Cleveland-Cliffs Announces Share Repurchase Program
November 26 2018 - 7:00AM
Business Wire
Cleveland-Cliffs Inc. (NYSE:CLF) today announced that its
Board of Directors has authorized the Company to buy back its
outstanding common shares. Under the share repurchase program, the
Company will have ample flexibility to buy up to a maximum of $200
million worth of shares, via acquisitions in the open market or
privately negotiated transactions, including through accelerated
share repurchases or pursuant to the terms of a Rule 10b5-1 plan.
The Company is not obligated to make any purchases and the program
may be suspended or discontinued at any time. The authorization is
active until December 31, 2019.
Lourenco Goncalves, Cleveland-Cliffs Chairman and CEO, stated,
"The disconnect between our strong profitability and the current
volatility in the capital markets has created a highly accretive
use of capital by buying back our own common shares. Similar to
what we did a few years ago with our debt repurchases at deep
discounts, we will not fight the tape; but we will definitely take
advantage of this unique opportunity the market has given to
us."
About Cleveland-Cliffs Inc.
Founded in 1847, Cleveland-Cliffs Inc. is the largest and oldest
independent iron ore mining company in the United States. We are a
major supplier of iron ore pellets to the North American steel
industry from our mines and pellet plants located in Michigan and
Minnesota. By 2020, Cliffs expects to be the sole producer of hot
briquetted iron (HBI) in the Great Lakes region with the
development of its first production plant in Toledo, Ohio. Driven
by the core values of safety, social, environmental and capital
stewardship, our employees endeavor to provide all stakeholders
with operating and financial transparency. For more information,
visit http://www.clevelandcliffs.com.
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. As a general matter, forward-looking statements
relate to anticipated trends and expectations rather than
historical matters. Forward-looking statements are subject to
uncertainties and factors relating to Cliffs’ operations and
business environment that are difficult to predict and may be
beyond our control. Such uncertainties and factors may cause actual
results to differ materially from those expressed or implied by the
forward-looking statements. These statements speak only as of the
date of this release, and we undertake no ongoing obligation, other
than that imposed by law, to update these statements. Uncertainties
and risk factors that could affect Cliffs’ future performance and
cause results to differ from the forward-looking statements in this
release include, but are not limited to: uncertainty and weaknesses
in global economic conditions, including downward pressure on
prices caused by oversupply or imported products, reduced market
demand and risks related to U.S. government actions with respect to
Section 232 of the Trade Expansion Act (as amended by the Trade Act
of 1974), the North American Free Trade Agreement and/or other
trade agreements, treaties or policies; continued volatility of
iron ore and steel prices and other trends, including the supply
approach of the major iron ore producers, affecting our financial
condition, results of operations or future prospects, specifically
the impact of price-adjustment factors on our sales contracts; our
ability to cost-effectively achieve planned production rates or
levels, including at our HBI production plant; our ability to
successfully identify and consummate any strategic investments or
development projects, including our HBI production plant; the
impact of our customers reducing their steel production due to
increased market share of steel produced using other methods or
lighter-weight steel alternatives; our ability to successfully
diversify our product mix and add new customers beyond our
traditional blast furnace clientele; our actual economic iron ore
reserves or reductions in current mineral estimates, including
whether any mineralized material qualifies as a reserve; our
ability to maintain appropriate relations with unions and
employees; the outcome of any contractual disputes with our
customers, joint venture partners or significant energy, material
or service providers or any other litigation or arbitration; the
ability of our customers and joint venture partners to meet their
obligations to us on a timely basis or at all; problems or
uncertainties with productivity, tons mined, transportation,
mine-closure obligations, environmental liabilities,
employee-benefit costs and other risks of the mining industry; our
ability to reach agreement with our customers regarding any
modifications to sales contract provisions, renewals or new
arrangements; our actual levels of capital spending; the timing and
amount of purchases of our common shares; our level of indebtedness
could limit cash flow available to fund working capital, capital
expenditures, acquisitions and other general corporate purposes or
ongoing needs of our business; our ability to continue to pay cash
dividends, and the amount and timing of any cash dividends;
availability of capital and our ability to maintain adequate
liquidity; changes in sales volume or mix; events or circumstances
that could impair or adversely impact the viability of a mine and
the carrying value of associated assets, as well as any resulting
impairment charges; impacts of existing and increasing governmental
regulation and related costs and liabilities, including failure to
receive or maintain required operating and environmental permits,
approvals, modifications or other authorization of, or from, any
governmental or regulatory entity and costs related to implementing
improvements to ensure compliance with regulatory changes;
uncertainties associated with natural disasters, weather
conditions, unanticipated geological conditions, supply or price of
energy, equipment failures and other unexpected events; adverse
changes in currency values, currency exchange rates, interest rates
and tax laws; and the potential existence of significant
deficiencies or material weakness in our internal control over
financial reporting.
For additional factors affecting the business of Cliffs, refer
to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K
for the year ended December 31, 2017. You are urged to carefully
consider these risk factors.
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MEDIA:Patricia PersicoDirector, Corporate
Communications(216) 694-5316INVESTORS:Paul FinanDirector,
Investor Relations(216) 694-6544
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