Cliffs Natural Resources Inc. CLF has concluded the sale of its remaining coal business, Pinnacle Mine in West Virginia and Oak Grove Mine in Alabama, to Seneca Coal Resources, LLC. The transaction closed once the deal was signed. At closing, the transaction was valued at $268 million.

Further, Seneca Coal may pay Cliffs an earn out of up to $50 million dependent on the terms of a revenue sharing plan which extends through 2020.

Cliffs stated that the deal structure is a sale of the equity interests of its remaining coal business which includes the legal entities of Cliffs North American Coal LLC; Pinnacle Mining Company, LLC; Pinnacle Land Company, LLC; Oak Grove Resources, LLC; Oak Grove Land Company, LLC; and Beard Pinnacle, LLC.

The sale of these mines signifies Cliffs’ exit from the coal business, and represents the company’s execution of its U.S. iron ore pellet-centric strategy that is environmentally compliant.

Last month, Cliffs’ affiliates also completed the divestment of 60% ownership of the Decar nickel project, located in central British Columbia, to First Point Minerals Corp. for a price of $4.75 million. After completion of the transaction, First Point now owns 100% of the project, which includes 60 claims covering about 24,500 hectares.

Cliffs’ net loss (attributable to common shareholders) for third-quarter 2015 was 10 cents per share, narrower than a net loss of $38.49 per share recorded in the year-ago quarter. Adjusted loss came in at 15 cents per share, lower than the Zacks Consensus Estimate of a loss of 23 cents.
Sales for the quarter came in at $593.2 million, down 39% from $979.7 million in the prior-year quarter. Sales also missed the Zacks Consensus Estimate of $622 million.

At the end of the third quarter, Cliffs had net debt of $2.5 billion versus net debt of $2.9 billion a year ago. There was nothing drawn on the company's new asset-based lending facility at quarter end. Reduction in net debt was due to a number of actions, including asset sales, exchange offers and open-market bond repurchases.