Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 406

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 406
---
addition, with respect to raw material price assumptions, the

Company applied a range of $ 80 per tonne to $ 98 per tonne for

iron ore ($ 70 per tonne to $ 114 per tonne in 2023) and $ 190 per

tonne to $ 210 per tonne ($ 185 per tonne to $ 250 per tonne in

2023) for coking coal. Cash flow forecasts adjusted for the risks

specific to the tested assets are derived from the most recent

financial plans approved by management for the next five years.

Beyond the specifically forecasted period, the Company

extrapolates cash flows for the remaining years based on an

estimated growth rate of 2% . This rate does not exceed the

average long-term growth rate for the relevant markets.

The Company considered its exposure to certain climate-related

risks which could affect its estimates of future cash flow

projections applied for the determination of the recoverable

amount of its GCGUs and CGUs. With the switch to electric

vehicles and the move to wind and solar power generation, the

Company sees also additional opportunities as customers

deepen their understanding of embedded and lifecycle

emissions of the materials where steel compares favorably.

The Company is committed to the objectives of the Paris

agreement and announced its ambition to achieve group-wide

carbon neutrality by 2050. These announced goals will require

significant long-term investments which require global level

playing field, access to abundant and affordable clean energy,

facilitating necessary energy infrastructure, access to

sustainable finance for low-emissions steelmaking and

accelerated transition to a circular economy. In addition, the

Company considered the legal obligation of carbon neutrality by

2050 effective within the EU and in Canada following adoption

of the Climate Law and the Net Zero Emission Accountability

Act, respectively. Accordingly, with respect to its flat steel

operations in the EU and in Canada, ArcelorMittal concluded

that future decarbonization capital expenditures, which

correspond essentially to the construction of DRI-EAF facilities,

are necessary to maintain the level of economic benefits

expected to arise from the assets in their current condition and

should therefore be included in the Company’s assumptions for

future cash flows of the recoverable amount of the respective

GCGUs and CGUs . At the same time, the Company is engaged

in developing in the near to medium term a range of innovative

low-emission technologies