- Mesabi Trust (MSB, Financial) declared a 93% increase in distribution to $0.56 per Unit.
- Royalty payments from Cleveland-Cliffs rose to $8.99 million in January 2025.
- Unitholders to receive distributions on May 20, 2025, if recorded by April 30, 2025.
The trustees of Mesabi Trust (MSB) have announced a significant increase in its distribution, raising it to $0.56 per Unit of Beneficial Interest. This marks a 93% increase compared to the $0.29 per Unit distributed during the same period last year. The distribution is scheduled for payment on May 20, 2025, to unitholders recorded as of April 30, 2025.
This enhanced distribution is primarily driven by increased royalty payments from Cleveland-Cliffs Inc., which surged to $8,986,464 in January 2025, up from $6,432,434 in January 2024. This reflects improved operational performance and ongoing contributions from Cleveland-Cliffs, the parent company of Northshore Mining Company, which directly impacts Mesabi Trust's royalty income.
The Trustees' decision takes into account various factors, including Cleveland-Cliffs' plans to increase scrap iron usage, the volatile nature of the iron ore and steel industries, and broader global economic and trade uncertainties. While the Trust has noted these concerns, there have been no specific updates on Northshore's iron ore operations or shipment plans as of this announcement.
Looking ahead, Mesabi Trust is due to receive the next quarterly royalty payment and report from Cleveland-Cliffs and Northshore by April 30, 2025. This will include details on Q1 iron ore production and shipments, providing further insight into the Trust's ongoing revenue streams.
