oht..Do you have any idea of the quality of CLF's US IO pellets that are of much much higher purity containing 67%-72% Fe.. SB IO price is for Commodity IO Lumps and Fines containing 62% or less Fe. IO pellets in India and China containing 62% Fe ( a lot less than 67%-72% Fe) is going for over $100/ton plus Vet Tax . So CLF's IO pellets have NOTHING to do with SB IO. and LG said so. They will sell 22 mil plus tons in USA. at profit margins of $30/ton. So stop comparing apples and oranges.
surf.. LG was speaking the truth . What is the use of driving down the price. Their CF will suffer big time and will Not be able to have a chunk of money needed for CAPEX. What is better.... to sell 200 mil tons @ $55 or 170 mil tons @ $70? Do the MATH????
LG said in Q-4 CC that the Preferred Dividend will GO AWAY soon..an year away from doing it.. his words!!
That will save additional $51 mil. Lots of savings and cost reductions. Q-1 is the weakest QTR and if he
produces magical earnings then WS will begin to believe in LG and CLF.
oht.. I bet you are scared if Shorting but putting up a straight face here and trying to scare Longs.
CLF has been reporting profits for last 2 QTRs since LG became CEO and he is reducing debt and still WS talklng of a default .. pure garbage!!. Fortescue will go BK before CLF, and CLF gets No respect and LG 's fault is he must go to MEDIA after each CC but he
won't do it..
Dropping IO price will not be prudent for Essar Algoma(EA) to build their own pellet plant in MN. They will Not get even financing. LG has said that the Potential for EA using CLF's IO pellets in their Second Blast
Furnace is Not included in 22 mil IO they will sell in US in 2015. That will be an additional business for CLF.
LG's problem is he needs to communicate more with MEDIA to make his case for CLF...like going on CNBC,Bloomberg etc.
I was VP in my working days (3yrs ago) and do understand Accounting and Finance very well. Watch for E. on 4/27 and then tell me. I was only Quoting Exactly what LG said in Q-4 CC. Go back and read the transcripts.
Watch for 4/27 E. date ... CLF beat Earnings est. by Analysts for Q-3 and Q-4 in 2014 and will do again for Q-1,15. Don't underestimate LG. He took Metals, USA stock from $3 to $23 and will do the same for CLF..given time.
Assuming CLF sells 3 mil tons of IO in Q-1 and Gross margins are $30/ton and No profit margins from APIO and NAC and both are total wash or neutral.
$30 x 3mil = $90 mil EBITDA minus $45 mil Interest = $45 mil minus $25 mil Dep/Am = $20 mil minus $13 mil Preferred Dividend = $7 mil minus $1 Fed Tax @ 10% = $6 mil net profit or $0.04/sh earnings .. still a lot better than( $0.17/sh) Loss est. by Analysts.
skit..you are shooting off your mouth w/o knowing but its true or CEO will not make an irresponsible statement like that. Not going to argue with you any more on this.
CLF will get that amount from Uncle Sam for impairment charges. This together with $290 mil Cash on hand
will make Total cash available $ 551 mil to use for working capital and any debt reduction
ca.. Go read Q-4 CC report again. As I recall, their Cash cost of APIO was about $50-$55 in Q-4 when SBIO was $70 and CLF 's EBITDAS was $40mil to $50 mil ($10-$12/ton margins and Not $3.5/ton per you) from APIO operations in Q-4. In 2015, LG said APIO cost will be around $43 and still be a bit profitable or
breakeeven. Did I answer your Q?