Mesabi Trust Press Release
January 19 2017 - 5:00PM
Business Wire
The Trustees of Mesabi Trust (NYSE:MSB) declared a distribution
of fourteen cents ($0.14) per Unit of Beneficial Interest payable
on February 20, 2017 to Mesabi Trust Unitholders of record at the
close of business on January 30, 2017. This compares to a
distribution of five cents ($0.05) per Unit of Beneficial Interest
for the same period last year.
The nine cents ($0.09) per Unit increase in the current
distribution, as compared to the same quarter last year, is
primarily attributable to the Mesabi Trustees’ consideration of the
Trust’s receipt of $1,880,334 on October 30, 2016, which was the
total royalty payment paid to the Trust by Northshore Mining
Company (“Northshore”). The Trustees’ determination of the
distribution amount announced today also reflects their continuing
effort to maintain a prudent level of unallocated reserve in order
for the Trust to be in position to meet current and future
expenses, and any present and future liabilities (whether fixed or
contingent) that may arise in connection with the current and
ongoing challenges in the iron ore and steel industries. Finally,
the increase in the current distribution compared to a year ago
reflects the fact that on November 17, 2015, Northshore had
announced a temporary idling of iron ore pellet production at
Northshore in Silver Bay, Minnesota, which resulted in a lower
volume of shipments of iron ore pellets during the last calendar
quarter of 2015. Iron ore pellet production at Northshore
operations was restarted in May 2016.
Quarterly royalty payments earned for iron ore shipments made
during the calendar quarter ended December 31, 2016, if any,
payable by Northshore to Mesabi Trust under the royalty agreement,
are due on January 30, 2017, together with the quarterly royalty
report. After receiving the report, Mesabi Trust plans to file with
the Securities and Exchange Commission a summary of the quarterly
royalty report in a Current Report on Form 8-K.
This press release contains certain forward-looking statements
with respect to iron ore pellet production, iron ore pricing and
adjustments to pricing, iron ore shipments, 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 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, indexing features
in Cliffs Pellet Agreements resulting in adjustments to royalties
payable to Mesabi Trust and other factors. Further, substantial
portions of royalties earned by Mesabi Trust are based on estimated
prices that are subject to interim and final adjustments, which can
be positive or negative, and are dependent in part on multiple
price and inflation index factors under agreements to which Mesabi
Trust is not a party and that are not known until after the end of
a contract year. 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
the Trust’s filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K. 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.
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