Mesabi Trust Press Release
October 11 2018 - 4:05PM
Business Wire
The Trustees of Mesabi Trust (NYSE:MSB) declared a distribution
of ninety-four cents ($0.94) per Unit of Beneficial Interest
payable on November 20, 2018 to Mesabi Trust Unitholders of record
at the close of business on October 30, 2018. This compares to a
distribution of sixty-four cents ($0.64) per Unit for the same
period last year.
The thirty cents ($0.30) 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 during the six months period
ended June 30, 2018 compared to the same period of 2017, and to the
Trust’s receipt of total royalty payments of $13,058,856 on July
27, 2018 from Cliffs Northshore Mining Company, which was higher
than the total royalty payments of $8,356,736 received by the Trust
from Cliffs Northshore Mining Company in July 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
the iron ore and steel industries generally.
Quarterly royalty payments from Cliffs Northshore Mining Company
for iron ore shipments during the third calendar quarter, which are
payable to Mesabi Trust under the royalty agreement, are due on
October 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.
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 in 2018, 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 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/20181011005578/en/
Mesabi Trust SHR UnitDeutsche Bank Trust Company
Americas904-271-2520
Mesabi (NYSE:MSB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Mesabi (NYSE:MSB)
Historical Stock Chart
From Apr 2023 to Apr 2024