BMO Downgrades Gold Fields; Reliance Steel Acquires Cooksey Iron; Law Firm Probes Contango ORE; US Steel Shares Q4, Yearly Results

Top Stories for Feb. 2, 2024:

1. BMO Capital analyst Andrew Kaip downgraded Gold Fields Limited GFI from Market Perform to Underperform and lowered his price target from $14 to $12.

2. Reliance Steel & Aluminum Co. RS announced that it acquired all outstanding equity interests of the metals service center Cooksey Iron & Metal Co., Inc.

Cooksey will operate as a subsidiary of Reliance’s wholly-owned subsidiary, Metals USA, and its current management team will remain in place.

President and Chief Executive Officer of Reliance Karla Lewis said, “We are very excited to welcome Cooksey to the Reliance family....The addition of Cooksey strengthens and expands our position in the fast-growing Southeastern market where the Company is well-known for its premium customer service, quality products and rapid delivery standards which is in direct alignment with the Reliance model. Cooksey will further benefit from Reliance's significant wealth of knowledge throughout the family of companies and investments to promote further growth in its value-added processing capabilities.”

3. The shareholder rights law firm Glancy Prongay & Murray LLP announced an investigation into Contango ORE, Inc.’s CTGO directors and officers over potential violations of state laws.

4. United States Steel Corporation X announced fourth-quarter and full-year earnings results for 2023.

In Q4, the company reported a net loss of $80 million (36 cents per share), compared to a $174 million net profit in the same quarter of 2022, while adjusted net earnings were $167 million, down from $235 million in Q4 2022.

For the full year 2023, U.S. Steel saw net earnings of $895 million ($3.56 per share) and adjusted net earnings of $1.195 million ($4.73 per share), a significant decline from 2022's earnings of $2.524 million and adjusted earnings of $2.785 million, respectively.

Fourth-quarter adjusted EBITDA was $330 million, while full-year adjusted EBITDA was $2.139 million.

U.S. Steel President and Chief Executive Officer David B. Burritt said, "We ended the year with another quarter of strong financial and operational performance, and we did it safely, setting yet another year of record best safety performance….We are excited by the opportunities afforded by the Nippon Steel and U. S. Steel combination."

"It is the right transaction not only for U.S. Steel stockholders, but also for our employees and customers. U.S. Steel will retain its iconic name and headquarters in Pittsburgh, Pennsylvania, reinforcing its commitment to employees, customers and local communities…. We are looking forward to the closing of the transaction, which we expect will be in the second or third quarter 2024," he added.

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