Taking a huge write down doesn't seem to help the CLF stock. Its down again today in $35's. Nothing seems to help CLF...the high price of Iron ore or increased volume of metallurgical coal. Its their stupid management. The mining cost are much higher than those of BHP, RIO or Vale and on top of that their overhead cost MUST be Lowered. Get rid of FAT payroll and management take a 10%-20% pay cut and forfeit the bonuses untill the company gets back into black.
Yup, down again.
The frustrating part for longs is that technically CLF has yet exhausted its downward momentum.
The low cash reserve makes the 6% divvi a very shaky proposition.
Short term, the outlook is cloudy at best.
I'm moving the sideline until after the earnings call on Feb 11.
Mining costs in Canada are going down due to capital spending at Bloomlake. That will increase cash flow and so will the recent iron ore price increases, so the dividend is safe. Sell me your shares, go ahead I'll gladly take them off your hands.