Download Midterm Update

Tyler Lotz
EME 460
4 April 2015
Geo-resource Evaluation Midterm Update
Cliffs Natural Resources:
Cliffs Natural Resources is a Cleveland, OH-based iron ore and metallurgical and thermal
coal mining company. Samuel Mather and his associates founded the Cleveland Iron
Mining Company in 1847. Their first mining operation was located in the upper
peninsula of Michigan. As the business landscape evolved from partnership businesses to
publicly traded companies, the company underwent a series of acquisitions; most notably
the purchasing of the Cleveland Iron Mining Company, resulting in a name change to
Cleveland-Cliffs Iron Company in 1890.
During the 1940s and 1950s, the firm expanded its mining operations to the Mesabi
Range of Northern Minnesota. Cleveland-Cliffs also began diversifying its business lines
into uranium products, shale oil fields and forest product industries. These non-core
assets were later sold off in the 1980s, realigning its strategic focus on its iron ore roots.
The company’s ambitious acquisition of iron ore reserves in Western Australia proved
futile, as rising diesel fuel costs made the project uneconomical and was shuttered before
1980.
In the early 2000s, the company once again began diversifying its operations through the
acquisition of coal mining operations in the United States. In 2007 they purchased
PinnOak, a United States coal mining company. The following year the firm renamed to
Cliffs Natural Resources, to reflect the change in strategy. The transformative acquisition
of Consolidated Thompson, a Montreal, Canada-based iron ore producer expanded
operations into Eastern Canada and Western Australia. A period of limited elevated iron
ore prices coupled with increasing Chinese demand led significant capital investments in
iron ore mining projects from the likes of BHP Billiton, Vale, Rio Tinto and Fortescue.
As these projects commenced operations and increased production, demand for iron ore
weakened, leading to a precipitous decline in iron prices. Cliffs’ stock price declined
70%, catching the attention of activist investor, Casablanca Capital in 2014. Casablanca
successfully took control of the Board of Directors and appointed Lourenco Goncalves as
Chairman, CEO, and President of Cliffs Natural Resources. The hedge fund plans to
divest non-core assets, which are its coal mining operations and international mining
assets to once again refocus on the development of US iron ore mining operations.
Cliffs Natural Resources is the largest United States iron ore producer. The firm operates
iron-mines in Michigan, Minnesota, Eastern Canada and Western Australia as well as
coalmines in Alabama and West Virginia. Of these business segments, the US iron ore
accounted for $2.5B in revenue in comparison to $866M and $563M in revenue from
Asian Pacific and Eastern Canadian operations respectively.1 Cliff Natural Resources
sells iron ore pellets in the North American market, lumps and fines in international
markets, and metallurgical coal in North American & international markets. The
company earns high revenues through long term contracts with United States integrated
steel companies such as ArcelorMittal, US Steel Corporation, and AK Steel.
Iron Ore:
Iron ore is a key ingredient in the production of steel. Steel applications span a variety of
sectors including, but not limited to, construction, transportation, energy, and industry.
As a result, iron ore consumption is typically viewed as an indicator of economic health.
Iron ore can be broken down into three separate products:
Fines: Fines or fine ores consist of individual particles measuring less than 4.75
millimeters in diameter.2 Fines must be sintered before they can be charged to the
blast furnace. They are also the dirtiest of the three iron ore products. As a result
of the associated costs in processes, they receive the lowest priced products.
Lumps: Lump ores consist of particles measuring more than 4.75 millimeters in
diameter.2 These products fetch a premium in contrast to fines because they do
not require the sintering process and can be charged directly to the blast furnace,
saving steel makers time and capital.
Pellets: Pellets are the most desirable of the three products. Clay is added to finegrained iron ore concentrate to produce balls measuring from 9.55 to 16.0
millimeters in diameter.2 These balls are then passed through a furnace to produce
the final pellets. Because of this process, the iron ore does not decrepitate the blast
furnace like lumps do, thus selling for a higher price than lumps.
There are also three types of iron ore. Hematite is a reddish ore typically containing at
least 70% iron. Magnetite is as blackish ore ranging between 65% and 72% iron. Finally
is taconite, a high-silica ore composed 20 to 30% of iron. The industry standard for iron
ore is 62% iron; as a result, higher percentage ores will receive a higher market price in
contrast to lower quality ores.
