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Cleveland-Cliffs Announces Final Results of Tender Offer
Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) announced today the expiration of and final results for its previously announced offer to purchase for cash (the “Tender Offer”) any and all of its outstanding 6.750% Senior Secured Notes due 2026 (the “Notes”). The Tender Offer expired at 5:00 p.m., New York City time, on March 13, 2024 (the “Expiration Time”).
On March 18, 2024, the Company purchased $639,737,000 in principal amount of the Notes that were validly tendered and not validly withdrawn prior to the Expiration Time.
According to information received from Global Bondholder Services Corporation, the Information Agent and Depositary for the Tender Offer, the following table sets forth details regarding the total aggregate principal amount of the Notes validly tendered and not validly withdrawn as of the Expiration Time or tendered pursuant to the guaranteed delivery procedures and the principal amount of the Notes that will be accepted for purchase by the Company today:
Title of Security
CUSIP Number & ISIN
Principal
Amount
Outstanding
Principal
Amount
Tendered
Principal Amount to be
Accepted on
3/18/2024
6.750% Senior
Secured Notes
due 2026
144A:
$828,927,000
$639,737,000
$639,737,000
CUSIP: 185899AG6
ISIN:
US185899AG62
REG S:
CUSIP: U1852LAF4
ISIN:
USU1852LAF41
In addition, on March 4, 2024, the Company issued a conditional notice of redemption for all of the Notes outstanding following the settlement of the Tender Offer at a redemption price of 101.688% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the redemption date (which is expected to be April 3, 2024) pursuant to the terms of the indenture governing the Notes. At this date, the Company will no longer have any Secured Notes outstanding.
Wells Fargo Securities, LLC served as Dealer Manager for the Tender Offer. Global Bondholder Services Corporation served as the Information Agent and Depositary for the Tender Offer. Questions regarding the Tender Offer may be directed to Wells Fargo Securities, LLC at 550 South Tryon Street, 5th Floor, Charlotte, North Carolina 28202, Attn: Liability Management Group, (866) 309-6316 (toll-free), (704) 410-4759 (collect) or by email to liabilitymanagement@wellsfargo.com.
This press release does not constitute an offer to purchase securities or a solicitation of an offer to sell any securities or an offer to sell or the solicitation of an offer to purchase any securities nor does it constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is unlawful.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
Forward-Looking Statements
This release contains statements that constitute “forward-looking statements” within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry or our businesses, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: continued volatility of steel, iron ore and scrap metal market prices, which directly and indirectly impact the prices of the products that we sell to our customers; uncertainties associated with the highly competitive and cyclical steel industry and our reliance on the demand for steel from the automotive industry; potential weaknesses and uncertainties in global economic conditions, excess global steelmaking capacity, oversupply of iron ore, prevalence of steel imports and reduced market demand; severe financial hardship, bankruptcy, temporary or permanent shutdowns or operational challenges of one or more of our major customers, key suppliers or contractors, which, among other adverse effects, could disrupt our operations or lead to reduced demand for our products, increased difficulty collecting receivables, and customers and/or suppliers asserting force majeure or other reasons for not performing their contractual obligations to us; risks related to U.S. government actions with respect to Section 232 of the Trade Expansion Act of 1962 (as amended by the Trade Act of 1974), the United States-Mexico-Canada Agreement and/or other trade agreements, tariffs, treaties or policies, as well as the uncertainty of obtaining and maintaining effective antidumping and countervailing duty orders to counteract the harmful effects of unfairly traded imports; impacts of existing and increasing governmental regulation, including potential environmental regulations relating to climate change and carbon emissions, and related costs and liabilities, including failure to receive or maintain required operating and environmental permits, approvals, modifications or other authorizations of, or from, any governmental or regulatory authority and costs related to implementing improvements to ensure compliance with regulatory changes, including potential financial assurance requirements, and reclamation and remediation obligations; potential impacts to the environment or exposure to hazardous substances resulting from our operations; our ability to maintain adequate liquidity, our level of indebtedness and the availability of capital could limit our financial flexibility and cash flow necessary to fund working capital, planned capital