Replies to post #26779 on The Rising Influence of Rising Affluence

[DewDiligence]

CLF CC notes—3Q22 production volume, revenue, and profit were down in large part from repairs and maintenance to mills that formerly belonged to ArcellorMittal. This work is now complete and CLF expects a $700M cash-flow improvement in 2023 relative to 2022 as a result of both lower cap-ex and lower op-ex.

CLF’s net debt is now lower than it was before the AKS and Arcellor acquisitions. Paying down debt continues to be CLF’s top priority for cash usage; however, CLF repurchased 2M common shares during 3Q22 and may continue to repurchase shares opportunistically. There are no plans to reinstate a dividend.

[DewDiligence]

CLF reports 4Q22 results—issues 2023 guidance:

https://www.clevelandcliffs.com/news/news-releases/detail/572/cleveland-cliffs-reports-full-year-and-fourth-quarter-2022

4Q22 highlights:

• Revenues of $23.0 billion, a new all-time record

• Net income of $1.4 billion

• Adjusted EBITDA1 of $3.2 billion

• Operating cash flow of $2.4 billion

• Combined debt and net pension/OPEB liabilities reduced by over $3 billion


2023 guidance:

• Steel shipment volumes of approximately 16 million net tons, compared to 14.8 million net tons in 2022;

• Capital expenditures of $700 to $750 million, compared to $943 million in 2022;

• Cash contributions related to pension and OPEB plans of approximately $100 million, compared to approximately $200 million in 2022; and

• Federal cash tax refunds of approximately $140 million.

The stock is -3.5% in AH trading.

I’ll have more to say after the CC tomorrow.