Cliffs: I’m impressed by the new CEO

In the past, I have repeatedly criticized Cliffs as the company has done a lot of things that it should not have done.  The new CEO (Gary Halverson) is here and he is cleaning house.

  • The Ring of Fire chromite mine is cancelled and halted “indefinitely” (Nov 2013).  This is smart because the project isn’t close to being economic.
  • Phase II of the Bloom Lake expansion has been put on hold “indefinitely” (Feb 11 2014).  This is smart because the expansion project is risky and very marginal.
  • Halverson is willing to talk to activist shareholders.
  • Halverson strikes me as open and honest with shareholders.

If I was any good at predicting commodity prices, I would seriously investigate a long position in Cliffs.  Unfortunately I am terrible at predicting commodity prices.

*Disclosure:  No position in CLF.

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2 thoughts on “Cliffs: I’m impressed by the new CEO

  1. Pingback: Unbuilt mines with planned expansions | Glenn Chan's Random Notes on Investing

  2. Pingback: As commodity prices plunge, miners are stretching their numbers – Glenn Chan's Random Notes on Investing

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