Mesabi Trust announces lower distribution of $0.12 per unit

NEW YORK - Mesabi Trust (NYSE:MSB) declared a distribution of $0.12 per Unit of Beneficial Interest payable on August 20, 2025, to unitholders of record as of July 30, 2025, according to a statement released Friday. The trust, currently trading at $25.25, has maintained dividend payments for 36 consecutive years, with a current yield of 9.06%. InvestingPro analysis shows the company maintains a "GREAT" overall financial health score of 3.48 out of 5.

The distribution represents a 60% decrease from the $0.30 per unit declared for the same period last year.

The trustees cited lower royalty payments from Cleveland-Cliffs Inc., the parent company of Northshore Mining Company, as a key factor in the reduced distribution. The Trust received $2,422,329 in total royalty payments on April 30, 2025, down from $5,059,648 received in April 2024.

Additional factors influencing the distribution decision include uncertainties related to Cleveland-Cliffs’ vertical supply chain planning, volatility in the iron ore and steel industries, national and global economic uncertainties, potential changes in trade laws, unfairly traded imports, and international duties or tariffs.

The trustees noted they have received no specific updates regarding Cleveland-Cliffs’ plans for Northshore iron ore operations or production, sales, and shipments of iron ore products 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. After receiving the quarterly royalty report and payment, Mesabi Trust plans to file a summary with the Securities and Exchange Commission.

The information in this article is based on a press release statement from Mesabi Trust. Based on InvestingPro’s Fair Value analysis, MSB is currently trading near its fair value. Subscribers can access 6 additional ProTips and comprehensive financial metrics to make more informed investment decisions.

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