Mesabi Trust

Mesabi Trust Announcement of No Distribution

Mesabi Trust's Trustees declared no distribution this quarter; no payment will be made in November 2026, versus $0.34 per Unit a year ago. The decision reflects July royalty payments from Cleveland-Cliffs of $1,807,779 -- down roughly 66% from $5,300,287 a year earlier -- with zero bonus royalties, as all deemed Silver Bay shipments were priced below the $71.70/ton bonus threshold. The Trustees are also preserving reserves for pending arbitration and for uncertainty around Cliffs' vertical supply chain plans, and have received no updates on Northshore's 2026 production or shipment outlook. Quarterly royalties for the third calendar quarter are due October 30, 2026, with a summary to be filed via Form 8-K.

•11d ago

MSB: 10-Q · periodic report

Mesabi Trust swung to a net loss of $95,013 for the fiscal quarter ended July 31, 2026 versus net income of $4,743,882 a year earlier, as total revenues fell about 56% to $2.48 million from $5.61 million. The collapse was driven by bonus royalties going to zero: Cliffs' July 30, 2026 royalty report credited the Trust a base royalty of $1,585,696 and no bonus royalty for calendar Q2 2026 because all deemed shipments were priced below the $71.70 per ton threshold. The Trustees cut the declared distribution to $0.05 per unit from $0.12 a year ago. The Trust remains in AAA arbitration against Northshore Mining and Cleveland-Cliffs over the 2022-2023 idling of Northshore and alleged royalty underpayment on intercompany shipments, with related legal fees pushing quarterly expenses to $2.58 million. A new risk factor warns Cliffs' retreat from third-party pellet sales could permanently eliminate bonus royalties and trigger royalty disputes. Cash and equivalents stood at $17.39 million and the Unallocated Reserve fell 22.8% year over year to $17.59 million, which is the Trust's only cushion for future distributions given its dependence on a single counterparty.

SEC 10-Q•1mo ago

Mesabi Trust Press Release

Mesabi Trust declared a distribution of $0.05 per Unit, payable August 20, 2026, a decrease from the $0.12 paid in the same period last year. The reduction reflects lower royalty payments of $1.6 million received from Cleveland-Cliffs in April, down from $2.4 million a year prior, with no bonus royalty received. The Trustees cited ongoing volatility in the iron ore and steel sectors, trade law uncertainties, and a lack of specific updates from Cliffs regarding Northshore operations as contributing factors.

•3mo ago

MSB: 10-Q · periodic report

Mesabi Trust reported a 70% year-over-year decline in net income to $1.09 million for the quarter ended April 30, 2026, driven by the complete elimination of bonus royalties. Although pellet shipments from Trust lands increased 42% to 906,131 tons, iron ore prices fell below the $71.70 per ton threshold required to trigger bonus payments, reducing total royalty income by $2.27 million compared to the prior year. The Trustees declared a quarterly distribution of $0.24 per unit, a 57% reduction from the $0.56 per unit paid in the same period last year. This cut reflects the lower cash inflows and the Trust's strategy to maintain a prudent unallocated reserve amid uncertain royalty calculations and potential disputes with operator Cleveland-Cliffs Inc. regarding arms-length sales pricing. Legal and regulatory risks are escalating, with a Minnesota Court of Appeals ruling that an environmental impact statement is required for Northshore's proposed tailings basin expansion, and an ongoing arbitration initiated by the Trust alleging underpayment of royalties. These factors create significant uncertainty for future distributions and royalty accruals.

SEC 10-Q•4mo ago