Cliffs Natural Resources Inc (NYSE:CLF)
Cliffs Natural Resources News & Technicals
On Tuesday before the market opened, Cliffs Natural Resources (CLF) announced that they will be teaming up with ArcelorMittal USA LLC in a long term Iron Ore supply agreement that will go through 2026 and replace the old ones that expire this year. This is great news for the company and its investors as it guarantees a higher minimum tonnage of pellets to be purchased at 7 million that ArcelorMittal will buy from CLF. Currently analysts have an average price of $3.25 but we should see that get a boost after this deal hit the wire.
Looking at the chart you will see that shares have broken away from a consolidation pattern they’ve been in the past couple weeks just above the 200-day moving average and are looking to gain some momentum into the $5 range. Look for resistance to come in at $4.50, $5 and $5.50 while support should come in at the $4 and $3.5 levels followed by the 200-day moving average at $2.74. Being a low float stock, shares tend to spike up and pull back just as hard but as long as it keeps making higher lows then we could see this stock gain momentum as most moving averages are starting to curl up. This should be on a lot of traders radars as shares are making a big move so expect increased range and volatility in this name for the next few days.
CEO Comments
Lourenco Goncalves, Cliffs’ Chairman, President and Chief Executive Officer, said, “Cliffs is pleased to announce a major accomplishment within the execution of our strategy, which is the signature of a new 10-year pellet supply agreement with ArcelorMittal. We arrived at a mutually beneficial agreement, as both companies recognize the importance of bringing sustainable value to our respective businesses.” Goncalves added, “The signing of the new supply agreement confirms what we have always stated regarding the strength of the business relationship between Cliffs and ArcelorMittal USA. The new agreement also removes any remaining uncertainty about Cliffs, and supports our conviction in the bright future of our Company, its employees, its shareholders, and all other stakeholders, including the communities in which we operate.”
CLF Profile
Cliffs Natural Resources Inc., a mining and natural resources company, produces and supplies iron ore. The company operates five iron ore mines in Michigan and Minnesota; and Koolyanobbing iron ore mining complex located in Western Australia, which produces lump and fines iron ore. It also own two iron ore mines in Eastern Canada. The company sells its iron products to integrated steel companies and steel producers in the United States, China, Canada, and internationally. The company was formerly known as Cleveland-Cliffs Inc. Cliffs Natural Resources Inc. was founded in 1847 and is headquartered in Cleveland, Ohio.