Thu, Sep 5, 8:41 PM (131 days ago)
For the quarter ending July 31, 2024, Mesabi Trust reported total revenues of $6,489,909, a decline from $9,889,241 in the previous year, primarily due to decreased royalty income from lower iron ore shipments and pricing. Net income for the quarter was $5,397,894, down from $9,183,340, reflecting increased expenses, particularly legal fees related to ongoing arbitration. The Trust declared a distribution of $0.30 per unit, contrasting with no distribution in the same quarter last year. The Trust's cash and cash equivalents decreased to $21,631,129 from $23,980,448, while unallocated reserves increased slightly to $22,116,015, indicating improved cash flow management despite challenges. The performance metrics showed a decrease in shipments to 974,532 tons from 1,049,281 tons year-over-year, yet total shipments for the six months rose significantly due to operational resumption at Northshore. Future operations remain uncertain, heavily influenced by Cliffs' decisions regarding Northshore's production capacity and market demand. The Trust faces risks from fluctuating iron ore prices and royalty calculations tied to both internal sales and arms-length transactions.