Filing Analysis
Mesabi Trust announced the receipt of its quarterly royalty report and payment from Cleveland-Cliffs Inc. for the quarter ended June 30, 2026. The Trust received total royalty payments of $1,807,779, which includes a base royalty and a payment to the Mesabi Land Trust.
🚩 Red Flags
- Bonus royalty was zero due to iron ore prices falling below the $71.70/ton threshold.
- Shipment volumes decreased year-over-year (902,331 tons vs 924,442 tons).
- Potential volatility in future distributions due to dependence on Cliffs' production decisions and market prices.
📋 Key Facts
- Total royalty payments received on July 30, 2026: $1,807,779.
- Base royalty credited for Q2 2026: $1,585,696.
- Bonus royalty for the period: $0 (zero).
- Iron ore shipments volume: 902,331 tons in Q2 2026 vs. 924,442 tons in Q2 2025.
- The bonus royalty threshold for 2026 is set at $71.70 per ton; current prices are below this level.
- A portion of the payment ($222,083) was paid to the Mesabi Land Trust.
Mesabi Trust announced a distribution of $0.05 per Unit of Beneficial Interest payable on August 20, 2026. This represents a significant year-over-year decrease in distribution amount compared to the previous year.
🚩 Red Flags
- Significant reduction in distribution amount (58% decrease) compared to the prior year's $0.12 distribution.
📋 Key Facts
- Distribution amount: $0.05 per Unit of Beneficial Interest.
- Record date: July 30, 2026 (close of business).
- Payment date: August 20, 2026.
- Comparative data: The distribution for the same period last year was $0.12 per Unit.
Mesabi Trust announced the receipt of its quarterly royalty report and corresponding payment from Cleveland-Cliffs Inc. for the quarter ended September 30, 2025.
🚩 Red Flags
- Royalty calculations are subject to price changes and adjustments from prior quarters.
- Potential volatility in future distributions based on mine operator decisions (e.g., idling production) and economic conditions.
📋 Key Facts
- Total royalty payments received on October 30, 2025: $4,005,142.
- Base royalty amount credited: $2,817,500.
- Bonus royalty amount credited: $973,410.
- Iron ore shipments for Q3 2025: 987,370 tons (compared to 972,154 tons in Q3 2024).
- A royalty payment of $214,232 was paid to the Mesabi Land Trust.
- The report includes three sale transactions of iron ore pellets to a single third-party in September 2025, currently under due diligence review.
Mesabi Trust announced a distribution of $0.34 per Unit of Beneficial Interest payable on November 20, 2025. This represents a decrease compared to the $0.39 distribution declared for the same period in the previous year.
🚩 Red Flags
- Decrease in distribution amount per unit compared to the same period last year ($0.34 vs $0.39).
📋 Key Facts
- Distribution amount: $0.34 per Unit of Beneficial Interest.
- Record date: October 30, 2025 (close of business).
- Payment date: November 20, 2025.
- Year-over-year comparison: Distribution decreased from $0.39 in the prior year's corresponding period.
Mesabi Trust has initiated arbitration proceedings against Northshore Mining Company and its parent, Cleveland Cliffs Inc., via the American Arbitration Association. The dispute concerns damages related to operational idling between May 2022 and April 2023 and alleged underpayment of royalties on intercompany shipments from 2023 to the present.
🚩 Red Flags
- Legal/Arbitration risk: The outcome of arbitration is uncertain and could impact future royalty cash flows if claims are not upheld or if operational disputes persist.
📋 Key Facts
- Arbitration initiated on September 26, 2025.
- Parties involved: Mesabi Trust (Claimant) vs. Northshore Mining Company and Cleveland Cliffs Inc. (Respondents/Operator).
- Dispute period 1: Idling of operations from May 2022 to April 2023.
- Dispute period 2: Underpayment of royalties on intercompany shipments from 2023 through the present date.
- Relief sought: Damages and declaratory relief.
Mesabi Trust announced the receipt of its quarterly royalty report and subsequent payment from Cleveland-Cliffs Inc. for the quarter ended June 30, 2025.
🚩 Red Flags
- Year-over-year decrease in shipment volume (924,442 tons vs 949,718 tons).
📋 Key Facts
- Total royalty payments received on July 30, 2025: $5,300,287.
- Base royalty amount credited: $2,514,060.
- Bonus royalty amount credited: $2,588,784.
- Iron ore shipments for Q2 2025: 924,442 tons (compared to 949,718 tons in Q2 2024).
- A royalty payment of $197,443 was paid to the Mesabi Land Trust.
Mesabi Trust announced a distribution of $0.12 per Unit of Beneficial Interest payable on August 20, 2025. This represents a significant decrease compared to the $0.30 per unit distributed during the same period in the previous year.
🚩 Red Flags
- Significant reduction in distribution yield (60% decrease YoY) suggests a decline in cash flow or operational earnings from underlying assets.
📋 Key Facts
- Distribution amount: $0.12 per Unit of Beneficial Interest.
- Record date: July 30, 2025 (close of business).
- Payment date: August 20, 2025.
- Comparative data: The previous year's distribution for the same period was $0.30 per unit.
Mesabi Trust announced the receipt of its quarterly royalty report and subsequent payment from Cleveland-Cliffs Inc. for the quarter ended March 31, 2025.
🚩 Red Flags
- Significant year-over-year decline in shipment volume (approx. 54.6% decrease from 1,006,692 tons in Q1 2024 to 457,728 tons in Q1 2025).
📋 Key Facts
- Total royalty payments received on April 30, 2025: $2,422,329.
- Base royalty credited: $1,067,762.
- Bonus royalty credited: $1,281,315.
- Royalty volume for Q1 2025: 457,728 tons of iron ore shipped (compared to 1,006,692 tons in Q1 2024).
- A royalty payment of $73,252 was paid to the Mesabi Land Trust.
- Annual Report on Form 10-K for fiscal year ended Jan 31, 2025, was filed on April 24, 2025.
Mesabi Trust announced a distribution of $0.56 per Unit of Beneficial Interest, payable on May 20, 2025. This represents a significant increase compared to the $0.29 distribution declared for the same period in the previous year.
📋 Key Facts
- Distribution amount: $0.56 per Unit of Beneficial Interest.
- Record date: April 30, 2025 (close of business).
- Payment date: May 20, 2025.
- Year-over-year comparison: Increased from $0.29 in the prior year's corresponding period.
Mesabi Trust announced the receipt of its quarterly royalty report and payment from Cleveland-Cliffs Inc. for the quarter ended December 31, 2024. The trust received a total of $8,986,464 in royalties based on iron ore production and shipments.
🚩 Red Flags
- The trust notes that future distributions are highly dependent on Cleveland-Cliffs' operational decisions (e.g., idling operations) and market conditions, which cannot be predicted by the Trustees.
- Lack of visibility into 2025 shipment volumes or the percentage of shipments originating from Mesabi Trust lands.
📋 Key Facts
- Total royalty payments received: $8,986,464 (received on or before Jan 30, 2025).
- Base royalty amount: $5,724,454.
- Bonus royalty amount: $3,093,243.
- Iron ore shipments/production volume for Q4 2024: 1,110,800 tons (compared to 964,129 tons in Q4 2023).
- Royalty payment of $168,767 was paid to the Mesabi Land Trust.
Mesabi Trust announced a distribution of $5.95 per Unit of Beneficial Interest payable on February 20, 2025. This represents a significant increase compared to the $0.37 distribution declared for the same period in the previous year.
📋 Key Facts
- Distribution amount: $5.95 per Unit of Beneficial Interest.
- Record date: Close of business on January 30, 2025.
- Payment date: February 20, 2025.
- Comparative data: Previous year's distribution for the same period was $0.37 per Unit.
Mesabi Trust announced the receipt of its quarterly royalty report and payment from Cleveland-Cliffs Inc. for the quarter ended September 30, 2024.
🚩 Red Flags
- Year-over-year decline in shipment volume (approx. 4.6% decrease from 1,019,311 tons to 972,154 tons).
- Uncertainty regarding Northshore's expected shipments and percentage of Mesabi Trust lands for the remainder of 2024.
📋 Key Facts
- Total royalty payments received on October 30, 2024: $7,355,929.
- Base royalty credited: $4,469,814.
- Bonus royalty credited: $2,718,456.
- Iron ore shipments for Q3 2024: 972,154 tons (compared to 1,019,311 tons in Q3 2023).
- Royalty payment of $167,659 was paid to the Mesabi Land Trust.
Mesabi Trust announced a quarterly distribution of $0.39 per unit and provided an update regarding the receipt of a $71.2 million arbitration award from Northshore Mining Company and Cleveland-Cliffs Inc.
🚩 Red Flags
- None identified; the filing reports a significant cash inflow from legal settlement rather than an outflow or liability.
📋 Key Facts
- Declared distribution: $0.39 per Unit of Beneficial Interest.
- Distribution payable date: November 20, 2024.
- Record date: October 30, 2024 (close of business).
- Comparison: Current distribution ($0.39) is higher than the same period last year ($0.35).
- Arbitration settlement: Received $71,185,029 on October 4, 2024, from Northshore Mining Company and Cleveland-Cliffs Inc.
- Settlement purpose: Damages for royalty underpayments in 2020, 2021, and Jan-Apr 2022.
Mesabi Trust has received a unanimous AAA arbitration award against Northshore Mining Company and Cleveland-Cliffs Inc. for underpaid royalties spanning 2020 through early 2022. The award includes significant damages and interest, totaling over $71 million.
🚩 Red Flags
- None identified; this is a significant legal victory/cash inflow event.
📋 Key Facts
- The Trust was awarded $59,799,977 in damages for underpaid royalties (covering 2020, 2021, and Jan-Apr 2022).
- Pre-award interest is calculated at $11,288,269 as of September 1, 2024.
- Total award amount exceeds $71 million (principal + interest).
- Payment by Cliffs and Northshore is due no later than October 6, 2024.
- The Tribunal approved a Consent Award regarding the Trust's ongoing entitlement to documentation for verifying royalty calculations.
Mesabi Trust announced the receipt of its quarterly royalty report from Cleveland-Cliffs Inc. for the quarter ended June 30, 2024. The Trust received total royalty payments of $5,325,522, consisting of base and bonus royalties.
🚩 Red Flags
- Potential dispute/review regarding whether recent 'low volume' sales transactions meet the specific requirements of the royalty agreement.
📋 Key Facts
- Total royalty payments received on July 30, 2024: $5,325,522.
- Base royalty credited for Q2 2024: $2,783,747.
- Bonus royalty credited for Q2 2024: $2,386,069.
- Iron ore shipments volume: 949,718 tons in Q2 2024 vs. 886,301 tons in Q2 2023.
- The report noted two low-volume sale transactions to a single third party in May and June 2024; the Trust is reviewing if these meet royalty agreement requirements.
Mesabi Trust announced a distribution of $0.30 per Unit of Beneficial Interest. The distribution is payable on August 20, 2024, to unitholders of record as of July 30, 2024.
📋 Key Facts
- Distribution amount: $0.30 per Unit of Beneficial Interest.
- Record date: Close of business on July 30, 2024.
- Payment date: August 20, 2024.
- Comparison: No distribution was declared for the same period in the previous year.
Mesabi Trust announced the receipt of its quarterly royalty report and payment from Cleveland-Cliffs Inc. for the quarter ended March 31, 2024. The Trust received total royalty payments of $5,059,648, driven by a significant increase in iron ore shipments compared to the previous year.
🚩 Red Flags
- Revenue volatility: Royalties are subject to significant variations based on Cliffs' production decisions and economic conditions.
- Uncertainty regarding 2024 shipments: The operator (Cliffs) has not yet advised the Trust of expected 2024 shipment volumes or percentages.
📋 Key Facts
- Total royalty payments received on April 30, 2024: $5,059,648.
- Base royalty credited for Q1 2024: $2,106,086.
- Bonus royalty credited for Q1 2024: $2,520,601.
- Positive adjustments from prior quarters included in payment: $279,222.
- Iron ore shipments for Q1 2024: 1,006,692 tons (compared to 0 tons in Q1 2023).
- Royalty payment includes $153,738 paid to the Mesabi Land Trust.
Mesabi Trust announced a distribution of $0.29 per Unit of Beneficial Interest. The payment is scheduled for May 20, 2024, to unitholders of record as of April 30, 2024.
📋 Key Facts
- Distribution amount: $0.29 per Unit of Beneficial Interest.
- Record date: Close of business on April 30, 2024.
- Payment date: May 20, 2024.
- Comparison: No distribution was declared for the same period in the previous year.
Mesabi Trust reported receiving quarterly royalty payments totaling $6,432,434 from Cleveland-Cliffs Inc. for the quarter ended December 31, 2023. The payment consists of a base royalty and a bonus royalty related to iron ore production at Silver Bay, Minnesota.
🚩 Red Flags
- Royalties are subject to significant volatility based on Cliffs' operational decisions (e.g., idling operations), economic conditions, and weather.
- Potential for future negative price adjustments could offset or eliminate royalty income in subsequent quarters.
📋 Key Facts
- Total royalty payments received on January 30, 2024: $6,432,434.
- Base royalty amount for Q4 2023: $3,819,821.
- Bonus royalty amount for Q4 2023: $2,361,242.
- Royalty volume reported: 964,129 tons shipped or produced during the quarter.
- A portion of royalties ($251,371) was paid to the Mesabi Land Trust.
Mesabi Trust announced a distribution of $0.37 per Unit of Beneficial Interest for its unitholders.
📋 Key Facts
- Distribution amount: $0.37 per Unit of Beneficial Interest.
- Record date: January 30, 2024 (close of business).
- Payment date: February 20, 2024.
- Comparison: No distribution was declared for the same period in the previous year.