The Rising Influence of Rising Affluence

[DewDiligence]

CLF—Considering they reported adjusted [EBITDA] of $285M the 4th Q, it looks very promising.

In all likelihood, CLF will handily exceed the new 2021 EBITDA guidance of $3.5B (#msg-162886757).

Why? Because CLF’s 2021 EBITDA guidance of $3.5B is based on the benchmark price for US hot–rolled coil averaging only $975 per short ton during 2021, which is well below the current HRC price of about $1,300.

Note: CLF uses more than 90% of its mined iron ore in its internal steelmaking and HBI operations, so CLF’s financial performance is no longer materially dependent on the spot price of iron ore.