expenditures, acquisitions, and other general corporate purposes or ongoing needs of our business, or to repurchase our common shares; our ability to reduce our indebtedness or return capital to shareholders within the currently expected timeframes or at all; adverse changes in credit ratings, interest rates, foreign currency rates and tax laws; the outcome of, and costs incurred in connection with, lawsuits, claims, arbitrations or governmental proceedings relating to commercial and business disputes, antitrust claims, environmental matters, government investigations, occupational or personal injury claims, property-related matters, labor and employment matters, or suits involving legacy operations and other matters; supply chain disruptions or changes in the cost, quality or availability of energy sources, including electricity, natural gas and diesel fuel, critical raw materials and supplies, including iron ore, industrial gases, graphite electrodes, scrap metal, chrome, zinc, other alloys, coke and metallurgical coal, and critical manufacturing equipment and spare parts; problems or disruptions associated with transporting products to our customers, moving manufacturing inputs or products internally among our facilities, or suppliers transporting raw materials to us; the risk that the cost or time to implement a strategic or sustaining capital project may prove to be greater than originally anticipated; our ability to consummate any public or private acquisition transactions and to realize any or all of the anticipated benefits or estimated future synergies, as well as to successfully integrate any acquired businesses into our existing businesses; uncertainties associated with natural or human-caused disasters, adverse weather conditions, unanticipated geological conditions, critical equipment failures, infectious disease outbreaks, tailings dam failures and other unexpected events; cybersecurity incidents relating to, disruptions in, or failures of, information technology systems that are managed by us or third parties that host or have access to our data or systems, including the loss, theft or corruption of sensitive or essential business or personal information and the inability to access or control systems; liabilities and costs arising in connection with any business decisions to temporarily or indefinitely idle or permanently close an operating facility or mine, which could adversely impact the carrying value of associated assets and give rise to impairment charges or closure and reclamation obligations, as well as uncertainties associated with restarting any previously idled operating facility or mine; our level of self-insurance and our ability to obtain sufficient third-party insurance to adequately cover potential adverse events and business risks; uncertainties associated with our ability to meet customers’ and suppliers’ decarbonization goals and reduce our greenhouse gas emissions in alignment with our own announced targets; challenges to maintaining our social license to operate with our stakeholders, including the impacts of our operations on local communities, reputational impacts of operating in a carbon-intensive industry that produces greenhouse gas emissions, and our ability to foster a consistent operational and safety track record; our actual economic mineral reserves or reductions in current mineral reserve estimates, and any title defect or loss of any lease, license, easement or other possessory interest for any mining property; our ability to maintain satisfactory labor relations with unions and employees; unanticipated or higher costs associated with pension and other post-employment benefit obligations resulting from changes in the value of plan assets or contribution increases required for unfunded obligations; uncertain availability or cost of skilled workers to fill critical operational positions and potential labor shortages caused by experienced employee attrition or otherwise, as well as our ability to attract, hire, develop and retain key personnel; the amount and timing of any repurchases of our common shares; and potential significant deficiencies or material weaknesses in our internal control over financial reporting.
For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023, and other filings with the U.S. Securities and Exchange Commission
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20240317053261/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
No Labor Agreement, No Deal: US Steel Union Draws Line for Nippon Merger
No Labor Agreement, No Deal: US Steel Union Draws Line for Nippon Merger
So you can not show evidence of your post?
It was made public. Take it or leave it. I really don't care.
ConCaves bribing the workforce with $3,000 to take the clot shot was and is known by everybody.
Now he is about to face the consequences for his stupid dumb mistakes.
When ConCaves became a Doctor with the greatest scam that has ever swept Earth and began supporting the enemy during war time, with company money, I left quickly.
Shareholders are likely to suffer big time from his Horse Shit.
I agree. Still feel it's Undervalued.
