Cleveland-Cliffs Inc Stock Price, News & Analysis

Cleveland-Cliffs Inc. (NYSE: CLF) has successfully redeemed all Series B Participating Redeemable Preferred Stock held by an ArcelorMittal S.A. affiliate for approximately $1.2 billion, or $21.18 per common share, equivalent to about 58 million common shares. This move, funded through existing liquidity, reduces the Company’s diluted share count by 10% on a pro-forma basis. CEO Lourenco Goncalves labeled the transaction 'highly accretive,' suggesting it benefits shareholders more than a conventional share buyback, citing the total cash spent as lower than the expected free cash flow for the quarter.

Cleveland-Cliffs Inc. (NYSE: CLF) reported a robust Q2 2021, achieving revenues of $5.0 billion, a significant increase from $1.1 billion year-over-year. The company realized a net income of $795 million or $1.33 per diluted share, compared to a loss of $108 million in Q2 2020. Adjusted EBITDA soared to $1.4 billion, rebounding from a loss of $82 million the previous year. The steelmaking segment accounted for most revenues, with notable volume increases and higher average selling prices. Looking ahead, Cliffs forecasts an adjusted EBITDA of about $1.8 billion for Q3 2021 and aims for zero net debt in 2022.

Cleveland-Cliffs (NYSE: CLF) has been named GM Supplier of the Year for the fourth consecutive year, recognized during GM's 29th annual Supplier of the Year Awards on June 22, 2021. This accolade highlights Cleveland-Cliffs' outstanding performance in exceeding GM’s requirements across various metrics, including quality and reliability. GM's recognition reflects the company’s innovative technologies and commitment to sustainability, as emphasized by GM's Vice President, Shilpan Amin. Cleveland-Cliffs, North America’s largest flat-rolled steel producer, serves a diverse market, including the automotive sector.

Cleveland-Cliffs Inc. (NYSE: CLF) updated its financial guidance for 2021, projecting a second-quarter adjusted EBITDA of $1.3 billion and a full-year adjusted EBITDA of $5 billion. This forecast assumes a US HRC index price averaging $1,175 per net ton through the year. The company plans to release its second-quarter earnings on July 22, 2021, and will host a conference call to discuss the results. Cleveland-Cliffs remains the largest flat-rolled steel producer and iron ore pellet manufacturer in North America and serves a diverse range of markets, particularly the automotive industry.

Cleveland-Cliffs Inc. (NYSE: CLF) celebrated the first six months of operation at its Direct Reduction plant in Toledo, Ohio, which has a capacity of 1.9 million metric tons of hot-briquetted iron (HBI) per year. CEO Lourenco Goncalves highlighted a $1 billion investment that enhances productivity and reduces greenhouse gas emissions. The plant employs nearly 160 workers and supports the local economy, as noted by Ohio Governor Mike DeWine. The HBI production is aimed at replacing foreign pig iron and prime scrap, improving cost efficiency in the steel industry.

Cleveland-Cliffs Inc. (NYSE: CLF) plans to redeem its $396 million 5.75% Senior Unsecured Guaranteed Notes due March 2025, with total payments expected to be about $407 million plus interest. The redemption, anticipated by June 30, 2021, is part of Cliffs' strategy to accelerate its deleveraging plan, aiming for zero net debt. CEO Lourenco Goncalves noted strong cash flow and a commitment to reducing debt as a top priority. The redemption will be funded using available liquidity.

Cleveland-Cliffs Inc. (NYSE: CLF) reported first-quarter 2021 revenues of $4.0 billion, a significant increase from $359 million in the prior year. The company achieved a net income of $41 million or $0.07 per diluted share, despite incurring $160 million in charges. Adjusted EBITDA rose to $513 million from $23 million year-over-year. The company increased its full-year adjusted EBITDA guidance to $4.0 billion, anticipating strong demand in various sectors. Total liquidity stands at approximately $1.8 billion.