Financial Performance - Mesabi Trust received a final award of $59,799,977 for underpaid royalties from Cleveland-Cliffs Inc. and Northshore Mining Company, plus pre-award interest of $11,288,269[24]. - The total payment received by Mesabi Trust on October 4, 2024, was $71,185,029, satisfying the AAA panel's unanimous award for underpayment of royalties[27]. - Mesabi Trust's revenue, operating profits, and assets are primarily derived from one business segment—iron ore mining[12]. - The Trust's financial statements are presented on pages F-4 through F-14 of the Annual Report[35]. - The financial statements for the years ended January 31, 2025, and 2024, are incorporated in the report, providing a comprehensive view of the Trust's financial performance[91]. - The Trust's financial statements include balance sheets, income statements, and cash flow statements, essential for evaluating its financial position and performance trends[91]. Governance and Management - The Trustees held 12 meetings in fiscal 2025, with all Trustees attending at least 75% of the meetings[51]. - Each individual Trustee received total compensation of $51,331 during fiscal 2025[67]. - The Corporate Trustee earned $118,301 in total compensation for the fiscal year ended January 31, 2025[69]. - Each Trustee receives at least $20,000 in annual compensation, adjusted based on the All Commodities Producer Price Index[67]. - The Corporate Trustee received $62,500 annually for clerical and administrative services, in addition to other fees[69]. - The report includes a summary of the Trustees' compensation, reflecting the governance and management structure of the Trust[93]. Audit and Compliance - Mesabi Trust has engaged Boulay, PLLP as its independent registered public accountant following the non-reappointment of Baker Tilly US, LLP[36]. - The aggregate audit fees for fiscal 2025 were $92,023, an increase from $80,523 in fiscal 2024, representing a growth of approximately 15.7%[84][85]. - No fees were paid for tax compliance, tax advice, or tax planning for fiscal 2025 or fiscal 2024, indicating a focus on audit-related services only[88]. - The Trustees approved 100% of all services provided by Boulay and Baker Tilly during fiscal 2025 and fiscal 2024, ensuring full oversight of audit engagements[89]. - The audit-related fees for fiscal 2025 and fiscal 2024 were not applicable, indicating a streamlined focus on core audit functions without additional assurance services[87]. Cybersecurity and Risk Management - The Corporate Trustee has implemented a cyber risk management program to address cybersecurity threats, which could materially affect financial condition and results of operations[20]. - The Trust has not experienced any material adverse effects from prior cybersecurity incidents on its financial condition or results of operations[20]. Trust Structure and Operations - The Trust's activities are limited to collecting income, paying expenses, and distributing net income to the holders of Trust Certificates[48]. - The Trust does not have any compensation plans under which securities of the Trust are authorized for issuance[75]. - The Trust maintains a written related person transaction approval policy for financial transactions involving related persons[78]. - There were no related person transactions required to be disclosed in the Annual Report for the fiscal years ended January 31, 2025 and 2024[80]. - The Trust is exempt from certain corporate governance standards due to its legal structure as a pass-through royalty trust, which may impact its operational flexibility[83]. - The Trust's legal structure allows it to bypass certain regulatory requirements, potentially enhancing its operational efficiency and strategic decision-making[83]. - The Trust's annual report for the fiscal year ended January 31, 2025, is filed herewith, providing detailed insights into its financial health and operational strategies[93].
Mesabi Trust(MSB) - 2025 Q4 - Annual Report