The largest producer of iron ore is Brazil’s Vale, followed by Australia’s BHP Billiton
then Rio Tinto. These three companies combined account for roughly 60% of global iron
ore exports.3 As mention before Cliffs Natural Resources maintains US market share
being the country’s largest producer of iron ore at 32.8%.4
The fundamentals of supply and demand are crucial in iron ore valuation. The main
factors can be categorized under the following headers:
Capital Expansions: During times of peak demand mining companies began
investing in new operations. The time associated with these mines coming online
lags demand, leading to a supply glut. This further develops a game of volumes
where bigger operations attempt to drive out high cost producers to gain market
share.
Oil Prices: Lower oil prices decrease mining costs. It becomes cheaper to
excavate as well as transport the products to the buyer. Also explosives are priced
off of oil, making expansion more cost effective. Also, a percentage of steel
products are used in oil country tubular goods directly impacting the demand for
iron ore.
GDP Growth: A healthy economy translates to a greater demand for construction
materials. In terms of seaborne iron ore, it is crucial to focus on Chinese GDP
growth, as they are the largest consumer of iron ore.
Currency Value: A weaker currency in the mining country leads to lower
operation costs. Iron is priced in the US dollar, therefore an inverse relationship
between iron ore prices and the US dollar in comparison to other currencies
exists. A stronger dollar benefits imports versus domestic products.
10 Key Factors:
In order to fully develop the correlation between Cliffs Natural Resources and iron ore
prices, I will evaluate 10 market events pertaining to each product’s price.
1. 2010-2012 peak iron prices coupled with Chinese industrial growth. Chinese
steel demand with pinnacle iron ore prices led to capital expansion projects,
and the recent decline of global paired with these capital expansion projects
coming online has led to precipitous decline in spot prices.
2. Purchase of Consolidated Thompson.5 This acquisition was an effort to satisfy
high steel demands in China during 2012 and market capture during a period
of inflated iron ore prices.
3. Extension of Iron Ore Pellet Sales Contract with Esser Steel Algoma8 and AK
Steel.9 Long term contracts with US steel producers insulate Cliffs from the
volatility of seaborne iron ore prices.
4. Casablanca Capital appointing Lourenco Goncalves as Chairman, CEO, and
President of Cliffs Natural Resources.6 The activist hedge fund took control of
the board and appointed a leader who would fulfill their vision.
5. Exiting of ECIO mining operations, seen in the shuttering Bloom Lake.
Looking into Cliff Natural Resources’ transformation to divest in less
profitable business lines.
6. Iron Ore market landscape from mid 2014 - 2015. As a result of new mining
operations coming online and the falling off of Chinese steel demand, the big
three are attempting to drive out smaller, higher cost competitors to seize
greater market shares.
7. Sale of Logan County Coal asset. This made further shows Cliffs’ ability to
execute Casablanca’s plan to restore shareholder value.
8. Sale of Chromite assets. Cliffs continues to further differentiate itself from
bigger iron ore mining companies by strictly focusing on the USIO business.
9. Power agreements between Cliffs Natural Resources and utility power in
Michigan.10 Agreements such as this help drive down operating costs and are
particularly important in times of lesser demand.
10. United States projected GDP growth of 2015. The United States is expected to
have a 2.4-3% GDP growth this year. This means a larger demand for steel
and thus maintaining larger revenues in contrast to seaborne iron ore
companies.
Terminology:
IO:
ECIO:
APIO:
OCTG:
62% Fe:
MLP:
Big Three:
Iron Ore
Eastern Canada Iron Ore
Asia Pacific Iron Ore
Oil Country Tubular Goods
Standard iron content of spot price
Master Limited Partnership
Rio Tinto, Vale, BHP – three largest seaborne IO market share
companies
$CLF:
Cliffs Natural Resources NYSE ticker
Historical Volatility: Standard Deviation of
(Closing Price/Previous Closing Price) – 1) over trailing 20 days
multiplied by SQRT(262)
2010 – 2012 Peak Iron Prices:
Prior to 2009, the world iron ore markets experienced minimal volatility. The rapid
expansion and urbanization of emerging markets such as China, Brazil, and India led to
over a 550% increase in spot price from 2005 to its apex in 2011 (Figure 2). These
emerging markets have an insatiable demand for iron ore, as it is the key ingredient of
steel used to develop infrastructure. As China sustained double-digit growth and flooding
in Australia shuttered mining operations, supply began to outpace demand.
