Not all, just the margin amount gets reset when the stock falls below $5, really cut my day trading out and based on the volume, day traders are out of the picture.
LG needs to come out into mainstream media and sing the praises for the localized supply chain and value added products. This is the future of iron ore and CLF can take a leadership role in helping the industry evolve and reducing the cost of producing steel and improving air quality. Once he is viewed as an expert and spokesman, then he can tweet away.
Big mistake, never do a phone interview on CNBC, must be sitting on the set and allow all the reporters to fire questions at you. Musk always comes on camera and gets respect. Up to this point management has been doing the right thing and then failed big time. He should have come on air and said that we understand our customer's concerns and will help in conducting testing and replace any floor that does not meet our standards. Instead he comes on the phone and hammers home the point the tests 60 minutes did was not correct.
CLF's only seaborne iron ore is Asia Pacific and still cash positive at $59, limited impact on US contracts. US Steel shutting down pellet production is good for CLF since it takes supply off the market. Chinese GDP at 7% growth which is still good and the total growth is the same as when China was growing at 8% a couple years ago. The dividend cut is being used to buy back bonds at a fraction of the original cost. I thought the CLV shares were factored into the float when they were issued. I agree the CEO needs to work on his direction. NET debt after they get their tax refund will be under $2 billion (total debt minus cash) and they can reduce it further by buying back more bonds at that fraction of the cost you stated.
$70 million on top of about $200 tax benefit gives them more cash than most companies that are selling for $20 a share. As I see it Q1 they will sell 3 million tons in the US with margins of $25, that will give them $75 million and APIO and US coal will balance each other out. Earnings are easy since it really is based on USIO with fixed contracts and US demand. The real wild card is the sale of BL, US coal and APIO. We hear of negotiations but no real news that cause this current speculation. CLF needs to get debt down to $1.5 billion so that the savings in interest expense offsets any further fall in iron ore prices.
Jeff, steel production is falling, 3 percent down from last year, however the bulk of the losses are from the Southern US with minor losses in the Great Lakes area. Most of the cuts is in steel manufacturers that use scrap steel because the cost of scrap remains high.
With bankrupting BL they have cut out a huge amount of overhead and obligations from pensions to rail contracts. That leaves fair profits from USIO, minimal profits from APIO and a slight loss from US coal. While profits will be much less than Q4, they still will be a profit which will be added to their tax benefit.
Steel production on the Great Lakes area is down slightly from a year ago, the largest fall in steel production is from the Southern Region where many of the scrap based steel producers are located. Data shows the Great Lakes region is recovering and should surpass last year's numbers.
Some of those bonds were purchased from the coal mine sale, you are adding up the amount issued, the amount outstanding is not listed.
The bond exchange should bring their debt to $2.4 billion. Then take their cash and their tax refund, they will have $500 in cash, so their net debt will be $1.9 billion. With a fair offer on BL, they could get their net debt down to $1.25 billion which is equal to the proposed secured bond offering. Is LG telegraphing his end game? He did it with the sale of the Logan County coal mine.
I believe they are in their blackout period and cannot purchase or sell stock. Most companies only have about 3 weeks a quarter that are not blacked out.
I think I have been labeled NOY, or the Nut On Yahoo and just get ignored. I can see what they need to do and they have my email address and telephone number. Just like AA, they first need to acknowledge they have a problem and I can help.
The trouble is most companies have a 3 week window each quarter where insiders and the company can buy or sell shares. Short know this and pick up their attack during the blackout periods.
The daily short activity does not confirm this. I see the large players covering off the shares these new short are selling. Typical in a short attack where the major players attract these new players to buy shares that people are selling, not trying to buy shares from people that are holding.
First, CLF's US business is strong and their cash flow from operations can carry them without any outside help.
Second, tariffs protect the high cost scrap producers. If CLF really wants to make inroads to their DRI pellet business, they would not want to increase tariffs and force these steel makers to work with CLF to get them lower cost DRI pellets.
As I have said before, CLF is the face of iron ore supply in the future and they need to promote that just as TSLA promotes electric cars as being the car of the future.
is that 60% is tied to steel scrap as an input. The high cost of scrap is based on the high cost of labor and transportation to process it and get it to the mills. The low cost of iron ore opens the door for CLF to be able help them reduce their cost with DRI pellets and get some of the production back from the low cost importers.