Mesabi Trust cuts distribution to $0.12 per unit amid lower royalties

Mesabi Trust (NYSE: MSB) declared a distribution of $0.12 per unit of beneficial interest payable on August 20, 2025 to unitholders of record at the close of business on July 30, 2025. This represents a decrease from the $0.30 per unit distribution declared for the same period last year.

The trustees cited lower royalty payments as a primary factor in the distribution reduction. The trust received total royalty payments of $2,422,329 on April 30, 2025, from Cleveland-Cliffs Inc., compared to $5,059,648 received in April 2024.

The distribution decision also reflects uncertainties related to Cleveland-Cliffs' vertical supply chain planning, volatility in the iron ore and steel industries, economic uncertainties, potential changes in trade laws, and ongoing global unrest. The trustees stated they have received no specific updates on Cleveland-Cliffs' plans for Northshore iron ore operations or production for the current year.

Quarterly royalty payments from Cleveland-Cliffs and Northshore for iron ore production and shipments during the first calendar quarter are due July 30, 2025, 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 payment and report.

The trust receives royalty payments under an agreement tied to iron ore production and shipments from Northshore Mining Company, which is owned by Cleveland-Cliffs.

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