Cleveland Cliffs Inc (CLF) Options

Wonder if he will take another $26,000,000 in salary again this year.

And it's going to be rough like I said. Watch, Cliffs Shareholders will take a 50% Haircut when it plays out from paper to reality. Then what?

We're right back to the Halverson days of CCI. Taking on more debt with no short term rewards.

That would be about the time Dr. Concaves starts answering for his bonuses he lured employees in and the repercussion of that horrible mistake.

When it starts to unfold and SHTF, It may not be pretty.

Steel CEOs Say China Is Using Mexico to Evade U.S. Trade Laws

https://finance.yahoo.com/m/31c497f3-de79-3abf-80ad-8ff76be6ab3a/steel-ceos-say-china-is-using.html

Jefferies Reaffirms Their Buy Rating on Cleveland-Cliffs (CLF)

https://markets.businessinsider.com/news/stocks/jefferies-reaffirms-their-buy-rating-on-cleveland-cliffs-clf-1033589994

Cleveland-Cliffs, German Firm Commit to Transformers Projects in West Virginia, Georgia

https://www.industryweek.com/leadership/companies-executives/news/55128097/cleveland-cliffs-german-firm-commit-to-transformers-projects-in-west-virginia-georgia

Absorbing Stelco shares will be rough for shareholders and could take years for any notable return.Actually, the acquisition will be immediately accretive to EPS, as noted on slide #3 of https://d1io3yog0oux5.cloudfront.net/_5143a591af400ce308144b0fc4097f0e/clevelandcliffs/files/pages/clevelandcliffs/db/1118/description/Cleveland-Cliffs_Announces_the_Acquisition_of_Stelco_-_Slides.pdf .

Absorbing Stelco shares will be rough for shareholders and could take years for any notable return.

When this hits $10, Concaves will realize hiring his son as CFO was a grave mistake for shareholders.

Must realize, that the Brazilian CEO and his son as CFO do not have shareholders best interest.

The squeaky wheel gets the grease, I know but their interests lie in Brazil, not the USA.

All steel stocks will take an at least 50% haircut before bouncing back and could fall even further.

CLF 2Q24 CC notes—note second bullet item re AI:

• The planned transformer facility in Weirton, WV (#msg-174789843) will generate $75-100M in annual EBITDA, yielding a payback period on invested capital of only 1.5-2 years.

• CLF’s intends to build additional transformer facilities (other than the one at Weirton) because the EBIDTA margins are high and the demand is expected to increase sharply as the US electrical grid is upgraded to support AI growth and other imperatives.

• CLF expects to ship at least 4M tons in each of 3Q24 and 4Q24.

• Essentially all of the accounting charges for idling the Weirton tinplate facility have already been taken.

• No antitrust issues are expected relating to CLF’s acquisition of Stelco (#msg-174755282) due to the small overlap in the specific segments of the steel industry served by each company.

• LG says the highest price he would now pay for US Steel—if the Nippon deal falls through—is $29/sh. (Take this with a grain of salt, LOL.)

CC transcript:
https://finance.yahoo.com/news/cleveland-cliffs-clf-q2-2024-171517332.html

2Q24 results were not as bad as some investors expected, given the lower average price realization compared to prior quarters (#msg-174791870).

CLF reports 2Q24 results:

https://www.clevelandcliffs.com/investors/news-events/press-releases/detail/645/cleveland-cliffs-reports-second-quarter-2024-results

All year-over-year comparisons (except volume shipped) are unfavorable due to the lower average price realization in 2Q24 compared to 2Q23. Still, 2Q24 was slightly better than some investors expected, which is why the stock is up ~3% in AH trading. CC Tuesday at 8:30am ET.


