Minorca Property (Laurentian, East 1 and East 2 Pits) Feasibility Study: $70M NPV Over a 14-Year Mine Life
Cleveland-Cliffs Inc.'s Minorca Property (Laurentian, East 1 and East 2 Pits) in St. Louis County, Northeastern Minnesota, USA (Mesabi Iron Range) has a Feasibility Study outlining an after-tax NPV of $70M. The mine plan runs 14 years at about 2.8 MLT wet flux iron ore pellets per year.
Cleveland-Cliffs Inc.'s Minorca Property (Laurentian, East 1 and East 2 Pits) has reported Feasibility Study results for the iron ore (magnetite / iron pellets) project in St. Louis County, Northeastern Minnesota, USA (Mesabi Iron Range). The study headlines an after-tax net present value of $70M at a 10% discount rate. It reflects Cleveland-Cliffs Inc.'s (CLF) latest disclosed economics for the asset.
Economics. The after-tax NPV is $70M using a 10% discount rate. Economics are based on Three-year trailing average realized pellet revenue of $98/WLT pellet used in economic analysis; Mineral Resources and Mineral Reserves evaluated at US$90/LT wet flux pellet (62.5% Fe) FOB Lake Superior..
Production and mine plan. The project envisions an open-pit operation. Life of mine is 14 years. Average annual production is approximately 2.8 MLT wet flux iron ore pellets. Average head grade is 23.8% MagFe (crude ore). Metallurgical recovery averages 34.2%. The open-pit strip ratio is 0.8 (waste to crude ore).
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Cleveland-Cliffs Inc.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 102.8 MLT | 23.7% MagFe | 35.0 MLT wet pellets |
| Probable | 6.8 MLT | 25.1% MagFe | 2.5 MLT wet pellets |
| Proven & Probable | 109.7 MLT | 23.8% MagFe | 37.4 MLT wet pellets |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 484.3 MLT | 22.9% MagFe | 159.3 MLT wet pellets |
| Indicated | 317.2 MLT | 22.9% MagFe | 104.4 MLT wet pellets |
| Measured & Indicated | 801.5 MLT | 22.9% MagFe | 263.7 MLT wet pellets |
| Inferred | 30.1 MLT | 21.1% MagFe | 9.1 MLT wet pellets |
Our Analysis
- NPV after-tax
- $70M
higher than 8% of 537 projects we track
- Mine life
- 14yrs
- Study price assumption
- Three-year trailing average realized pellet revenue of $98/WLT pellet used in economic analysis; Mineral Resources and Mineral Reserves evaluated at US$90/LT wet flux pellet (62.5% Fe) FOB Lake Superior.
On the 537-project screen we track across all commodities, this asset's after-tax NPV ranks above just 8% of the field. That is the fact that should frame everything else: a feasibility-stage iron ore operation on the Mesabi Iron Range, in production, with a 14-year life, sitting in the bottom decile of our coverage by NPV. For an investor, the rank matters more than the study's internal economics, because it tells you this is not a project the market needs to re-rate on a single number.
The constraint is scale against the parent. The NPV is well below the company's US$6.95B market cap, and this is one of 16 projects we track for that company. A mid-cap with a diversified pipeline does not need this asset to work, and a project this size inside a portfolio that broad will struggle to move the equity regardless of how the feasibility study reads. That is the practical read on the NPV-to-market-cap gap: not a mispricing to be arbitraged, but a signal that the asset is immaterial to the enterprise and unlikely to attract dedicated capital on its own merits.
Jurisdiction is the genuine positive. Northeastern Minnesota is a long-established iron ore district with existing infrastructure and a permitting and operating history, which is why a feasibility study here carries more weight than a scoping-level estimate would. The economics rest on a three-year trailing average realized pellet revenue of $98/WLT, with resources and reserves evaluated at US$90/LT wet flux pellet FOB Lake Superior. Both are study assumptions, and the returns are sensitive to them. The question that decides this project is not whether the study clears its hurdle, but whether a 14-year, sub-scale asset inside a 16-project portfolio can ever justify the capital and attention it needs.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.