Cliffs' shares rise as it swings to a profit
VANCOUVER (miningweekly.com) – US iron-ore producer Cliffs Natural Resources has reported a 58.4% increase in fourth-quarter revenue, boosted by rising domestic iron pellet sales.
The Cleveland, Ohio-based company reported net income attributable to shareholders of $79.1-million, or $0.34 a share, for the three months to December 31, compared with a loss of $60.3-million, or $0.39 a share, in the fourth quarter of the prior financial year.
Revenue climbed by $278-million to $754-million, from $476-million in the comparable year-earlier period.
For the full financial year, the company recorded net income of $199-million, compared with a net loss of $748-million recorded in the previous year.
Total debt at the end of the fourth quarter was $2.2-billion, compared with $2.7-billion at the end of the fourth quarter of 2015.
In 2017, Cliffs expects to generate $510-million of net income and $850-million of adjusted earnings before interest, taxes, depreciation and amortisation. This prospect is based on the assumption that iron-ore and steel prices will average levels consistent with the full month of January throughout 2017.
“A much more favourable business environment in the US and a newly adopted rational behaviour in the international iron-ore market support the work we have done internally in our company. With a much lower debt profile and extended maturities, and several new and more favourable commercial agreements that we put in place in 2016, we expect Cliffs to deliver strong and sustainable results in 2017,” stated CEO Lourenco Goncalves.
The stock closed up 19.43% on the NYSE on Thursday at $11.37 apiece.
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