Cliffs, put a positive press release out there before it's too late! Cliffs could announce the advancement of the Ring of Fire Project partnered with KWG Resources. Cliffs has everything to gain.

Boor better start practising what he preaches and start really "working together". You can do it, Fink's gone and Cassablanca might keep you if you save the deal. You know what you have to do.

Meanwhile, Nomura cut its rating on the stock to "reduce" from "buy", and price target to $5 from $18. Analysts at Nomura said a fall in iron ore prices this year has hurt company's results and will limit its ability to sell assets. Wells Fargo dropped its price target on Cliffs to a range of $4 to $7 noting a combination of continually falling iron ore prices and further weakening demand.


Cliffs tumbles amid WSJ story, 2-notch downgrade

• Casablanca Capital was pitched the idea of launching a campaign for Cliffs Natural (CLF -14.7%) by activist consultant Michael McNamara (ROR Capital) last year, reports the WSJ, and agreed to pay McNamara up to one-third of its profits.
• A review of Casablanca's regulatory filings didn't disclose the ties, says the Journal, noting a rule requires investors with stakes of 5% or more (Casablanca's was 5.2% in January) to describe any arrangement with a third party that might include a split of the profits. For its part, ROR Capital did disclose in a February filing the outlines of an arrangement with an unnamed client.
• For now, Casablanca is well underwater on its Cliffs investment.
• In other news, Cliffs is the subject of a two-notch downgrade from Buy to Reduce at Nomura, which also slashes its price target to $5 from $18.

Wabush byelection sees 3 new faces during 'critical time,' says mayor


Three new town councillors will be sworn in at a ceremony on Thursday in Wabush. (CBC)

• Wabush Mines shutdown blamed on production costs
• Wabush Mines shutting down

Wabush byelection sees 3 new faces during 'critical time,' says mayor

The Town of Wabush will swear in three newly-elected councillors on Thursday night.

Trevor Dove, Gertie Canning and Jason Penney were elected in a byelection on Tuesday, to fill the seats of three town councillors who resigned in June.

Mayor Colin Vardy told CBC the new councillors are arriving at a critical time in the future of Wabush.


Mayor Colin Vardy says the newly-elected councillors are arriving at a critical time, as the town is in the middle of preparing next year's budget. (CBC)

"I think it's important to acknowledge that there's some big changes going on in our community. The big changes involve a big chunk of money," Vardy said.

A grant in lieu of taxes from Cliffs Natural Resources, the owner of Wabush Mines, makes up about a quarter of the town's budget — that's about a $2-million cheque that the town won't cash in 2015.

"That agreement is tied to production. If they don't produce any ore in 2015 — then there's nothing to pay out," Vardy said.

Vardy said the town has turned to the Newfoundland and Labrador government, hoping it will make good on a promise made in February, when the mine shut down. About 400 workers were affected.

At the time, Kevin O'Brien was minister responsible for the Department of Municipal and Intergovernmental Affairs. Keith Hutchings is the new minister.

"Minister O'Brien stated that no town's ever been left in the dark, and you know, we want to make sure they keep to their promise they made back in February. We have to tighten our belt ourselves. We have a trying time ahead of us. Finding $2-million if the government doesn't come on board is going to be extremely difficult for a municipality," said Vardy.

Vardy said is gets a little frustrating dealing with new ministers.

"Because they got to get up to speed, and they have to understand your concerns. But you know what, I'm still confident there's still an opportunity there," he said.

The town council hopes to finish a draft version of the budget by the end of the month.

In the meantime, Cliffs Natural Resources has no plans to restart the mine, but continues to work out a sale with a potential buyer.