CLEVELAND, Ohio (WLUC) - It's a good day for Cliffs Natural Resources.
They reported their fourth quarter and end of year results this morning.
They beat their earnings estimate today and the stock soared nearly 20% to close at $11.37 a share. CEO Lourenco Goncalves praised the Great Lakes region mines.
The Cleveland based mining company who owns operations around the world including the Tilden mine, reported a net income for the fourth quarter 20-16 of 81 million dollars, beating last years fourth quarter of a net loss of 58 million dollars.
The yearly net income for 2016 was 199 million dollars.
That's a nearly one billion dollar swing from their previous year where they lost 748 million dollars
"2016 was the year in which we finalized the execution of the operational, commercial and financial actions necessary to ensure cliffs will have a great future," Chairman, President and CEO of Cliffs Lourenco Goncalves said.,
Goncalvez praised the great lakes division saying he watched their biggest threats, Essar steel and Magnetation both dissolve, and noted additional volume from A-K Steel and a long term contract with Arcilor Mittal.
"In 2016, our strong market position in the great lakes was demonstrated on several different occasions. We locked in a 10 year supply contract with our largest customer," Goncalvez said. "Cliff's business is indeed in very good shape."
Goncalvez attributed their increase in no small part to competitors removing management whose pricing practices damaged the industry.
"Since they left, prices have gone up from 40 to 80," Goncalvez said.
Cliff's original outlook of 500 million dollars for their 2017 earnings before taxes etc was based on the lower iron ore prices.
But with the prices expected to remain at the higher levels, cliff's is expecting those earnings to be 850 million dollars.