Cliffs Natural Resources Inc. (NYSE:CLF) has revealed on Wednesday that it will begin redeeming the entirety of the outstanding senior notes due by January 2018, which have an aggregate principal amount of about $284 million.
Once completed, the redemption will reduce the annualized interest expenses of Cliffs Natural Resources by about $17 million.
Cliffs Natural Resources Tilden Mining Co. Partnership with WEC Energy Group (NYSE:WEC)
On Monday, it was announced that Tilden Mining had entered into a 20-year agreement with WEC Energy Group.
Under the new agreement, WEC Energy Group will provide Tilden Mining with an affordable, consistent, and reliable electrical power source in Michigan. Tilden Mining will be able to tap clean and cost-efficient energy resources for a long period at reasonable costs. Lourenco Goncalves, Cliffs Natural Resources Chairman, CEO, and President, noted that the long-term partnership with WEC Energy Group further enhances the company’s operations in Michigan and reiterates its commitment in the mining area.
Moreover, the deal also includes the construction of the proposed Upper Michigan Energy Resources Corp., which is expected to commence by 2019 subject to regulatory approvals. Accordingly, WEC Energy Group, through its affiliates, will fund the project.
Q2 Financial Highlights
Cliffs Natural Resources has released its earnings report for the second quarter in July.
For the period, the company had a total of $496 million in revenue. It had a total of $30 million in net income, which is significantly better than a total of $38 million in net loss during the same quarter in 2015. Cliffs Natural Resources had an earnings per share (EPS) of $0.07, which is significantly better than an EPS of $0.28 during the same period last year.
Meanwhile, Selling, General, and Administrative (SG&A) expenses declined 27% year-over-year to $23 million from $31 million. Interest expenses also slumped 20% year-over-year to $51 million from $64 million. $42 million of the total amount was in cash expenses.
The company ended the period with a total of $2.50 billion in debts, which is down year-over-year from $2.90 billion; and a total of $108 million in cash and cash equivalents, which is down year-over-year from $276 million.