LG still owns $120M of CLF stock (5.7M shares) directly and via trusts:
https://www.sec.gov/Archives/edgar/data/764065/000076406524000065/xslF345X05/wk-form4_1709940869.xml
I don’t mind if he takes a little off the table.
Cleveland-Cliffs Announces Price Increase for Hot Rolled, Cold Rolled and Coated Steel Products
Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) today announced that it is increasing current spot market base prices for all carbon hot rolled, cold rolled and coated steel products, effective immediately with all new orders. Cliffs’ minimum base price for hot rolled steel is now $840 per net ton.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20240307122701/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
CLF independent director bought $40K of stock on the open market yesterday:
https://www.sec.gov/Archives/edgar/data/764065/000076406524000060/xslF345X05/wk-form4_1709817256.xml
This is a different director from the one who bought $500K of stock in February (#msg-173752365).
Cleveland-Cliffs Announces Proposed Offering of $750 Million of Senior Unsecured Guaranteed Notes
Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) announced today that it intends to offer to sell, subject to market and other conditions, $750 million aggregate principal amount of senior unsecured guaranteed notes due 2032 (the “Notes”) in an offering that is exempt from the registration requirements of the Securities Act of 1933 (the “Securities Act”). The Notes will be guaranteed on a senior unsecured basis by the Company’s material direct and indirect wholly-owned domestic subsidiaries, other than certain excluded subsidiaries.
The Company intends to use the net proceeds from the Notes, along with liquidity on hand, to repurchase in a tender offer or otherwise redeem all of the Company’s outstanding 6.750% Senior Secured Notes due 2026 (the “Secured Notes”).
This news release does not constitute a notice of redemption with respect to the Secured Notes or an offer to sell or the solicitation of an offer to buy any securities. The Notes and related guarantees are being offered only to qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act, and outside the United States to non-U.S. persons in reliance on the exemption from registration set forth in Regulation S under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
Forward-Looking Statements
This release contains statements that constitute “forward-looking statements” within the meaning of the federal securities laws. All statements other than historical facts, including, without limitation, statements regarding our current expectations, estimates and projections about our industry or our businesses, are forward-looking statements. We caution investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements. Among the risks and uncertainties that could cause actual results to differ from those described in forward-looking statements are the following: continued volatility of steel, iron ore and scrap metal market prices, which directly and indirectly impact the prices of the products that we sell to our customers; uncertainties associated with the highly competitive and cyclical steel industry and our reliance on the demand for steel from the automotive industry; potential weaknesses and uncertainties in global economic conditions, excess global steelmaking capacity, oversupply of iron ore, prevalence of steel imports and reduced market demand; severe financial hardship, bankruptcy, temporary or permanent shutdowns or operational challenges of one or more of our major customers, key suppliers or contractors, which, among other adverse effects, could disrupt our operations or lead to reduced demand for our products, increased difficulty collecting receivables, and customers and/or suppliers asserting force majeure or other reasons for not performing their contractual obligations to us; risks related to U.S. government actions with respect to Section 232 of the Trade Expansion Act of 1962 (as amended by the Trade Act of 1974), the United States-Mexico-Canada Agreement and/or other trade agreements, tariffs, treaties or policies, as well as the uncertainty of obtaining and maintaining effective antidumping and countervailing duty orders to counteract the harmful effects of unfairly traded imports; impacts of existing and increasing governmental regulation, including potential environmental regulations relating to climate change and carbon emissions, and related costs and liabilities, including failure to receive or maintain required operating and environmental permits, approvals, modifications or other authorizations of, or from, any governmental or regulatory authority and costs related to implementing improvements to ensure compliance with regulatory changes, including potential financial assurance requirements, and reclamation and remediation obligations; potential impacts to the environment or exposure to hazardous substances resulting from our operations; our ability to maintain adequate liquidity, our level of indebtedness and the availability of capital could limit our financial flexibility and cash flow necessary to fund working capital, planned capital expenditures, acquisitions, and