Cliffs Natural Resources net debt unchanged despite coal exit, analyst says
Dec 24 2015, 10:22 ET | About: Cliffs Natural Resources Inc. (CLF) | By: Carl Surran, SA News Editor Contact this editor with comments or a news tip
Cliffs Natural Resources' (CLF -2.1%) net debt remains unchanged even after fully exiting from coal following the sale of its remaining North American coal assets, Deutsche Bank analyst Jorge Beristain says as he reiterates his Sell rating and $1.50 price target on the shares.While recent sales are in-line with CLF's strategy to revert back to a U.S.-focused iron ore supplier, Beristain says the overall net debt picture has not changed, with no cash/debt involved in the coal deal and Bloom Lake proceeds going to creditors.CLF "continues to lack financial flexibility with high debt levels and deteriorating iron ore operations," the analyst writes.