Financial Performance - Mesabi Trust's revenue, operating profits, and assets are primarily derived from iron ore mining, indicating a focused business segment [12] - All revenues of the Trust are derived from its assets, emphasizing the importance of the Trust Estate in financial performance [14] - The Trust's operations are limited to income collection, expense payment, and net income distribution to Trust Certificate holders, reflecting a pass-through structure [39] - Mesabi Trust's annual report for the fiscal year ended January 31, 2023, has been filed, detailing the financial performance and operational highlights [84] - The trust's operational strategies and financial performance metrics are crucial for stakeholders assessing investment opportunities [84] Governance and Oversight - The Trustees conducted 15 meetings in fiscal 2023, with all Trustees attending at least 75% of the meetings, ensuring active governance [41] - The Trustees have a diversified background in mining and finance, enhancing their capability to oversee the Trust's affairs effectively [53] - The Trustees met quarterly to review and approve transactions, ensuring governance and oversight in financial dealings [70] - The Trust does not have a board of directors or executive officers, and Trustee compensation is governed by an amendment to the Agreement of Trust, with no stock or incentive awards provided [54] Compliance and Transparency - The Trust relies on certified public accountants and geological consultants to ensure the accuracy of financial disclosures, highlighting a commitment to transparency [28] - The Trust's disclosure controls and procedures are deemed effective based on the Trustees' evaluation at the end of the reporting period [30] - There were no changes in the Trust's internal control over financial reporting that materially affected its operations during the last fiscal quarter [32] - The report emphasizes the importance of compliance with the Securities Exchange Act of 1934, reflecting the trust's commitment to transparency [89] - The report highlights the trust's ongoing commitment to ethical governance and regulatory compliance, reinforcing investor confidence [86] Compensation - Each individual Trustee received total compensation of $53,322 during fiscal 2023, reflecting an increase from $49,345 in fiscal 2022, representing an increase of approximately 8% [63] - The Corporate Trustee earned $181,563 in cash compensation for the fiscal year ended January 31, 2023, which includes a $62,500 administrative fee, compared to $156,307 in fiscal 2022, marking an increase of about 16% [57] - The total compensation for the Corporate Trustee, including registrar and transfer agent services, was $187,464 for fiscal 2023, up from $161,868 in fiscal 2022, indicating a growth of approximately 15.7% [63] - The audit fees paid to Baker Tilly for fiscal 2023 amounted to $104,098, an increase from $84,517 in fiscal 2022, representing a rise of about 23% [75][76] - The Corporate Trustee did not receive any compensation for extraordinary services during the fiscal year ended January 31, 2023 [59] - The Trust does not have any compensation plans under which securities of the Trust are authorized for issuance, ensuring no dilution of existing ownership [65] Legal and Regulatory Matters - The Trust initiated arbitration against Northshore Mining Company and Cleveland-Cliffs Inc. for underpayment of royalties in 2020, 2021, and 2022, seeking damages based on pricing discrepancies [19] - No related person transactions were disclosed in the Annual Report for fiscal year ended January 31, 2023, indicating compliance with the Trust's related person transaction policy [73] - The corporate trustee, Deutsche Bank Trust Company Americas, has certified the report in accordance with the Sarbanes-Oxley Act of 2002 [86] Asset Management - The filing includes various lease agreements and modifications, which are critical for understanding the trust's asset management strategy [84] - The trust's financial statements are incorporated by reference from previous annual reports, providing a comprehensive view of its financial health over the years [84] - As of April 24, 2023, Horizon Kinetics Asset Management LLC holds 2,684,726 Units, representing 20.5% of the Trust Certificates outstanding [66][67] - ValueWorks LLC beneficially owns 806,437 Units, accounting for 6.1% of the Trust Certificates outstanding as of April 24, 2023 [66][68]
Mesabi Trust(MSB) - 2023 Q4 - Annual Report