Mesabi Trust Announces Significant Decrease in Distribution to $0.26

By Chris Stiles • Monday, January 19 08:11 • Permanent Link

Mesabi Trust (NYSE: MSB) has announced a distribution of twenty-six cents ($0.26) per unit of beneficial interest payable on February 20, 2026. This marks a significant decrease from the distribution of five dollars and ninety-five cents ($5.95) per unit declared for the same period last year.

The substantial difference in distributions is primarily attributed to the inclusion of non-recurring revenue from net proceeds of the American Arbitration Association tribunal's final award in favor of the trust dated September 6, 2024, which amounted to $71,185,029. This payment was made by Northshore Mining Company and Cleveland-Cliffs Inc., the parent company of Northshore, on October 4, 2024, to satisfy the AAA panel's unanimous award of damages for underpayment of royalties due to the trust in 2020, 2021, and the first four months of 2022.

Additionally, the current distribution determination reflects the trust's receipt of total royalty payments of $4,005,142 on October 30, 2025, from Cliffs, which was lower than the total royalty payments of $7,355,929 received in October 2024.

The trustees' decision to maintain an appropriate level of reserves to meet current and future expenses and liabilities is also cited as a factor in the distribution announcement. Furthermore, the announcement takes into account various uncertainties, including Cliffs' plans for the current year concerning Northshore iron ore operations, global economic uncertainties, potential changes in trade laws, and ongoing disturbances from global unrest.

The quarterly royalty payments from Cliffs and Northshore for iron ore production and shipments during the third calendar quarter, payable to Mesabi Trust under the royalty agreement, are due on January 30, 2026, along with 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 after receiving the report and payment. Following these announcements, the company's shares moved 0.79%, and are now trading at a price of $40.96. Check out the company's full 8-K submission here.

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