Investor Presentation
MARCH 2023
© 2023 Cleveland-Cliffs Inc. All Rights Reserved.
FORWARD-LOOKING STATEMENTS
This presentation accommodates statements that represent “forward-looking statements” throughout the that means of the federal securities legal guidelines. All statements aside from historic details, together with, with out limitation, statements relating to our present expectations, estimates and projections about our {industry} or our companies, are forward-looking statements. We warning buyers that any forward-looking statements are topic to dangers and uncertainties that will trigger precise outcomes and future developments to vary materially from these issues expressed in or implied by such forward-looking statements. Traders are cautioned to not place undue reliance on forward-looking statements. Among the many dangers and uncertainties that would trigger precise outcomes to vary from these described in forward-looking statements are the next: continued volatility of metal, iron ore and scrap steel market costs, which instantly and not directly affect the costs of the merchandise that we promote to our prospects; uncertainties related to the extremely aggressive and cyclical metal {industry} and our reliance on the demand for metal from the automotive {industry}, which has been experiencing provide chain disruptions, such because the semiconductor scarcity, and better client rates of interest, which may lead to decrease metal volumes being demanded; potential weaknesses and uncertainties in international financial situations, extra international steelmaking capability, oversupply of iron ore, prevalence of metal imports and lowered market demand, together with because of inflationary pressures, the COVID-19 pandemic, conflicts or in any other case; extreme monetary hardship, chapter, momentary or everlasting shutdowns or operational challenges of a number of of our main prospects, together with prospects within the automotive market, key suppliers or contractors, which, amongst different opposed results, may disrupt our operations or result in lowered demand for our merchandise, elevated problem gathering receivables, and prospects and/or suppliers asserting pressure majeure or different causes for not performing their contractual obligations to us; disruptions to our operations regarding an infectious illness outbreak or the COVID-19 pandemic, together with workforce challenges and the chance that novel variants will show immune to current vaccines or that new or persevering with lockdowns in China will affect our means to supply sure vital provides in a well timed and predictable method; dangers associated to U.S. authorities actions with respect to Part 232 of the Commerce Enlargement Act of 1962 (as amended by the Commerce Act of 1974), the United States-Mexico-Canada Settlement and/or different commerce agreements, tariffs, treaties or insurance policies, in addition to the uncertainty of acquiring and sustaining efficient antidumping and countervailing obligation orders to counteract the dangerous results of unfairly traded imports; impacts of current and growing governmental regulation, together with potential environmental rules regarding local weather change and carbon emissions, and associated prices and liabilities, together with failure to obtain or keep required working and environmental permits, approvals, modifications or different authorizations of, or from, any governmental or regulatory authority and prices associated to implementing enhancements to make sure compliance with regulatory modifications, together with potential monetary assurance necessities, and reclamation and remediation obligations; potential impacts to the setting or publicity to hazardous substances ensuing from our operations; our means to take care of ample liquidity, our stage of indebtedness and the provision of capital may restrict our monetary flexibility and money movement essential to fund working capital, deliberate capital expenditures, acquisitions, and different common company functions or ongoing wants of our enterprise; our means to scale back our indebtedness or return capital to shareholders throughout the at present anticipated timeframes or in any respect; opposed modifications in credit score scores, rates of interest, overseas forex charges and tax legal guidelines, together with opposed impacts because of the Inflation Discount Act of 2022; the end result of, and prices incurred in reference to, lawsuits, claims, arbitrations or governmental proceedings regarding business and enterprise disputes, antitrust claims, environmental issues, authorities investigations, occupational or private damage claims, property harm, labor and employment issues, or fits involving legacy operations and different issues; unsure availability or price, resulting from inflation or in any other case, of vital manufacturing tools and spare components; provide chain disruptions or modifications in the fee, high quality or availability of vitality sources, together with electrical energy, pure gasoline and diesel gasoline, or vital uncooked supplies and provides, together with iron ore, industrial gases, graphite electrodes, scrap steel, chrome, zinc, coke and metallurgical coal; issues or disruptions related to transporting merchandise to our