Figure 1: World GDP growth & Chinese GDP growth from 2005-201311
Iron Ore Spot Price & $CLF from July 2009-April 2015
$200.00
$180.00
$CLF Historical Price
$160.00
62% Fe Spot Price
$140.00
$120.00
$100.00
$80.00
$60.00
$40.00
$20.00
$-
Apr-15
Dec-14
Sep-14
Jun-14
Mar-14
Nov-13
Aug-13
May-13
Jan-13
Oct-12
Jul-12
Apr-12
Dec-11
Sep-11
Jun-11
Feb-11
Nov-10
Aug-10
May-10
Jan-10
Oct-09
Jul-09
Figure 2: Tianjin Port, China – 62% Fe spot price and NYSE:CLF
The two graphs are positively correlated
The inflated price of iron ore resulted in massive amounts of capital expansion projects
by the Big Three. From July to October 2010 Rio Tinto invested $6 billion in expanding
mining capacity.12 Rio Tinto devoted another $1.2 billion in 2012 to further expand their
capacity.13 Brazil based Vale committed around $24 billion in 2011 to increase
production from 311 annual metric tons to 522 annual metric tons by 2015.14 BHP
Billiton also followed suit, committing roughly $10 billion in capital expansion
projects.15 These three companies account for nearly 40% of the seaborne iron ore
market.
Domestic demand for steel products was also on the rise during this time period.
Technological advances in hydraulic fracking made new reserves economically viable,
marking the advent of the US Shale boom and high demand for steel OCTGs. US
industrial production began to grow in 2010 as credit conditions improved. This resulted
in higher demands for light vehicles where steel plays an integral part in the chassis.
Consolidated Thompson Acquisition:
On January 11, 2011 Cliffs Natural Resources acquired the Canada based mining
company Consolidated Thompson. The acquisition for $4.95 billion led to Cliffs
operating 10 iron ore facilities, 6 coalmines, and a chrome-development project; the main
asset of this deal was the Bloom Lake Mine of Eastern Canada. 5
Cliffs hoped this acquisition would lead to greater exposure to seaborne iron trade where
prices were at their pinnacle. The firm had originally operated in the USIO market,
characterized by a low-risk profile. Cliffs had no experience in the seaborne iron ore
markets prior to the purchase and was now competing with the Big Three. The company
expected approximately half of the iron ore production of North America to be exported.
ECIO operations increased 70% from 2010 to 2011, primarily driven by higher quality
iron ore concentrate sales volume from the Bloom Lake Mine.15
The $4.95 billion valuation of Consolidated Thompson was a 30% premium on the
previous days stock value. The transaction resulted in $CLF price rallying 2.26%. This is
atypical of M&A activity where the acquirer’s stock price falls and the target firm’s stock
price rises.
Contracts with Essar Steel Algoma & AK Steel:
The USIO industry operates under long-term contractual agreements between suppliers
and consumers. On June 13, 2013 Cliffs announced an extension of their iron ore pellet
sales contract with Essar Steel Algoma through 2024. The changes in contract will start
in 2016 after their previous agreement expires. The agreement includes a minimum
volume iron ore pellet purchase. As a result, Cliffs rallied 6.74% on the day. This was
critical as iron ore spot prices had already began to contract. The minimum volume
requirement, in conjunction with USIO insulation from seaborne prices, will allow Cliffs
to generate more revenue on a volume basis in contrast to world markets. 8
Figure 3: Platts IODEX vs. USIO Realized Price (since Q1 2011)16
On August 27, 2013 Cliffs announced another long-term iron pellet supply contract with
AK Steel. The agreement will extend agreements between the two companies through
2023. The new contract includes minimum and maximum volume of purchases, as well
as a new pricing mechanism. The annual price will be adjusted by factors including
seaborne pricing and producer price indices. The market reacted, and Cliffs fell 2.42% on
the day. This is a reaction to an inability to decouple USIO prices from the IODEX.9
Lourenco Goncalves appointed CEO, President and Executive Chairman:
Following a precipitous decline of Cliffs Natural Resources’ share price (-43.9% over
trailing 12 months), activist investor Casablanca Capital LP became the beneficial owner
of 5.2% of the company. On January 28, 2014 the hedge fund filed a Schedule 13D with
the SEC outlining a plan to increase shareholder value. The email urges the board to:
 Double the dividend which would be paid by Cliffs USA
 Convert the US assets to a Master Limited Partnership
 Significantly cut SG&A and exploration expense
