Cliffs' Q2 earnings estimate cut at J.P. Morgan

|About: Cliffs Natural Resources Inc. (CLF)|By:, SA News Editor

Amid Cliffs Natural Resources' (CLF -5%) proxy battle with Casablanca Capital - including today’s letter from CLF urging shareholders to vote the white card - J.P. Morgan analysts cut their Q2 EPS estimate to a $0.34 loss from a $0.19 gain ahead of the company's earnings report this Thursday.

JPM cites marking iron ore prices to market during the quarter - 11% lower than its previous forecast - and factoring in expected weather related shipment disruptions and associated higher costs in the Great Lakes; iron ore cargo vessels reportedly could not sail without an ice-breaking escort until mid-May and traffic was down substantially in April.

Freeport McMoRan (FCX +0.3%), which is set to release its results on Wednesday, also had its forecasts trimmed, reflecting the Grasberg mine operating at only ~50% of capacity due to its current inability to export concentrate from Indonesia.