2Q24 highlights

• Revenue of $4.9B, -15% YoY

• Non-GAAP EPS of $0.11 (excluding a $0.11 impairment charge from the idling of the Weirton WV tinplate plant)* vs $0.28 in 2Q23

• Adjusted EBITDA of $323M, -58% YoY

• Free cash flow of $362M, -52% YoY

• Steel shipments of 4.0M net tons, +1% YoY

• 6/30/24 net debt of $3.4B, down $237M from 3/31/24 (despite repurchasing approximately $125M of CLF shares during 2Q24)


2024 guidance

• No updated or re-iterated guidance for 2024 steel shipment volume; the guidance given three months ago was 16.5M tons (vs 16.4M in 2023)

• Re-iterated cost reductions of ~$30 per net ton, corresponding to ~$500M adjusted EBITDA benefit compared to 2023

• Cap-ex guidance lowered $25M to $650-$700M (from prior range of $675-725M)


*See new plans for Weirton, WV site in #msg-174789843.

stock is up after hours

rare

CLF invests $100M—including $50M grant_from WV—to build new electrical transformer plant in Weirton, WV at the site of idled tinplate facility:

https://finance.yahoo.com/news/cleveland-cliffs-announces-state-art-110000609.html Cleveland-Cliffs Inc. announced today that it will establish a new electrical distribution transformer production plant in Weirton, West Virginia.

…The total capital investment is $150 million, of which $50 million (or one third) will be granted by the state of West Virginia to Cliffs through a forgivable loan [i.e. a grant]. Cliffs expects the new plant to come online in the first half of 2026.

The efficiency standards for distribution transformers recently promulgated by the U.S. Department of Energy support the long-term utilization of highly-efficient American-made Grain Oriented Electrical Steel (GOES), ensuring the viability of this investment in Weirton.

This investment will result in reemployment opportunities for 600 USW-represented workers from the indefinitely idled Weirton tinplate mill (https://www.clevelandcliffs.com/news/news-releases/detail/622/cleveland-cliffs-to-idle-weirton-tinplate-facility ).

Cleveland-Cliffs needs a climate plan for Stelco.

There is a ton of work ahead to be green steel competitive. HBI #2? will be costly and take years.

https://www.thespec.com/opinion/contributors/cleveland-cliffs-needs-a-climate-plan-for-stelco/article_fdf50fad-a44c-57df-9de3-8f37ae5d1bd8.html

Cleveland-Cliffs needs a climate plan for Stelco


https://www.thespec.com/opinion/contributors/cleveland-cliffs-needs-a-climate-plan-for-stelco/article_fdf50fad-a44c-57df-9de3-8f37ae5d1bd8.html

The Biden administration has introduced additional tariffs on Mexican imports that utilize Chinese steel and aluminum, reinforcing measures originally put in place by former President Trump.


Political and Economic Implications: The move aims to address loopholes exploited by Chinese manufacturers and support American steel and aluminum workers, particularly in states like Pennsylvania and Ohio. 


MxM News Share
Check out this article I found on MxM News: https://mxmnews.com/article/95736790-dc93-46a3-9476-01ddbb095662

Correction—Based on today’s CC, it’s clear that CLF does still have an interest in acquiring US Steel at some point, but not in the near future.

Concaves will need to answer for those crimes.

With the Stelco deal announced today, it’s reasonable to assume that CLF no longer has any intention of pursuing US Steel.

Slide #10 shows US/Canada steel production for the top-10 companies in the market. A combined CLF + Stelco will still rank #2 — trailing only Nucor — but it will be 50% ahead of the #3 company, Steel Dynamics.

Addendum—You don’t see too many acquisitions that are immediately accretive to GAAP EPS, as CLF asserts that the Stelco deal will be in the post I’m replying to.

CLF-STLC CC slides:

https://d1io3yog0oux5.cloudfront.net/_5143a591af400ce308144b0fc4097f0e/clevelandcliffs/files/pages/clevelandcliffs/db/1118/description/Cleveland-Cliffs_Announces_the_Acquisition_of_Stelco_-_Slides.pdf

CLF insiders were actively buying shares on the open market only one month before the announcement of the Stelco deal, which is rather surprising—and patently bullish.

CLF acquires Canada’s Stelco for $2.5B* cash/stock—an 87% premium to STLC.TO’s closing price on 7/12/24:

https://www.clevelandcliffs.com/news/news-releases/detail/643/cleveland-cliffs-announces-the-acquisition-of-stelco Cleveland-Cliffs Inc…is pleased to announce that it has entered into a definitive agreement to acquire Stelco Holdings Inc. (TSX:STLC) ("Stelco"). The acquisition confirms Cliffs’ commitment and leadership in integrated steel production in North America, and also brings an additional 1,800 United Steelworkers ("USW") union employees into Cliffs’ workforce.