 Optimize cash costs and operating profitability
 Divest infrastructure and other non-core assets
o Spin off Bloom Lake Mine with APIO operations to create Cliffs
International
o Divest the nickel, chromite, and other development projects
 Set clear objectives for return on capital
 Hire strategic and financial advisors to assist in evaluating and executing these
measures17
Capital expenditure projects came online at the wrong time when GDP growth in China
was slowing down, greatly depreciating iron ore prices. Taking these initiatives would
refocus the company on its main revenue generating assets and insulate the company
from volatile seaborne iron ore prices. Cliffs’ domestic iron ore business is highly
contracted; shifting to an MLP structure would significantly increase the company’s
valuation because investors place a premium on high yielding stocks. MLPs are a pass
through entity, where all taxes are paid at the shareholder level. Thus the MLP structure
lends itself to stable free cash flow delivered in the form of a dividend. Spinning off noncore assets exposed to seaborne iron ore prices would allow Cliffs to increase cash flow
and deleverage. At the end of 2013 the company had debt of $3.02B and cash of
$335.5M resulting in net debt of $2.7B. The only two assets at the end of 2013 that had a
positive sales margin were the NAIO and APIO operations.18
The following day Cliffs released a statement in response to Casablanca Capital. The
statement invited shareholders to provide input to enhance long-term shareholder value. It
also discussed how the company looks forward to continuing conversations with the
hedge fund to realize their own and their shareholders’ financial goals.19 The stock price
fell 9% that day. I believe this result was due to a weakening of shareholder confidence in
the company’s ability to attain the valuations outlined in Casablanca Capitals strategic
plan.
On July 29, 2014 Casablanca toppled the existing board in a proxy fight. The activist
hedge fund took majority board presence with 6 of 11 seats, by unseating the entrenched
members.20 That day the stock gained 3.89%. This event marks the beginning of
Casablanca’s attempt to restore shareholder value. Roughly two weeks later on August 7,
Lourenco Goncalves was appointed Chairman, President, and CEO of Cliffs.6 This went
against Cliffs’ belief that the CEO Gary Halverson, appointed in February, was better fit
to run the company. Due to the contractual nature of executive positions, Gary Halverson
received an $11M severance package. Mr. Goncalves has worked in the steel industry for
over 30 years, holding the same three positions at Metals USA Holding Corp from May
2006 to April 2013. He was also the President and CEO of California Steel Industries Inc.
from March 1998 to February 2003. The change in management resulted in the stock
falling 2.5% on the day. The stock continued to underperform due to declining iron ore
prices.
Exiting of ECIO mining operations:
The Bloom Lake Mine project, which was the main asset acquired from Consolidated
Thompson, had become too expensive to develop because of falling iron ore prices.
Bloom Lake cost roughly $6.5 billion in capital and an estimated $1.25 billion was still
needed to complete Phase II.17
Cliffs took a $6B non-cash impairment charge on October 17, 2014. Most of this pertains
to the Bloom Lake Mine operation.21 This acknowledges that Cliffs overpaid for the
asset, which is worth nothing. Even with the completion of Phase II, Cliffs would only
have an operating cash cost of roughly $85/Mt. This is nearly triple the operating costs of
the Big Three, the seaborne market competition, who average roughly $22/Mt.
During Cliffs’ presentation to Goldman Sachs on November 19, 2014 they had suggested
offering 30% of their share the mine for partnerships to help fund Phase II.16 The ECIO
operation was still yet to have positive sales margins, as outlined in 2012 and 2013 full
year results. The plan would never come to fruition, as they were unable to secure
interest. On January 2, 2015 Cliffs confirmed that active production from the Bloom
Lake mine had ceased as plans to exit the ECIO operation continue to follow schedule.
Bloom Lake Mine filed for bankruptcy protection under the CCAA on January 27, 2015.
The company believes it has no further exposure to the $700M cost to close the project.22
The stock price fell -7.73%, after rally 8.9% the day prior due to a positive earnings
release. The stock fell due to the uncertainty around the bankruptcy proceedings and
liabilities of the expenses surrounding the mine.
