Cliffs Natural Resources' earnings drop in concert with iron-ore prices
TORONTO (miningweekly.com) – US miner Cliffs Natural Resources on Thursday reported a 48.4% drop in second-quarter earnings, saying lower iron-ore prices were mainly to blame for lower revenues.
Cliffs reported net income attributable to its common shareholders of $133-million, or $0.82 a share, in the quarter ended June 30, compared with $258-million, or $1.81 a share, in the same quarter of 2012, but still managed to beat analyst expectations.
Analysts had, on average, expected adjusted earnings of $0.61 a share on revenues of $1.41-billion.
Year-on-year consolidated revenues decreased by $91-million, or 6%, to $1.5-billion driven down by an 11% decrease in global seaborne iron-ore pricing to an average of $126/t for 62% iron-content fines products, including cost and freight to China.
The cash costs per ton rose across all of Cliffs' business segments.
Cliffs cut its sales forecast for its Eastern Canadian iron-ore segment, saying lower-than-expected recovery rates and throughput at its Bloom Lake mine, in Quebec, were to blame. The company now expected to sell between eight-million and nine-million tonnes of iron-ore in 2013, down from its previous forecast of nine-million to ten-million tonnes, and at higher-than-expected cash costs.
The company’s stock listed on the NYSE rose 4.19% in after-market trading to $18.38 apiece on Thursday evening.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation