Cleveland-Cliffs reported a mixed result in the last quarter and ended the year with a revenue of $23 billion. The company’s revenues for the last quarter were below the analyst consensus estimate but its losses were narrower than expected. Despite an annual decline in index hot-rolled pricing of about $600 per ton, its average selling price for steel grew by approximately $200 per tonne in 2022. This was the primary factor for their strong sales and is evidence of the advances in the fixed pricing contracts they secured, which have only improved through the year. The company also invested in its facilities for the majority of 2022, which increased operational and capital expenditures combined with inflationary pressures. They anticipate significant cost reductions now that these projects are complete, and certain inflationary pressures will have subsided significantly by 2023. Furthermore, Cleveland-Cliffs shipped 3.8 million tons of steel throughout the quarter, making it its biggest shipment quarter. The management anticipates their shipments will increase to 4 million tons due to higher demand. We give Cleveland-Cliffs Inc. a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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