Q2 revenues came in at $209.2 million, which was up on the $159.7 million reported for the previous corresponding period but the cost of goods sold also rose from $174.5 million last June quarter to $218.8 million for Q2 2012.

Cash cost per ton decreased to $110.72 from $113.91 in the comparable quarter last year.

Depreciation, depletion and amortization accounted for $15.87/t in the second quarter.

Cash costs per ton in the second quarter benefited from higher fixed cost leverage, partially offset by a longwall machine move at Pinnacle mine, the company said.

Q2 2012 revenues per ton were up slightly to $120.32 versus $118.65 in Q2 2011.

The increase was primarily driven by sales mix, as Q2 2012 included a higher proportion of premium low-volatile metallurgical coal sales.

The increase was largely offset by lower year-over-year market pricing for all coal products.

Cliffs is scaling down its 2012 full-year forecast for North American coal sales and production volumes, which are now expected to be approximately 6.9Mt and 6.2Mt respectively as lower production from its Toney Fork thermal coal mine in West Virginia takes effect.

The company is also increasing its cash cost per ton expectation to $110-115, from $105-110.

The increase is driven by the higher proportion of metallurgical coal sales volume, which carries a higher cash cost per ton.

In Q2 2012, Cliffs' share of sales volume for its 45% economic interest in Sonoma Coal in Queensland Australia was 369,000t.

Revenue and sales margin generated for Cliffs were $47 million and $6 million, respectively.

Revenues per ton at Sonoma were $126.42, with cash costs of $98.50/t.

After the end of the second quarter, Cliffs announced it entered into a definitive share and asset sale agreement to sell its economic interest in Sonoma Coal.

Upon completion of the transaction, Cliffs anticipates collecting approximately $A141 million in cash proceeds.

The company expects the transaction to close during the fourth quarter of 2012.