| Cliffs (CLF) to Raise Conversion Rate of Preferred Stock | |
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Cliffs Natural Resources Inc. CLF declared that instead of paying the final quarterly dividend of its 7.00% Series A Mandatory Convertible Preferred Stock, Class A in cash, the conversion rate will be raised for the stock. This will enable the holders of the Series A preferred stock to get additional shares of the company in place of the accumulated dividend at the time of mandatory conversion of the Series A preferred stock, on Feb 1, 2016.
Abiding by the underlying law, this decision to not pay dividend in cash was taken by the company’s board of directors. A total of around 1.26 million of the company’s shares will have to be issued to compensate for the dividend, with an effective conversion rate of .9052 shares, rather than .8621 shares, per depositary share. The conversion rate represents one-fortieth of a share of Series A preferred stock.
Last month, Cliffs concluded the sale of its remaining coal business, Pinnacle Mine in West Virginia and Oak Grove Mine in Alabama, to Seneca Coal Resources, LLC. The transaction closed once the deal was signed. At closing, the transaction was valued at $268 million.
Cliffs stated that the deal structure is a sale of the equity interests of its remaining coal business which includes the legal entities of Cliffs North American Coal LLC; Pinnacle Mining Company, LLC; Pinnacle Land Company, LLC; Oak Grove Resources, LLC; Oak Grove Land Company, LLC; and Beard Pinnacle, LLC.
The sale of these mines signifies Cliffs’ exit from the coal business and represents the company’s execution of its U.S. iron ore pellet-centric strategy that is environmentally compliant.
Cliffs currently carries a Zacks Rank #3 (Hold).
Some better-ranked mining stocks include Rare Element Resources Ltd. REE, Avalon Rare Metals Inc. AVLNF and Capstone Mining Corp. CSFFF, all holding a Zacks Rank #2 (Buy).
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CLIFFS Natural Resources
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PRODUCER |
CODE : CLF |
ISIN : US18683K1016 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
CLIFFS Natural Res is a iron producing company based in United states of america. CLIFFS Natural Res produces iron, coal in Australia, in Brazil and in Canada, and holds various exploration projects in Canada. Its main assets in production are WABUSH MINE, EMPIRE AND TILDEN MINES, HIBBING TACONITE, NORTHSHORE MINE, UNITED TACONITE, OAK GROVE MINE, GREEN RIDGE MINE and PINNACLE MINE in Canada, AUSTRALIAN IRON ORE and SONOMA in Australia and AMAPA in Brazil and its main exploration properties are MT JACKSON J1 in Australia and DIAGNOS, WAWA, FREEWEST, MC FAULD'S LAKE, MACFADYEN, WAWA CLAIMS and BIG DADDY in Canada. CLIFFS Natural Res is listed in France, in Germany and in United States of America. Its market capitalisation is US$ 5.4 billions as of today (€ 5.1 billions). Its stock quote reached its highest recent level on May 16, 2008 at US$ 99.17, and its lowest recent point on January 15, 2016 at US$ 1.20. CLIFFS Natural Res has 297 400 968 shares outstanding. |