Mesabi Trust Press Release
April 13 2018 - 4:15PM
Business Wire
The Trustees of Mesabi Trust (NYSE: MSB) declared a distribution
of forty-five cents ($0.45) per Unit of Beneficial
Interest payable on May 20, 2018 to Mesabi Trust Unitholders of
record at the close of business on April 30, 2018. This
compares to a distribution of fifty-five cents ($0.55) per Unit of
Beneficial Interest for the same period last year.
The ten cents ($0.10) per Unit decrease in the current
distribution, as compared to the same quarter last year, is
primarily attributable to a lower volume of shipments during the
fourth calendar quarter 2017, although at higher average iron ore
sales prices, compared to the fourth quarter 2016, and to the
Trust’s receipt of total royalty payments of $6,198,950 on January
30, 2018 from Northshore Mining Company (“Northshore”) which was
lower than the total royalty payments of $9,791,421 received by the
Trust from Northshore during January 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 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, 2018, if any,
payable by Northshore to Mesabi Trust under the royalty agreement,
are due on April 30, 2018, 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, 2018, which includes the
audited financial statements of Mesabi Trust, was filed with the
Securities and Exchange Commission on April 13, 2018. 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, 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, 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, higher imports of steel
and iron ore substitutes, processing difficulties, consolidation
and restructuring in the domestic steel market, 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 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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Mesabi Trust SHR UnitDeutsche Bank Trust Company
Americas904-271-2520
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