Mid 2014 – 2015 Iron Ore Landscape:
As previously mentioned, massive capital expenditures by the Big Three in a rising iron
ore environment that peaked in 2011. As the projects proceed to come online and Chinese
industrial growth continues to fall off, the market has become saturated. This has resulted
in the precipitous decline of iron ore spot prices. Despite falling demand, the Big Three
continue to increase production in an already oversupplied market to drive out high cost
producers and increase market share. Australia also lowered their interest rates for 2015,
thus depreciating the Australian dollar allowing for cheaper operations. This currency
tailwind allows higher cost producers to remain in the market.
Weak crude prices have decreased fuel costs associated with operating machinery
transportation of iron ore. On the other hand, oil companies have been cutting capital
expenditures. This weakens demand of steel OCTGs and thus adds to the supply glut.
A strong US dollar has made steel imports cheaper in the US. In turn, increasing imports
has driven down the price of domestically produced steel. While the geographic location
insulates Cliffs from iron ore imports, the steel producers still see foreign competition in
the nonresidential construction end market. To combat imports, US steel producers and
Cliffs began pressure the US government to increase tariffs on steel products. By
protecting the market, both the iron and steel industry would prosper. According to the
Global Trade Information Services report, steel imports rose 34% during the first 11
months of 2014.23 Precedent for these tariffs exists, as last year legislatures enact a tariff
on imports of energy-related steel response to steel producers’ requests. This precedent
bodes well, however, for tariffs to be raised the industry must show damages.
Sale of Logan County Coal:
Cliffs Natural Resources sold their Logan County coal assets to Coronado Coal LLC on
January 2, 2015. This correlates directly with the initiatives outlined by Casablanca to
refocus on core assets. The asset that was sold for $174M was opportunistically
combined with $226M of cash on hand to reduce outstanding debt. Cliffs was able to
lower their debt by $400M by repaying short-term debt and repurchasing senior notes
discounted at 34% to par on average. Divesting in the asset leads to future tax cash
savings, while pushing off legacy liabilities and cash outflow to reclaim the area. 24
Share prices fell 4.35% on the day, and continued to fall for a few days following before
rebounding on the 7th. However, the definitive sale was announced in December, and thus
by the efficient market hypothesis the sale was factored into the share price.
Power Agreement with We Energies Michigan:
Cliffs signed an agreement with We Energies, a power utility in Michigan, on February
18, 2015.10 While utilities typically account for 5% of total industry costs, agreements
such as this one carry weight as operations consolidate. With the depressed cost of iron
ore, decreasing operating costs is essential to maintain sales margins. The process of
creating pellets is energy intensive, so it is expected to have greater impact for Cliffs than
the rest of the industry. Pellets also sell for a premium in contrast to fines and lumps that
are more present in the world iron ore market.
In light of the news, Cliffs rallied 1.17%. This is in line with what is expected, as the cost
for utilities are still marginal in comparison to overall industry costs. It shows that Cliffs
Natural Resources is actively seeking out ways to minimize expenditures, which is key in
keeping investors.
Sale of Chromite Assets:
Cliffs reached a definitive agreement to sell their Chromite assets in Northern Canada to
Noront Resources for $20M on March 23, 2015.25 Cliffs had discontinued developmental
activity from this mine as of November 2013. The stock price rose 9.3% as a result of the
news. The continually divestiture from non-core assets further shows the company can
execute Casablanca’s strategy. Despite the asset not being sold for a premium, the firm is
restoring confidence to their shareholders. This event had better than expected feedback
as investors are looking for any positive news in a depressed iron ore market. Asset sales
increase liquidity position, while further differentiating the company from the Big Three.
United States Projected GDP Growth:
As Cliffs proceeds in divesting non-core assets, the USIO operations become increasingly
critical in generate free cash flow to decrease debt and restore shareholder value. The
consensus for 2015 US GDP growth is 3%, includes AIA’s estimate of 7.7% growth in
nonresidential construction and a 6% rise in light vehicle sales. These two industries
represent the largest consumers of steel products.
