Cleveland-Cliffs Inc. (NYSE:CLF) Q1 2023 Earnings Call Transcript

Sean Wondrack: That’s definitely helpful. And then just understanding, you’ve done a good job paying down a lot of debt, and your top priorities remains debt reduction. That aside, you’ve been out of M&A for a little while. Is there any opportunity or appetite for M&A or are you still favoring organic improvement as you’ve laid out on the call?

Lourenco Goncalves: Net one or the other because M&A is opportunity. And you don’t see small iron ore company buying a steel maker and then buy another steel maker and going from $2 billion in revenues in 2019 to $23 billion in revenues in 2022 all the time. So you probably never saw in your life and never will in the future. So M&A is opportunity. So at this point, I don’t see any opportunity on M&A. And I did not commit with the greenfield growth any time during this call or any time in the last 2 years. So there is no real greenfield opportunity for us. For us, it’s paying down debt. And once we pay down debt, we’re going to do something with the money good for the shareholders. That’s all you can get as a commitment for us at this point.

Sean Wondrack: Okay. It’s very clear.

Operator: There are no further questions. I’d like to hand the call back over to you.

Lourenco Goncalves: All right. Ladies and gentlemen, thanks for being with us for the last hour. We appreciate the interest in Cleveland-Cliffs. We will continue to keep you posted, and we’ll continue to deliver the results we are committed to deliver. Thanks again, and have a great day.

Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.