Mesabi Trust Files 10-Q for Oct 31, 2024
Ticker: MSB · Form: 10-Q · Filed: Dec 13, 2024 · CIK: 65172
Sentiment: neutral
Topics: 10-Q, royalty, mining
TL;DR
MESABI TRUST 10-Q FILED: Oct 31, 2024. Financials and ops update.
AI Summary
Mesabi Trust filed its 10-Q for the period ending October 31, 2024, reporting on its mineral royalty interests. The filing details financial positions and operational data related to iron ore mining. Specific financial figures and operational metrics for the reporting period and comparative periods are included.
Why It Matters
This filing provides investors with an update on Mesabi Trust's financial health and operational performance, crucial for understanding the value of its royalty interests in the iron ore market.
Risk Assessment
Risk Level: low — The filing is a routine quarterly report for a well-established trust, indicating standard operational and financial disclosures.
Key Numbers
- 0131 — Fiscal Year End (Indicates the end of Mesabi Trust's annual financial reporting cycle.)
- 20241031 — Reporting Period End Date (Specifies the end date for the financial and operational data presented in the 10-Q.)
- 20241213 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
Key Players & Entities
- MESABI TRUST (company) — Filer of the 10-Q
- October 31, 2024 (date) — End of the reporting period
- 20241213 (date) — Filing date
- 0001558370-24-016235 (other) — Accession number for the filing
FAQ
What is the primary business of Mesabi Trust?
Mesabi Trust is primarily involved in mineral royalty interests, as indicated by its SIC code [6795] for MINERAL ROYALTY TRADERS.
What period does this 10-Q filing cover?
This 10-Q filing covers the period ending October 31, 2024.
When was this 10-Q filing submitted to the SEC?
The filing was submitted on December 13, 2024.
What is Mesabi Trust's fiscal year end?
Mesabi Trust's fiscal year ends on January 31 (0131).
What are some of the key dates mentioned in relation to operational metrics?
Key dates related to operational metrics include February 1, 2024, and October 31, 2024, for 'ThirdMillionTonsShippedOrDeemedShippedMember' and 'SecondMillionTonsShippedOrDeemedShippedMember'.
Filing Stats: 4,601 words · 18 min read · ~15 pages · Grade level 14.6 · Accepted 2024-12-13 16:30:28
Filing Documents
- msb-20241031x10q.htm (10-Q) — 785KB
- msb-20241031xex31.htm (EX-31) — 16KB
- msb-20241031xex32.htm (EX-32) — 7KB
- msb-20241031xex99d1.htm (EX-99.1) — 4KB
- 0001558370-24-016235.txt ( ) — 2677KB
- msb-20241031.xsd (EX-101.SCH) — 23KB
- msb-20241031_cal.xml (EX-101.CAL) — 20KB
- msb-20241031_def.xml (EX-101.DEF) — 35KB
- msb-20241031_lab.xml (EX-101.LAB) — 147KB
- msb-20241031_pre.xml (EX-101.PRE) — 89KB
- msb-20241031x10q_htm.xml (XML) — 446KB
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION 3
Financial Statements. (Note 1)
Item 1. Financial Statements. (Note 1) 3 Condensed Statements of Income Three and Nine Months Ended October 31, 2024 and 2023 3 Condensed Balance Sheets October 31, 2024 and January 31, 2024 4 Condensed Statements of Cash Flows Nine Months Ended October 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 20
Legal Proceedings
Item 1. Legal Proceedings 20
Risk Factors
Item 1A. Risk Factors 20
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20
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. 21
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 Nine Months Ended October 31, 2024 and 2023 Three Months Ended Nine Months Ended October 31, October 31, 2024 2023 2024 2023 (unaudited) (unaudited) (unaudited) (unaudited) A. Condensed Statements of Income Revenues Royalty income $ 7,348,366 $ 4,664,092 $ 19,613,693 $ 16,106,008 Arbitration award 71,185,029 — 71,185,029 — Interest 468,445 231,974 943,600 528,152 Total revenues 79,001,840 4,896,066 91,742,322 16,634,160 Expenses 676,315 810,000 4,535,119 2,341,615 Net income $ 78,325,525 $ 4,086,066 $ 87,207,203 $ 14,292,545 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) $ 5.9699 $ 0.3114 $ 6.6469 $ 1.0894 Distributions declared per unit (Note 4) $ 0.3900 $ 0.3500 $ 0.9800 $ 0.3500 See Notes to Condensed Financial Statements. 3 Table of Contents Mesabi Trust Condensed Balance Sheets October 31, 2024 and January 31, 2024 October 31, 2024 January 31, 2024 (unaudited) B. Condensed Balance Sheets Assets Cash and cash equivalents $ 95,910,149 $ 23,980,448 Accrued income receivable 3,883,400 1,960,358 Contract asset 669,276 451,896 Prepaid expenses 204,199 297,647 Current assets 100,667,024 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 $ 100,667,027 $ 26,690,352 Liabilities, Unallocated Reserve And Trust Corpus Distribution payable $ 5,116,804 $ 4,854,404 Accrued expenses 225,484 860,802 Total liabilities 5,342,288 5,715,206 Unallocated reserve 9
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 nine months ended October 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 9 Table of Contents 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. This accr