The closer Cliffs gets to strictly operating in the USIO market, the more bullish I am on
the stock. USIO has always been the largest revenue generator for the firm. Consulting
Figure 4, Cliffs will exhibit a price floor of $70/mT. This allows for continual revenue
despite volatility in the seaborne iron ore market. The price floor also leads any reduction
in operation costs on a per ton basis improving the operating margin. Liquidation of noncore assets should start to decrease 20 day historical volatility, which 77% as of March
31st.
Figure 4: Cliffs Natural Resources Pricing Model16
Appendices:
1. “Cliffs Natural Resources Inc. Reports Fourth-Quarter and Full Year Results,” Cliffs Natural
Resources Inc. press release, Feb. 2 2015, on the Cliffs Natural Resources website,
ir.cliffsnaturalresources.com, accessed February 22, 2015
2. Kirk, William S. "Annual Brazilian Iron Ore Pellet Price." Metal Prices in the United States
Through 1998 (1999): 69.
3. Riseborough, Jesse, and Juan Pablo Spinetto. "Vale Seen Overtaking BHP, Rio as Cheapest
Iron Shipper." Bloomberg.com. Bloomberg, 12 Jan. 2015. Web. 22 Feb. 2015.
<http://www.bloomberg.com/news/articles/2015-01-12/vale-s-leapfrogs-rio-bhp-as-cheapestiron-ore-shipper>.
4. Crompton, J. (2014). IBISWorld Industry Report 21221, Iron Ore Mining in the US, Retrieved
February 22, 2015 from IBISWorld database
5. “Cliffs Natural Resources Inc. Announces Definitive Agreement to Acquire Consolidated
Thompson Iron Mines Limited for C$4.9 Billion, or C$17.25 in Chase Per Share,” Cliffs Natural
Resources Inc. press release, Jan. 11 2011, on the Cliffs Natural Resources website,
ir.cliffsnaturalresources.com, accessed February 22, 2015
6. “Lourenco Goncalves Appointed Chairman, President, and Chief Executive Officer of Cliffs
Natural Resources Inc.,” Cliffs Natural Resources Inc. press release, Aug. 7 2014, on the Cliffs
Natural Resources website, ir.cliffsnaturalresources.com, accessed February 22, 2015
7. “Cliffs Natural Resources Inc. Announces Decision on Bloom Lake Mine,” Cliffs Natural
Resources Inc. press release, Jan. 27 2015, on the Cliffs Natural Resources website,
ir.cliffsnaturalresources.com, accessed February 22, 2015
8. “Cliffs Natural Resources Inc. Announces an Extension of its Iron Ore Pellet Sales Contract
with Essar Steel Algoma Inc. to 2024,” Cliffs Natural Resources Inc. press release, June 13 2013,
on the Cliffs Natural Resources website, ir.cliffsnaturalresources.com, accessed February 22,
2015
9. “Cliffs Natural Resources Inc. Announces Long-term Pellet Supply Contract with AK Steel,”
Cliffs Natural Resources Inc. press release, Aug. 27 2013, on the Cliffs Natural Resources
website, ir.cliffsnaturalresources.com, accessed February 22, 2015
10. “Cliffs Natural Resources Inc. Finalizes Energy Agreement in U.P. of Michigan,” Cliffs
Natural Resources Inc. press release, Feb. 18 2015, on the Cliffs Natural Resources website,
ir.cliffsnaturalresources.com, accessed February 22, 2015
11. Data.worldbank.org. The World Bank Group. Web. 4 Apr. 2015.
<http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG/countries/1W-CN?display=graph>.
12. “Rio Tinto approves further US$3.1 billion for expansion of Pilbara iron ore capacity to 283
million tonnes per annum,” Rio Tinto Limited. press release, Oct. 20 2010, on the Rio Tinto
website, www.riotinto.com, accessed April 4, 2015
13. “Rio Tinto to invest a further US$3.4 billion in the expansion of iron ore operations in
Western Australia,” Rio Tinto Limited. press release, Feb. 08 2012, on the Rio Tinto website,
www.riotinto.com, accessed April 4, 2015
13. “Vale to invest US$24 billion in 2011,” Vale S.A.. press release, Oct. 28 2010, on the Vale
website, www.vale.com, accessed April 4, 2015
14. “Further Growth at Western Australia Iron Ore,” BHP Billiton. press release, Mar. 25 2011,
on the BHP Billiton website, www.bhpbilliton.com, accessed April 4, 2015
15. “Cliffs Natural Resources Inc. Reports Fourth-Quarter and Full-Year 2011 Results,” Cliffs
Natural Resources Inc. press release, Feb. 15 2012, on the Cliffs Natural Resources website,
ir.cliffsnaturalresources.com, accessed April 4, 2015
16. Cliffs Natural Resources Inc. (2014). Form 8-K 2014. Filed Nov 19, 2014. Retrieved from
SEC EDGAR website http://www.sec.gov/edgar.shtml
17. "Casablanca Capital Files 13D and Sends Letter to Cliffs Natural Resources." Casablanca
Capital Files 13D and Sends Letter to Cliffs Natural Resources. BusinessWire, 28 Jan. 2014.
