Mesabi Trust Declares Distribution
The Trustees of Mesabi Trust (NYSE: MSB) declared a distribution of twelve and one-half cents ($0.125) per Unit of Beneficial Interest payable on May 20, 2010 to Mesabi Trust Unitholders of record at the close of business on April 30, 2010. This compares to a distribution of thirty-eight cents ($0.38) per Unit for the same period last year.
The total royalty amount credited to the Mesabi Trust for the three months ended March 31, 2010 is approximately $1.9 million (which includes the fee royalty expected to be received by the Mesabi Land Trust). However, Mesabi Trust will only receive a minimum advance royalty payment of $203,432 (which represents one quarter of the annual minimum royalty payment for 2010 of $813,729) because the royalty income payable to Mesabi Trust was reduced by Northshore Mining Company (“Northshore”), the lessee/operator of Mesabi Trust lands, as a result of approximately $2.8 million of negative pricing adjustments. After Northshore offset $1.77 million of royalties credited to Mesabi Trust (which offset did not include the fee royalty expected to be received by the Mesabi Land Trust) against the $2.8 million of negative pricing adjustments, Mesabi Trust was notified that the remaining approximately $1.1 million of negative price adjustments would be offset against future royalties payable to Mesabi Trust by Northshore. Even though the royalty payment credited to Mesabi Trust was eliminated (with the exception of the minimum advance royalty and the fee royalty payable to the Mesabi Land Trust) due to negative pricing adjustments, the Trustees decided to distribute a portion of Mesabi Trust’s cash reserve. The receipt of the minimum advance royalty from Northshore together with a distribution from Mesabi Trust’s cash reserve will result in a total distribution to Mesabi Trust’s Unitholders of $1,640,001, or $0.125 per unit. In making the decision to pay a royalty from Mesabi Trust’s cash reserve, the Trustees considered the amount of royalty income that was offset due to negative pricing adjustments, as well as the need to maintain adequate reserves to cover Mesabi Trust’s present and future liabilities.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV