Mesabi Trust Press Release
January 12 2018 - 4:15PM
Business Wire
The Trustees of Mesabi Trust (NYSE:MSB) declared a distribution
of one dollar eighteen cents ($1.18) per Unit of Beneficial
Interest payable on February 20, 2018 to Mesabi Trust Unitholders
of record at the close of business on January 30, 2018. This
compares to a distribution of fourteen cents ($0.14) per Unit for
the same period last year.
The increase of one dollar four cents ($1.04) per Unit in the
current distribution, as compared to the distribution announced by
the Trust at the same time last year, is primarily attributable to
a higher volume of shipments during the third calendar quarter 2017
at higher average iron ore sales prices compared to the same
quarter 2016, and to the Trust’s receipt of total royalty payments
of $15,547,953 on October 30, 2017 from Cliffs Northshore Mining
Company, which was higher than the total royalty payments of
$1,880,334 received by the Trust from Cliffs Northshore Mining
Company during October 2016. The Trust’s announcement today also
reflects the Mesabi Trustees’ determination that Mesabi Trust
presently has sufficient reserves available to make such a
distribution while also maintaining an appropriate level of
unallocated reserve in order for the Trust to be positioned to meet
current and future expenses, and present and future liabilities
(whether fixed or contingent) that may arise in connection with the
current and ongoing challenges in the iron ore and steel industries
generally.
Quarterly royalty payments from Cliffs Northshore Mining
Company, if any, for iron ore shipments during the second calendar
quarter, which are payable to Mesabi Trust under the royalty
agreement, are due on January 30, 2018, together with the
quarterly royalty report.
This press release contains certain forward-looking statements
with respect to iron ore pellet plant operations, production,
shipments, reporting and other matters, which statements are
intended to be made under the safe harbor protections of the
Private Securities Litigation Reform Act of 1995, as amended.
Actual operations, production and shipments of iron ore products
could differ materially from current expectations due to inherent
risks and uncertainties such as general adverse business, economic
and industry 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 of 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 restructuring in the domestic steel market, and other factors.
Further, substantial portions of royalties earned by Mesabi Trust
are based on estimated prices that are subject to interim and final
adjustments, which can be positive or negative, and are dependent
in part on multiple price and inflation index factors under
agreements to which Mesabi Trust is not a party and that are not
known until after the end of a contract year. Although the Mesabi
Trustees believe that any such forward-looking statements are based
on reasonable assumptions, such statements are subject to risks and
uncertainties, which could cause actual results to differ
materially. Additional information concerning these and other risks
and uncertainties is contained in the Trust’s filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K. Mesabi Trust undertakes no obligation to publicly update
or revise any of the forward-looking statements made herein to
reflect events or circumstances after the date hereof.
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