long..I hope KWG will be able to organize the financing and take the" Ring of Fire" mine off CLF's hands for something like $500 Mil very soon. That might stabilize the stock price as Street will notice that Cliffs is serious about getting rid of INT assets, and concentrating on domestic IO business.
CLF paid $300Mil for the rights to the Chromite project (Ring of Fire) and spent another $200 mil so far to develop it and then did nothing as there was No transportation infrastructure built to move vehicles . They say it may take CAN Government may be 3 to 5 years to build the infrastructure and then another 5 years for CLF to develop the mine and might cost another $500mil-$1 B for it.. .. the MONEY they don't EVEN have and TIME they don't have to wait till then.
CLF is a cash- stripped company. I was talking to a friend yesterday who works there and he said CLF has NOT reduced any expenses .. so much for what they said about cutting cost when they were looking for Votes to get elected on the Board. If they can get $500Mil they invested in the Ring of Fire from KWG Resources I say take it and run, and use it to lower the debt . Also sell whatever other INT Canadian assets like Wabush and BL mines for whatever they can get. Only try to get the best possible price for AP Operations that are still profitable while IO price is above $80. If CASA and Goncalves don't understand that, something is wrong with them.
CLF needs to raise cash to pay down the debt and to concentrate on Domestic US Operations ONLY . Until that happens, the stock may even go down to as low as $10-$12...as simple as that. They MUST work hard and quickly to get out of all these INT assets since they cant compete with RIO and BHP on Seaborne IO prices and they are determined to drive out of business high cost IO producers and CLF is one of them whose stock moves up and down like an YO YO with daily IO price.
Just like Kirsch .. CASA and Goncalves have NO clue about getting out of INT markets at any cost and sticking to Domestic operations. Until that happens this stock is dead in the water.
Bad days for CLF for last 3 years . They must get out of Seaborne IO pricing that is killing their stock price just about every day. They must recognize that they can't compete with big players like BHP and RIO who are determined to put smaller producers of IO out of business. So sell all INT operations, get whatever they can and use to reduce the debt and then just concentrate and expand US operations which are not really dependent on Seaborne IO pricing. This is their only strategy except to cut the CAPEX even further and other cost to the BONE so they can lower the IO production cost to $50-$60 range. This is the ONLY way for CLF to survive and prosper...NO matter who is in charge. When Shorts know this they will run like hell.
BHP ,RIO and VALE all down 1.5% to 3%. CLF down most at 5.4% @ $14.06. IO price must be down big. Any one has info on today's IO price. If CLF sells all INT assets, they don't have to worry about bloody Seaborne IO price much. They will have enough US business to slowly pay down LEFT OVER and raise the stock price. Why does CASA and Goncalves insist on getting right price in this very low IO price environment. They will never be able to.
I put a call thru to Goncalves but he was unavailable and left a message for him to call.
Where they going to get money to buy more back more shares. Taking on more debt?Per latest report, their Total debt has already gone up to $3.454 B
Anyone has any idea about what the today's IO price is? CLF is down terrible today some 4%. Goncalves needs to sell just about all INT assets to down t to pay down the debt and cut CAPEX and other expenses even more drastically to conserve cash and put all emphasis on domestic business He need to describe CLF's going forward Business Strategy to put the company on a sound footing to MEDIA is the most IMP.This should help scaring the Shorts. This is the most IMP 1st step he can take.
CLF now down almost 3 %...I am going to confront Goncalves about a number of issues when I talk to him today( IN AFTERNOON) if I can get hold of him. Any specific questions anyone may have that I should ask him.. Please let me know.
No!! my home phone only takes messages. I really didn't expect his response.To say the least I was very surprised in his interest to speak to me. But I will call him tomorrow as he seems to be interested in talking to me. I will also post the major parts of the content of he letter I sent him on 8/29. If I get hold of him , I will also summarize it here.
Missed Goncalves Calls twice. I will call him tomorrow and see what he has to say about the direction of CLF and his turnaround strategy.
Going up and down like a YOYO... Little price stability and Shorts are NOT giving up until Goncalves makes some startling announcement on assets sale.
Any idea what CLF might get for the" Ring of Fire" sale? I think CLF paid $500mil to acquire the rights to this Chromite mine.