other general corporate purposes or ongoing needs of our business, or to repurchase our common shares; our ability to reduce our indebtedness or return capital to shareholders within the currently expected timeframes or at all; adverse changes in credit ratings, interest rates, foreign currency rates and tax laws; the outcome of, and costs incurred in connection with, lawsuits, claims, arbitrations or governmental proceedings relating to commercial and business disputes, antitrust claims, environmental matters, government investigations, occupational or personal injury claims, property-related matters, labor and employment matters, or suits involving legacy operations and other matters; supply chain disruptions or changes in the cost, quality or availability of energy sources, including electricity, natural gas and diesel fuel, critical raw materials and supplies, including iron ore, industrial gases, graphite electrodes, scrap metal, chrome, zinc, other alloys, coke and metallurgical coal, and critical manufacturing equipment and spare parts; problems or disruptions associated with transporting products to our customers, moving manufacturing inputs or products internally among our facilities, or suppliers transporting raw materials to us; the risk that the cost or time to implement a strategic or sustaining capital project may prove to be greater than originally anticipated; our ability to consummate any public or private acquisition transactions and to realize any or all of the anticipated benefits or estimated future synergies, as well as to successfully integrate any acquired businesses into our existing businesses; uncertainties associated with natural or human-caused disasters, adverse weather conditions, unanticipated geological conditions, critical equipment failures, infectious disease outbreaks, tailings dam failures and other unexpected events; cybersecurity incidents relating to, disruptions in, or failures of, information technology systems that are managed by us or third parties that host or have access to our data or systems, including the loss, theft or corruption of sensitive or essential business or personal information and the inability to access or control systems; liabilities and costs arising in connection with any business decisions to temporarily or indefinitely idle or permanently close an operating facility or mine, which could adversely impact the carrying value of associated assets and give rise to impairment charges or closure and reclamation obligations, as well as uncertainties associated with restarting any previously idled operating facility or mine; our level of self-insurance and our ability to obtain sufficient third-party insurance to adequately cover potential adverse events and business risks; uncertainties associated with our ability to meet customers’ and suppliers’ decarbonization goals and reduce our greenhouse gas emissions in alignment with our own announced targets; challenges to maintaining our social license to operate with our stakeholders, including the impacts of our operations on local communities, reputational impacts of operating in a carbon-intensive industry that produces greenhouse gas emissions, and our ability to foster a consistent operational and safety track record; our actual economic mineral reserves or reductions in current mineral reserve estimates, and any title defect or loss of any lease, license, easement or other possessory interest for any mining property; our ability to maintain satisfactory labor relations with unions and employees; unanticipated or higher costs associated with pension and other post-employment benefit obligations resulting from changes in the value of plan assets or contribution increases required for unfunded obligations; uncertain availability or cost of skilled workers to fill critical operational positions and potential labor shortages caused by experienced employee attrition or otherwise, as well as our ability to attract, hire, develop and retain key personnel; the amount and timing of any repurchases of our common shares; potential significant deficiencies or material weaknesses in our internal control over financial reporting; and our ability to successfully repurchase and/or redeem the Secured Notes.
For additional factors affecting the business of Cliffs, refer to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023, and other filings with the U.S. Securities and Exchange Commission.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20240303027267/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
Cleveland-Cliffs and the United Steelworkers Union Jointly Comment on the Tin Mill Products Final Report Released by the ITC
Source: Business Wire
The U.S. International Trade Commission (ITC) this week issued public documents detailing the rationale behind its unanimous negative injury determination in the tin mill products trade case brought by co-petitioners Cleveland-Cliffs and the United Steelworkers (USW). This determination by the ITC negated the implementation of anti-dumping and countervailing duties calculated by the Department of Commerce and will result in the continuation of widespread unfair trade practices in the tin mill products market.
