Boston, MA 02/14/2014 (wallstreetpr) – Cliff Natural resources Inc. (NYSE:CLF) which is a mining magnet has posted its fourth quarter and full year financial results for the period ended December 31, 2013. Lower global iron sales accompanied by lower market pricing of metallurgical coal products caused a 3% decline in revenue for the full year. The 3% decline in revenue was partially offset by 12% increase in coal sales volumes. Lower cost rates for coal business and favourable exchange rates caused the recorded 3% decline in the cost of goods that came in at $4.5 billion.
Fourth quarter results
Cliff Natural resources Inc. (NYSE:CLF) saw a decline in its fourth quarter revenue which came in at $1.5 billion caused mainly, by the lower market pricing and sales volumes from meturlligical coal products. SG&A expenses for the fourth quarter amounted to $56 million, which was an 18% decrease when compared to similar quarter a year ago of $68 million.
Cost of goods sold in the fourth quarter decreased by 6% to come in at $1.2 billion solely driven by favorable foreign exchange rates and lower operating costs at the Wabush mine. The lower cost of goods sold caused a 23% increase in the consolidated sales margin which clocked in at $295 million up from $239 million recorded same quarter a year ago.
Cliff Natural resources Inc. (NYSE:CLF) also announced plans to suspend its major components of its chromite project in Nother Ontario. The uncertain timeline and risks associated with the project have been cited as the main reason behind the suspension.
Fourth quarter net income improved coming in at $50 million with $45 million coming in from insurance recoveries proceeds for its North American Coal mines. The fourth quarter also saw the company record a $14 million worth of income tax benefit compared to $491 million recorded in the same quarter a year ago.
Revenues per ton were up by 1% to clock in at $112.70 compared to $112.06 a year ago, higher pricing for one customer due to reset of their contract base rate caused the slight increase. The fourth quarter also saw the company incur $183 million in charges related to its mine in Wabush Eastern Canada. The fourth quarter also saw Cliffs generate $460 million in cash from its operations versus $239 million recorded same quarter a year ago.
Full year cash increased by 123% to clock in at $1.1 billion and the company was able to pay its revolving credit facility entirely thus closed the year with cash and cash equivalents of $336 million. The company Cliff Natural resources Inc. (NYSE:CLF) closed the year with $3 billion in total long term debt.
