This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Mesabi Trust Declares Distribution

The Trustees of Mesabi Trust (NYSE: MSB) declared a distribution of eighty cents ($0.80) per Unit of Beneficial Interest payable on August 20, 2010 to Mesabi Trust unitholders of record at the close of business on July 30, 2010. The Trust did not declare a distribution for the same period a year ago.

The current distribution of eighty cents ($0.80) per Unit is attributable to increases in the volume of shipments of iron ore pellets during the most recent quarter and for the year to date, as reported by Northshore Mining Company (“Northshore”), the lessee/operator of the mine on Mesabi Trust lands. The substantial increase in the volume of shipments from Silver Bay, Minnesota resulted in the shipment of additional tons at higher royalty rates, as compared to the same quarter last year, thereby adding to the amount of the base royalty payment. The increase in the volume of shipments from Silver Bay, Minnesota, together with the higher average sales price per ton of iron ore pellets, contributed to the increase in the bonus royalty payment.

Based on the shipments of iron ore reported by Northshore during the second calendar quarter of 2010, Mesabi Trust is expecting to receive a base royalty of $6,024,876 (based on actual shipments of iron ore mined from Mesabi Trust lands of 2,189,889 tons). Mesabi Trust is also expecting to receive a bonus royalty in the amount of $4,882,270 based on the average sales price per ton of iron ore pellets and the volume of shipments during the second calendar quarter of 2010. In addition to the base and bonus royalty payments, Mesabi Trust is also expecting to receive $281,360 as a result of positive pricing adjustments to shipments made during the first calendar quarter of 2010. Northshore has informed the Mesabi Trust that the first quarter minimum advance royalty payment of $203,432 together with $1,068,297 of negative price adjustments from prior periods will be deducted from the royalty payment for the second calendar quarter of 2010. Therefore, the total royalty payment expected to be received by Mesabi Trust from Northshore is $10,024,087 (including a royalty payment of $107,310 payable to the Mesabi Land Trust). A portion of the total distribution that the Trust expects to pay to Unitholders on August 20, 2010 will come from the Trust’s cash reserve for potential future liabilities, which cash reserve was $1,518,249 as of April 30, 2010 (unaudited). In making this decision, the Trustees considered the need for the Trust to maintain adequate reserves to cover the Trust’s current expenses, as well as present and future potential liabilities.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,124.33 +72.60 0.43%
S&P 500 1,985.01 +11.38 0.58%
NASDAQ 4,460.9530 +36.2490 0.82%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs