Cliffs Natural Resources Backs Off New 52-Week Low; Shares Still Down 5%
Mining company Cliffs Natural Resources Inc. ( CLF ) is down 4.7% to $21.67, trading up from the new low of $21.35 set earlier today as the company continues to reel from negative news during the week.
On Tuesday, CLF announced that it expects to idle its Wabush Pointe Noire pellet plant in Quebec by the end of the second quarter of 2013. The company said the decision is due to high production costs and lower pellet premium pricing which is expected to persist in certain markets during the year.
"Due to the dynamics in the marketplace, we are taking measures to adjust our iron ore pellet production at our Wabush operation while continuing to meet our customer commitments," said Joseph A. Carrabba, Cliffs' chairman, president and CEO.
Also in the past week, CLF was downgraded by analysts at BMO Capital Markets to a Market Perform rating from Outperform. The price target was slashed to $27 a share from $50.