Lourenco Goncalves, Cleveland-Cliffs' Chairman, President and Chief Executive Officer, stated, "It is now clear that the decision by United States Steel Corporation not to participate as a petitioner in this trade case -- or provide a substantive response to the ITC’s request for further information on the idling of tin lines in Gary and East Chicago, Indiana and the closure of UPI in California -- directly led to the ITC’s negative determination. Had U.S. Steel cooperated with the ITC, the Commission would not have been left without the information needed to discern the market forces behind U.S. Steel’s withdrawal from the tin mill products market in the United States.”
Mr. Goncalves continued, “U.S. Steel’s January 2022 announcement that it would shut down its UPI tin mill in Pittsburg, California left the West Coast completely exposed to imports, particularly from Asian countries like Japan and China. This decision played a major role in the surge of imported tin mill product that hit the U.S. in mid-2022 and decimated the domestic industry, harming workers and communities. In spite of U.S. Steel’s intransigence, I am grateful for the partnership of the USW that allowed this case to go forward. The report issued this week made clear that, unfortunately, the ITC discounted the filings and testimony of the USW that clearly articulated how its members at Cleveland-Cliffs and U.S. Steel had been materially injured by unfair trade.”
“USW members across the tin mill industry can compete with anyone on a level playing field,” said USW International President David McCall. “Unfortunately, the ITC’s decision continues to leave them and their families vulnerable to unfair trade, threatening their livelihoods and imperiling the communities in which they live and work.
“Dumped and illegally subsidized tin mill products have already cost far too many good, American jobs, and USW members understand as well as anyone that without relief, foreign producers will continue to undercut our market until we are wholly dependent on them.
“It’s clear that our nation urgently needs strategic reform of our broken trade system so that domestic workers and industries aren’t forced to fight on a case-by-case basis to ensure they have a future.”
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs is also the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
About the United Steelworkers
The USW represents 850,000 workers employed in metals, mining, pulp and paper, rubber, chemicals, glass, auto supply and the energy-producing industries, along with a growing number of workers in health care, public sector, higher education, tech and service occupations.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229790051/en/
MEDIA CONTACTS:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
Jess Kamm
USW Communications Director
412-562-2444
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719
Cleveland-Cliffs: A 'Trump Trade' With Significant Upside Potential
Feb. 27, 2024 10:41 AM ETCleveland-Cliffs Inc. (CLF) Stock12 Comments6 Likes
?
Leo Nelissen
Investing Group Leader
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Summary
Cleveland-Cliffs remains in a strong position despite challenges in global demand and economic uncertainties.
The company has successfully hiked its prices and generated over $1.6 billion in free cash flow in 2023.
Cleveland-Cliffs is strategically positioned for future growth with its focus on renewable energy and sustainable steel production.
Looking for more investing ideas like this one? Get them exclusively at iREIT® on Alpha. Learn More »
?
Sushiman
Introduction
It's time to dive into Cleveland-Cliffs Inc. (NYSE:CLF) again - this time by incorporating a political angle.
However, don't worry. This is not going to be a biased piece trying to get you to support a certain candidate. I have never written a biased political article, and I am not going to start now.
What we're doing in this article is discussing the bull case for one of my favorite steel stocks, Cleveland-Cliffs, which not only turned from an iron ore supplier without any steel production to one of America's producers within a few years, but it is also one of the biggest beneficiaries of the renewable energy trend, economic re-shoring, and other secular tailwinds.
On top of that, it could get political support if former President Trump were to win in November.
My most recent article on Cleveland-Cliffs was written roughly two months ago when I went with the title Why I Am Even More Bullish After Cleveland-Cliffs Failed To Buy U.S. Steel."
Since then, shares have appreciated roughly 6%, boosted by strong earnings, which we will discuss in great detail in this article.
?Data by YCharts
So, as we have a LOT to discuss, let's get right to it!
Cleveland-Cliffs Remains In A Great Spot
Pressure on Chinese construction demand.
Elevated recession risks in Europe and the United Kingdom.
The leading ISM Manufacturing Index has been below 50 since 2022, indicating demand issues in cyclical industries.
