US-based mining and natural resources company Cleveland-Cliffs Inc. has reported its results for the fourth quarter and the full year of 2023.
In the fourth quarter, the company reported total revenues of $5.11 billion, compared to the prior year’s fourth quarter revenues of $5.04 billion. The company recorded a net loss of $139 million in the fourth quarter last year, compared to a net loss of $204 million in the corresponding period of the previous year.
In 2023, the company reported a net income of $450 million, compared to a net income of $1.37 billion in 2022, while the company’s total revenues amounted to $21.99 billion, compared to $22.99 billion recorded in the previous year. This is the third consecutive year with revenues above $20 billion.
In the fourth quarter, the company’s adjusted EBITDA for the steel and manufacturing division was $279 million, while in the full year the company’s adjusted EBITDA for the steel and manufacturing division was $1.91 billion. Total steel products shipped reached 4.04 million net tons in the fourth quarter, while totaling 16.43 million net tons in 2023, setting a record.
The company expects its steel shipment volumes for 2024 to be approximately 16.5 million net tons. In addition, Cleveland-Cliffs anticipates its adjusted EBITDA performance in the first quarter of 2024 to exceed its adjusted EBITDA performance in the fourth quarter of 2023.
Meanwhile, Lourenco Goncalves, CEO of the company, said he assumed there would be a fair scrap marketplace for the coming year with scrap demand growing and scrap supply shrinking. “There is no good reason for scrap prices to go down. If true supply and demand for scrap in the US prevails, there is no good reason for HRC prices to go below $1,000 per net ton,” Goncalves stated.