The Rising Influence of Rising Affluence

[DewDiligence]

CLF +3% on 2Q19 results and bullish outlook:

http://www.clevelandcliffs.com/English/news-center/news-releases/news-releases-details/2019/Cleveland-Cliffs-Inc-Reports-Second-Quarter-2019-Results/default.aspx

During 2Q19, CLF repurchased $129M of stock at an average price of $9.90/sh. Since the inception of CLF’s share-buyback program in late 2018, CLF has repurchased ~$300M of stock, reducing the basic shares outstanding by 10% (from 300M to 270M).

Beginning in 2H20, when the HBI plant is operational, CLF expects $1B+ of annualized EBITDA, which equates to ~$800M of annualized (pre-dividend) free cash flow, after deducting $100M of annualized maintenance cap-ex and ~$120M of interest expense. (The above does not include the cash tax refunds due from the IRS in the next three years.)