Cliffs Natural faces limited options for Bloom Lake, Nomura says

Cliffs Natural Resources (CLF +5.9%) has limited strategic options available for its Bloom Lake mine in Canada, and is staring at significant free cash flow burn under any likely scenario, Nomura analysts say.

Even under a full shutdown or cold idle scenario, the firm sees ongoing costs near $275M-$300M, owing mostly to ~$160M in Quebec North Shore & Labrador Railway take or pay penalties; however, non-QNSL costs are expected to come in higher than expectations at close to $200M.

At $90/ton iron ore, CLF’s platform in Canada would generate negative EBITDA of $60M and negative free cash flow of $260M, Nomura says.

Earlier: CLF proposes Casablanca get three board seats.

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Comments (8)
  • bones2180
    , contributor
    Comments (110) | Send Message
    Nomura we get that. Please we know the situation.
    You have a proxy fight now with CLF probably losing control of the board even after re-negotiating a significant portion of their LT debt.
    Perfect oppty for a new management team to come in and clean house, which will move the stock much higher.
    2 Jul 2014, 12:42 PM Reply Like
    , contributor
    Comments (1149) | Send Message
    Bones I agree, the Nomura comments are not meant to HELP (CLF) at all and maybe they are hoping for more of a drop (unknown reasons.) Now on a day the stock is UP NICE after turnaround appears on horizon, that to ME means Nomura must be short in some form or wanting the price lower to help their pos.


    I live in area & was going to attend the meeting (would be my first) but I decided to listen in only...


    2 Jul 2014, 01:29 PM Reply Like
  • red-bull
    , contributor
    Comments (113) | Send Message
    thanks for nice comment, as a share holder waiting three long years it is perfect time to clean house for new management, Nomura you all ready told it few weeks back then, so what is about now ..
    2 Jul 2014, 06:15 PM Reply Like
  • bones2180
    , contributor
    Comments (110) | Send Message
    I don't know how Nomura moves stocks. I think they are the worse group on the street. The firm has tried to be a part of US equities for years but the turnover is always high. It's amazing that these analysts go out and put bankrupt #'s and targets on industrialized company's. This board is done. Casablanca will clean house, cut the div and rework the balance sheet.
    3 Jul 2014, 10:49 AM Reply Like
  • chunghk
    , contributor
    Comments (351) | Send Message
    CLF-Casa doomed to fail flat. Gary win. Liar - $53 stock price. Activist by nature, put small investors vigorous test & inferno. Never @$25 - Casa fully & tightly "crabbed". Today a bit better, will fade after Independence Day. Range $15-$18. Fight Gary/Dropping no end; Chinese demand weak; iron ore sleep; stagnant economy. Still viva the shorts! Day traders enjoy daily fluctuation of $0.60 to $0.80 range. No golden days of $5 or more daily surge. Thanks.
    2 Jul 2014, 01:09 PM Reply Like
  • sulo
    , contributor
    Comments (111) | Send Message
    Some of the firms need to keep repeating the same negatives. Of course no one is short!!!!!!!!Other firms will soon join in to pound clf over and over.
    2 Jul 2014, 06:30 PM Reply Like
  • BigGeneral
    , contributor
    Comments (165) | Send Message
    Strong short buy now.
    2 Jul 2014, 10:56 PM Reply Like
  • gobigorgohome007
    , contributor
    Comment (1) | Send Message
    At $90/ton iron ore, CLF’s platform in Canada would generate negative EBITDA of $60M and negative free cash flow of $260M, Nomura says.
    I think they mixed those Numbers!
    3 Jul 2014, 09:31 AM Reply Like
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