Cleveland-cliffs Inc. · NYSE:CLF
Cleveland-cliffs — Cliffs Natural Resources — Investor Presentation (November 2014)
18 slides from Cleveland-cliffs's investor presentation, Nov 19, 2014
Slide 1: Cliffs Natural Resources Inc.
~S CLIFFS CLIFFS NATURAL RESOURCES INC. LOURENCO GONCALVES Chairman, President and CEO November 2014
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS i i that constitute "forward: thin the meaning of the federal securities laws. ‘As a general matter, d i id ex; than Forward-looking i i ifs! ii i be bey control. Such uncertainties and factors may toate rately tom implied by the forward-lookit the date ing obli other 2d b
Slide 3: Cliffs Supplies Critical Inputs to the Steel Industry
CLIFFS SUPPLIES CRITICAL INPUTS TO THE STEEL INDUSTRY PELLETS > CLIFFS 3
Slide 4: Blast Furnace
BLAST FURNACE eos > CLIFFS ‘
Slide 5: Cliffs Supplies Critical Inputs to the Steel Industry
CLIFFS SUPPLIES CRITICAL INPUTS TO THE STEEL INDUSTRY PELLETS FINES > CLIFFS E
Slide 6: Sinter Plant
SINTER PLANT > CLIFFS 8
Slide 7: Blast Furnace
BLAST FURNACE eos > CLIFFS 7
Slide 8: Cliffs Supplies Critical Inputs to the Steel Industry
CLIFFS SUPPLIES CRITICAL INPUTS TO THE STEEL INDUSTRY PELLETS LUMP ORE METALLURGICAL COAL FINES > CLIFFS 3
Slide 9: Financial Performance - EBITDA Generation Q3 2014
FINANCIAL PERFORMANCE - EBITDA GENERATION Q3 2014 $300 Million Zero Contributor Unprofitable Operations Wopush Drain on Cash Corporate Bloom Lake ~S CLIFFS 9" Refer to Earnings Release 8-K filed
Slide 10: Fact #1: No Major Iron Ore Producer Is Less Tied to Seaborne Iron Ore
FACT #1: THERE IS NO MAJOR IRON ORE PRODUCER IN THE WORLD WHOSE BUSINESS MODEL IS TIED LESS TO SEABORNE IRON ORE, THAN CLIFFS. Platts IODEX vs. USIO Realized Price (since Q1 2011) USsIO -17% 20% + 40% | -50% 60% Qi 2011 Q3 2011 i 2012 a3 2012 Qt 2013 a3 2013 Qt 2014 a3 2014 —Platts IODEX +—USIO Real
Slide 11: 2015 USIO IODEX Price Sensitivities
2015 USIO IODEX PRICE SENSITIVITIES $120 Contracts provide a $70/t realized price floor in the lowest iron ore im rice environments 0-95 00 $9 $85-90 $85-90 $80-85 $80-85 $8085 675-60 $75-80 's7o-7s $70-75 | Price per ton 8 HE 1ODEX = }_USIO.2015€ realized price CLIFFS 11 Sa sink peon pyc, PlangiRC
Slide 12: Fact #2: Cliffs USIO Is a Low Cost Producer
FACT #2: CLIFFS USIO IS A LOW COST PRODUCER. US IRON ORE ] ae See 9® $59 PER TON of (Fecal PELLETS “— CLIFFS jo, Note: Cash Production Cost from 09 2014 Results
Slide 13: Fact #3: Cliffs Is as Cost Competitive in Australia as the Majors
FACT #3: CLIFFS IS AS COST COMPETITIVE IN AUSTRALIA AS THE MAJORS. ASIA PACIFIC IRON ORE $52 PER TON of 50% LUMP and 50% FINE $50 million CAPEX / LOM = $0.93 Per Ton Based on 64.5mt of reserves at 12/31/13 less 11mt produced in 2014 = 53.5mt; $50M/53.5mt = $0.93 S— CLIFFS 18 Note: Cash Production Co
Slide 14: Australia Product Mix
AUSTRALIA PRODUCT MIX Cliffs APIO Fine Lump 48% 52% BHP Billiton Rio Tinto Fortescue Current Lump Premium: $16/mt > CLIFFS 14
Slide 15: Australia Capital Spend
AUSTRALIA CAPITAL SPEND TTM Capex (Iron Ore) TTM Capex Per Ton $1.9 billion $15/t $3.1 billion $15/t $5.5 billion $25/t $16 million $1/t > CLIFFS Reseenaseea ew
Slide 16: The Biggest Strength of Rio, BHP, Fortescue and Vale Is Weak Currency
THE BIGGEST STRENGTH OF RIO, BHP, FORTESQUE AND VALE IS... WEAK CURRENCY — ... WHICH BENEFITS CLIFFS APIO AS WELL. > CLIFFS 16
Slide 17: Bloom Lake Mine
BLOOM LAKE MINE Current Ownership Proposed Partnership 10% Partner 10% Partner Wisco 17% CLIFFS 83% Replicate US Iron Ore Business Model $1.2 billion Total CAPEX = $450 million Phase I! Construction + $750 million Tailings Pond Development ~S CLIFFS 7
Slide 18: SF CLIFFS
SF CLIFFS
Cliffs Natural Resources — Investor Presentation (November 2014) on 6ix