- On Tuesday, November 23rd Keweenaw Land Association "KLA" announced they would be liquidating their storied timber assets for approximately $140 per share. Post tax, KLA will distribute $100 to shareholders.
- KLA's remaining principal assets are 428,789 acres of sub-surface mineral rights that were given to the company by the federal government over one hundred years ago.
- The mineral properties are recorded as zero dollars on KLA's balance sheet, but have returned over $500 million in inflation adjusted dollars to shareholders over the last 100 years.
- The author provides three potential valuations for KLA's Copperwood royalty based on the following analyses: discounted cash flow, price to yield, and liquidation.
- The author gives additional insight on other mineral assets for KLA, particularly from the storied Groveland iron ore mine, which was previously owned and operated by Hanna Mining.
For further details see:
Keweenaw Land Association: Liquidated Timber Assets Leave An Intriguing Royalty Play Behind