Mesabi Trust Press Release
April 12 2019 - 4:15PM
Business Wire
The Trustees of Mesabi Trust (NYSE: MSB) declared a distribution
of eighty-nine cents ($0.89) per Unit of Beneficial
Interest payable on May 20, 2019 to Mesabi Trust Unitholders of
record at the close of business on April 30, 2019. This
compares to a distribution of forty-five cents ($0.45) per Unit of
Beneficial Interest for the same period last year.
The forty-four cents ($0.44) per Unit increase in the current
distribution, as compared to the same quarter last year, is
primarily attributable to a higher volume of shipments during the
fourth calendar quarter 2018, at higher average iron ore sales
prices, compared to the fourth quarter 2017, and to the Trust’s
receipt of total royalty payments of $12,388,664 on January 30,
2019 from Northshore Mining Company (“Northshore”) which was higher
than the total royalty payments of $6,198,950 received by the Trust
from Northshore during January 2018. 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 arise in connection with the
current and ongoing challenges in the iron ore and steel industries
generally.
Quarterly royalty payments earned for iron ore shipments made
during the calendar quarter ended March 31, 2019, if any,
payable by Northshore to Mesabi Trust under the royalty agreement,
are due on April 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.
Other Available
Information
Mesabi Trust’s Annual Report on Form 10-K for the
fiscal year ended January 31, 2019, which includes the
audited financial statements of Mesabi Trust, was filed with the
Securities and Exchange Commission on April 12, 2019. Mesabi
Trust Unitholders may obtain a hard copy of the complete audited
financial statements, which is included as Exhibit 13 to the
Trust’s Annual Report, free of charge upon request to the Trust’s
Corporate Trustee, at:
Mesabi Trustc/o Deutsche Bank Trust Company Americas, Corporate
TrusteeTrust & Securities Services — GDS60 Wall
Street, 16th FloorNew York, NY 10005(904) 271-2520
Unitholders can also directly access the audited financial
statements of Mesabi Trust by navigating to the 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.
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, volatility of iron ore and steel
prices, 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, reduced economic growth in China, processing
difficulties, consolidation and restructuring in the domestic steel
market, price adjustment provisions including 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 those described under the caption “Risk Factors” in 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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Mesabi Trust SHR UnitDeutsche Bank Trust Company
Americas904-271-2520
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