The Rising Influence of Rising Affluence

[DewDiligence]

CLF 3Q19 results—GAAP EPS=$0.33—EBITDA=$144M:

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

Mr. Goncalves [CEO]: "We believe the currently weak steel prices in the United States are temporary, and the cyclicality associated with our business should be largely mitigated as we start-up HBI next year. With that, Cliffs is well-positioned to become an even stronger free-cash-flow generating enterprise, with limited cash needs and the ability to return even more capital to our shareholders."

3Q19 revenue per long ton was $96.65, and cash margin per long ton was $32.45; these figures were down from $105.65 and $43.11, respectively, in 3Q18.

3Q19 net margin per long ton—after $3.62/ton DD&A—was $28.83.

Guidance for full-year revenue per long ton (based on yesterday’s spot prices: seaborne iron ore = $86 per metric ton; US hot-rolled coil steel = $479 per short ton; Atlantic pellet premium = $36 per metric ton) is $97-102 per long ton—i.e. close to the realization in 3Q19. Based on the same guidance, the expected revenue per long ton in 4Q19 is substantially down from 3Q19.

CC at 9am ET. The stock is +3% in PM trading.