Northshore Property (Peter Mitchell Mine / E.W. Davis Works) Feasibility Study: $619M NPV Over a 48-Year Mine Life
Cleveland-Cliffs Inc.'s Northshore Property (Peter Mitchell Mine / E.W. Davis Works) in Northeastern Minnesota, USA (St. Louis & Lake Counties, Mesabi Iron Range) has a Feasibility Study outlining an after-tax NPV of $619M. The mine plan runs 48 years at about 5 MLT/y pellets per year.
Cleveland-Cliffs Inc.'s Northshore Property (Peter Mitchell Mine / E.W. Davis Works) has reported Feasibility Study results for the iron (magnetite taconite pellets) project in Northeastern Minnesota, USA (St. Louis & Lake Counties, Mesabi Iron Range). The study headlines an after-tax net present value of $619M at a 10% discount rate. It reflects Cleveland-Cliffs Inc.'s (CLF) latest disclosed economics for the asset.
Economics. The after-tax NPV is $619M using a 10% discount rate. All-in sustaining costs are pegged at 80.06 USD/WLT Pellet. Economics are based on Three-Year Trailing Average Revenue $98/WLT Pellet; reserve evaluation at US$90.42/LT wet standard pellet.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 48 years. Average annual production is approximately 5 MLT/y pellets. Average head grade is 24.6% MagFe. Metallurgical recovery averages 29.4%. The open-pit strip ratio is 0.8.
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 | 303.2 MLT | 25.3% MagFe, 30.3% process recovery | 92.0 MLT wet pellets |
| Probable | 519.2 MLT | 24.1% MagFe, 28.8% process recovery | 149.6 MLT wet pellets |
| Proven & Probable | 822.4 MLT | 24.6% MagFe, 29.4% process recovery | 241.6 MLT wet pellets |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 766.7 MLT | 22.1% MagFe, 25.5% process recovery | 195.3 MLT wet pellets |
| Indicated | 390.8 MLT | 22.4% MagFe, 26.4% process recovery | 103.1 MLT wet pellets |
| Measured & Indicated | 1,157.5 MLT | 22.2% MagFe, 25.8% process recovery | 298.4 MLT wet pellets |
| Inferred | 13.6 MLT | 19.8% MagFe, 22.5% process recovery | 3.1 MLT wet pellets |
Our Analysis
- NPV after-tax
- $619M
higher than 54% of 360 projects we track
- Mine life
- 48yrs
- Study price assumption
- Three-Year Trailing Average Revenue $98/WLT Pellet; reserve evaluation at US$90.42/LT wet standard pellet
A $619M after-tax NPV places this project above 54% of the 360 tracked assets, a solid but unremarkable ranking. For a mid-cap with a US$6.64B market cap, that return profile is not the headline; the funding math is. The NPV sits well below the company's equity value, meaning this build can be financed without the existential dilution that plagues smaller developers. That is the practical advantage here, and it is worth more than the IRR percentile.
The jurisdiction does the heavy lifting for risk. Northeastern Minnesota's Mesabi Iron Range is a mature, mining-friendly district with deep infrastructure and a permitting culture that, while rigorous, is predictable. A feasibility study at this stage carries a plus or minus 15% band, and with a 48-year mine life, the long-dated cash flows are the real exposure. The study's price deck, a Three-Year Trailing Average Revenue of $98/WLT Pellet with reserve evaluation at US$90.42/LT, is a backward-looking anchor rather than a forward bet. That framing matters: the returns are not dependent on a price spike, but they are also not stress-tested against a structural downturn in steel demand.
The single constraint that decides this project is not geology or capital, it is the 48-year horizon. A feasibility study can nail the first decade of costs; it cannot foresee the last three. The market cap coverage solves the financing question, and the jurisdiction solves the political one, but the project's value ultimately hinges on whether iron ore demand holds across multiple commodity cycles. If it does, the NPV is credible. If the energy transition or substitution erodes long-term steel intensity, the back half of that mine life is where the model breaks. That is the question to watch.
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.