Mesabi Trust (MSB) Q2 2025 earnings summary

Executive summary

• For the quarter ended July 31, 2024, royalty income decreased year-over-year due to lower iron ore pricing and shipments, while net income and distributions per unit also declined compared to the prior year.

• Northshore operations ran for two full quarters in 2024, compared to a partial restart in late April 2023 after a prior idling, resulting in higher six-month production and shipments year-over-year.

• A distribution of $0.30 per unit was declared for Q2 2024, compared to no distribution in the same period last year.

Financial highlights

• Three months ended July 31, 2024: royalty income $6.25M (down $3.48M YoY), net income $5.40M (down $3.79M YoY), expenses $1.09M (up $0.39M YoY).

• Six months ended July 31, 2024: royalty income $12.27M (up $0.82M YoY), net income $8.88M (down $1.32M YoY), expenses $3.86M (up $2.33M YoY).

• Interest income for the quarter was $235K, up from $159K YoY.

• Distributions declared per unit: $0.30 for Q2 2024, $0.59 for six months, versus $0.00 in the prior year periods.

Outlook and guidance

• Northshore continues to be operated as a swing facility, with no guidance provided on full-year production or shipment volumes.

• Trustees anticipate future distributions will depend on royalty income received and Trust expenses, with shipping activity typically reduced in winter months.