Marquette, MI – (Great Lakes Radio News) – Cliffs Natural Resources says they have been able to successfully reduce the company’s debt by more than $400 million over the last three and a half months.
The reduction was achieved through cash from operations in the fourth quarter of 2014 and net proceeds from the sale of their Logan County Coal operation.
In addition, the Cliffs’ Board has voted to eliminate the quarterly dividend of $0.15 per share on Cliffs’ common shares.
The decision is for the first quarter of 2015 and all subsequent quarters.
In a statement released this morning, Cliffs’ officials say accelerated debt reduction is a more effective way to protect shareholders than continuing to pay a common share dividend.
Elimination of the dividend frees up an additional $92 million in cash annually, which will be used for further debt reduction.