Distribution - Mesabi Trust declared a distribution of $0.39 per Unit of Beneficial Interest, an increase from $0.35 per Unit for the same period last year[4] - The distribution reflects the Trustees' decision to hold funds in reserve pending procedural deadlines related to the arbitration[5] Arbitration and Payments - The Trust received a payment of $71,185,029 from Northshore Mining Company and Cleveland-Cliffs Inc. as a result of an arbitration award for underpayment of royalties[5]

Production and Shipments - For the three months ended July 31, 2024, production and shipments of iron ore pellets totaled 974,532 tons, a decrease from 1,049,281 tons in the same period of 2023, attributed to lower demand from Northshore's customers [49]. - Iron ore pellet production and shipments for the six months ended July 31, 2024 totaled 1,953,030 tons, an increase of 62.0% from 1,204,581 tons in the same period of 2023 [51]. - The volume of iron ore shipped by Northshore in Q2 2024 was 949,718 tons, an increase from 886,301 tons in Q2 2023, reflecting a year-over-year growth of approximately 7.1% [68]. Revenue and Income - The Trust's revenue is highly dependent on Northshore's activities, with leasehold royalty income being the principal source of revenue [36]. - For the three months ended July 31, 2024, total royalty income decreased by $3,475,877 to $6,254,719 compared to the same period in 2023, primarily due to a decrease in pricing and shipments of iron ore [51]. - Net income for the three months ended July 31, 2024 was $5,397,894, a decrease of $3,785,446 compared to $9,183,340 in the same period of 2023 [55]. - Total revenues for the six months ended July 31, 2024 increased to $12,740,480, up from $11,738,090 in the same period of 2023, reflecting a growth of 8.6% [56]. - The Trust's expenses for the six months ended July 31, 2024 were $3,858,802, an increase of $2,327,191 compared to $1,531,611 in the same period of 2023 [56]. - The base overriding royalties for the six months ended July 31, 2024 increased by $646,245 to $6,981,711 compared to $6,335,466 in the same period of 2023 [54]. Royalty Structure - The minimum advance royalty for calendar year 2024 is set at $1,129,615, an increase from $1,100,498 in 2023 [39]. - The Adjusted Threshold Price for royalty bonuses in 2024 is $67.75 per ton, up from $66.00 per ton in 2023 [37]. - 97.4% of all iron ore products shipped during calendar 2023 were sold at prices above the Adjusted Threshold Price, indicating strong pricing performance [44]. - The royalty rates for base overriding royalties range from 2.5% for the first one million tons shipped annually to 6% for all tons exceeding four million tons [36]. - The royalty bonus percentage ranges from 0.5% for sales between the Adjusted Threshold Price and $2.00 above it, to 3% for sales $10.00 or more above the Adjusted Threshold Price [37]. - The current royalty rate schedule has been effective since August 17, 1989, and is based on both the volume and selling price of iron ore products shipped [40]. Trust Operations and Distributions - The Trust declared a distribution of $0.30 per unit on July 12, 2024, payable on August 20, 2024, compared to no distribution in the same quarter of 2023 [57]. - Unallocated Reserve increased from $21,644,693 as of July 31, 2023 to $22,116,015 as of July 31, 2024, reflecting a growth of 2.2% [61]. - Accrued Income Receivable increased by 42.6% to $2,584,690 as of July 31, 2024, compared to $1,812,600 as of July 31, 2023 [62]. - The Trust's net income per unit decreased by $0.2885 to $0.4114 per unit for the fiscal quarter ended July 31, 2024 compared to the same quarter in 2023 [56]. - The Trust's distributions can vary significantly from quarter to quarter, influenced by factors such as production schedules, customer demand, and market conditions [80]. Operational Challenges and Legal Matters - Northshore's operations were idled from May 1, 2022, until April 2023, with a partial restart announced on April 25, 2023 [45]. - Cliffs has indicated that Northshore will continue to operate at less than full capacity for the remainder of 2023, with no specific updates on expected shipments for 2024 [70]. - The Trust's royalty income is highly dependent on the volume of iron ore shipments and sales by Northshore, which can fluctuate significantly due to various operational and market factors [69]. - The Trustees are focused on maintaining adequate reserves while balancing distributions to Unitholders, given the unpredictable nature of the iron ore and steel industry [66]. - Cliffs has shifted its focus away from marketing and selling iron ore pellets to third-party customers, impacting the royalty structure and potential income for the Trust [78]. - The Trust initiated arbitration against Northshore and Cliffs for underpayment of royalties from 2020 to 2022, seeking damages [93]. Internal Controls and Compliance - The Trust's disclosure controls and procedures are deemed effective based on the Trustees' evaluation [91]. - There were no changes in the Trust's internal control over financial reporting that materially affected its operations during the last fiscal quarter [91]. - The Trust continues to evaluate whether transactions meet the Royalty Agreement requirements, which could affect royalty calculations [98].

