Mesabi Trust Files Q2 2024 10-Q
Ticker: MSB · Form: 10-Q · Filed: Sep 5, 2024 · CIK: 65172
Sentiment: neutral
Topics: 10-Q, quarterly-report, mineral-royalties
TL;DR
Mesabi Trust 10-Q filed: financials updated for July 31, 2024. Check for royalty performance.
AI Summary
Mesabi Trust filed its 10-Q for the period ending July 31, 2024. The filing details financial information and operational data for the trust, which is involved in mineral royalty trading. Specific financial figures and operational metrics for the reporting period are presented within the document.
Why It Matters
This filing provides investors with an update on Mesabi Trust's financial performance and operational status, crucial for understanding the value of its royalty interests.
Risk Assessment
Risk Level: low — This is a routine quarterly filing providing financial updates, not indicating any immediate or significant new risks.
Key Numbers
- 20240731 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
- 20240905 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
Key Players & Entities
- MESABI TRUST (company) — Filer of the 10-Q
- 20240731 (date) — End of the reporting period
- 20240905 (date) — Filing date
- 0000065172 (company) — Central Index Key for Mesabi Trust
FAQ
What is the primary business of Mesabi Trust?
Mesabi Trust is involved in mineral royalty trading, as indicated by its SIC code [6795].
For what period is this 10-Q filing?
This 10-Q filing is for the period ending July 31, 2024.
When was this 10-Q filed with the SEC?
This 10-Q was filed on September 5, 2024.
What is the fiscal year end for Mesabi Trust?
Mesabi Trust's fiscal year ends on January 31.
What are some of the key dates mentioned in relation to Mesabi Trust's operations or reporting?
Key dates include the reporting period end of 20240731, the filing date of 20240905, and various snapshot dates for reserve and trust corpus members like 2024-07-31, 2024-04-30, and 2023-07-31.
Filing Stats: 4,626 words · 19 min read · ~15 pages · Grade level 15 · Accepted 2024-09-05 16:30:53
Filing Documents
- msb-20240731x10q.htm (10-Q) — 775KB
- msb-20240731xex31.htm (EX-31) — 16KB
- msb-20240731xex32.htm (EX-32) — 7KB
- msb-20240731xex99d1.htm (EX-99.1) — 4KB
- 0001558370-24-012612.txt ( ) — 2620KB
- msb-20240731.xsd (EX-101.SCH) — 23KB
- msb-20240731_cal.xml (EX-101.CAL) — 19KB
- msb-20240731_def.xml (EX-101.DEF) — 33KB
- msb-20240731_lab.xml (EX-101.LAB) — 141KB
- msb-20240731_pre.xml (EX-101.PRE) — 84KB
- msb-20240731x10q_htm.xml (XML) — 443KB
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION 3
Financial Statements. (Note 1)
Item 1. Financial Statements. (Note 1) 3 Condensed Statements of Income Three and Six Months Ended July 31, 2024 and 2023 3 Condensed Balance Sheets July 31, 2024 and January 31, 2024 4 Condensed Statements of Cash Flows Six Months Ended July 31, 2024 and 2023 5 Notes to Condensed Financial Statements 6
Trustees' Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Trustees' Discussion and Analysis of Financial Condition and Results of Operations. 9
Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk. 18
Controls and Procedures
Item 4. Controls and Procedures. 18
- OTHER INFORMATION
PART II - OTHER INFORMATION 19
Legal Proceedings
Item 1. Legal Proceedings 19
Risk Factors
Item 1A. Risk Factors 19
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19
Defaults upon Senior Securities
Item 3. Defaults upon Senior Securities 20
Mine Safety Disclosures
Item 4. Mine Safety Disclosures 20
Other Information
Item 5. Other Information 20
Exhibits
Item 6. Exhibits. 20
Forward-Looking Statements
Forward-Looking Statements Certain information included in this Quarterly Report on Form 10-Q contains, or incorporates by reference, not only historical information, but also "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All such forward-looking statements, including those statements regarding estimation of iron ore pellet production, shipments, pricing, royalties and other matters, are based on information from the lessee/operator (and its parent corporation) of the mine located on the lands owned and held in trust for the benefit of the holders of units of beneficial interest of Mesabi Trust ("Mesabi Trust" or the "Trust"). These statements may be identified by the use of forward-looking words, such as "may," "will," "could," "project," "predict," "intend," "believe," "anticipate," "expect," "estimate," "continue," "potential," "plan," "should," "assume," "forecast" and other similar words. Such forward-looking statements are inherently subject to known and unknown risks and