Two weeks ago, Algoma Steel, a 45 percent owner of the Tilden Mine, announced that it was initiating a financial restructuring and had obtained under Canadian law, protection from creditors during the restructuring process. Algoma continues to meet its obligations at the Tilden Mine, and we are hopeful that this important relationship with Algoma will continue. The natural reaction in a period of crisis is to hunker down and wait out the storm. We can't do that. We must be bold if we are to exploit the opportunities that are created during this period of adversity, and make the changes that are necessary for success in our business.
Cliffs still has a decent balance sheet despite some deterioration over the last two years.
A squeeze on our pellet sales margins and losses at our HBI facility has hurt our financial capability. We haven't sold out our capacity since 1998, which was our last financially successful year. Most of the decline in our profits and shareholder value the last several years can be traced to the erosion of our sales margin. We must improve our margins if we expect to restore our profitability, cash flow and stock price and make it possible to grow our Company. We can't depend on rising iron ore prices to save us.