The Rising Influence of Rising Affluence

[DewDiligence]

CLF reports 1Q24 results—authorizes new $1.5B buyback—reiterates 2024 guidance:

https://www.clevelandcliffs.com/investors/news-events/press-releases/detail/635/cleveland-cliffs-reports-first-quarter-2024-results-and

In 1Q24, CLF repurchased $608M of stock at an average price of $20, reducing shares outstanding by 6% and exhausting the pre-existing $1.0B buyback authorization. As a result, CLF has now authorized a new $1.5B buyback.

1Q24 highlights

• Revenue of $5.2B, -2% YoY

• Steel shipments of 3.94M net tons, -3% YoY

• Adjusted EBITDA of $414M, +70% YoY and +48% QoQ

• 3/31/24 net debt of ~$3.6B, up from $2.9B @12/31/23 (the increase is due primarily to the $608M share buyback)

Re-iterated 2024 guidance

• Steel shipment volumes of 16.5 million net tons, compared to 16.4 million net tons in 2023

• Steel unit cost reductions of approximately $30 per net ton, corresponding to ~$500M adjusted EBITDA benefit compared to 2023

• Capital expenditures of $675 to $725 million

The stock is down slightly in AH trading. CC Tuesday at 8:30am ET.