TLDR
- Cleveland-Cliffs reported Q3 adjusted Ebitda of $143 million, beating analyst estimates of $128 million.
- The company announced plans to explore rare-earths mineral production from its iron ore deposits in Michigan and Minnesota.
- Cliffs signed a memorandum of understanding with an undisclosed global steel maker for increased U.S. market access.
- The stock jumped 16.4% to $15.50 despite posting a per-share loss of 45 cents.
- Full-year capital spending guidance was lowered to $525 million from $600 million.
Cleveland-Cliffs delivered third-quarter results that topped expectations on Monday. But the real story wasn’t about steel.
The company announced it was exploring rare-earths mineral production from its iron ore deposits. That news sent the stock soaring.
For the quarter, Cleveland-Cliffs posted adjusted Ebitda of $143 million. That beat Wall Street’s estimate of $128 million.
The company reported a per-share loss of 45 cents on sales of $4.7 billion. Analysts had expected the same loss but higher sales of $4.9 billion.
A year earlier, Cliffs posted Ebitda of $122 million and a 35-cent per-share loss. Sales came in at $4.6 billion.
Benchmark steel prices averaged roughly $800 per ton this quarter. That’s up from around $700 per ton a year ago.
The company lowered its full-year capital spending guidance to $525 million from $600 million. It also cut its forecast for selling, general, and administrative costs to $550 million from $575 million.
CEO Lourenco Goncalves highlighted automotive steel demand recovery in the U.S. He pointed to a richer sales mix and improved pricing as positives.
Rare-Earths Opportunity Takes Center Stage
The rare-earths announcement grabbed investor attention. Goncalves said the company was re-focusing on this potential at its mining assets.
Two properties in Michigan and Minnesota show evidence of rare-earths metals. These materials are used in electric vehicles, wind turbines, and fighter jets.
China dominates rare-earths production and processing. The country recently threatened export controls on these materials.
That threat put U.S. manufacturing at risk. It also sent rare-earths stocks like MP Materials up over 400% in 2025.
Goncalves connected the move to national strategy. He said American manufacturing shouldn’t rely on China or foreign nations for essential minerals.
The company aims to contribute to critical material independence. This mirrors what Cliffs achieved in the steel sector.
New Partnership in the Works
Cleveland-Cliffs signed a memorandum of understanding with a global steel maker. The undisclosed partner is seeking more access to U.S. markets.
Cliffs expects the deal to be “highly accretive” to shareholders. More details will come in late 2025 or early 2026.
Seaport analyst Martin Englert called the results in line with expectations. He maintains a Buy rating with a $12 price target.
The stock closed up 16.4% at $15.50 on Monday. The S&P 500 and Dow Jones Industrial Average rose 0.7% and 0.5%, respectively.
Cleveland-Cliffs shares have risen about 42% year-to-date. President Trump’s import tariffs have helped boost domestic steel prices.
The company’s market value stood at less than $7 billion at the start of the week. MP Materials, by comparison, has a market value of about $14 billion.
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