Mesabi Trust Press Release
July 12 2019 - 04:05PM
Business Wire
The Trustees of Mesabi Trust (NYSE:MSB) declared a distribution
of twenty-one cents ($0.21) per Unit of Beneficial Interest payable
on August 20, 2019 to Mesabi Trust Unitholders of record at the
close of business on July 30, 2019. This compares to a distribution
of twenty-two cents ($0.22) per Unit of Beneficial Interest for the
same period last year.
The one cent ($0.01) per Unit decrease in the current
distribution, as compared to the same quarter last year, is partly
attributable to a lower volume of shipments during the first
calendar quarter 2019 compared to the first calendar quarter 2018,
and to higher expenses generally. The distribution announced today
recognizes that the Trust received total royalty payments of
$3,149,582 on April 30, 2019 from Northshore Mining Company
(“Northshore”). The Trust’s announcement today further reflects the
Mesabi Trustees’ determination that Mesabi Trust presently has
sufficient reserves available to make such a distribution while
also maintaining an appropriate level of unallocated reserve in
order for the Trust to be positioned to meet current and future
expenses, and present and future liabilities (whether fixed or
contingent) that may arise.
Quarterly royalty payments earned for iron ore shipments made
during the calendar quarter ended June 30, 2019, if any, payable by
Northshore to Mesabi Trust under the royalty agreement, are due on
July 30, 2019, together with the quarterly royalty report. After
receiving the quarterly royalty report, Mesabi Trust plans to file
a summary of the quarterly royalty report with the Securities and
Exchange Commission in a Current Report on Form 8-K.
Forward-Looking Statements
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 base
and 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 base and
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, natural disasters,
weather conditions and other world geo/political events, volatility
in global trade, 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, volatility of iron ore and steel prices, higher
imports of steel and iron ore substitutes, processing difficulties,
consolidation and restructuring in the domestic steel market, price
adjustment provisions including indexing features in pellet
purchase and sale agreements between Cleveland-Cliffs Inc. and its
customers resulting in pricing 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 quarterly 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 inherent 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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