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Cliffs Natural (CLF) Declares Sale of First Point Shares

Cliffs Natural Resources Inc.CLF announced that some of its affiliated companies have entered into a sale and purchase agreement, in respect of the Decar property in British Columbia with First Point Minerals Corp., pursuant to the requirements of Canadian securities laws.

Per the sale transaction, an affiliated company of Cliffs plans to sell the common shares of First Point beneficially owned by it to one or more purchasers that First Point has agreed to identify under the terms of the Decar agreement. The affiliate of Cliffs is presently the beneficial owner of 14,353,190 common shares in the capital of First Point, representing about 13.6% of the issued and outstanding common shares. Cliffs currently has no intention of acquiring other securities of First Point.

Cliffs' shares rose roughly 11% to close at $4.29 on Tuesday.

Cliffs released second-quarter 2015 results in Jul 2015. The company swung to a profit on a reported basis in the quarter. However, adjusted loss for the quarter was wider than the Zacks Consensus Estimate. Revenues tumbled year over year and missed expectations. The company cut its full-year sales and production volume guidance for the U.S. iron ore business.

At the end of second-quarter 2015, Cliffs had net debt of $2.6 billion, compared with $3.1 billion at the end of second-quarter 2014. There was nothing drawn on the company's new asset-based lending facility at the end of the reported quarter. Net debt reduced as a result of several actions including asset sales, exchange offers and open-market bond repurchases during the prior twelve months.

Cliffs' capital expenditure reduced 70% year over year to $19 million in the second quarter. This includes capital spending related to North American Coal. Depreciation, depletion and amortization amounted to $31 million.

Cliffs currently carries a Zacks Rank #4 (Sell).

Some better-ranked mining stocks include Denison Mines Corp. DNN , OCI Resources LP OCIR and Zenyatta Ventures Ltd ZENYF . All of these stocks hold a Zacks Rank #2 (Buy).

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CLIFFS NATURAL (CLF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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