Cliffs Natural Resources (CLF) says it will idle its Wabush Pointe Noire plant in Quebec by the end of Q2 to reduce costs as iron ore prices remain weak. VLF says the idling will push down cash costs to $95-$100/ton in its eastern Canada iron ore business from its prior $100-$105 forecast, while it backs its full-year sales and production volume forecast of 9M-10M tons from the business. [View news story]
More on the 56% rebound in iron ore prices: The news is particularly good for high-cost producers like Cliffs Natural Resources (CLF). Oracle Research's Larry Balter estimates the company earns another $2/share for every $10/ton increase in the price of ore (it's up about $50/ton in Q4). The company earned $6.52/share in the year ended Sept. 30. (h/t Adam Johnson) [View news story]
Cliffs Natural Resources (CLF) says it will idle its Wabush Pointe Noire plant in Quebec by the end of Q2 to reduce costs as iron ore prices remain weak. VLF says the idling will push down cash costs to $95-$100/ton in its eastern Canada iron ore business from its prior $100-$105 forecast, while it backs its full-year sales and production volume forecast of 9M-10M tons from the business. [View news story]
More on the 56% rebound in iron ore prices: The news is particularly good for high-cost producers like Cliffs Natural Resources (CLF). Oracle Research's Larry Balter estimates the company earns another $2/share for every $10/ton increase in the price of ore (it's up about $50/ton in Q4). The company earned $6.52/share in the year ended Sept. 30. (h/t Adam Johnson) [View news story]