Cleveland-Cliffs Inc

Cliffs Natural Resources (CLF) is trading at a forward EV/EBITDA multiple of 11.0x compared with its last five-year average of 8.0x.

In this series, we’ll analyze the demand-supply fundamentals for iron ore and see whether the recent surge was a one-off phenomenon or the start of a more sustained uptick in prices.

Rio Tinto’s 2015 results were mostly in line with market expectations. Underlying EBITDA and underlying profits were $12.6 billion and $4.5 billion, respectively.

Just a few weeks old, 2016 started where 2015 left off for the iron ore industry. The benchmark seaborne iron ore prices were trading at $40 levels as of January 14, 2016, down 9% for the year.

China’s (MCHI) economic slowdown is the biggest challenge for global metal and mining companies, which is why iron ore investors should keep a close eye on the Chinese economy.

Of 15 analysts covering Cliffs Natural Resources, eight have given it a “hold” recommendation, and seven have given it a “sell” recommendation.

Rio Tinto’s copper production was a slight miss, falling short ~1% of the fiscal 2015 guidance. This was mainly due to weaker throughput at Escondida.

In its 4Q15 earnings release on January 27, 2016, Cliffs Natural Resources (CLF) may provide a further update on its venture into a direct reduced iron business.

In 2015, Fortescue Metals Group (FSUGY) and Cliffs Natural Resources (CLF) fell 35% and 78%, respectively.

The weak demand from China is hurting iron ore prices. The supply side, on the other hand, remains quite strong.

In its 2Q15 results, Cliffs Natural Resources (CLF) downgraded its volume guidance for the USIO division for 2015, from 20.5 million tons to 19 million tons.

Market expectations for Cliffs Natural Resources (CLF) are varied. Of the analysts covering Cliffs, one has a “buy” recommendation, eight have a “hold,” and seven have a “sell.”

The third quarter of 2015 hasn’t been good for iron ore equities. Most of them lost significant value during the quarter.

Cliffs Natural Resources (CLF) will release its 3Q15 results before the US market opens on October 29, 2015. A conference call will occur at 10:00 AM ET on October 29.

Iron ore prices fell 49% in 2014, which was reflected in the share price performance of major miners. In this series, we’ll discuss the position of various iron ore players on the cost curve relative to iron ore prices.

Iron ore volumes are key to Rio Tinto’s (RIO) iron ore segment’s revenue. The other factor, seaborne iron ore prices, is determined by demand and supply dynamics.

Within four trading days of its 1H15 results, Rio Tinto’s stock price rose 3%. This is despite a 1.7% fall in benchmark seaborne iron ore prices.

Iron ore shipments through Port Hedland reached an all-time high of 39.2 million tons in August as compared to 35.3 million tons in July.

Chinese credit easing measures should positively impact the steel industry. This will help iron ore companies like Rio Tinto and BHP Billiton.

Since the end of July, benchmark iron ore prices have been holding steady near $55–$57 per ton. This is despite the continuing slide in other commodities amid China slowdown worries.

Iron ore costs are key to determining BHP’s iron ore segment’s profitability, which ultimately impacts its stock price and relative performance.

BHP Billiton’s iron ore production for fiscal 2015 was a record 233 million tons, a growth of 14% year-over-year.

BHP Billiton’s (BHP) (BBL) underlying EBITDA was $21.9 billion for fiscal 2015. This is a fall of 28% year-over-year (or YOY). Operating income also fell 46% YoY in fiscal 2015.

BHP Billiton (BHP) (BBL), the world’s largest miner by market capitalization, reported its fiscal 2015 results on August 25. The results were mostly in line with market expectations.

Vale’s (VALE) average CFR (cost and freight) realized price for iron ore fines increased by $3.30 per ton, from $58.20 per metric ton in 1Q15 to $61.50 in 2Q15.

Vale’s (VALE) iron ore production for 1H15 was a record 159.8 million tons, 9.3 million tons higher than 1H14. For 2Q15, production was the second highest on record at 85.3 million tons.

In this article, we’ll look at Vale’s (VALE) 2Q15 results and why they’re a beat on market expectations. Vale reported adjusted EPS of $0.19, which was 55% above consensus.

Vale S.A. (VALE) reported its 2Q15 results on July 30, 2015. Overall results were a beat on market expectations. However, Vale’s stock price fell 6.5% after Vale announced its results.

Cliffs’ results were a miss primarily on lower-than-expected realized revenues for its USIO segment. US iron ore’s realized revenues were $78.30 per ton in 2Q15, compared with $106.80 per ton in 2Q14.

Cliffs Natural Resources reported revenues of $498 million for 2Q15, a decline of 33% year-over-year.

Cliffs Natural Resources announced its 2Q15 earnings on July 29, and its results missed market expectations this time. Cliffs offered positive results six out of the last eight times.

According to data released on June 22 by the WSA, world crude steel production totaled 139 million tons in May. This is a 2.1% decline year-over-year.

China’s industrial production grew by 6.1% year-over-year in May. Economists were expecting an increase of 6.0%. May’s growth is higher than the 5.9% year-over-year growth in April.

The iron ore price slide has been particularly pronounced in the last few weeks, as Chinese demand didn’t pick up as expected after the New Year holiday.

As for market sentiment, Cliffs (CLF) seems to be on the receiving end. Most of it is due to the worsening current and future outlook for iron ore prices.

Cliffs Natural Resources’ (CLF) key driver is global demand for the raw materials used to make steel.

Cliffs’ (CLF) stock prices fell to a fresh 52-week low of $4.24 on March 19, mostly due to an iron ore supply glut coupled with slowing Chinese demand.

BHP Billiton (BHP) is a leading global diversified resources company and is one of the world’s largest major commodity producers.

Vale’s results were a miss on expectations with a reported adjusted EPS loss of $0.05 per share. This is below the consensus of $0.19 per share.

Vale is the world’s largest producer of iron ore and iron ore pellets. It’s the second largest nickel producer.

Key earnings takeaways from Vale’s results show cost of goods sold amounted to $25.1 billion in 2014, an increase of $819 million from 2013.

It’s important to look at iron ore indicators collectively because they give clues about the direction of iron ore prices.

Headquartered in Melbourne, Australia, BHP Billiton operates 100 locations in 25 countries. A merger between BHP and Billiton created the company in June 2001.

With the emergence of China’s demand, prices moved to quarterly contracts from annual private negotiations in 2010.

The cost curve also sets the floor for the price because if price falls below the cost of production of some players, those players will be out of the market.

Capital intensity is a measure used to determine the efficiency of production.

Chinese environmental protection and pollution control measures will necessitate the use of higher content.

Surface mining is done when the deposits of commercially useful minerals are found near the surface.

Prior to the industrial revolution, most of the iron ore was mined directly from hematite deposits.