Cleveland-Cliffs Inc. (CLF) is a publicly-traded iron ore and metallurgical coal producer based in Cleveland, Ohio. The company is the largest iron ore producer in the United States and the only publicly traded U.S. company that produces iron ore pellets. Cliffs is also the largest producer of metallurgical coal in the U.S., supplying steel makers with the coal used to make steel. The company has been in business since 1847 and is currently the oldest operating steel mill in the United States.
In the past few years, CLF has seen a significant increase in its stock value. The company has recently announced plans to expand its operations, which has been received positively by investors. As a result, many investors are wondering if CLF stock is a good buy in 2023. In this article, we’ll take a closer look at CLF and determine whether it is a good investment.
CLF’s Business Model
CLF is a diversified company that produces iron ore pellets, metallurgical coal, and other mineral products. The company has operations in the United States, Canada, and Mexico. CLF’s core business is the production of iron ore pellets, which are used to make steel. The company also produces other mineral products such as titanium dioxide, fluorspar, and aluminum oxide.
In addition to its mining operations, CLF also owns and operates energy production facilities. The company owns and operates three natural gas-fired power plants in Ohio, Michigan, and West Virginia. These plants are used to generate electricity for the company’s mining operations.
CLF’s Financial Performance
CLF has seen significant growth in both its top and bottom line over the past few years. In 2018, the company reported revenue of $2.5 billion, up from $2.2 billion in 2017. Net income for 2018 was $473 million, up from $310 million in 2017. In addition, the company’s free cash flow was $418 million, up from $254 million in 2017.
The company’s stock has also seen a significant increase in value in recent years. In 2013, CLF’s stock price was around $8 per share. As of May 2021, the stock’s price was $18.40 per share. This represents a 131% increase in the stock’s value over the past 8 years.
CLF’s Future Outlook
CLF has a number of projects in the works that will further increase its production capacity. The company is currently constructing a new iron ore pellet plant in Toledo, Ohio. The plant is expected to be operational by 2022 and will have an annual production capacity of 7 million tons. In addition, the company has announced plans to expand its metallurgical coal operations in West Virginia and Alabama.
The company also plans to increase its energy production capacity. CLF recently announced plans to build a natural gas-fired power plant in Ohio. The plant is expected to be operational by 2024 and will have an annual energy production capacity of 600 megawatts.
Is CLF Stock A Good Buy?
CLF has seen significant growth in recent years and has several projects in the works that will further increase its production capacity. The company’s stock has also seen a significant increase in value over the past 8 years. With all of this in mind, it appears that CLF stock is a good buy in 2023. However, investors should always do their own research before investing in any stock.
Conclusion
CLF is a diversified company that produces iron ore pellets, metallurgical coal, and other mineral products. The company has seen significant growth in both its top and bottom line over the past few years. In addition, the company has several projects in the works that will further increase its production capacity. With all of this in mind, it appears that CLF stock is a good buy in 2023. However, investors should always do their own research before investing in any stock.
