Replies to post #2825 on The Rising Influence of Rising Affluence

[DewDiligence]

CLF—Do you still believe an equity offering is likely?

Hi, DoA. My answer is yes.

If so, do you have any prediction as to when it might occur?

CLF has a lot of flexibility on timing, so they will presumably do the offering when they think conditions in the broad market are at a peak of bullishness. Thus, the offering could come at any time in 2011 or conceivably in early 2012.

…you piqued my interest in CLF several months ago...

CLF does seem like your kind of company insofar as management’s disclosures to investors are unusually thorough (the polar opposite of MON).

But, I've been holding back from making an investment, largely because of your prediction on March 17 (#msg-61079686) that an equity offering will be required to complete funding…

I don’t think the likelihood of a financing is a good reason to hold off on buying. CLF is not like a pre-commercial biotech company where dilution from the next financing deal might subdue the share price for a long time; to the contrary, I think the market reaction to CLF’s stock offering will be a non-event. In the overall scheme of things, it is orders of magnitude less consequential than the spot price of iron ore. Regards, Dew

[DewDiligence]

Slides from CLF’s Investor Day presentation today (123 pages):

http://sec.gov/Archives/edgar/data/764065/000119312511175231/dex991.htm