| Why Cliffs Natural Resources Stock Price Is Under Pressure | |
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Why Cliffs Natural Resources’ Outlook Remains Weak in a Challenging Market Iron ore price performance
Benchmark iron ore prices have fallen ~17.0% year-to-date. Iron ore prices had hit a decade-low of $47.08 in early April, but they recovered to trade at the current price of $56 per ton. The prices of iron ore mining companies have not fallen uniformly, however, as we’ll see in this article.
How are iron ore companies doing?
BHP Billiton (BHP) and Rio Tinto (RIO) have been the best performers among all the iron ore miners since January 2015, and are down 2.2% and 9.1%, respectively. Vale S.A. (VALE) was down 26.3%. Pure play Fortescue Metals Group (FSUGY) is down 32.5%.
Cliffs Natural Resources (CLF) had the worst decline of all the above companies, falling 45.1% year-to-date. CLF forms 3.2% of the SPDR S&P Metals and Mining ETF (XME).
Cliffs underperforms its iron ore peers
Cliffs Natural Resources’ (CLF) stock price fell to a fresh 52-week low of $3.86 on July 2. It fell 8.3% in a single day on July 2, mainly triggered by a target price cut by Deutsche Bank from $5.50 to $5.00.
Cliffs is more sensitive to these than larger, more diversified players such as BHP and RIO. Its main earning asset, the US iron ore division, is not involved in the seaborne market and is protected by legacy contracts with North American steelmakers. Its other divisions, particularly Bloom Lake, have been a drag—and high debt isn’t helping.
In the rest of this series, we’ll talk about the current market sentiment for Cliffs Natural Resources stock, as well as the other major factors that investors should look for to get a direction on Cliffs’ share price.
Continue to Next Part Browse this series on Market Realist:
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CLIFFS Natural Resources
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PRODUCER |
CODE : CLF |
ISIN : US18683K1016 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
CLIFFS Natural Res is a iron producing company based in United states of america. CLIFFS Natural Res produces iron, coal in Australia, in Brazil and in Canada, and holds various exploration projects in Canada. Its main assets in production are WABUSH MINE, EMPIRE AND TILDEN MINES, HIBBING TACONITE, NORTHSHORE MINE, UNITED TACONITE, OAK GROVE MINE, GREEN RIDGE MINE and PINNACLE MINE in Canada, AUSTRALIAN IRON ORE and SONOMA in Australia and AMAPA in Brazil and its main exploration properties are MT JACKSON J1 in Australia and DIAGNOS, WAWA, FREEWEST, MC FAULD'S LAKE, MACFADYEN, WAWA CLAIMS and BIG DADDY in Canada. CLIFFS Natural Res is listed in France, in Germany and in United States of America. Its market capitalisation is US$ 3.4 billions as of today (€ 3.1 billions). Its stock quote reached its highest recent level on May 16, 2008 at US$ 99.17, and its lowest recent point on January 15, 2016 at US$ 1.20. CLIFFS Natural Res has 297 400 968 shares outstanding. |