Nick Kyle's questions to Cleveland-Cliffs Inc (CLF) leadership • Q4 2024
Question
Nick Kyle inquired if the company would consider share repurchases over debt paydown if the stock price remains low and asked for the target net debt level. He also asked about the expected volume cadence for the year and the drivers behind the cost reduction guidance.
Answer
CEO Lourenco Goncalves gave a 'resounding no' to share buybacks, stating that 100% of free cash flow is dedicated to debt reduction until the 2.5x net debt-to-EBITDA target is reached. CFO Celso Goncalves added that the guided $40/ton cost reduction will materialize more in the second half of 2025, driven by the Stelco acquisition mix and operational optimizations, not by restarting the C6 furnace.