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Cliffs Natural Resources Inc. Message Board

  • jimjones62@rocketmail.com jimjones62 Jan 14, 2013 9:49 AM Flag

    The Numbers don't lie.

    here are the projection with updated production guidance for 2013

    US 19-20 million tons 2013
    cash cost per ton 62.5, + 4 dda= 67.5 at $150 a ton we make 82.5$ a ton or 1.67 billion annually

    Canada 9-10 million tons 2013 cash cost 102.5 + 18 dda= $120.5, at 150$ a ton we make 29.5 a ton or 265 million annually

    asia/pac 11.6 million tons 2013 cash cost 67.5 + 13 dda=80.5$, at $150 a ton we make 69.5 a ton or 806 million annually

    total iron ore positive cash flow 2013 at an average $150 price per ton=2.741 billion or 19.3 a share. then we make another 300 million with coal

    The thing you must understand our margin expand exponentially as price raises. Example you make a wigit that cost $9 to produce and it sells for $10 you make a $1, then the sale price increases due to demand by 10% to $11, you make $2 in profit vs 1$ a 100% increase in profitability. recap only a 10% increase in sales price translates into a 100% increase in profits.
    Thats the environment we are in.

    the sector had been depressed.

    all info in public in their presentation and releases for 2013 sales forecast, cost i took from their 2012 average cost. Even if iron ore averages $130 a ton that over 1.8 billion in positive free cashflow for 2013

    Sentiment: Strong Buy

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