Did as much as I could, including paid premium reports on CLF.
One thing I'm still scratching my head about and hoping someone can help shed light on is the company's cash position: a meager $38m (MRQ, according to Yahoo stats).
Mining is a capital intensive undertaking.
Has CLF always been operating with such low cash reserve?
(I haven't been able to compile the history of their cash reserves, knowing that they do carry billions in long and medium term debts.)
Thanks in advance.
they recently raised 500 million on a bond offering at 3.95% which will be used to pay off 2013 and 2015 debts...along with adding some cash...they also sold a mine for 143 million adding to the coffers...they have 1.5 billion untapped credit line...they use this when needed but keeping it payed down until ...We should get more details regarding cash upon this earnings CC...Seems like a good buy here provided IO stays up over 130 p/t...
Well, iron ore prices went down a lot causing them to be less profitable for a time, and their cash position fell as a result. Iron ore prices have since gone up recently. Goldman sachs downgraded them with a price target of $25 because they thought they wouldn't be able to pay their dividend, but shortly after the price climbed when Iron ore prices went up. If I remember correctly the company is also in the process of selling a mine which is listed as discontinued operations that should boost their cash when thats complete.
They're divesting/selling the operation in Brazil, and suspending/scaling back their operations in Bloom Lake, Canada, for what I know.
Can you recall if they have always been operating with such low cash reserve?