uncertainties. Actual results and future developments could differ materially from the results or developments expressed in or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, volatility of iron ore and steel prices, market supply and demand, competition, environmental hazards, health and safety conditions, regulation or government action, litigation, uncertainties about estimates of reserves, 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 production lines or entire plants, environmental compliance uncertainties, difficulties in obtaining and renewing necessary operating permits, higher imports of steel and iron ore substitutes, processing difficulties, consolidation and restructur
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION
Financial Statements. (Note 1)
Item 1. Financial Statements. (Note 1) Mesabi Trust Condensed Statements of Income Three and Six Months Ended July 31, 2024 and 2023 Three Months Ended Six Months Ended July 31, July 31, 2024 2023 2024 2023 (unaudited) (unaudited) (unaudited) (unaudited) A. Condensed Statements of Income Revenues Royalty income $ 6,254,719 $ 9,730,596 $ 12,265,326 $ 11,441,912 Interest 235,190 158,645 475,154 296,178 Total revenues 6,489,909 9,889,241 12,740,480 11,738,090 Expenses 1,092,015 705,901 3,858,802 1,531,611 Net income $ 5,397,894 $ 9,183,340 $ 8,881,678 $ 10,206,479 WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING Number of units outstanding 13,120,010 13,120,010 13,120,010 13,120,010 Net income per unit (Note 2) $ 0.4114 $ 0.6999 $ 0.6770 $ 0.7779 Distributions declared per unit (Note 4) $ 0.3000 $ - $ 0.5900 $ - See Notes to Condensed Financial Statements. 3 Table of Contents Mesabi Trust Condensed Balance Sheets July 31, 2024 and January 31, 2024 July 31, 2024 January 31, 2024 (unaudited) B. Condensed Balance Sheets Assets Cash and cash equivalents $ 21,631,129 $ 23,980,448 Accrued income receivable 2,584,690 1,960,358 Contract asset 1,740,232 451,896 Prepaid expenses 292,676 297,647 Current assets 26,248,727 26,690,349 Fixed property, including intangibles, at nominal values Assignments of leased property Amended assignment of Peters Lease 1 1 Assignment of Cloquet Leases 1 1 Certificate of beneficial interest for 13,120,010 units of Land Trust 1 1 3 3 Total assets $ 26,248,730 $ 26,690,352 Liabilities, Unallocated Reserve And Trust Corpus Distribution payable $ 3,936,003 $ 4,854,404 Accrued expenses 196,709 860,802 Total liabilities 4,132,712 5,715,206 Unallocated reserve 22,116,015 20,975,143 Trust corpus 3 3 Total liabilities, unallocated res
Trustees' Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Trustees' Discussion and Analysis of Financial Condition and Results of Operations. This discussion should be read in conjunction with the condensed financial statements and notes presented in this Quarterly Report on Form 10-Q and the financial statements and notes in the last filed Annual Report on Form 10-K for the year ended January 31, 2024 for a full understanding of Mesabi Trust's financial position and results of operations for the three and six months ended July 31, 2024. All references in this discussion and in this Quarterly Report on Form 10-Q to iron ore products "shipped" or "shipments" shall include iron ore products that are actually shipped from Silver Bay, Minnesota and/or stockpiled for intercompany use that Cleveland Cliffs Inc. ("Cliffs") has deemed shipped, as referenced by the parties to, and in accordance with, the Amended Assignment of Peters Lease. Following the outcome of the 2019 arbitration, Cliffs began accruing royalty payments to the Trust for both DR pellets and standard pellets to be sold for internal use at facilities owned by Cliffs or its subsidiaries. As a result, the Trust recognizes revenue for internal use pellets upon production of those pellets, regardless of pellet grade. Pellets produced by Northshore Mining Company ("Northshore" or "NMC") that are not designated for internal use by Cliffs, or its subsidiaries, and instead are intended for sale to third parties in arms'-length sales, continue to be recognized as revenue upon shipment from Silver Bay, Minnesota. Background Mesabi Trust, formed pursuant to the Agreement of Trust, is a trust organized under the laws of the State of New York. Mesabi Trust holds all of the interests formerly owned by Mesabi Iron Company ("MIC"), including all right, title and interest in the Amendment of Assignment, Assumption and Further Assignment of Peters Lease dated August 17, 1989 among the trustees of Mesabi Trust, Bruce D. Sherling, as Trustee in Bankruptcy for the Estat