I am aware for last 3 years that CLF does its own thing. Gone thru ups and and lot of downs. But its time for its price to move in a orderly fashion. Price Stability is Important to Mutual funds if more and more of them are going to get in this stock.
I have spoken to LG quiet a few times and told him CLF needs to correct their leveraged balance sheet. He agrees but going to take time after the past MNGT spent nearly $4.5 B buying Canadian Mining assets. He is doing a damn good job of cutting the debt. .
We will see what happens to Magnetation at the end of September. Thanks for your detailed input here.
I am NOt disputing that Magnatation may be in Bankruptcy... but that doesn't mean they are out of Business. MANY COMPANIES OPERATE while in IN BANKRUPTCY. There is a difference being BANKRUPT and operation in BANKRUPTCY.
SP is down some 35 % now from its recent high of $8.45 to today's $5.55.. The way to go. Do something LG!!
About Magnatation and Essar. If they were shutting down, CLF stock would be Moving up fast.. but its SP is regressing. So we really don't know much about those 2 miners. So please do us a favor and don't post any RUMORS.
Q-3 results should speak a volume. It might carry SP to $8-$10 realistically.
WOW!! SP tanked almost 5% to well under $6. It wont make any significant move up until 4 weeks before the Q-3 earnings date.
CLF's AP IO will cease the Production Operations in 2019 and the Company will strictly be a Pure play US IO Mining Co.
AS unemployment keeps going down and more people continue to get hired, It will lead to Inflation and that means the Commodities prices will rise and so will IO price. and thats good news for CLF .
With IO margins increasing, Both USIO and APIO will be Cash Flow positive and will propel the EBITDA over $600 mil in 2017 from $550 mil in 2016.
Around $6. ..Needs to break out from it
USIO production cost $46/ton
USIO revenue $78/ton
USIO IO Sell est. 2016..18 mil tons.
APIO production cost$ $28/ton
APIO revenue $ 42/ton
APIO IO Sell est.2016...11mil-12mil MT
surf..debt is NOT $1.5B. It is still around $2.1B. If Moody's upgrades CLF, the Interest Rate may drop some but not that low. Per VL, their Interest in 2016 will be $180mil that may go down to $150 mil with the upgrade, but not to $75mil. I also think there will be one more Secondary offering in 2017 if the SP gets to around $10 to dilute the share base and further reduce debt by some $300 mil.
If CLF gets its Debt under $2 B and EBITDA keeps going up from year to year, They will be able to pay off their debt in 5 years. Then the stock price will skyrocket in $30's but it will never again see $100. A likely sale of APIO could also bring down debt to $1.8 B.