Under the terms of the agreement, Stelco shareholders will receive CAD $60.00 per Stelco common share in cash and 0.454 shares of Cliffs common stock per share of Stelco common stock (or CAD $10.00 per share as of July 12, 2024), representing a total consideration of CAD $70.00 per Stelco share.

The transaction has received full support from David McCall, International President of the USW union.

The transaction implies a total enterprise value of approximately USD $2.5 billion (CAD $3.4 billion) for Stelco and represents an acquisition multiple of 4.8x 3/31/24 LTM [last twelve months] Adjusted EBITDA with synergies. Cliffs has a clear line of sight to the achievement of approximately $120 million of estimated annual cost savings with no impact to union jobs.

The acquisition is expected to be immediately accretive to 2024 and 2025 EPS. The transaction implies pro forma net leverage of 2.4x 3/31/2024 LTM Adjusted EBITDA. Upon completion of the transaction, Cliffs shareholders will own approximately 95% and Stelco shareholders will own approximately 5% of the combined company, on a fully diluted basis.

Stelco is an integrated steelmaker consisting of two operational sites, both located in the province of Ontario: Lake Erie Works, the newest and lowest-cost integrated steelmaking facility in North America; and Hamilton Works, a downstream finishing and cokemaking facility. Stelco ships approximately 2.6 million net tons of flat-rolled steel annually, primarily hot-rolled steel to service center customers.

…Upon closing of the transaction, Stelco is expected to continue operations as a wholly-owned subsidiary, preserving the name and legacy of the business.

… The transaction has been unanimously approved by Cliffs’ and Stelco’s respective Boards… The transaction is expected to close in the fourth quarter of 2024, subject to approval by Stelco shareholders, receipt of regulatory approvals and satisfaction of other customary closing conditions. *Enterprise value. The nominal deal value (i.e. the market value of the cash + stock consideration) is approximately $2.8B (C$3.85B). $1 = C$1.36.

Just thought I'd look a bit into your posting history. Noticed a boatoad of Cleavland Cliff posts (whoever the heck they were)....
So I clicked onto one of them where I noticed some news at the bottom stating that the company had just announced TODAY the purchase of STELCO !
My Canadas' freaking Stelco !????.......WTF ?
Canada just sold off its' steel industry ?......For I think it says around 3 billion ?
https://ih.advfn.com/stock-market/NYSE/cleveland-cliffs-CLF/stock-news/94191644/cleveland-cliffs-announces-the-acquisition-of-stel





https://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=clf&x=52&y=11&time=100&startdate=1%2F4%2F1990&enddate=12%2F30%2F2024&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&style=320&size=3&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9


https://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=&symb=ca%3Astlc&x=51&y=16&time=100&startdate=1%2F4%2F1990&enddate=12%2F30%2F2024&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&style=320&size=3&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9




Anyways.......That sucks......Might be good for SOMEONE though.

https://investorshub.advfn.com/Stelco-Holdings-Inc-STLC-41674





https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174754903



.

…CLF continues to trade…as if the Cliffs, X acquisition bid is still dominant. Maybe not dominant, but still affecting valuations to some degree.

Interesting that CLF continues to trade like hedge and institutional funds are posturing trading as if the Cliffs, X acquisition bid is still dominant. X is trading far below the $55 pps Nippon cash offer but above the pre-acquisition bid pps. Notably, Cliffs is approaching the one year mark since Cliffs let it be known to investors that an offer was in play.

“Analyst” articles and anonymous posting on other boards suggest some wish to shake new investors away from Cliffs and to loose Cliffs from X. It was reported the USW are entering into contract arbitration this Fall. Should investors presume arbitration is related to reconciling union rights during acquisition negotiations that were claimed as not being honored?

Nuts, he gave bonuses, it's no secret and the Aid he sent. It's criminal Every bit of it, is in the filings.

Do some DD as it's covered in the filings... There's nothing like that in the filings—if there were you would have provided a link and page number.

Do some DD as it's covered in the filings like the CEO is a good Samaritan. The naive don't consider the ramifications of his guilt as he admits what he did.

It's borderline Treason what the CEO has done in my book.

