HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Message: Cliffs Natural Resources: The Clock is Ticking
September 22, 2014
By Ben Levisohn
Chinese steel production is slowing–and that’s bad news for Cliffs Natural Resources (CLF). Wells Fargo’s Sam Dubinsky explains why:
Bloomberg NewsAccording to The World Steel Association, Chinese steel production grew 1% YoY in August, which is a deceleration from 2.6% YTD and 9-10% growth recognized over the past few years. We view this data as negative for iron ore pricing, which as of today has reached a multi-year low of $80.5/MT (also down >40% YTD) and in theory could go lower if China continues to slow.
Clock is ticking for Cliffs Natural Resources. Cliffs Natural Resources has a new CEO and board that were appointed via a shareholder activist campaign. The company is currently evaluating asset sales and other restructuring efforts, but with iron ore continuing to fall and China data worsening…results could disappoint as the value of assets would likely be diminished as pricing continues to fall….[We] are not convinced efforts will be enough to support the current stock price.
Shares of Cliffs Natural Resources have fallen 7.6% to $12.94 at 1:32 p.m. today.
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