Cliffs Natural Resources Inc. (CLF) - NYSE
  • Tue, Mar. 15, 3:56 PM
    • The axed dividend at Antofagasta “acted as a sharp reminder of the industry’s suffering after the hefty drop in metals prices,” according to CMC Markets analyst Jasper Lawler, prompting a big drop in shares of base metals miners today.
    • Also, BHP Billiton (BHP -7%) was downgraded by Macquarie to an Underperform rating from Neutral, and Rio Tinto (RIO -5.1%) was cut to Equal Weight from Overweight at Morgan Stanley, which expects all the top names to remain under pressure from low prices through 2017.
    • Also: VALE -4.9%, FCX -7.1%, TCK -6.8%, CLF -11.8%.
    | Tue, Mar. 15, 3:56 PM | 21 Comments
  • Tue, Mar. 15, 9:55 AM
    • Cliffs Natural Resources (CLF -11%) bondholders are suing the company over a bond exchange offer in January.
    • The plaintiffs allege that CLF only favored larger bondholders to participate in the offering, while reducing the value of notes of bondholders who were not eligible to participate.
    • CLF and other U.S. miners have been hit by a drop in demand from steel mills and weak iron ore prices due to oversupply.
    | Tue, Mar. 15, 9:55 AM | 17 Comments
  • Mon, Mar. 14, 11:51 AM
    • Cliffs Natural Resources (CLF +10.2%) says it will restart production of iron ore pellets at its Northshore Mining operation in Minnesota by May 15, a positive sign for the battered U.S. steel industry.
    • CLF says it has been receiving more orders for taconite pellets, which steelmakers use in traditional blast furnace mills, and that it will produce higher-grade iron pellets for more modern electric arc furnace steel mills.
    • CLF says it expects to produce 16M tons of iron ore in the U.S. this year, at a cash cost of $50-$55/ton.
    | Mon, Mar. 14, 11:51 AM | 13 Comments
  • Fri, Mar. 11, 2:19 PM
    • Even as Credit Suisse likes the U.S. steel sector, the firm has little use for iron ore producer Cliffs Natural Resources (CLF -4%), which the firm rates at Underperform with a $1 stock price target.
    • Credit Suisse says it is bearish on medium-term iron ore fundamentals, forecasting prices of $35/metric ton in H2 2016 as Chinese demand remains structurally weak and a new wave of supply enters the market.
    • The firm also believes U.S. volume trends remain bearish because of significant structural challenges facing integrated producers, and notes that CLF faces debt maturities of $294M in 2018 and ~$1.7B in 2020.
    | Fri, Mar. 11, 2:19 PM | 16 Comments
  • Wed, Mar. 9, 9:47 AM
    • Fortescue Metals (OTCQX:FSUMF) Chairman Andrew Forrest lends his weight to a renewed call for an inquiry into iron ore exports from Australia, arguing oversupply is hurting competition.
    • His comments follow remarks from Cliffs Natural Resources (CLF -2.5%) that it too wants a government inquiry, as its biggest rivals in Australia have a strategy to crush the competition.
    • Australia’s government last May rejected calls by Fortescue and an independent lawmaker to investigate the iron ore market.
    • BHP Billiton (BHP +0.3%) and Rio Tinto (RIO -0.9%) have defended their strategy of expanding low-cost output and reject the idea of an inquiry, warning that it risked undermining Australia’s commitment to free trade and open markets.
    • Meanwhile, ore with 62% content fell 8.8% to $58.02/metric ton today, eroding some of Monday’s record surge.
    | Wed, Mar. 9, 9:47 AM | 7 Comments
  • Wed, Mar. 9, 9:15 AM
    | Wed, Mar. 9, 9:15 AM | 1 Comment
  • Wed, Mar. 9, 8:44 AM
    • Cliffs Natural Resources' (NYSE:CLF) idled Wabush iron ore assets have attracted acquisition interest from ERP Compliant Fuels, the environmentalist-backed mining company that has purchased distressed U.S. coal mines, Bloomberg reports.
    • The Wabush assets - which include a mine, processing equipment and a railroad - were shut in 2014 and are under restructuring proceedings along with CLF's other eastern Canadian iron assets; in 2013, the mine produced 2.8M metric tons compared with its 5.6M-ton capacity.
