With all the recent bad news estimates concerning the low price iron ore will fetch in 2014 and 2015, what will Cliffs cost to produce iron ore be in a few years, after the recent changes Cliffs has made, such as shutting mines etc.?
Good question, another thing to ask is if demand slows in China, and picks up somewhere else... how does this change the cost of shipping for CLF? I guess it would hurt the Australian mine, but it could very well position them better if demand increased in North America. I guess when there is only one view that the demand for IO is based solely off of Asia and that the company can not adjust to changing markets... yes I know CLF supplies a great deal currently to that market.
Interesting concept when the company has been around in some form since the 1800's . Now yes they are spending money to get the Bloom going, and yes they have larger overall debt payments to make, and this would lead one to think they need to keep mines active to keep cash flow moving.
My point is what happens to IO costs for CLF if demand increases elsewhere in the world. Which company gains in that scenario? I still think Chinese demand is stronger than the general analyst believes, additionally the unknown of ore quality from all the mines they say are coming online adds another question to forecasting analysis.
I thought CLF did mention they are seeing lower quality ore coming form their Aussie mines. Well at least lower quality than they had been getting in the past, this can happen to any mine in the world, and can change the cost structure or prices paid to any miner. Heck it could happen to Bloom.
Yes I have no answer to your question, someone can give you a better estimate, but ti will merely be an estimate based on so many variables.