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Cleveland-Cliffs to Idle Two Mines Due to Coronavirus Outbreak
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Cleveland-Cliffs Inc. (CLF - Free Report) has announced that it will temporarily idle production at two of its iron ore mining operations due to weak market conditions, resulting from the coronavirus pandemic.
Notably, the mines are Northshore Mining in Minnesota and Tilden Mine in Michigan. The company intends to temporarily idle production at Northshore mine by mid-April, with a planned restart by August 2020. The production at the Tilden mine will be halted by the end of April, with a planned restart in July 2020, unless business circumstances change.
The company stated that it will work down existing inventory levels from the two mines and continue to ship iron ore to meet its commercial deals with steel customers.
Per management, Cleveland-Cliffs decided to adjust the production of iron ore during the first half of the year. Notably, the company decided not to continue to build additional iron ore inventory until market conditions improve. It also stated that it will quickly restart and ramp up production, once the steel market in North America improves.
Shares of Cleveland-Cliffs have plunged 56.6% in the past year compared with the industry’s 23% decline.
In February, the company said that it expects average iron ore prices, steel prices and pellet premiums of $90 per metric ton, $650 per short ton and $50 per metric ton, respectively, for 2020. Based on the assumptions, it expects to generate net income of around $300-$325 million and adjusted EBITDA of $550-$575 million for 2020 on a stand-alone basis.
Cleveland-Cliffs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are DRDGOLD Limited (DRD - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
DRDGOLD has a projected earnings growth rate of 562.5% for 2020. The company’s shares have surged 371.1% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 15.9% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 63.7% in a year.
Barrick Gold currently has a Zacks Rank #2 and a projected earnings growth rate of 41.2% for 2020. The company’s shares have gained 78.8% in a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Cleveland-Cliffs to Idle Two Mines Due to Coronavirus Outbreak
Cleveland-Cliffs Inc. (CLF - Free Report) has announced that it will temporarily idle production at two of its iron ore mining operations due to weak market conditions, resulting from the coronavirus pandemic.
Notably, the mines are Northshore Mining in Minnesota and Tilden Mine in Michigan. The company intends to temporarily idle production at Northshore mine by mid-April, with a planned restart by August 2020. The production at the Tilden mine will be halted by the end of April, with a planned restart in July 2020, unless business circumstances change.
The company stated that it will work down existing inventory levels from the two mines and continue to ship iron ore to meet its commercial deals with steel customers.
Per management, Cleveland-Cliffs decided to adjust the production of iron ore during the first half of the year. Notably, the company decided not to continue to build additional iron ore inventory until market conditions improve. It also stated that it will quickly restart and ramp up production, once the steel market in North America improves.
Shares of Cleveland-Cliffs have plunged 56.6% in the past year compared with the industry’s 23% decline.
In February, the company said that it expects average iron ore prices, steel prices and pellet premiums of $90 per metric ton, $650 per short ton and $50 per metric ton, respectively, for 2020. Based on the assumptions, it expects to generate net income of around $300-$325 million and adjusted EBITDA of $550-$575 million for 2020 on a stand-alone basis.
Cleveland-Cliffs Inc. Price and Consensus
Cleveland-Cliffs Inc. price-consensus-chart | Cleveland-Cliffs Inc. Quote
Zacks Rank & Stocks to Consider
Cleveland-Cliffs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are DRDGOLD Limited (DRD - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Barrick Gold Corporation (GOLD - Free Report) .
DRDGOLD has a projected earnings growth rate of 562.5% for 2020. The company’s shares have surged 371.1% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Franco-Nevada has a projected earnings growth rate of 15.9% for 2020. It currently carries a Zacks Rank #2 (Buy). The company’s shares have rallied 63.7% in a year.
Barrick Gold currently has a Zacks Rank #2 and a projected earnings growth rate of 41.2% for 2020. The company’s shares have gained 78.8% in a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>