Cleveland-Cliffs, Inc. (CLF) CEO Lourenco Goncalves on Q2 2018 Results – Earnings Call Transcript

Lourenco Goncalves

Thank you, Tim. And thanks to everyone for joining us this morning. Our second quarter results provide a clear picture of what Cleveland-Cliffs has become and what it will continue to be; a simple, clean, cash flow generating powerhouse. Manufacturing in United States has been reestablished and everything we have done to improve and evolve this Company over the past four years has set us up to thrive during this manufacturing renaissance.

Our U.S. iron ore business as it is today well protected by geographic and contractual barriers is sustainable and will carry us through the next two years as a money print machine. Beyond that point, we’ll be adding HBI to the mix, a game changer event that will further strengthen the foothold we already have in our core Great Lakes markets. During the second quarter, we announced the sale of our Asia Pacific iron ore business likely to close this quarter.

After four years of successful asset divestitures, including all five coal mines, Wabush, Blue Lake, chromite, nickel and all other smaller projects. The sale of APIO was the final piece of our strategy driven transformation. We have said from the beginning that our objectives are clean exit from Australia with minimization of liabilities. This transaction allows us to accomplish both. We not only reduced our expect cash obligations by $70 million but we also reduced the asset retirement obligations by another $15 million.

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