If that was the case, TSLA should be selling for under $10. You really need to dig into it and look at the health of each division to give you a clear picture of what needs to go, what needs to stay and what needs further inputs. CLF has given a very clear picture of what assets need to be liquidated now and is moving forward with that action. I CLF can release details of the Wabush transaction and the cost / benefit of shutting down some coal operations, they will make Q2 look good to the big investors.
"The preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 52.0, topping the 51.0 median estimate of analysts "
A full one point beat of estimates and well above the 50 mark. Will be good for CLF tomorrow to add to a great conference call as management needs to pull out all the stops.
the company going forward. They know what divisions need to go and what ones need to stay. Shutting down some coal operations and working on a deal to sell Wabush. Bloom Lake's cash cost allow them to generate cash through continuing operations and Asia - Pacific is still profitable. Absolutely no reason to sell these assets now with iron ore prices depressed. Casablanca's direction will not help CLF out. More money can be generated by selling down inventories than selling these assets. The more I review the results, the more I am convinced that CLF is the clear choice going forward.
Clf actually beat consensus by a fair margin. Average consensus was a loss of 9 cents, they lost 1 cent, in my book that is a beat!
Read it again, production was not down, sales were and CLF needs the added production to meet the demand going forward and to build inventories for next winter.
Lots of general meaningless statements, but no specifics other than a 1 cent loss which by the way beat average estimates by a fair margin. You have the complete financial statement in front of you, what is it that you have a problem with? From where I sit, the only real problem was in US coal and the cost of shutting down Wabush. Going forward, CLF is idling their oldest coal mine and appears to be working a deal to sell Wabush. I hoping for details of these transactions to be released soon to see what the impact on future earnings will be.
So 5% allows them to spend the money of the 95% to cover their proxy expenses? Boy you sure look at things backwards. Now if you were ask me if CLF's management and Casablanca should pay for these proxy expenses, then in that case I would agree with you. But if Casablanca is voted in, they will charge the shareholders for their inflated cost.
with all of the gains in Q2 was from US iron ore as all other divisions saw more sales than production. US steel production YTD in the Great Lakes area has now passed last years numbers so expect iron ore demand to pull this inventory down. Going forward, CLF is sitting to increase profit levels. Institutions are in a position to see this and may stay the course with CLF management if they can prove they are headed in the right direction.
Waiting for conference call for any announcements, if nothing new, then I may vote CAS on Monday if management can't justify their direction. I still like the results for Q2 as iron ore prices were lower than Q1 and they beat Q1 by a large margin. The inventory build in US iron ore kept them from posting a 50 cent profit.
At some point iron ore shipments have to match steel production as they are connected. June iron ore shipments were at 5 year highs on the Great Lakes.
A loss of 1 cent is not that bad! US ore sales down and demand is increasing, CLF needs to reduce production levels to use up their huge inventory build. Canadian cost have now moved to be cash positive which allows CLF to make money while continuing operations. And Asia Pacific is still making profits after DD and A charges. Past impairment charges is generating tax benefits and will continue to be positive for CLF years to come.
Other than the cash charges against earnings, most of those will disappear when CLF sells off Wabush.
Finally, underground coal mining needs to be sold off.
I think CLF has made a good case to the institutional holders to keep the current management as they have posted a good quarter during difficult times. And 1 cent loss is much better than the 55 cent loss earlier.
Iron ore will be headed over $100 soon and I agree with Vale projections of it moving to $110 in the near future. With Canadian iron ore cash cost of $87 a ton, there is no need to fire sale Bloom Lake. Wabush on the other hand has to go and it appears they are moving in that direction. Coal needs to go, the only coal operation that CLF should consider is open pit mining and since they only have underground, they should get rid of all of it.
William, many of us expected earnings to be released tomorrow and it was just by chance I came in and pulled up this site when the cable guy showed up to fix my connection. But at first glance, I see more positives about this earnings report than negative. Lower cost per ton, revenue held up over $100 per ton, continued inventory build. On the negative side, it was a loss, more charges against earnings and disappointing coal operations. But all in all, it was a good report, not a blow out great report.
The only thing left is to figure out who the institutions will vote in. CAS offers a change that is unknown and CLF offers a direction that is moving in the right direction based on the results. This one is not clear cut.
That reflects the impairment charges of past which allows them to pull those losses forward. Expect to see those tax benefits in the future off the $1 billion plus charge they took in 2013 tax year.
and my 14 cent profit would have been right on if not for the Wabush charge and the increased DD and A charges.
On a positive surprise is the reduction of the Canadian Ore cost to produce. At the current levels, CLF should produce and ship the maximum amount to cut their rail charge off.
CLF had a Loss of 1 cent, you all did not hit the target!
My estimates of a profit of 14 cents was off just about as much as you are that had estimates of minus 15 cents.
There are many good points that have come out of earnings and the biggest one is reduction of Canadian Iron Ore Cost per ton from the $120 range to the $80 level which generates positive cash from continuing operations. This is really a big deal as it takes off the need to sell the assets or if they want to sell it, the lower cost makes the asset more valuable.
In any case, everyone missed their targets as CLF beat the average estimates and came in between the high and low estimates. Could that be by design?
CLF has lowered Bloom Lake's cost to the point at $90 iron ore prices and you deduct depreciation, depletion and amortization charges, they are generating cash from continuing operations. As long as they are positive, there is no point in selling the operations while iron ore prices are low.
Coal on the other hand is a continuing problem and should be sold off.
And CLF did beat average analyst estimates...