Web. 04 Apr. 2015. <http://www.businesswire.com/news/home/20140128005723/en/CasablancaCapital-Files-13D-Sends-Letter-Cliffs#.VSB3AoflfzI>.
18. “Cliffs Natural Resources Inc. Reports Full-Year 2013 Revenue of $5.7 Billion,” Cliffs
Natural Resources Inc. press release, Feb. 13 2014, on the Cliffs Natural Resources website,
ir.cliffsnaturalresources.com, accessed April 4, 2015
19. “Cliffs Natural Resources Inc. Statement on Shareholder Engagement,” Cliffs Natural
Resources Inc. press release, Jan. 28 2014, on the Cliffs Natural Resources website,
ir.cliffsnaturalresources.com, accessed April 4, 2015
20. Benoit, David, and John W. Miller. "Activist Casablanca Claims Victory Over Cliffs Natural
Resources." WSJ. Wall Street Journal, 29 July 2014. Web. 04 Apr. 2015.
<http://www.wsj.com/articles/activist-casablanca-claims-victory-in-battle-against-cliffs-naturalresources-1406658099>.
21. Dulaney, Chelsea. "Cliffs Natural Resources To Restructure Bloom Lake Mine." WSJ. Wall
Street Journal, 27 Jan. 2015. Web. 04 Apr. 2015. <http://www.wsj.com/articles/cliffs-naturalresources-to-restructure-bloom-lake-mine-1422384106>.
22. “Cliffs Natural Resources Inc. Announces Decision on Bloom Lake Mine,” Cliffs Natural
Resources Inc. press release, Jan. 27 2015, on the Cliffs Natural Resources website,
ir.cliffsnaturalresources.com, accessed April 4, 2015
23. Miller, John W. "Cliffs Natural Resources Cries Foul Over Steel Imports." WSJ. Wall Street
Journal, 3 Feb. 2015. Web. 04 Apr. 2015. <http://www.wsj.com/articles/cliffs-natural-resourcescries-foul-over-steel-imports-1423003627>.
24. Lazenby, Henry. "Cliffs Suspends Dividend, Repays $400m in Debt." Miningweekly. Mining
Weekly, 26 Jan. 2015. Web. 4 Apr. 2015.
<http%3A%2F%2Fwww.miningweekly.com%2Farticle%2Fcliffs-natural-resources-suspendsdividend-repays-400m-in-debt-2015-01-26>.
24. Lazenby, Henry. "Cliffs Suspends Dividend, Repays $400m in Debt." Miningweekly. Mining
Weekly, 26 Jan. 2015. Web. 4 Apr. 2015.
<http%3A%2F%2Fwww.miningweekly.com%2Farticle%2Fcliffs-natural-resources-suspendsdividend-repays-400m-in-debt-2015-01-26>.
25. “Cliffs Natural Resources Inc. Agrees to Sell its Chromite Assets in Canada,” Cliffs Natural
Resources Inc. press release, Mar. 23 2015, on the Cliffs Natural Resources website,
ir.cliffsnaturalresources.com, accessed April 4, 2015
26. Dilouie, Craig. "2015 Nonresidential Construction Forecast: Growth Across All Markets."
Lighting Controls Association RSS. N.p., 16 Feb. 2015. Web. 04 Apr. 2015.
<http://lightingcontrolsassociation.org/2015-nonresidential-construction-forecast-growth-acrossall-markets/>.
27. Automotive. London: UK Trade & Investment, 2005. Americas.gecapital.com. GE Capital,
Mar. 2015. Web. 4 Apr. 2015.
<http://www.americas.gecapital.com/GECA_Document/Automotive_IRM_Update.pdf>.