There is a lot of slippery activity going on that shareholders don't see. From who and what they fund at the expense of the common shareholder. Sounds like BS.

CEO Concaves is a Brazilian turncoat who hired his own son as Treasurer.

There is a lot of slippery activity going on that shareholders don't see. From who and what they fund at the expense of the common shareholder.

after that collapse from $20 to $14
they better be buying a SH*T TON of stock back at these levels

im looking to add if we get back in the $13-$14.50 range again

Cleveland-Cliffs to Announce Second-Quarter 2024 Earnings Results on July 22 and Host Conference Call on July 23

Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) will announce its second-quarter 2024 earnings results after the U.S. market close on Monday, July 22, 2024.
The Company invites interested parties to listen to a live broadcast of a conference call with securities analysts and institutional investors to discuss the results on Tuesday, July 23, 2024, at 8:30 am ET. The call can be accessed at www.clevelandcliffs.com and will also be archived and available for replay at that address.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20240701721806/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316
INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719

CLF’s press conference today with Sen. Brown and USW President (29 minutes):

https://markets.businessinsider.com/news/stocks/unveiling-9-analyst-insights-on-cleveland-cliffs-1033505100

Cleveland-Cliffs to Host U.S. Senator Sherrod Brown and USW International President David McCall at Cleveland Works

Source: Business Wire

Cleveland-Cliffs Inc. (NYSE: CLF) announced that Lourenco Goncalves, Chairman, President and Chief Executive Officer is hosting Senator Sherrod Brown (OH) and leadership from the United Steelworkers, David McCall, USW International President and Donnie Blatt, Director of USW District 1, at its Cleveland Works plant in Ohio on Wednesday, June 26 for a press conference. Senator Brown’s visit follows the recent bipartisan legislation introduced to stop the dramatic increase in Mexican steel imports. The Stop Mexico’s Steel Surge Act reinstates the 232 tariffs on Mexican steel imports at 25 percent, for no less than a year, and gives the President of the United States the authority to impose additional quotas and tariff rate quotas on specific products if necessary. Senator Brown has led efforts pushing the current administration to take aggressive action to enforce the agreement to level the playing field for American manufacturers and workers in the steel industry.

During the visit, Senator Brown will meet with Cleveland-Cliffs’ CEO Lourenco Goncalves and USW International President David McCall, as well as with local union leaders and employees regarding this important trade enforcement matter. Mr. Goncalves will be hosting a press conference with Senator Brown, David McCall and Donnie Blatt that will be live streamed on the Company’s YouTube channel.

Featured Speakers

U.S. Senator Sherrod Brown (OH)

David McCall, USW International President

Donnie Blatt, Director of USW District 1

Lourenco Goncalves, Cleveland-Cliffs' Chairman, President and Chief Executive Officer

Livestream Details:
Cleveland-Cliffs Program
Wednesday, June 26, 2024
Time: 11:15 a.m. ET

The live broadcast is accessible via Cleveland-Cliffs’ YouTube channel:
Cleveland-Cliffs Live Stream Link

A replay will be available after the event on Cleveland-Cliffs’ channel.

About Cleveland-Cliffs Inc.

Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs is also the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 28,000 people across its operations in the United States and Canada.

?

View source version on businesswire.com: https://www.businesswire.com/news/home/20240624980801/en/

MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
(216) 694-5316

INVESTOR CONTACT:
James Kerr
Director, Investor Relations
(216) 694-7719

CLF production better than US STEEL.
READ THE CHART.
We should be at $55 a share.


https://worldsteel.org/data/top-producers/

https://seekingalpha.com/article/4699609-us-steel-focus-on-falling-steel-prices-instead-of-the-most-likely-dead-buyout?mailingid=35761687&messageid=must_reads&serial=35761687.345952&source=email_must_reads

Up soon.



Cleveland-Cliffs has received several prestigious industry awards for its business and financial performance.


Annual S&P Global Platts Global Metals Awards

The Global Metals Award program recognizes exemplary performance in the metals and mining industry. Cleveland-Cliffs took top honors in three categories.

2021: The Deal of the Year Award
Recognizing the significance and success of the Company’s 2020 acquisitions.

2021: Metals Company of the Year
Selecting a company for all-around excellence in executing a total metals strategy.

