Minnesota Regulator Awards Cleveland-Cliffs Mesabi Taconite Leases
May 26, 2023
Trending News ☀️
CLEVELAND-CLIFFS ($NYSE:CLF): On Monday, a Minnesota regulator granted Cleveland-Cliffs Inc the taconite leases for its Mesabi Metallics subsidiary. Cleveland-Cliffs Inc. is an American mining and natural resources company with its headquarters in Cleveland, Ohio. The Mesabi Metallics project is intended to bring steel production back to the Iron Range in northeastern Minnesota. The Minnesota Office of Administrative Hearings (OAH) granted the leases to Mesabi Metallics, a subsidiary of Cleveland-Cliffs, paving the way for the company to begin construction on the project.
The approval of the Mesabi Metallics project by the OAH is a major victory for Cleveland-Cliffs, and it will likely lead to increased investments from the company as well as increased economic activity in northeastern Minnesota. This is great news for the Iron Range and the state of Minnesota as a whole.
Market Price
On Thursday, Minnesota state regulators awarded the leases for the Mesabi Taconite iron ore project to CLEVELAND-CLIFFS INC. This approval was cause for optimism, as evidenced by the stock’s performance that day: CLEVELAND-CLIFFS INC stock opened at $14.0 and closed at $14.3, up 0.7% from its last closing price of $14.2. The Mesabi Taconite project is significant for CLEVELAND-CLIFFS INC as it is expected to add a crucial source of income for the company in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cleveland-cliffs Inc. More…
| Total Revenues | Net Income | Net Margin |
| 22.33k | 477 | 2.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cleveland-cliffs Inc. More…
| Operations | Investing | Financing |
| 1.85k | -886 | -941 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cleveland-cliffs Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.65k | 10.86k | 15.13 |
Key Ratios Snapshot
Some of the financial key ratios for Cleveland-cliffs Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 116.8% | 27.6% | 4.3% |
| FCF Margin | ROE | ROA |
| 4.3% | 7.7% | 3.2% |
Analysis
At GoodWhale, we have conducted an analysis of CLEVELAND-CLIFFS INC‘s wellbeing. Based on our Star Chart, CLEVELAND-CLIFFS INC is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Accordingly, investors who are willing to accept a certain level of risk, yet are not looking for the highest return, may be interested in this type of company. CLEVELAND-CLIFFS INC has strong growth and medium asset, profitability, and dividend scores. Additionally, it has an intermediate health score of 6/10 with regard to its cashflows and debt, suggesting that it is likely to sustain future operations in times of crisis. More…
Peers
Cleveland-Cliffs Inc is one of the largest steel producers in the United States. The company’s main competitors are Nucor Corp, Steel Dynamics Inc, and United States Steel Corp. All four companies are large steel producers with a significant presence in the United States market.
– Nucor Corp ($NYSE:NUE)
Nucor Corporation is an American steel producer. Nucor is the largest steel producer in the United States. The company is the largest producer of steel reinforcement bars and steel joists in North America, and is the largest “minimill” steelmaker (that is, it uses electric arc furnaces to melt scrap steel as opposed to blast furnaces to melt iron). Nucor is also North America’s largest recycler of ferrous metals.
– Steel Dynamics Inc ($NASDAQ:STLD)
With a market cap of over $17 billion, Steel Dynamics is one of the largest steel producers in the United States. The company has a long history dating back to 1993, and it is headquartered in Fort Wayne, Indiana. Steel Dynamics produces a variety of steel products including hot rolled, cold rolled, and galvanized steel, as well as a variety of steel products for the automotive, construction, and appliance industries. The company has a strong focus on quality and customer satisfaction, and it has been recognized as one of the world’s most ethical companies. Steel Dynamics has a return on equity of 50.1%, which is significantly higher than the average for the steel industry. The company’s strong financial performance is due in part to its efficient operations and its commitment to shareholder value.
– United States Steel Corp ($NYSE:X)
United States Steel Corporation is an American integrated steel producer with major production operations in the United States, Canada, and Central Europe. The company’s global presence also extends to Mexico and the Caribbean. U. S. Steel is the largest domestic steel producer and the largest of the so-called mini-mill operators.
Summary
Cleveland-Cliffs Inc. is an international mining and natural resources company. The leases will enable Cleveland-Cliffs to expand their operations and develop new iron ore resources for their steelmaking operations. As a result of this acquisition, investors may expect Cleveland-Cliffs to experience growth in their iron ore production.
The company should also benefit from cost savings due to the vertical integration of the new leases. With the expansion of their operations, investors can expect the company to continue to be profitable in the long term.
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