Cliffs Natural Resources (CLF) Dividend Cut Likely in 2015, Says Wells Fargo

Wells Fargo thinks Cliffs Natural Resources (NYSE: CLF) will need to cut its dividend in 2015. Earlier Cliffs said exit options for its Eastern Canadian iron ore operations may result in the closure of the Bloom Lake mine. It also said in the event of a closure, the estimated closure costs are expected to be in the range of $650 million to $700 million in the next five years.

Analyst Sam Dubinsky called the outcome a "big disappointment." He also reiterated his short call on Cliffs, noting weakening iron ore prices, high debt, and skepticism about asset sales.

For an analyst ratings summary and ratings history on Cliffs Natural Resources click here. For more ratings news on Cliffs Natural Resources click here.

Shares of Cliffs Natural Resources closed at $10.21 yesterday.

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