Additional charges are related to a delay in Cliffs’ expansion project at its Bloom Lake mine and another $100 to $200 million charge at its Eastern Canadian iron ore business segment. The company previously said that it would take a non-cash impairment expense of $365 million related to the sale of its 30% interest in the Amapa mine in Brazil. All the charges will be taken in the fourth quarter of 2012.
Cliffs paid nearly $5 billion for Thompson and the writedown reflects lower expected volumes and higher costs.
The company cannot afford these kinds of mistakes. Iron ore prices have been falling and adding insult to injury is not a formula for success. Similar transactions and charges recently cost the CEO of Rio Tinto plc (NYSE: RIO) his job.
Shares of Cliffs are down about 1% at $36.81 in a 52-week range of $28.05 to $78.85.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
