US miner Cleveland-Cliffs produced a strong performance, both operational and financial in 2018. Having grown its annual net income by a factor of three, the group remains equally upbeat on its prospects for 2019, it says in its statement on the results sent to Kallanish.
“2018 was another great year for Cleveland-Cliffs. With over $1.1 billion in net income and a 67% increase in Ebitda year-over-year, we are proud to confirm that our strategic vision for the company has been fully implemented and is working very well. …2019 will be an even more exciting year for us. Our mining and pelletising business will be once again sold out, and we look to produce yet another year of great results selling world class pellets at industry-high margins,” says ceo Lourenco Goncalves.
Cliffs gives two scenarios for its outlook, with the original prepared in January. The second is based on the market position for iron ore on 7 February. An analysis was carried out with an iron ore spot price of $91.5/tonne, a steel price of $683/short ton and a pellet premium of $67.50/t. The company says it would expect to realise its Mining and Pelletising segment revenue rates in the range of $111-116/long ton for the full-year 2019.
For 2019, Cliffs expects full-year sales and production volumes of its productive capacity of approximately 20 million long tons. Cliffs' full-year 2019 Mining and Pelletising segment cash cost of goods sold and operating expense expectation is $62-67/long ton.
Production volumes in the Mining and Pelletising segment rose by 1% year-on-year in 2018 to 5,598,000 long tons. Sales volumes did considerably better, growing by 20.6% to 6,503,000 long tons on the same comparison.
Consolidated revenues surged by 21% y-oy to $2.3 billion in 2018, while net income more than trebled to $ 1.1 billion from $363 million in the year before. Adjusted Ebitda grew by 67% on-year to $766m, same basis.