CLF Stock Rises After Cleveland-Cliffs CEO Signals Shift Toward Rare-Earths

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  • The initiative to refocus on rare earths came alongside Q3 earnings, which met EPS estimates but missed on revenue.
  • CEO Lourenco Goncalves stated the firm saw the “renewed importance” of rare earths, which drove the company to re-focus on the “potential opportunity.”
  • He said Cleveland-Cliffs plans to leverage two U.S. sites, in Michigan and Minnesota, identified as having the strongest rare-earth potential.

Cleveland-Cliffs’ (CLF) stock rose in pre-market trade on Monday and was among the top trending tickers on Stocktwits after its CEO, Lourenco Goncalves, stated the company could expand into rare-earths, a comment made alongside its third-quarter earnings release.

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CLF’s stock rose as much as 11% in pre-market trade, with retail sentiment on Stocktwits in ‘bullish’ territory. Chatter rose to ‘high’ from ‘normal’ levels over the past day. 

Why Was Cleveland-Cliffs’ Stock Rising In Pre-Market Trade?

The rally came despite the company reporting third-quarter (Q3) earnings largely in line with expectations. Cleveland-Cliffs posted a loss per share of $0.45, matching analyst forecasts, while revenue reached $4.7 million, slightly below the consensus estimate of $4.8 million, according to Koyfin data.

The shares rallied on Goncalves stating that rare-earths could represent a strategic growth area for the company. “Beyond steelmaking, the renewed importance of rare earths has driven us to re-focus on this potential opportunity at our upstream mining assets,” he said. 

“It is our obligation to do so as a company with our geological footprint. Two sites in Michigan and Minnesota show the most potential, with geological surveys indicating key rare-earth mineralization.” 
– Lourenco Goncalves, CEO, Cleveland-Cliffs

He highlighted the broader implications for manufacturing and national strategy, amid the trade tensions between the U.S. and China. “If successful, it would align Cleveland-Cliffs with the broader national strategy for critical material independence, similar to what we achieved in steel,” he said. “American manufacturing shouldn’t rely on China or any foreign nation for essential minerals, and Cliffs intends to be part of the solution.”

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