10-Q - MESABI TRUST (0000065172) (Filer)
Fri, Dec 13, 9:31 PM (63 days ago)
For the quarter ending October 31, 2024, Mesabi Trust (MSB) reported significant financial improvements, primarily driven by a non-recurring arbitration award of $71,185,029. Total revenues surged to $79,001,840, up from $4,896,066 in the same quarter last year, with net income reaching $78,325,525 compared to $4,086,066 previously. Royalty income increased to $7,348,366, reflecting higher iron ore pricing and shipments, attributed to improved demand post-Northshore's operational restart in April 2023. Expenses decreased to $676,315, enhancing profit margins. Cash and cash equivalents rose dramatically to $95,910,149, bolstered by the arbitration award, leading to a substantial increase in the unallocated reserve to $95,324,736. A distribution of $0.39 per unit was declared, up from $0.35 a year earlier. Despite strong performance, uncertainties remain regarding future operations, particularly related to Cliffs' strategic decisions and market conditions impacting iron ore sales. The Trust's reliance on Cliffs for revenue and potential pricing adjustments could affect future cash distributions. Overall, the Trust's financial health appears robust, but ongoing monitoring of operational and market dynamics is essential.