2021: CEO/Chairperson of the Year
Honoring a leader who is highly respected by both peers and competitors, admired and followed by employees, trusted by investors and welcomed by the community. Mr. Goncalves was recognized for his leadership and taking decisive action and adapting to market shifts by balancing long-term growth with short-term challenges.



General Motors Supplier of the Year

GM recognized the best and distinguished global suppliers with the highest quality and innovation in the automotive industry. This is the fourth consecutive year Cleveland-Cliffs/AK Steel has received this award.


Association for Iron & Steel Technology (AIST) Steelmaker of the Year

The Steelmaker of the Year award recognizes prominent leaders and their contribution to the steel industry. Mr. Goncalves was honored for his distinguished career, strong leadership, passion and outstanding contributions to the global mining and steel industries for more than 30 years.


Fastmarkets Global Awards for Steel Excellence - Advocate of the Year

The Steel Excellence awards honor truly exceptional and the “best of the best” steel industry thought leaders and organizations.

Mr. Goncalves was named Advocate of the Year for his longtime leadership within the steel industry and transformation of Cliffs into a leading steel company.


Fastmarkets Global Awards for Steel Excellence - Scrap Company of the Year

The Steel Excellence awards honor truly exceptional and the “best of the best” steel industry thought leaders and organizations.

Ferrous Processing and Trading Co. was recognized by steel producers, service centers, scrap companies, pipe and tube producers and suppliers of materials and services in the steel industry.



Association of Steel Distributors (ASD) Steel Executive of the Year

This award, received by Mr. Goncalves, recognizes distinguished individuals who have made lasting contributions to the steel distribution industry over a significant period of time.

General Motors Supplier of the Year

GM recognized the best and distinguished global suppliers with the highest quality and innovation in the automotive industry. This is the sixth consecutive year Cleveland-Cliffs has received this award.


Willy Korf/Ken Iverson Steel Vision Award

2022: Mr. Goncalves was presented with the award, which honors individuals who have made significant contributions to the steel industry while promoting goodwill and integrity.

Are Cleveland-Cliffs Inc.'s (NYSE:CLF) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?


https://finance.yahoo.com/news/cleveland-cliffs-inc-nyse-clf-140159256.html

One CLF director, Douglass Taylor, went against the grain and sold $500K worth of stock two days ago:

https://www.sec.gov/Archives/edgar/data/764065/000076406524000152/xslF345X05/wk-form4_1718317004.xml

Taylor still owns >100,000 shares (~$1.5M worth).

Two more insider buys—$300K by one independent director and $100K by another independent director:

https://www.sec.gov/Archives/edgar/data/764065/000076406524000150/xslF345X05/wk-form4_1718303164.xml
https://www.sec.gov/Archives/edgar/data/764065/000076406524000146/xslF345X05/wk-form4_1718283217.xml

All told, there are now four insider buys this week, and five insider buys since 5/1/24—see #msg-174593789.

https://www.benzinga.com/insights/news/24/06/39314906/ben-oren-of-cleveland-cliffs-shows-optimism-buys-100k-in-stock

More insider buying—independent director bought $1M of stock on the open market today:

https://www.sec.gov/Archives/edgar/data/764065/000076406524000148/xslF345X05/wk-form4_1718294709.xml

For other recent insider buys, see #msg-174340346 (CEO) and #msg-174587787 (CFO).

https://www.msn.com/en-us/money/topstocks/cleveland-cliffs-clf-stock-slides-as-market-rises-facts-to-know-before-you-trade/ar-BB1o7iXT

CFO, Celso Goncalves bought $100K of stock on the open market today:

https://www.sec.gov/Archives/edgar/data/764065/000076406524000144/xslF345X05/wk-form4_1718212569.xml

Celso Goncalves owns about $5M worth of CLF stock at the current market price.

p.s. CLF’s CEO, Lourenco Goncalves, is a much larger shareholder (#msg-174340346).

FWIW, mostly "meh" to me.

https://www.sec.gov/Archives/edgar/data/764065/000195004724004648/xsl144X01/primary_doc.xml

https://www.schaeffersresearch.com/content/news/2024/06/11/cleveland-cliffs-stock-eyes-7th-straight-loss-after-bear-note