Cliffs Natural Resources will record a US$6 billion write-down of its iron ore and metallurgical coal assets in its Q3 results.
“The impairment of long-lives assets is substantially drive by the company’s revised outlook for long-term pricing trends and the particularly adverse market conditions for seaborne iron and metallurgical coal,” the company said in a statement.
With this adjustment, the book value of Cliff’s assets will be “more reflective of current market value”. The charge is not expected to impact the company’s cash flows from current or future operations.
Cliffs Natural Resources produces high- and low-volatile metallurgical coal in the US, as well as iron ore from the Great Lakes region, eastern Canada and West Australia.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/20102014/world-coal-cliffs-writes-down-metallurgical-coal-assets-coal1245/