Cliffs Natural Resources (CLF:$21.38,00$-1.09,00-4.85%) has entered into a new agreement with AK Steel (AKS) to supply iron ore pellets from 2014 through 2023.
The new agreement includes minimum and maximum volume iron ore pellet purchases from Cliffs, as outlined in the agreement. Cliffs will continue to supply AK Steel with iron ore pellets for the remainder of 2013 and 2014 under the previous agreement between the two companies.
The new agreement provides a pricing mechanism for the volumes sold in the contracted years. The annual price will be determined by a formula-based pricing mechanism, where the annual price is adjusted by multiple factors including seaborne pricing for iron ore and certain producer price indices.
Excellent news -- more guaranteed income and cash flow for CLF years to come. I wouldn't be surprised if CLF may one day acquire AKS outright.
Regardless, this only the beginning, imho.
There will be more positive announcements and developments forthcoming for the duration of the calendar year.
Again, anyone selling or shorting CLF shares at these stone-age prices is in need of cognitive therapy.
Any other stock would be moving on a long term deal like this that secures sales volume - let's hope it does more than the paltry 10 cents showing so far AH. Can not believe how easy the shorts are able to get out of CLF with all the positives - but then again those big boys know a thing or two about manipulation