This is the sound of a CEO on tilt

Irving Hamilton
October 20, 2018

The chief executive of an iron-ore giant - claiming that a Goldman Sachs analyst gave him the shaft with a faulty profit estimate - went on a freaky tirade in a Friday conference call, warning, "You can run, but you can't hide". You are an embarrassment to your parents.

We are going to screw this guy so badly that I don't believe that they will be able to only resign.

"I have been waiting to get to this point for four years", CEO Lourenco Goncalves said of the dividend in a conference call with investors Friday morning.

"It will be bad no matter what, but it will be a lot worse if you're alone", Goncalves said.

The rant earned Goncalves an invitation to appear later on CNBC, but Cleveland-Cliffs shares sank almost 8 percent in afternoon trading.

In afternoon trading, the shares were down 88 USA cents, or 7.7 per cent, to $US10.60.

Goncalves's rant came after the mining company reported a third-quarter profit of almost $438 million, slightly below expectations. He was disappointed to learn that Korn apparently was not on the call.

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"Matthew Korn, if you are in the call, it is still 10:42, why you don't ask a freaking question", Goncalves had said early in the call.

"Matthew Korn from Goldman Sachs, you can run, but you can't hide".

The iron-ore mining company said that excluding discontinued operations it earned 64 cents per share in the third quarter. Goncalves said that basic earnings of 67 cents a share was the correct measure to use.

Cleveland-Cliffs did not respond to a request for comment, while a Goldman Sachs spokesperson said in an email that the investment banking firm declined to comment.

The incident was reminiscent of Tesla CEO Elon Musk's scolding of analysts on a call in May, which sent the auto maker's stock down in after-hours trading. The stock price peaked above $100 in 2011, crashed to under $2 by the end of 2015, then rallied.

The company's third-quarter adjusted EBITDA - earnings before interest, tax, depreciation and amortization - was $250 million, up 66 percent over previous year.

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