Research Desk Line-up: Teck Resources Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Cleveland-Cliffs Inc. (NYSE: CLF), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CLF, following the Company's posting of its third quarter fiscal 2017 operating results on October 20, 2017. The mining Company exceeded top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Industrial Metals & Minerals industry. Pro-TD has currently selected Teck Resources Limited (NYSE: TECK) for due-diligence and potential coverage as the Company reported on October 26, 2017, its unaudited financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Teck Resources when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CLF; also brushing on TECK. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=CLF

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Earnings Reviewed

Cleveland-Cliffs reported consolidated revenues of $698 million in Q3 2017, reflecting an increase of 26% compared to revenues of $553 million in Q3 2016. The Company's cost of goods sold increased 15% to $538 million compared to the $468 million reported in the prior year's same quarter. Cleveland-Cliffs' revenues exceeded analysts' expectations of $668 million.

Cleveland-Cliffs' selling, general, and administrative expenses (SG&A) were $25 million in Q3 2017, down 21% compared to $31 million in Q3 2016. The decrease was driven primarily by a union signing bonus in 2016 that was not repeated in 2017.

Cleveland-Cliffs posted a net income of $53 million, or $0.18 per diluted share, for Q3 2017, including an $89 million, or $0.29 per diluted share, loss on extinguishment of debt, and a $32 million, or $0.11 per diluted share, gain from discontinued operations. For Q3 2016, the Company posted a net loss of $28 million, or $0.12 per diluted share. The prior year's comparable quarter's net loss included an $18 million, or $0.09 per diluted share, loss on extinguishment of debt, and a $3 million, or $0.01 per diluted share, loss from discontinued operations. Cleveland-Cliffs' adjusted earnings totaled $0.36 per share, beating Wall Street's estimates of $0.30 per share.

For Q3 2017, Cleveland-Cliffs adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) surged 149% to $154 million compared to $62 million reported in Q3 2016.

US Iron Ore

During Q3 2017, Cleveland-Cliffs' US Iron Ore pellet sales volume totaled 5.9 million long tons, reflecting an increase of 11% compared to the year-ago corresponding period as a result of increased customer demand and export sales. The segment's cash cost of goods sold and operating expense rate were $60.87 per long ton, up 6% from $57.37 per long ton in Q3 2016, primarily driven by higher costs associated with maintenance and repairs, employee benefits, and energy rates.

Asia/Pacific Iron Ore

For Q3 2017, Cleveland-Cliffs' Asia/Pacific Iron Ore sales volume fell 20% to 2.2 million metric tons from 2.8 million metric tons in Q3 2016. The decrease was driven primarily by lower production volumes, a result of operational decisions reflecting current market conditions and quality ore availability. In the reported quarter, the segment's cash cost of goods sold and operating expense rate were $40.54 per metric ton compared to $33.87 in the prior year's same quarter. This was primarily attributable to increased mining costs, driven by a change in the overall operating plan resulting in a higher strip ratio.

Debt and Cash Flow

Cleveland-Cliffs' total debt was $1.7 billion at the end of Q3 2017, approximately $500 million lower than the $2.2 billion total debt at the end of the prior year's comparable quarter. The Company had a net debt of $1.4 billion at the end of the reported quarter compared to $2.0 billion of net debt at the end of the year-ago corresponding period. Cleveland-Cliffs' capital expenditure was $30 million during Q3 2017 compared to $26 million in Q3 2016.

Segment Outlook

US Iron Ore Outlook (Long Tons) - For FY17, Cleveland-Cliffs' sales and production volume expectations were each reduced by 500,000 tons to 18.5 million long tons. The reduction in sales volumes is attributable to a significant reduction in pellet nomination by a large customer, partially offset by increased export sales. For FY18, the Company expects sales and production volumes of 20 million long tons, as a result of the increased capacity from the acquisition of the remaining minority interest in the Tilden mine.

Cleveland-Cliffs' US Iron Ore cash cost of goods sold and operating expense expectations are unchanged at $55 - $60 per long ton for FY17.

Asia/Pacific Iron Ore Outlook (Metric Tons, F.O.B. the port) - Cleveland-Cliffs' Asia/Pacific Iron Ore sales and production volume expectations were each reduced by 500,000 metric tons to 10.5 million metric tons of sales and 11 million metric tons of production in FY17. For FY18, Cleveland-Cliffs expects Asia/Pacific Iron Ore sales and production volumes of 11 million tons.

Stock Performance

Cleveland-Cliffs' share price finished last Friday's trading session at $6.31, sliding 3.37%. A total volume of 15.46 million shares have exchanged hands, which was higher than the 3-month average volume of 10.63 million shares. The Company's stock price rallied 24.46% in the previous twelve months. Shares of the Company have a PE ratio of 9.84 and currently have a market cap of $1.94 billion.

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