Rev...$574 mil.. exceeded est.
USIO EBITDA ...$105 mil, realized Price $93/ton.. 38% EBITDA margins
APIO EBITDA.....$6 mil, realized price $43/ ton..production cost $37/ton( About 4 ansd1/2 yrs life of mine left)
NAC EBITDA.......$6mil.. ( this will be deconsolidated beginning Q-2 as mines' sale in progress or pending)
Q-1 CapEx ..........only$16 mil.. est for whole year $125 mil
Q-1 SG&A.............$29 mil down down22% from Q-1,14. est. for whole year $120 mil or less if coal mines sold
Debt Q-1 2015... $2.5 B..down $400 mil from $2.9B at the end of Q-1,14
LG said Q-1 has the higher cost than other QTRs due to the seasonality, weather conditions and inventory
LG blasted big 3 (BHP,Vale and Rio) of scaring small miners by constantly by talking about raising the IO production but actually NOT planning to do it.
LG wants to mend relationship with AK steel that previous MNGT screwed it up in favor of selling more IO in SB markets and that actually back fired.
LG wants to expand USIO business by selling to DI pellets to smaller Midwest mills besides the big steel companies.
LG wants to pursue the production of DRI pellets by putting up a factory in the state of Minnesota with help of that State's Gov.
$0.02 net earnings for Q-1 makes 3rd straight profitable QTR for LG. Higher earnings to come in Q-2,Q-3 and Q-4.
There is NO respect for CLF and LG by Analysts . They Applaud him in the CC and then go out and blast CLF on its lower sales and big debt. His Q-1 performance in spite of around $50/ton SB IO price, was magnificent when WS and analysts' E. estimates were ($0.184). Mark my words since the coal mines are deconsolidated from the P&L, from now on ,they will be sold very soon before the Q-2 ends.
Again Analysts' E. est for Q-2 are ($0.15) and for Q-3 are ($0.11). LG will beat them both by a wide margin and debt will be close to $2.0 B as those Met Coal mines will be sold. At some point I hope LG gets some respect. Per what he said in CC, he will expand USIO business with smaller Mills in Minnesota and Closing one mine in Michigan and renew contract with MT before the Dec .2016 deadline. CLF stock is down because of huge manipulation of stock price by big boys, but
eventually the stock price will rise..
I did and they are Analysts' estimates . I know they are unrealistic and LG will beat them soundly. Go to Yahoo and check it out for yourself.
LG can do NO wrong, but Shorts are very bold and keep shorting all based on high debt and high interest of some $200 mil per year.dBut the debt will be reduced down to $2 B or under by Q-2 end. Also IO prices are going up.
LG has said in CC that he will cut cost everywhere to make USIO business very profitable and pay down debt faster. One more mine in Michigan will be taken down.
Read Q-1 CC Transcript. APIO EBITDA was $6 MIL,and NAC EBITDA was also $6 mil .. both still profitable and USIO EBITDA was $105 mil. NAC is either too close to being sold or will be sold before Q-2 is over. CLF is NOT going to include NAC in P& L starting in Q-2.
skit.. It will be lot better than Q-1. SB IO price is up by 25% and therefor APIO will generate more EBITDA than Q-1. USIO shipment will be around 6 mil plus and No NAC EBITDA will be included. My E.est will be $0.30 /sh vs ($0.15) est by Analysts. LG has proven analysts wrong every time since he has been @ CLF
yup.. Finally CLF may get some respect. I am hoping to attend CLF's SH meeting in Cleveland in June. This stock has a lot more to go. In Q-2 end, debt be down at least to $2 B from sale of 2 coal mines and other cost reductions and using earnings. Every $100 mil in debt reduction reduces interest cost by $8 mil .
BTW, what happened to oht? he seemed to have disappeared...lol
iron..thx.!! this is great to see SB IO above $60. Worst may be over. Now its UBS's turn to say that higher exports of IO will bring down price to $45 in 2nd half of year per Bloomberg.