Mesabi Trust Press Release
October 11 2019 - 4:05PM
Business Wire
The Trustees of Mesabi Trust (NYSE:MSB) declared a distribution
of eighty-seven cents ($0.87) per Unit of Beneficial Interest
payable on November 20, 2019 to Mesabi Trust Unitholders of record
at the close of business on October 30, 2019. This compares to a
distribution of ninety-four cents ($0.94) per Unit for the same
period last year.
The seven cents ($0.07) per Unit decrease in the current
distribution, as compared to the distribution announced by the
Trust at the same time last year, is primarily attributable to a
lower volume of iron ore shipments during the three month period
ended June 30, 2019 compared to the same period of 2018, and to the
Trust’s receipt of total royalty payments of $11,875,518 on July
30, 2019 from Northshore Mining Company, which was lower than the
total royalty payments of $13,058,856 received by the Trust from
Northshore Mining Company in July 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 the iron ore and
steel industries generally.
Quarterly royalty payments from 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, 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, shipments by Northshore in 2019, 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.
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