UPDATE: Goldman Sachs Downgrades Cliffs Natural Resources to Sell on Cost, Operational Risk

Goldman Sachs reduced its rating on Cliffs Natural Resources CLF from Neutral to Sell and lowered its price target from $33 to $25. Goldman Sachs commented, "The announcement to delay its Bloom Lake expansion and curtail some US operations underscores that in a relatively weak iron ore market, high cost producers like Cliffs will be at greater disadvantage. Additionally, we anticipate lower production volume in Canada will translate into higher costs. While we expect a price rebound in 2013, we see prices falling thereafter, placing its expansion plans and dividends at risk. Longer term, new iron ore capacity is being added in North America, which has historically been a stable region for Cliffs." Cliffs Natural Resources closed at $35.29 on Monday.