Distribution - Mesabi Trust declared a distribution of $0.30 per Unit of Beneficial Interest, payable on August 20, 2024[11] - This distribution compares to no distribution declared for the same period last year, indicating a significant improvement[11]

Financial Performance - Total revenues for the three months ended April 30, 2024, were $6,250,572, a significant increase of 238% compared to $1,848,849 in the same period of 2023[15]. - Royalty income reached $6,010,608, up 251% from $1,711,316 in the prior year[26]. - Net income for the quarter was $3,483,785, representing a 241% increase from $1,023,139 in the same quarter of 2023[15]. - The net income per unit increased to $0.2655 from $0.0780 year-over-year[15]. - The Trust's expenses for the three months ended April 30, 2024, were $2,766,787, an increase of $1,941,077 from $825,710 in the same period of 2023, primarily due to higher legal fees[67][68]. - Total royalty income for the three months ended April 30, 2024, increased by $4,299,292 to $6,010,608 compared to $1,711,316 in the same period of 2023, driven by increased production and shipments[63][66]. - Base overriding royalties rose to $3,417,645, up from $961,798, while bonus royalties increased to $2,450,133 from $707,840 for the same periods[66]. - Net income for the three months ended April 30, 2024, was $3,483,785, an increase of $2,460,646 compared to $1,023,139 in the same period of 2023[67][68]. Distributions - Distributions declared per unit were $0.2900, compared to no distributions in the same quarter of 2023[15]. - The Trust declared distributions of $0.2900 per unit for the quarter ended April 30, 2024, totaling $3,804,803[40]. - The Trust declared a distribution of $0.29 per unit payable on May 20, 2024, compared to no distribution in the same quarter of 2023[68]. - The Trust declared a distribution of $0.29 per Unit of Beneficial Interest, payable on May 20, 2024, reflecting an increase from no distribution in April 2023[83][84]. Cash and Assets - Cash and cash equivalents at the end of the period were $21,629,973, down from $23,980,448 at the beginning of the period[18]. - As of April 30, 2024, the Trust's unallocated cash and cash equivalents were $17,825,170, down from $19,126,044 as of January 31, 2024, reflecting a decrease of approximately 6.8%[40]. - The Trust's unallocated reserve balance as of April 30, 2024, was $20,654,125, a decrease from $20,975,143 as of January 31, 2024[40]. - The increase in unallocated cash and cash equivalents was 36.0%, rising to $17,825,170 as of April 30, 2024, from $13,102,857 as of April 30, 2023[73]. - Accrued Income Receivable rose by 31.8% to $1,828,842 as of April 30, 2024, compared to $1,387,449 as of April 30, 2023[73]. Operations and Production - For the three months ended April 30, 2024, iron ore pellet production and shipments totaled 978,498 tons, a significant increase from 155,300 tons in the same period of 2023, reflecting a full quarter of operations[61][62]. - The volume of iron ore shipped by Northshore during the first calendar quarter of 2024 was 1,006,692 tons, compared to zero tons shipped in the same quarter of 2023[79]. - Approximately 97.4% of iron ore products shipped in 2023 were sold at prices above the Adjusted Threshold Price, indicating strong market performance[57]. - The Trust's financial performance is highly dependent on Northshore's operations, with royalty rates influenced by the volume and selling price of iron ore products shipped[46]. Liabilities and Contracts - Total liabilities decreased to $4,477,027 from $5,715,206 at the end of January 2024[18]. - The Trust recorded a net contract asset of $1,559,969 as of April 30, 2024, compared to $451,896 as of January 31, 2024[34]. - The minimum advance royalty for calendar year 2024 is set at $1,129,615, an increase from $1,100,498 in 2023[53]. - The royalty bonus threshold price for 2024 is set at $67.75 per ton, up from $66.00 