Mesabi Trust Press Release
January 11 2019 - 4:05PM
Business Wire
The Trustees of Mesabi Trust (NYSE:MSB) declared a distribution
of One Dollar and Thirty-Nine Cents ($1.39) per Unit of Beneficial
Interest payable on February 20, 2019 to Mesabi Trust Unitholders
of record at the close of business on January 30, 2019. This
compares to a distribution of one dollar eighteen cents ($1.18) per
Unit for the same period last year.
The twenty-one cents ($0.21) per Unit increase in the current
distribution, as compared to the distribution announced by the
Trust at the same time last year, is primarily attributable to
higher average iron ore sales prices for shipments during the third
calendar quarter 2018 compared to the same period of 2017, and to
the Trust’s receipt of total royalty payments of $18,258,705 on
October 30, 2018 from Cliffs Northshore Mining Company
(“Northshore”), which was higher than the total royalty payments of
$15,547,953 received by the Trust from Northshore in October 2017.
The Trust’s announcement today also 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
reasonably arise in the iron ore and steel industries
generally.
Quarterly royalty payments from Northshore for iron ore
shipments during Northshore’s fourth calendar quarter, which are
payable to Mesabi Trust under the royalty agreement, are due on
January 30, 2019, together with the quarterly royalty report. After
receiving the quarterly royalty report at the end of January 2019,
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.
This press release contains certain forward-looking statements
with respect to iron ore pellet production, iron ore pricing and
adjustments to pricing, shipments by Northshore, royalty (including
bonus royalty) payments, 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 of production lines or entire
plants, announcements and implementation of trade tariffs,
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 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 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190111005250/en/
Mesabi Trust SHR UnitDeutsche Bank Trust Company
Americas904-271-2520
Mesabi (NYSE:MSB)
Historical Stock Chart
From Sep 2024 to Oct 2024
Mesabi (NYSE:MSB)
Historical Stock Chart
From Oct 2023 to Oct 2024