Usually, these three issues are very bearish for steel stocks - especially when they happen at the same time, as we are currently witnessing.
The chart below compares the Cleveland-Cliffs stock price to the ISM Manufacturing Index (the blue line).
But no change in CLF's 2024 production guidance of 16.5MT — because the tin-plate segment is a minuscule portion of CLF's operations.
Consensus EPS estimates increase by 10%
The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved.
2024 revenue forecast increased from US$20.7b to US$21.5b.
EPS estimate increased from US$1.73 to US$1.91 per share.
Net income forecast to grow 144% next year vs 26% growth forecast for Metals and Mining industry in the US.
Consensus price target broadly unchanged at US$21.27.
Share price was steady at US$19.78 over the past week.
https://simplywall.st/stocks/us/materials/nyse-clf/cleveland-cliffs/future
Cleveland-Cliffs offered to buy U.S. Steel, leading the latter company to put itself up for sale. Cleveland-Cliffs final per-share proposal to U.S. Steel included $27 in cash, $27 in Cleveland-Cliffs stock and $6 in synergy, Goncalves said.
He estimated the total value to be over $60 per share for U.S. Steel stockholders.
https://www.nwitimes.com/news/local/business/cleveland-cliffs-ceo-casts-doubt-on-whether-u-s-steel-sale-to-nippon-will-close/article_8a461756-c151-11ee-9645-13c8e04f2d8c.html
CLF director bought $500K of stock on the open market today:
https://www.sec.gov/Archives/edgar/data/764065/000076406524000035/xslF345X05/wk-form4_1706806823.xml
CLF 4Q23 CC notes:
In 2024, CLF expects to use free cash flow approximately 50% for debt reduction and 50% for share buybacks (subject to market prices). This is a big change from the 2023 allocation, which was roughly 85% for debt reduction and 15% for share buybacks.
CLF expects the US index price of HRC to be relatively stable in 2024 (unlike 2023). For the fixed-price contracts up for renewal in 2024, CLF expects to realize an ASP for HRC in the range of $1,000-1,150/ton.
Toyota, CLF’s largest individual customer, has its fixed-price contract up for renewal on 4/1/24.
Cleveland-Cliffs Expects Strong Steel Shipments in 2024 -- Commodity Comment
Published: Jan. 29, 2024 at 6:32 p.m. ET
By Stephen Nakrosis
Cleveland-Cliffs on Monday said it was expecting strong steel shipments this year, with anticipated steel shipments rising slightly from last year.
On 2023 steel demand:
Lourenco Goncalves, chairman, president and chief executive, said steel demand stayed healthy in 2023, adding the company's most important market -- the automotive sector -- performed well. "Even with the UAW labor strike late in Q3 and into Q4, automotive steel demand remained consistently strong, as we anticipated. After it was clear that the strike was not creating any real issues in the marketplace, non-automotive clients de-stocking their inventories betting on lower steel prices were compelled to buy steel at higher prices," he said.
The company's 2023 total steel shipments of 16.4 million tons "set a record since we became a steel company in 2020."
On 2024 outlook:
Cleveland-Cliffs said it was expecting 2024 steel shipment volumes of 16.5 million net tons, slightly above the 16.4 million net tons shipped in 2023. The company also was anticipating steel unit cost reductions of about $30 per net ton in 2024.
Goncalves said, "Going forward, and assuming a fair scrap marketplace -- free from artificial, provoked and hard-to-explain moves -- with scrap demand growing and scrap supply shrinking, there is no good reason for scrap prices to go down. If true supply and demand for scrap in the U.S. prevails, there is no good reason for HRC prices to go below $1,000 per net ton."
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
CLF reports 4Q23 results—issues 2024 guidance:
https://www.clevelandcliffs.com/investors/news-events/press-releases/detail/621/cleveland-cliffs-reports-full-year-and-fourth-quarter-2023
CLF progresses hydrogen use in blast furnaces:
https://finance.yahoo.com/news/cleveland-cliffs-completes-successful-blast-194200321.html
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