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Cleveland-Cliffs Reiterates Commitment to Middletown Works Project

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Cleveland-Cliffs Inc. (CLF - Free Report) recently said that it remains entirely committed to the transformational project taking place at its Middletown Works integrated facility in Middletown, OH. CLF was selected for award negotiations for up to $500 million in total funding from the Department of Energy to replace its Middletown blast furnace with a Direct Reduced Iron plant and two Electric Melting Furnaces. It is still in active negotiations with the Department of Energy about the award-specific terms and conditions. 

Cleveland-Cliffs remains optimistic about gaining final approvals and moving forward with this carbon-friendly, high-return project. It is continuing to move ahead with award negotiations and project execution for the transformational Middletown project. The project confirms Cleveland-Cliffs' status as a global technological leader in steelmaking. Following its recent real-life hydrogen reduction trials at Indiana Harbor and Middletown, as well as its success with Direct Reduction in Toledo, OH, this project is a logical next step, per CLF. 

The company has done well in working in collaboration with UAW-represented and USW-represented workers throughout the Midwest, from Minnesota to Pennsylvania, and is pleased to be partnering with its IAM-represented steel workers in Middletown. 

Shares of Cleveland-Cliffs have lost 15% over the past year against the industry’s 8.9% decline.

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CLF, on its second-quarter call, reduced its projected capital expenditure for 2024 to the range of $650-$700 million from $675-$725 million expected earlier. It is on track with its goal of reducing steel unit costs by approximately $30 per net ton year over year in 2024.

CLF’s Zacks Rank & Key Picks

CLF currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Hawkins, Inc. (HWKN - Free Report) . 

Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 111.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. The consensus estimate for EGO's current-year earnings has gone up in the past 30 days. EGO, which currently sports a Zacks Rank of 1, beat the consensus estimate in the last four quarters, with the average earnings surprise being 430.3%. The company's shares have gained roughly 71.6% in the past year.

The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14 per share, indicating a rise of 15.3% from the year-ago level. The consensus estimate for its current fiscal-year earnings has increased 12.8% in the past 60 days. HWKN, which currently carries a Zacks Rank #2 (Buy), has gained around 99.1% in the past year. 

 

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