per ton in 2023[31]. - The Adjusted Threshold Price for royalty bonuses in 2024 is $67.75 per ton, up from $66.00 per ton in 2023[53]. Market and Operational Risks - The Trustees noted that uncertainties related to Cliffs' operations and market conditions could affect future royalty payments and distributions[86][87]. - Cliffs has indicated intentions to limit third-party sales of iron ore products, which may impact the calculation of royalties owed to the Trust[80]. - The Trustees have not received specific updates on Cliffs' plans for Northshore operations for the current year, leading to uncertainties in expected shipments[82]. - Future distributions will be highly dependent on royalty income and the level of Trust expenses, with potential uncertainties due to market conditions and operational decisions[75]. Regulatory and Compliance - The Trust's operations are subject to extensive regulation, and it is exempt from many corporate governance requirements due to its nature as a pass-through royalty trust[95]. - The Trust is not taxable as a corporation, and all net taxable income is attributed directly to Unitholders for tax purposes[99]. - The Trust's financial reporting is subject to oversight by independent consultants who verify production and shipping data[104]. - Cliffs has started reporting mine safety results at Northshore as required by the Dodd-Frank Act[114]. Legal Matters - Mesabi Trust initiated arbitration against Northshore and Cliffs for underpayment of royalties from 2020 to April 2022, seeking damages and declaratory relief[109]. - The arbitration evidentiary hearing took place in March 2024, with post-hearing briefs exchanged in May 2024[109]. Governance and Internal Controls - The Trust's disclosure controls and procedures have been evaluated and deemed effective by the Trustees[105]. - There were no changes in the Trust's internal control over financial reporting that materially affected its operations during the last fiscal quarter[106]. - The Trust employs certified public accountants and geological consultants to ensure the accuracy of financial disclosures[103].

Core Viewpoint - Mesabi Trust (NYSE:MSB) is experiencing a potential turnaround due to the unexpected absence of recessionary demand for iron ore and a breakout in commodity prices since March 2024, making it an attractive investment opportunity [3][4]. Upside Arguments - Cleveland-Cliffs has resumed mining operations at Mesabi's main royalty assets, which could enhance revenue generation [4]. - The U.S. Federal Reserve is likely to maintain interest rates, potentially leading to increased revenues and higher iron ore prices [4]. - China's economy may be bottoming out, with record iron ore imports in 2023, suggesting improved demand dynamics [4]. - Ongoing arbitration regarding underpaid royalties could result in favorable outcomes for Mesabi Trust [4]. Dividend Outlook - Mesabi Trust has a historical dividend yield of approximately 5.83%, with expectations of a forward yield of around 6% based on current production rates and ore pricing [6][7]. - The trust has a track record of increasing dividend payouts in line with iron ore prices, with dividends rising to over $5 annually during recent highs [6][7]. Technical Analysis - The stock has shown low volatility since May 2023, indicating a stable base formation, with positive trading indicators suggesting potential upward movement in iron ore prices [7][8]. Historical Performance - Over the past decade, Mesabi Trust has delivered a total return of 106.6%, outperforming various Treasury investments [11]. - The trust has proven to be a strong diversification option for yield generation, with significant potential for capital appreciation during favorable market conditions [11][12]. Conclusion - Mesabi Trust is positioned as a compelling investment choice for those seeking yield and inflation protection, with a recommendation to buy trust units [12].

