Cliffs Natural to Idle Wabush Plant - Analyst Blog
14 3월 2013 - 8:20PM
Zacks
Mining and natural resources
company Cliffs Natural Resources Inc. (CLF) has
announced its decision to temporarily idle its Wabush Pointe Noire
pellet plant in Sept-Iles, Canada, by the end of second-quarter
2013. The decision is due to high production costs and lower pellet
premium pricing, which are expected to persist in certain markets
throughout the year.
Product mix at Cliffs’ Eastern
Canadian Iron Ore business segment contains iron ore pellets and
concentrate. Cliffs plans to temporarily shutdown its iron ore
pellet plant at Pointe Noire and shift to producing an iron ore
concentrate-only product from its Wabush Scully mine in the
Province of Newfoundland and Labrador by the end of second-quarter
2013.
The decision to temporarily idle
the plant will impact roughly 165 families who were involved in the
operations at the plant. However, Cliffs will provide these
employees with other employment opportunities.
Cliffs forecasts sales and
production volume of 9 million-10 million tons for 2013 at its
Eastern Canada business segment. This includes roughly 3 million
tons of both iron ore pellets and concentrate products from its
Wabush operation and the remaining expected sales volume from Bloom
Lake mine.
Cash cost per ton at Eastern
Canadian Iron Ore is anticipated to be $95-$100, whereas cash cost
per ton at Wabush is expected to be $115-$120 for full-year
2013.
Cliffs, one of the prominent
iron-mining companies along with Vale S.A. (VALE),
Alderon Iron Ore Corp. (AXX) and African
Minerals Limited (AMLZF), released mixed fourth-quarter
2012 results last month.
Cliffs’ adjusted earnings for the
fourth quarter missed the Zacks Consensus Estimate. Cliffs swung to
a loss on a reported basis on sizeable charges. Revenues declined
year over year on lower pricing but beat the Zacks Consensus
Estimate.
Cliffs expects the pricing
environment to remain volatile in 2013. Cliffs remains hamstrung by
lower iron ore pricing, partly due to the slowdown in Chinese
demand and oversupply in the industry. The prices for commodities
are expected to remain under pressure due to the uncertain economic
environment. Cliffs also contends with higher labor and mining
costs.
Cliffs currently retains a Zacks
Rank #3 (Hold).
AFRICAN MINERAL (AMLZF): Get Free Report
ALDERON IRON (AXX): Free Stock Analysis Report
CLIFFS NATURAL (CLF): Free Stock Analysis Report
VALE SA (VALE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
African Minerals (GM) (USOTC:AMLZF)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
African Minerals (GM) (USOTC:AMLZF)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024