0% $4,434 3.8x 5.1x 4.3x 5.9x
Median $13,023 $16,190 $18,409 $5,592 27.6% $4,434 3.8x 4.6x 4.3x 5.3x

Olympic Steel, Inc. ZEUS $29.24 $343 $661 $2,312 $212 9.2% $11.78 $197 $3.49 3.1x 2.5x 3.4x 8.4x
Service Centers /

Reliance Steel & Aluminum Co. RS 188.23 9,474 10,828 14,093 2,181 15.5% 22.02 2,021 20.29 5.0x 8.5x 5.4x 9.3x
Processors

Russel Metals Inc. TSX:RUS 24.62 1,559 1,772 3,310 524 15.8% 5.44 281 2.51 3.4x 4.5x 6.3x 9.8x

Ryerson Holding Corporation RYI 31.69 1,217 1,812 5,675 492 8.7% 5.34 0 4.18 3.7x 5.9x NA 7.6x

Worthington Industries, Inc. WOR 58.54 2,947 3,577 4,081 677 16.6% 8.80 388 5.36 5.3x 6.7x 9.2x 10.9x

Average $3,108 $3,730 $5,894 $817 13.1% $577 4.1x 5.6x 6.1x 9.2x
Median $1,559 $1,812 $4,081 $524 15.5% $281 3.7x 5.9x 5.8x 9.3x

ALBA SE DB:ABA $54.52 $534 $542 $317 $2 0.6% ($0.13) NA NA NM NM NA NA

Recycling
Scrap

Schnitzer Steel Industries, Inc. SCHN 49.41 1,465 1,710 3,065 327 10.7% 7.01 295 5.96 5.2x 7.1x 5.8x 8.3x

Sims Limited ASX:SGM 14.94 2,872 2,808 5,656 617 10.9% 2.35 375 1.53 4.5x 6.4x 7.5x 9.8x

Average $1,624 $1,687 $3,013 $315 7.4% $335 4.9x 6.7x 6.6x 9.0x
Median $1,465 $1,710 $3,065 $327 10.7% $335 4.9x 6.7x 6.6x 9.0x

Allegheny Technologies Incorporated ATI $26.50 $3,372 $4,674 $2,800 $273 9.7% $0.18 $413 $0.95 17.1x NM 11.3x 27.9x
Specialty Metals & Alloys

Carpenter Technology Corporation CRS 34.85 1,682 2,280 1,557 (26) (1.7%) (2.67) 246 1.08 NM NM 9.3x NM

Haynes International, Inc. HAYN 41.79 535 529 365 27 7.5% 0.32 57 2.41 19.4x NM 9.2x 17.3x

Kaiser Aluminum Corporation KALU 87.18 1,410 2,143 2,937 214 7.3% 1.88 239 3.81 10.0x NM 9.0x 22.9x

Materion Corporation MTRN 87.03 1,813 2,264 1,656 172 10.4% 11.51 197 5.00 13.2x 7.6x 11.5x 17.4x

Universal Stainless & Alloy Products, Inc. USAP 9.33 83 152 156 14 9.0% (0.97) 22 0.01 10.8x NM 6.9x NM

Average $1,483 $2,007 $1,578 $112 7.0% $196 14.1x 7.6x 9.5x 21.4x
Median $1,546 $2,204 $1,606 $99 8.2% $218 13.2x 7.6x 9.3x 20.1x

Source: CapitalIQ, ThomsonReuters, SEC Filings

Note: Outlying EV/EBITDA and P/E multiples were excluded from average and median calculations

13
Metals public credit statistics
$ in millions
Total Net Total Debt / Net Debt / Total Debt / Net Debt / EBITDA /
Company Ticker Debt Debt EBITDA EBITDA Cap (book) Cap (book) Interest

ArcelorMittal S.A. ENXTAM:MT $8,401 $4,030 0.8x 0.4x 18.0% 8.6% NM

Companhia Siderúrgica Nacional BOVESPA:CSNA3 6,899 1,881 1.6x 0.4x 61.6% 16.8% 11.1x
Select Global Producers

Gerdau S.A. BOVESPA:GGBR4 2,782 1,437 0.6x 0.3x 24.8% 12.8% 15.8x

Grupo Simec, S.A.B. de C.V. NYSEAM:SIM 0 (722) NM NM 0.0% NM NM

Public Joint Stock Company Severstal LSE:SVST 1,815 1,526 0.3x 0.3x 29.8% 25.0% NM

SSAB AB (publ) OM:SSAB A 1,022 (399) 0.4x NM 11.9% NM 8.8x

Tata Steel Limited 500470 6,457 5,254 1.2x 1.0x 35.1% 28.6% 6.8x

thyssenkrupp AG XTRA:TKA 4,441 (2,913) 1.9x NM 27.0% NM 9.1x

Average $3,977 $1,262 1.0x 0.5x 26.0% 18.4% 10.3x

Median $3,611 $1,482 0.8x 0.4x 25.9% 16.8% 9.1x

Cleveland-Cliffs Inc. CLF $5,350 $5,308 0.9x 0.9x 57.2% 56.8% 17.0x
Domestic Produce

Commercial Metals Company CMC 1,065 650 1.2x 0.7x 30.0% 18.3% 19.0x

Nucor Corporation NUE 5,685 3,067 0.6x 0.3x 28.9% 15.6% NM

Steel Dynamics, Inc. STLD 3,106 1,862 2.7x 1.6x 33.0% 19.8% 19.8x

United States Steel Corporation X 3,891 1,369 0.7x 0.2x 30.2% 10.6% 9.3x

Average $3,819 $2,451 1.2x 0.8x 35.8% 24.2% 16.3x

Median $3,891 $1,862 0.9x 0.7x 30.2% 18.3% 18.0x

Olympic Steel, Inc. ZEUS $328 $318 1.5x 1.5x 43.6% 42.3% NM
Service Centers /
Processors

Reliance Steel & Aluminum Co. RS 1,647 1,347 0.8x 0.6x 21.3% 17.4% NM

Russel Metals Inc. TSX:RUS 318 213 0.6x 0.4x 24.5% 16.4% NM

Ryerson Holding Corporation RYI 879 828 1.8x 1.7x 61.7% 60.3% 9.6x

Worthington Industries, Inc. WOR 702 477 1.0x 0.7x 33.4% 22.7% NM

Average $775 $636 1.1x 1.0x 36.9% 31.8% 9.6x

Median $702 $477 1.0x 0.7x 33.4% 22.7% 9.6x

ALBA SE DB:ABA $8 $8 4.6x 4.3x 4.7% 4.4% NM

Recycling
Scrap

Schnitzer Steel Industries, Inc. SCHN 260 241 0.8x 0.7x 23.0% 21.3% NM

Sims Limited ASX:SGM 93 (64) 0.2x NM 5.2% NM NM

Average $120 $62 1.8x 2.5x 11.0% 12.8% NM

Median $93 $8 0.8x 2.5x 5.2% 12.8% NM

Allegheny Technologies Incorporated ATI $1,843 $1,155 NM 4.2x 72.9% 45.7% 2.8x
Specialty Metals & Alloys

Carpenter Technology Corporation CRS 695 598 NM NM 34.3% 29.5% NM

Haynes International, Inc. HAYN 8 (6) 0.3x NM 2.4% NM NM

Kaiser Aluminum Corporation KALU 1,036 733 4.9x 3.4x 59.9% 42.4% 4.3x

Materion Corporation MTRN 466 452 2.7x 2.6x 39.3% 38.1% NM

Universal Stainless & Alloy Products, Inc. USAP 69 69 4.9x 4.9x 23.4% 23.4% 7.1x

Average $686 $500 3.2x 3.8x 38.7% 35.8% 4.7x

Median $581 $525 3.8x 3.8x 36.8% 38.1% 4.3x

Source: CapitalIQ, ThomsonReuters, SEC Filings

14
Select transaction experience
Deal Value
Client Business Description ($ mm) Type Closed

Manufactures, fabricates and distributes stainless

Carpenter Technology Corporation $300 Senior Notes Mar-22
steels, titanium and specialty metal alloys

Manufacturer of steel joist and deck for applications in Senior Secured Credit
Canam Steel Corporation $425 Mar-22
non-residential construction Facilities

Provider of differentiated products and services to niche Senior Secured Credit

DMC Global $200 Dec-21
markets Facilities

PCH, LLC -
PCH, LLC Toll-processor of aluminum and light-gauge steel coil $50+ Debt Advisor Nov-21
VORTEQ Coil Finishers

VORTEQ Coil Finishers Toll-processor of aluminum and light-gauge steel coil ND Sell-Side Advisor Nov-21

The North American Coal Miner of steam and met coal for power generation and Senior Secured Revolving
$120 Nov-21
Corporation steel production Credit Facility

Global manufacturer of high-quality, engineered, heavy Senior Unsecured Revolving

Ellwood Group $150 Nov-21
metal components Credit Facility

Manufacturer of highly engineered precision bearings

RBC Bearings $500 Senior Notes Nov-21
and products

Senior Secured Revolving

Zochem Manufacturer of French process zinc oxide $90 Sep-21
Credit Facility

Manufacturer of highly engineered precision bearings

RBC Bearings $555 Follow-On Sep-21
and products

Manufacturer of highly engineered precision bearings Convertible Preferred Stock

RBC Bearings $400 Sep-21
and products Offering

Sun Capital - Manufacturer and supplier of structural hardware

ND Sell-Side Advisor Sep-21
Arrow Tru Line components to the overhead garage door market

Value-added processor of structural steel used in non- Senior Secured Credit

FabSouth $175 Sep-21
residential construction projects Facilities

Olympic Steel Inc. Value-added processor and distributor of metals $475 ABL Financing Jun-21

Ryerson Inc. Value-added processor and distributor of metals $107 Sale-Leaseback Jun-21

Manufacturer of well perforation systems for the oil &

DMC Global $129 Follow-On May-21
gas industry and explosion-welded clad metal plate

Manufacturer of steel joist and deck for applications in Senior Secured Credit
Canam Steel Corporation $140 Mar-21
non-residential construction Facilities

Amico - Manufacturer of expanded and perforated metal

ND Sell-Side Advisor Feb-21
Gibraltar products

American Securities - Manufacturer of high-precision metal and plastic

$825 Buy-Side Advisor Aug-20
NN Life Sciences components

Manufactures high-precision metal and plastic

NN Life Sciences $485 Senior Secured Credit Facility Aug-20
components

For additional information, contact the KeyBanc Capital Markets Metals & Mining Team:

Eric Klenz Arindam Basu Barry Stormer David “Dee” Gose Nicholas Kuhn
216.689.3974 216.689.4262 216.689.7921 216.689.7831 216.689.5113
eklenz@key.com abasu@key.com barry.a.stormer@key.com david.w.goseiii@key.com nicholas.j.kuhn@key.com

Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc.,
Member FINRA/SIPC and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed
securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department.
The information contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete and it should not be relied upon as such. This report does
not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general
information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual person or entity. 15