Cleveland-cliffs Inc. · NYSE:CLF
Cleveland-cliffs — Cliffs Natural Resources — Merger or Acquisition (January 2011)
19 slides from Cleveland-cliffs's merger presentation, Jan 11, 2011
Slide 1: Building Scale and Providing Substantial Future Growth Opportunities
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Exhibit 99 Building Scale and Providing Substantial Future Growth Opportunities
Slide 2: “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 This presentation and accompanying oral remarks contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litiga
Slide 3: Presenters: Carrabba, Brlas, Baisden
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Joseph Carrabba Chairman, President & Chief Executive Officer Laurie Brlas Executive Vice President, Finance and Administration & Chief Financial Officer Steve Baisden Senior Director, Investor Relations & Communications 2
Slide 4: Cliffs’ Strategic Execution – Diversifying, Building Scale, and Adding Shareholder Value
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Cliffs’ Strategic Execution – Diversifying, Building Scale, and Adding Shareholder Value North American Coal Other 4% ($ in billions, except share price data) 10% $150 North American Iron Ore Asia 62% Pacific Iron Ore 24% $120 Sales: $2.0 Sales:
Slide 5: Diversifying Cliffs’ Product Mix
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Diversifying Cliffs’ Product Mix (by metric tons) 2009 1 2011E 2 Beyond 2013E 3 Cliffs product mix Cliffs product mix Cliffs product mix North American North American North American Coal 6% Coal Coal 12% North American 10% North American North Am
Slide 6: Consolidated Thompson
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Consolidated Thompson An Emerging World-Class Iron Ore Producer One of the fastest developing iron ore producers in North America with over 580 million tonnes of reserves Access to Asia market Profitable and positive operating cash flow in its se
Slide 7: Significant Synergy Potential
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Significant Synergy Potential Expect to realize ~$75mm in pre-tax annual operating synergies Conveyor, dock and loading — Leverage Wabushport and loading capacity — Lower loading costs — Increase loading rates and potential annual shipping tonnag
Slide 8: Strategic Diversification in Cliffs’ Core Product
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Strategic Diversification in Cliffs’ Core Product Significantly increases exposure to seaborne customers Major diversification of Cliffs’ client base – Substantially all of Consolidated Thompson’s production sold into Asian markets – Long-term co
Slide 9: Transaction Overview
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Transaction Overview Cliffs Natural Resources to acquire all of the common shares of Consolidated Thompson Iron Mines Ltd. The total transaction value is approximately C$4.9 billion (including net debt) Consolidated Thompson’s Board has recommend
Slide 10: Maintaining a Strong Financial Position
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Maintaining a Strong Financial Position Committed Financing — Committed 364-day bridge facility — Available liquidity Targeted Permanent Financing — Expect to access capital markets Strong Pro Forma Balance Sheet — Ample liquidity — Manageable de
Slide 11: Expanding Cliffs’ Global Reach at Seaborne Rates
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Expanding Cliffs’ Global Reach at Seaborne Rates Canadian Iron Ore Production Capacity: 5.6Mt + 16.0Mt US Iron Ore US Coal Production Production Capacity: Capacity: 24.5Mt 7.9Mt (3.5Mt shipped to Europe) Australian Coal Production Capacity: 1.5Mt
Slide 12: Why Consolidated Thompson?
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Why Consolidated Thompson? Strategic Operational Financial Seaborne iron ore High-quality concentrate Meaningful earnings and cash flow potential Strategic relationship with Open-pit mining leading global steel producer Strong growth profile Prox
Slide 13: Building Scale and Providing Substantial Future Growth Opportunities
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Building Scale and Providing Substantial Future Growth Opportunities
Slide 14: Appendix
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Appendix 13
Slide 15: The Acquisition Is at the Core of Cliffs’ Growth Strategy
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP The Acquisition Is at the Core of Cliffs’ Growth Strategy Diversify into other end-markets and Cliffs’ strategy: Geographic and mineral diversification other steel-related minerals Minerals Geographies Expand geographically into low-political-ris
Slide 16: Increasing Exposure to High Growth Seaborne Customers
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Increasing Exposure to High Growth Seaborne Customers (by metric tonnes) Cliffs’ 2009 Iron Ore markets served 1 + Cliffs’ 2009 Iron Ore Markets served¹ Consolidated Thompson’s markets served 2 Seaborne to Europe and the Seaborne to Europe and the
Slide 17: Attractive Commercial Relationships with Leading Asian Players
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Attractive Commercial Relationships with Leading Asian Players Consolidated Thompson’s est. production (metric tons mm) Wuhan Iron & Steel (Group) Corporation (“WISCO”) rd China’s3 -largest steel producer – produced more than 30mm metric tons of
Slide 18: Cliffs Natural Resources’ Global Footprint
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Cliffs Natural Resources’ Global Footprint Asia Pacific North America Latin America Access to high-growth Asian markets Largest iron ore producer in North America A developing project in a low-cost mining district Pricing correlates to Australian
Slide 19: Cliffs’ Strategic Imperatives Going Forward
OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP Cliffs’ Strategic Imperatives Going Forward Building scale through diversification Global execution Multiple Revenue Streams Competencies of the Firm Product Diversification Outlook of Personnel Geographic Presence Global Scalability Scale Global
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