Replies to post #2556 on Cleveland Cliffs Inc (CLF)

[DewDiligence]

Yes, CLF and MSB are joined to the degree that MSB earns larger royalties when CLF has higher sales proceeds from the Northshore mine.

But that’s where the similarity ends. MSB is simply a royalty play, while CLF is a complex business with multiple customers and a leveraged balance sheet (although considerably less leveraged than it was before last week’s financing transactions).

p.s. Welcome to the board.

[RogerMSB]

Here are some things you need to know:

Almost all of Cliffs Northshore Mining iron ore pays royalties to MSB.

Everything shipped from Silver Bay comes from Northshore.

Cliffs said in its 4th qtr report that its production for 2017 is sold out.

You now know that Northshore mining will produce at its maximum capacity for 2017.

You can make a reasonable guess at the 2017 Royalties. You will be shocked at how much it will be.

You can make a reasonable guess at Dec 2017 share price. Again you will be shocked.

I have often wondered if Goncalves buys MSB and if he is considered an inside trader.

[RogerMSB]

Had you been following both CLF and MSB two weeks ago, you would have known the Northshore Mining shipped 1.8 million tons in the 4th qtr, compared to only 2 million for the first 3 quarters.

From the MSB 8K filings you could have made a reasonable estimate of the 4th qtr CLF iron ore sale price.

From the 3rd qtr CLF conference call you would have concluded that cliffs would "knock it out of the park"

You would have wondered why in the hell CLF share price was below $9, and bought what you could before the 4th qtr CC.