Mesabi Trust Press Release
13 April 2021 - 6:05AM
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, 2021 to Mesabi Trust Unitholders of record at
the close of business on April 30, 2021. This compares to a
distribution of fifty-six cents ($0.56) per Unit for the same
period last year.
The thirty-three cents ($0.33) 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
fourth calendar quarter 2020 compared to the same period of 2019,
and to the Trust’s receipt of total royalty payments of $12,317,853
on January 29, 2021 from Cliffs Northshore Mining Company
(“Northshore”), which was higher than the total royalty payments of
$9,410,394 received by the Trust from Northshore in January 2020.
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 first calendar quarter, which are
payable to Mesabi Trust under the royalty agreement, are due on
April 30, 2021, together with the quarterly royalty report. After
receiving the quarterly royalty report at the end of April 2021,
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, royalty (including
bonus royalty) amounts, timing of quarterly royalty payments and
quarterly royalty reports, 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, the impact of the coronavirus (COVID-19)
pandemic, 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 and Quarterly Reports on
Form 10-Q. 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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