    • ERP Compliant Fuels, a subsidiary of the Virginia Conservation Legacy Fund, has purchased coal mines previously operated by Patriot Coal and Walter Energy through bankruptcy proceedings, and is said to be interested in U.S. Steel Canada.
    • CLF +8.4% premarket.
    | Wed, Mar. 9, 8:44 AM | 2 Comments
  • Tue, Mar. 8, 11:49 AM
    • The surge in iron ore prices is positive for U.S. steel producers, but supply cuts from domestic capacity curtailments and positive trade rulings are the primary drivers pushing domestic steel prices higher, J.P. Morgan analysts say.
    • The firm reiterates that the U.S. steel producers including U.S. Steel (X -10.7%), AK Steel (AKS -10.4%), Steel Dynamics (STLD -2%) and Nucor (NUE -0.9%) are its top stock picks, as they offer the greatest upside from supply cuts in the near-term.
    • JPM also notes the dramatic improvement in earnings and free cash flow at Cliffs Natural Resources (CLF -15.4%) at spot iron ore prices; while it has not changed its iron ore price forecast of $40/metric ton for 2016 and $42 for 2017, CLF's estimated 2016 and 2017 EPS would increase to $0.84 and $1.22 from respective losses of $0.99 and $0.59, at current spot prices, and 2016 and 2017 FCF would move to positive $225M and $294M from negative $102M and $32M.
    • Earlier: Lots of bearish talk after iron ore's record run
    | Tue, Mar. 8, 11:49 AM | 7 Comments
  • Tue, Mar. 8, 10:26 AM
    • Iron ore miners fall sharply as the spectacular rally stalls and analysts pile in with mostly bearish assessments.
    • Iron ore’s rally likely will prove "short-lived," Goldman Sachs said yesterday as it maintained an end-of-year target of $35/ton, while Citigroup says it is still bearish and Axiom Capital Management says the jump probably is just a blip.
    • "The rally is there to be sold because the fundamentals of the market, being supply and demand, do not stack up," says Wayne Gordon at UBS Wealth Management.
    • Monday’s 20% spike largely was a response to weekend comments from the Chinese government that implied more infrastructure investment, and does not change the mid-to-long-term outlook, says BHP (BHP -8.8%) Minerals Australia President of Operations Mike Henry.
    • Roy Hill CEO Barry Fitzgerald says the price spike was an "aberration... the consensus, if you look at the forward estimates is down, $30s, $40s."
    • Citigroup adds that the joint venture between Vale (VALE -10.7%) and Fortescue (OTCQX:FSUMF -12.4%) might have implications for iron ore price support longer term, but it sees an oversupplied market near term.
    • Also: RIO -9.1%, CLF -11.3%, X -8.6%, MT -8.3%, AKS -6.9%.
    | Tue, Mar. 8, 10:26 AM | 26 Comments
  • Mon, Mar. 7, 6:58 PM
    • Even before today's 20% jump in iron ore prices, capping a 48% rise since the beginning of February, Goldman Sachs warned that the current rally would prove "short-lived" in the absence of a material increase in Chinese steel demand.
    • Goldman says it is keeping its iron ore price forecast for 2016 at $38/metric ton and $35 for the next two years; the price of ore with 62% content crested today at $64.20/dry metric ton.
    • Goldman says disruptions in top exporters Australia and Brazil impacted iron ore supply in January and helped stoke the price rally, but that its analysis of freight activity indicates that export volumes recovered in February and expects further supply growth in the quarters ahead to pressure inventory levels and prices.
    • Bullish sentiment in China's steel market is not supported by hard data, Goldman adds, saying the seasonal increase in demand appears only marginally stronger than last year.
    • In today's trade: VALE +6.1%, RIO +5.4%, BHP +5.4%, CLF +18.7%, X +4.4%, MT +5.9%, AKS +8%, WOR +3.3%, STLD +4.5%.
    | Mon, Mar. 7, 6:58 PM | 44 Comments
  • Mon, Mar. 7, 9:11 AM
    | Mon, Mar. 7, 9:11 AM | 1 Comment
  • Mon, Mar. 7, 8:39 AM
    • Iron ore soars to its biggest one-day gain since at least 2009, as investors anticipate further monetary easing by the Chinese government to boost steel demand.
