And the number 2 shareholder have got their own problems !
Cliffs sinks on weak markets
Wednesday, 13 February 2013
Justin Niessner
CLIFFS Natural Resources has blamed last year’s weak seaborne iron ore pricing for its full-year net loss of $US899 million ($A877 million), compared to a net income of $1.6 billion in 2011.
The Ohio-based miner recorded $5.9 billion in revenues for the full year, down 11% from 2011.
Excluding non-cash impairment charges, full-year income attributed to shareholders was $493 million in 2012 compared to 2011’s adjusted net income of $1.6 billion.
Cash dividends were reduced from $0.625 to 15c per common share during the year.
Cliffs chairman Joseph Carrabba said although 2012 was challenging from a market perspective and operationally, the company experienced record sales volumes in Australia.
Fourth-quarter iron ore sales volumes for the miner’s Asia-Pacific division increased 56% to 2.8 million tonnes compared to the previous corresponding period.
The increase was attributed to completion of the Koolyanobbing expansion project in Western Australia, which achieved an 11 million ton annual run rate.
The expansion included several logistical infrastructure investments including longer trains, new locomotives and upgrades to the port.
Improved volumes helped cash costs per tonne in Asia-Pacific iron ore decrease to $65.86 in the December quarter, down 5% compared to Q4 2011.
However, Asia-Pacific per tonne revenues decreased 23% during the quarter to $99.96, due to lower year-on-year seaborne iron ore pricing and customer mix. Cliffs said iron ore grade from its Asia-Pacific operations was lower than its standard product during the quarter.
US and Canadian iron ore fourth-quarter revenues were down 7% and 19%, respectively, compared to Q4 2011.
Coal revenues were down 12% year-on-year in the December quarter on lower prices.
Looking ahead, Cliffs expects its 2013 end markets to remain healthy, driven primarily by China’s continued demand for steelmaking raw materials.
For the full-year 2013, the Asia-Pacific iron ore division is expected to generate 11Mt in sales volumes and 11Mt in production.
Cash costs per tonne are expected to be slightly higher this year due to the absence of the low-grade volume sold last year, which had a lower weighted-average cost.
Cliffs shares closed overnight at $US36.61.
Add to My Watchlist
What is My Watchlist?