Global Hunter Securities commented, “We look for a meaningful improvement in its profitability in 2013 as it ramps up its two iron ore expansion projects and cuts costs. Its two expansion projects were in startup during the first half of 2012 and had development costs. It is rationalizing its asset mix and disposing of three small properties. We believe management will look to bring in a partner for the $3.3 billion Black Thor chromite project. While we believe CLF shares are attractively priced, we suggest investors postpone taking a position until the slowdown in the global steel industry is fully reflected in its shares. Therefore, we are initiating coverage on Cliffs Natural Resources with a Neutral rating.”
Cliff Natural Resources closed at $45.43 on Tuesday.