    • Ore with 62% content delivered to Qingdao jumped 19% to $63.74/metric ton, the highest price since June, Bloomberg reports.
    • "The iron ore and steel markets have gone berserk - they’ve departed from fundamentals and are heavily driven by sentiment,” says an analyst at China Merchants Futures Co. in Shenzhen.
    • Australia's Fortescue Metals (OTCQX:FSUMF) +24% in Sydney trading, and Cliffs Natural Resources (NYSE:CLF) is +19.3% in U.S. premarket; also, VALE +8.4%, RIO +1.2%, BHP +0.8% premarket.
    • Earlier: Vale leads biggest rally in metals stocks in seven years (Mar. 4)
    • Earlier: Iron ore prices have rallied, but analyst warns gains likely temporary (Mar. 3)
    | Mon, Mar. 7, 8:39 AM | 10 Comments
  • Wed, Mar. 2, 2:47 PM
    • Steel company shares are soaring following news of U.S. anti-dumping duties in the cold-rolled sheet trade case, with China receiving a 266% duty, which should effectively lock the country out of the U.S. market; Japan and Brazil were nailed with respective duties of 71% and 39%.
    • J.P. Morgan analysts call the tariffs a win for U.S. steel stocks including U.S. Steel (X +22%), AK Steel (AKS +17.4%), Steel Dynamics (STLD +5.2%) and Nucor (NUE +2.6%), as trade cases filed by the U.S. and around the world eventually will close the door to the export market for surplus Chinese steel, and China will have to cut its steel capacity to come in line with Chinese domestic demand.
    • With steel prices rebounding off of a bottom and the companies clearly demonstrating they have enough liquidity, J.P. Morgan believes the stocks should continue to outperform as shorts find it difficult to portray a possibility of near-term bankruptcies.
    • Also: MT +11.7%, CLF +19.5%, CMC +1.2%, WOR +2.9%, ZEUS +13.2%, SLX +6.9%.
    | Wed, Mar. 2, 2:47 PM | 23 Comments
  • Mon, Feb. 8, 7:55 AM
    • Cliffs Natural Resources (NYSE:CLF) says it is settling a pending federal securities lawsuit that alleged dissemination of false or misleading information related to its former Bloom Lake iron ore mine in Canada.
    • CLF says its insurance carriers will pay the full amount of the $84M settlement, which will have no impact on its financial position or operations.
    • CLF also agrees to changes to its corporate governance policies, protocols and practices as part of a settlement of pending shareholder derivative actions related to Bloom Lake.
    | Mon, Feb. 8, 7:55 AM | 10 Comments
  • Fri, Feb. 5, 3:43 PM
    • Cliffs Natural Resources (CLF -4.1%) is reiterated with a Sell rating at Deutsche Bank, with a reduced $1 stock price target cut from $1.50, citing potential downside risks to its base case iron ore outlook and unsustainable debt levels.
    • "While a successful execution of recently announced debt exchange offer could be a short-term catalyst, it may not alter medium-term solvency concerns," Deutsche Bank analyst Jorge Beristain writes.
    • A fully-successful exchange could reduce CLF's debt by $925M and generate ~$40M/year in savings, but the company's net debt to EBITDA still would be ~11x, Beristain calculates; also, he does not expect a fully subscribed exchange offer, believing the offering will be less than 50% subscribed.
    | Fri, Feb. 5, 3:43 PM | 20 Comments
  • Wed, Jan. 27, 8:10 AM
    • Cliffs Natural Resources (NYSE:CLF): Q4 EPS of -$0.39 misses by $0.08.
    • Revenue of $476M (-53.8% Y/Y) misses by $20.21M.
    | Wed, Jan. 27, 8:10 AM | 6 Comments
Company Description
Cliffs Natural Resources, Inc. operates as an international mining and natural resources company, which is engaged in the exploration and production of iron ore and high and low volatile metallurgical coal. It is organized through a global commercial group responsible for sales and delivery of... More
Industry: Industrial Metals & Minerals
Country: United States