Mesabi Trust (NYSE: MSB):
Receipt of Quarterly Royalty Report and
Royalty Payment
On April 30, 2024, the Trustees of Mesabi Trust (NYSE: MSB)
received the quarterly royalty report of iron ore shipments from
Silver Bay, Minnesota during the quarter ended March 31, 2024 (the
“Royalty Report”) from Cleveland-Cliffs Inc. (“Cliffs”), the parent
company of Northshore Mining Company (“Northshore”).
As reported to Mesabi Trust by Cliffs in the Royalty Report,
based on shipments of iron ore products by Northshore during the
three months ended March 31, 2024, Mesabi Trust was credited with a
base royalty of $2,106,086. For the three months ended March 31,
2024, Mesabi Trust was also credited with a bonus royalty in the
amount of $2,520,601. The royalty payment received by the Trust
also included an increase of $279,222 as a result of positive
adjustments related to prior quarters. In addition, a royalty
payment of $153,738 was paid to the Mesabi Land Trust. Accordingly,
the total royalty payments received by Mesabi Trust on April 30,
2024 from Cliffs were $5,059,648.
The royalties paid to Mesabi Trust are based on the volume of
iron ore pellets and other products produced or shipped during the
quarter and the year to date, the pricing of iron ore product
sales, and the percentage of iron ore pellet production and
shipments from Mesabi Trust lands rather than from non-Mesabi Trust
lands. In the first calendar quarter of 2024, Cliffs credited
Mesabi Trust with 1,006,692 tons of iron ore shipped, as compared
to zero (0) tons shipped during the first calendar quarter of 2023.
Cliffs’ Royalty Report reflected no additional third party
arms-length sale transactions of iron ore pellets since reporting
two low volume shipments of iron ore pellets to a single
third-party customer in June 2023.
The volume of iron ore pellets (and other iron ore products)
produced or shipped by Northshore varies from quarter to quarter
and year to year based on a number of factors, including, among
others, Cliffs’ decisions to idle Northshore operations (which
occurred from May 2022 until April 2023), the requested delivery
schedules of customers (including affiliates), general economic
conditions in the iron ore industry, and production schedules and
weather conditions on the Great Lakes. These multiple factors can
result in significant variations in royalties received by Mesabi
Trust (and in turn, the resulting funds available for distribution
to Unitholders by Mesabi Trust) from quarter to quarter and from
year to year. These variations, which can be positive or negative,
cannot be predicted by the Trustees of Mesabi Trust. Based on the
above factors, and as indicated by Mesabi Trust’s historical
distribution payments, the royalties received by Mesabi Trust, and
the distributions paid to Unitholders, if any, in any particular
quarter are not necessarily indicative of royalties that will be
received, or distributions that will be paid, if any, in any
subsequent quarter or full year.
The Trustees of Mesabi Trust have received no specific updates
concerning Cliffs’ plans with respect to Northshore iron ore
operations. The last reported Cliffs’ public announcements made in
April 2023 included that Northshore was then being partially
restarted and would be run at less than full capacity for the
remainder of 2023, and that Cliffs would continue to treat
Northshore as a swing operation. With respect to calendar year
2024, Northshore has not advised Mesabi Trust of its expected
shipments of iron ore products, or what percentage of 2024
shipments will be from Mesabi Trust iron ore.
Other Available Information
Mesabi Trust’s Annual Report on Form 10‑K for the fiscal year
ended January 31, 2024, which includes the audited financial
statements of Mesabi Trust, was filed with the Securities and
Exchange Commission on April 24, 2024. Mesabi Trust Unitholders may
obtain a hard copy of the complete audited financial statements,
which is included as Exhibit 13 to Mesabi Trust’s Annual Report,
free of charge upon request to Mesabi Trust’s Corporate Trustee,
at:
Mesabi Trust c/o Deutsche Bank Trust Company
Americas, Corporate Trustee Trust and Agency Services — GDS 1
Columbus Circle, 17th Floor New York, NY 10019 (904) 271-2520
Unitholders can also directly access the audited financial
statements of Mesabi Trust by navigating to Mesabi Trust’s website
at www.Mesabi-Trust.com and clicking on the Edgar Filings (SEC)
link under the Menu to the right of the SEC Filings page by
scrolling down to the desired Annual Report on Form 10‑K under
Exhibit 13 thereof, beginning on page F‑1 of each such Report.
Forward-Looking
Statements
This report contains certain forward-looking statements with
respect to iron ore pellet production, iron ore pricing and
adjustments to pricing, shipments by Northshore Mining Company
(“Northshore”) during 2024, royalty (including bonus royalty)
amounts, and other matters, which statements are intended to be
made under the safe harbor protections of the Private Securities
Litigation Reform Act of 1995, as amended. Actual production,
prices, price adjustments, and shipments of iron ore pellets, as
well as actual royalty payments (including bonus royalties) could
differ materially from current expectations due to inherent risks
and uncertainties such as general adverse business and industry
economic trends, uncertainties arising from war, terrorist events,
the impact of the coronavirus (COVID-19) pandemic and other global
events, higher or lower customer demand for steel and iron ore,
decisions by mine operators regarding curtailments or idling
production lines or entire plants, environmental compliance
uncertainties, difficulties in obtaining and renewing necessary
operating permits, higher imports of steel and iron ore
substitutes, processing difficulties, consolidation and
restructuring in the domestic steel market, market inputs tied to
indexed price adjustment factors found in some pellet supply
agreements between Cliffs and some of its customers, resulting in
future adjustments to royalties payable to Mesabi Trust and other
factors. In addition, any future production curtailments or idling
of Northshore operations, about which the Trust may have little or
no prior notice, could materially adversely affect the royalty
income of the Trust, as well as the resulting cash available for
distribution by the Trust to Unitholders. Further, such
developments could have a material adverse impact on the market
price of the Trust’s Units. Although the Mesabi Trustees believe
that any such forward-looking statements are based on reasonable
assumptions, such statements are subject to risks and
uncertainties, which could cause actual results to differ
materially. Additional information concerning these and other risks
and uncertainties is contained in Mesabi Trust’s filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K for the fiscal year ended January 31, 2024 (filed April
24, 2024). Mesabi Trust undertakes no obligation to publicly update
or revise any of the forward-looking statements made herein to
reflect events or circumstances after the date hereof.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240502299296/en/
Mesabi Trust SHR Unit Deutsche Bank Trust Company Americas
904-271-2520
Mesabi (NYSE:MSB)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Mesabi (NYSE:MSB)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024