CLEVELAND, OH – Cleveland-Cliffs Inc. (NYSE:CLF), a $4.7 billion market cap company specializing in metal mining with annual revenues of nearly $20 billion, announced today the appointment of Jane M. Cronin to its Board of Directors, effective immediately.
According to InvestingPro data, the company currently maintains a FAIR financial health score, suggesting stable operational fundamentals despite challenging market conditions. The addition of Cronin, whose background and qualifications have been vetted for independence in line with the New York Stock Exchange’s director independence standards, is expected to bring new insights to the board's operations.
The company, which operates under the SIC category of Metal Mining, confirmed that Cronin has no material relationship with Cleveland-Cliffs, either directly or through any organization with which she is affiliated. Her appointment is part of the company's ongoing governance and oversight efforts.
In her new role, Cronin will serve on the Audit Committee and will be compensated in accordance with the existing nonemployee director compensation framework as detailed in the company's latest proxy statement, filed on April 3, 2024. Her compensation will include a prorated restricted share award and quarterly retainer fees under the company's 2021 Nonemployee Directors’ Compensation Plan.
Furthermore, Cleveland-Cliffs plans to enter into an indemnification agreement with Cronin, consistent with the form included in the company's Quarterly Report for the period ending March 31, 2019. This agreement is designed to indemnify her against a range of potential expenses and liabilities that could arise from her directorship duties, in accordance with Ohio law.
This strategic move by Cleveland-Cliffs underscores the company's commitment to strong corporate governance and the importance of independent oversight. The appointment comes at a crucial time as the company's stock trades near its 52-week low of $8.99, with a current price of $9.50.
The appointment also aligns with the company's efforts to ensure a diverse and well-equipped board to navigate the complexities of the metal mining industry. For deeper insights into Cleveland-Cliffs' financial health and market position, InvestingPro subscribers can access comprehensive analysis including 13 additional ProTips and the detailed Pro Research Report, part of the platform's coverage of over 1,400 US equities.
The information provided here is based on a press release statement from Cleveland-Cliffs Inc. and reflects the company's latest strategic steps in enhancing its corporate governance structure.
In other recent news, Cleveland-Cliffs Inc. disclosed its third-quarter 2024 financial results, revealing an adjusted EBITDA of $124 million due to a dip in steel demand.
The company, however, anticipates a rise in automotive demand and stable pricing in the first quarter of 2025, coupled with significant cost savings from improved coal contracts and operational efficiencies. The strategic acquisition of Stelco (TSX:STLC) is also expected to yield $120 million in cost synergies in the first year and enhance EBITDA margins.
CEO Lourenco Goncalves announced a projected cost improvement of $70 million in 2025 due to favorable coal supply contracts. Furthermore, the capital expenditure for 2025 is set at $600 million, marking the lowest since 2020. The company also highlighted its commitment to debt repayment post the Stelco acquisition and the addition of 1,800 new United Steelworkers members in Canada.
Looking ahead, Cleveland-Cliffs executives expressed optimism for 2025, foreseeing improvements in both automotive and non-automotive sectors. The company has strategic projects in the pipeline, including the Middletown and Weirton projects, with expected operational dates in late 2026 and late 2025, respectively.
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