This $96 Million Steel Bet Signals Conviction in Cleveland-Cliffs Despite a $1.4 Billion Annual Loss

Company Overview - Cleveland-Cliffs Inc. is a leading North American steel producer with a vertically integrated business model, leveraging both steelmaking and iron ore mining assets [6] - The company serves a diversified customer base, with significant exposure to the automotive and manufacturing sectors, positioning it as a key supplier in the regional steel industry [6] Financial Performance - As of February 11, shares of Cleveland-Cliffs were priced at $12.48, reflecting a 10.4% increase over the prior year [3] - The company reported fourth-quarter revenue of $4.3 billion, flat year over year, with a net loss of $235 million and an adjusted EBITDA loss of $21 million [10] - For the full year, revenue decreased to $18.6 billion from $19.2 billion, and the net loss widened to $1.4 billion [10] - Liquidity stood at $3.3 billion, with management guiding for 2026 steel shipments of approximately 16.5 to 17.0 million net tons and targeted unit cost reductions of about $10 per net ton [10] Investment Position - Turiya Advisors Asia Ltd initiated a new position in Cleveland-Cliffs by acquiring 7,250,000 shares valued at $96.28 million, which now accounts for 14.75% of the fund's 13F reportable assets under management as of December 31 [2][3] - This allocation indicates a strategic tilt towards economically sensitive assets, complementing a portfolio already concentrated in large technology names and cyclical plays [11] - The significant size of the position suggests a belief that the steel cycle is closer to a trough than a peak, focusing on balance sheet flexibility and cost discipline for long-term investors [12]