prospects, shifting manufacturing inputs or merchandise internally amongst our amenities, or suppliers transporting uncooked supplies to us; the chance that the fee or time to implement a strategic or sustaining capital undertaking could show to be higher than initially anticipated; uncertainties related to pure or human-caused disasters, opposed climate situations, unanticipated geological situations, vital tools failures, infectious illness outbreaks, tailings dam failures and different surprising occasions; cybersecurity incidents regarding, disruptions in, or failures of, info know-how methods which are managed by us or third events that host or have entry to our information or methods, together with the loss, theft or corruption of delicate or important enterprise or private info and the shortcoming to entry or management methods; liabilities and prices arising in reference to any enterprise selections to briefly or indefinitely idle or completely shut an working facility or mine, which may adversely affect the carrying worth of related property and provides rise to impairment costs or closure and reclamation obligations, in addition to uncertainties related to restarting any beforehand idled working facility or mine; our stage of self-insurance and our means to acquire adequate third-party insurance coverage to adequately cowl potential opposed occasions and enterprise dangers; uncertainties related to our means to fulfill prospects’ and suppliers’ decarbonization targets and cut back our greenhouse gasoline emissions in alignment with our personal introduced targets; challenges to sustaining our social license to function with our stakeholders, together with the impacts of our operations on native communities, reputational impacts of working in a carbon-intensive {industry} that produces greenhouse gasoline emissions, and our means to foster a constant operational and security monitor file; our precise financial mineral reserves or reductions in present mineral reserve estimates, and any title defect or lack of any lease, license, easement or different possessory curiosity for any mining property; our means to take care of passable labor relations with unions and workers; unanticipated or larger prices related to pension and OPEB obligations ensuing from modifications within the worth of plan property or contribution will increase required for unfunded obligations; unsure availability or price of expert staff to fill vital operational positions and potential labor shortages attributable to skilled worker attrition or in any other case, in addition to our means to draw, rent, develop and retain key personnel; the quantity and timing of any repurchases of our widespread shares; and potential important deficiencies or materials weaknesses in our inside management over monetary reporting.
For added components affecting the enterprise of Cleveland-Cliffs Inc., consult with Half I – Merchandise 1A. Danger Components of our Annual Report on Kind 10-Ok for the 12 months ended December 31, 2022, and different filings with the U.S. Securities and Trade Fee.
© 2023 Cleveland-Cliffs Inc. All Rights Reserved.
CLEVELAND-CLIFFS
3 | © 2023 Cleveland-Cliffs Inc. All Rights Reserved. |
Largest provider of metal to the automotive {industry} in North America
Totally built-in from iron ore pellets, direct lowered iron and ferrous scrap to main steelmaking and downstream coating, stamping, tooling and tubing
Business main use of mounted worth annual contracts mitigates pricing volatility
Full dedication to ESG insurance policies together with aggressive GHG emissions discount
Revamped operational footprint with industry-low capital expenditure wants
Sturdy steadiness sheet with greater than 45% discount in web debt/publish retirement liabilities in lower than two years
CLEVELAND-CLIFFS’ TRANSFORMATION
Income development from 2019 to 2022 | 2022 Operational Profile | |
>11x | $23 billion | 14.8 million tons | ||
development | of metal shipments | |||
#1 | Largest flat-rolled metal | |||
producer in North America | ||||
2020 Transformational Acquisitions | ||||
March 2020 | ||||
$2 billion | ||||
December 2020 | USA | |||
2019 | 2022 |
© 2023 Cleveland-Cliffs Inc. All Rights Reserved.
DIFFERENTIATED, FULLY-INTEGRATED BUSINESS MODEL
Vertically built-in in | 7 operational blast | Business main | Modern and | |||
ferrous uncooked supplies | furnaces and 5 EAFs | automotive market | various downstream | |||
sourced from personal | share | capabilities | ||||
U.S.-based operations | ||||||
Pellets
HBI
Prime Scrap | Metal Making & Rolling | Ending & Coating | Downstream | |||
© 2023 Cleveland-Cliffs Inc. All Rights Reserved.
Disclaimer
Cleveland-Cliffs Inc. printed this content material on 03 March 2023 and is solely accountable for the data contained therein. Distributed by Public, unedited and unaltered, on 03 March 2023 14:39:10 UTC.
Publicnow 2023
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Technical evaluation developments CLEVELAND-CLIFFS INC.
Quick Time period | Mid-Time period | Lengthy Time period | |
Developments | Bullish | Bullish | Impartial |
Revenue Assertion Evolution
Promote Purchase | |
Imply consensus | OUTPERFORM |
Variety of Analysts | 12 |
Final Shut Worth | 22,22 $ |
Common goal worth | 21,72 $ |
Unfold / Common Goal | -2,25% |