Cleveland Cliffs Inc (CLF)

[sts66]

Man, APIO sucked the wind out of Q1 revs - cost them $124M to sell $59M worth of ore?!? Two things from their PR have me asking questions:

Cleveland-Cliffs Inc. Reports First-Quarter 2018 Results

1. It doesn't appear that much of the APIO closing costs of $120M-$140M were charged in Q1, so Q2 could see an even bigger negative EPS. PR says $47M loss from APIO, but $39M of that was COGS vs. revenues, meaning only $8M in closing costs have been taken so far. Still, thank god they're closing that white elephant down!

2. I thought CLF was getting a return of AMT overcharges from the IRS worth ~ $250M, but the PR says they lost money because of some kind of AMT charge in Q1 - WTF?

In addition, the Company recorded $16 million, or $0.05 per share, in income tax expense primarily related to a recent IRS notice regarding sequestration of refundable AMT credits.

Market seemed to like the news, USIO guidance soared to $102-$107 for 2018, another 500k long tons expected (max capacity), but HBI plant was delayed:

the Toledo HBI Project spend expectation was reduced by $25 million to $225 million due to further development and refined timing of the project spending plan

Damn, I expected the pps to drop on this report so I could avg. down, but since APIO charge were delayed it didn't happen - question is does it occur in Q2 when ~ $130M would mean about a -45 cents EPS hit?