Saturday, May 31, 2014
Cutting Spending to the Bone Might Not Be Enough for Cliffs Natural Resources
On news of further cuts to capital spending, it appears that Cliffs Natural Resources (NYSE: CLF ) is finally giving up on a turnaround in the primary markets of iron ore and metallurgical coal. Such a capitulation from a market leader is an important step toward reaching a bottom for any commodity.
Cliffs Natural Resources has had nothing but negative news lately, with a weak first quarter report and plunging iron ore prices falling below $100 a metric ton. Unfortunately, leading iron ore miner Vale (NYSE: VALE ) recently reported some concerning trends that capital spending cuts might not overcome in the short term.
Read the full article here.
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