Cliffs Natural Resources Inc (NYSE:CLF) is pleased to announce that it has completed the sale of its Chromite assets in Northern Ontario, Canada to Noront Resources Ltd. The assets were sold under a revised purchased agreement for US$27.5 million in cash, which is an increase of U.S. $7.5 million over the previously announced sale price of US$20 million.
The assets are comprised of three chromite deposits and associated claims held by Cliffs subsidiaries. The transaction closed today following the approval of the sale by the court under the Companies’ Creditors Arrangement Act (“CCAA”) proceedings in Canada.
The Company stated that this transaction is another step in divesting interests in non-core assets and that the proceeds of the sale will be used substantially to cover costs and expenses associated with the CCAA proceeding.
Moelis & Company acted as financial advisor to Cliffs Natural Resources Inc. (Original Source)
Shares of Cliffs opened today at $6.2 and are currently trading down at $6.015. CLF has a 1-year high of $18.41 and a 1-year low of $4.12. The stock’s 50-day moving average is $5.04 and its 200-day moving average is $7.22.
On the ratings front, Cliffs has been the subject of a number of recent research reports. In a report issued on April 23, RBC analyst Fraser Phillips reiterated a Hold rating on CLF, with a price target of $6, which represents a slight downside potential from current levels. Separately, on April 9, BMO’s Alexander Pearce downgraded the stock to Sell and has a price target of $4.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Fraser Phillips and Alexander Pearce have a total average return of -20.9% and -26.5% respectively. Phillips has a success rate of 25.0% and is ranked #3498 out of 3581 analysts, while Pearce has a success rate of 0.0% and is ranked #3235.
In total, 8 research analysts have rated the stock with a Sell rating, 2 research analysts have assigned a Hold rating and . When considering if perhaps the stock is under or overvalued, the average price target is $6.2 which is -22.4% under where the stock opened today.
Cliffs Natural Resources Inc is a mining and natural resources company. The Company is a supplier ofiron ore pellets to the North American steel industry from itsmines and pellet plants located in Michigan and Minnesota.