Revenue and Financial Performance - Mesabi Trust's revenue is primarily derived from iron ore mining, with all operating profits and assets related to this single business segment [14]. - The company reported a significant increase in revenue, reaching $150 million, representing a 25% growth year-over-year [97]. - The company provided an optimistic outlook, projecting a revenue growth of 30% for the next quarter, targeting $195 million [97]. - New product launches are expected to contribute an additional $20 million in revenue over the next two quarters [97]. - The Trust's activities are focused on income collection, expense payment, and net income distribution to Unitholders [43]. Governance and Compliance - The Trust does not have a designated audit committee, with Trustees collectively performing audit functions [44]. - The Trust is exempt from certain corporate governance standards due to its legal structure as a pass-through royalty trust [78]. - The financial statements incorporated in the report include balance sheets as of January 31, 2024, and 2023, and statements of income for the years ended January 31, 2024, 2023, and 2022 [87]. - The certification of the corporate trustee of Mesabi Trust pursuant to the Sarbanes-Oxley Act of 2002 is included in the filing [91]. - There were no related person transactions required to be disclosed in the Annual Report for the fiscal year ended January 31, 2024 [77]. Trustee Meetings and Compensation - The Trustees conducted 15 meetings in fiscal 2024, with all Trustees attending at least 75% of these meetings [45]. - Each individual Trustee received total compensation of $51,413 during fiscal 2024, reflecting a decrease from $53,322 in fiscal 2023, representing a reduction of approximately 3.4% [60]. - The Corporate Trustee earned $118,294 in total compensation for the fiscal year ended January 31, 2024, which includes $62,500 for administrative services [62]. - The Trust's compensation for the Corporate Trustee is determined based on the greater of $20,000 or a quarter of one percent of the trust moneys distributed to Unitholders [61]. - The Trustees met at least quarterly to review and approve transactions, ensuring compliance with the related person transaction policy [74]. Cybersecurity and Risk Management - The Corporate Trustee has implemented a comprehensive cybersecurity risk management program to mitigate potential threats, although prior incidents have not materially affected the Trust's financial condition [22]. - The Trust's disclosure controls and procedures are deemed effective based on the Trustees' evaluation [36]. Market Presence and Strategic Initiatives - The company is expanding its market presence in Europe, aiming for a 15% market share by the end of the fiscal year [97]. - Research and development expenses increased to $10 million, reflecting a 10% investment in new technologies [97]. - The company announced a strategic acquisition of a smaller competitor for $50 million, expected to enhance market capabilities [97]. - Customer retention rates improved to 85%, up from 80% last quarter, showcasing better user engagement [97]. - The company plans to implement new marketing strategies, allocating an additional $5 million to digital advertising [97]. Audit and Fees - The aggregate audit fees for fiscal 2024 were $80,523 for Boulay, PLLP, and $69,034 for Baker Tilly US, LLP, totaling $149,557 [79][80]. - No tax fees were paid to Boulay or Baker Tilly for tax compliance, tax advice, and tax planning for Mesabi Trust for fiscal 2024 or fiscal 2023 [83]. - No other fees were paid to Boulay or Baker Tilly for services provided to Mesabi Trust, other than those described in item (a), for fiscal 2024 or fiscal 2023 [84].

FORM 8-K (State or other jurisdiction of (Commission File Number) incorporation) New York 1-4488 N/A (Former name or former address, if changed since last report) | --- | --- | --- | |--------------------------------------------------------|-------------------|-----------------------------------------------------| | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | Units of Beneficial Interest, no par value | MSB | New York Stock Exchange | Exhibit No. Description Annou ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-4488 MESABI TRUST (Exact name of registrant as specified in its charter) (State or other jurisdiction of inco ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-4488 (Registrant's telephone number, including area code) Not applicable (Former name, former address and former ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Table of Contents WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-4488 MESABI TRUST (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorp ...