Mesabi Trust (MSB) Q1 2025 earnings summary

Executive summary

• Net income for the quarter ended April 30, 2024 was $3.48 million, up $2.46 million year-over-year, driven by a full quarter of Northshore operations versus prior-year idling.

• Total royalty income rose to $6.01 million from $1.71 million, reflecting increased production and shipments of iron ore pellets (978,498 tons vs. 155,300 tons year-over-year).

• A distribution of $0.29 per unit was declared, compared to no distribution in the prior-year quarter.

Financial highlights

• Total revenues for the quarter were $6.25 million, up from $1.85 million year-over-year.

• Expenses increased to $2.77 million from $0.83 million, mainly due to higher legal fees related to ongoing arbitration.

• Net income per unit was $0.2655, up from $0.0780 in the prior-year quarter.

• Cash and cash equivalents at quarter-end were $21.63 million, down from $23.98 million at the start of the quarter.

Outlook and guidance

• Future distributions will depend on royalty income received and Trust expenses, with shipping activity expected to be lower in winter months.

• Northshore continues to be operated as a swing facility, with no guidance provided on expected shipment volumes for 2024.