Why This Iron-Ore Miner Jumped 12% in August, Besting Giants Like BHP and Rio Tinto
Shares of iron-ore miner Cleveland-Cliffs Inc. (NYSE: CLF), formerly Cliffs Natural Resources, went up 12% in August. That was more than double the gains at iron-ore focused BHP Billiton and Rio Tinto, which advanced 5% and 4%, respectively. The main driver of the gain was an iron-ore price advance, but that doesn't explain all of the relative outperformance.
The first fact that underpins Cleveland-Cliffs' strong showing is its focus on iron ore. The metal is vital to Rio Tinto and BHP, but they're broadly diversified miners that do much more than just pull iron ore from the ground.
Cleveland-Cliffs only mines for iron ore. Therefore, it's more leveraged to the price of the metal than either of those miners. Iron ore has been strong lately, helping to explain a portion of Cleveland-Cliffs' outperformance in August.
Source: Fool.com
