Cleveland Cliffs Inc (CLF)

[greasemonkeyshoes]

Trend of APIO sale margin(in millions) as percentage of clf topline in 2016............
1Q 57%($17.7 APIO,$13.2 USIO) actual
2Q 23%($21.5,$70 USIO) actual
My estimate going forward
3Q 13%($17.5,$123 USIO)
4Q 12%($16.8,$122 USIO)
Impact of APIO is de-levered,even with a major drop in seaborne prices as fully anticipated by the WallStreet boyz. I believe LG preempted this concern as the 2015 restructure plan worked,as its business model moved closer to an "all-Great-Lake-centric-pellet" supplier.
Conclusion:
Seaborn price drop is over blown for the new "old clf" and the trend should prove it in Q3.