This Day On The Street
Continue to site
ADVERTISEMENT
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

Mesabi Trust Declares Distribution

The Trustees of Mesabi Trust (NYSE: MSB) declared a distribution of one dollar and thirteen cents ($1.13) per Unit of Beneficial Interest payable on November 20, 2012 to Mesabi Trust unitholders of record at the close of business on October 30, 2012. This compares to a distribution of one dollar and twelve cents ($1.12) per Unit for the same period last year.

The increase in the current distribution of one cent ($0.01) per Unit, as compared to the same quarter last year, is attributable to two factors. First, the volume of shipments of iron ore pellets credited to the Trust during the third quarter of 2012 was significantly higher than the volume of shipments credited to the Trust during the third quarter of 2011. The effect of higher volumes of iron ore pellet shipments during the third quarter 2012 credited to the Trust was offset somewhat by lower average sales prices per ton credited to the Trust during the same period. Second, the higher volume of shipments credited to the Trust for the third quarter of 2012 resulted in the application of a 6% royalty rate calculated on all tons shipped in excess of four million tons (on a year to date basis). Northshore’s most recent quarterly royalty report also reflected an $884,835 negative price adjustment to royalties previously received by Mesabi Trust for shipments of iron ore by Northshore during the first and second quarters of 2012. The base and bonus royalties payable to Mesabi Trust (after the application of pricing adjustments by Northshore) increased from approximately $14.5 million in the third calendar quarter of 2011 to approximately $14.7 million for the third calendar quarter of 2012, an increase of approximately 1.7%.

Based on shipments of iron ore pellets during the third calendar quarter of 2012 reported by Northshore, Mesabi Trust expects to be credited with a base royalty of $9,995,160 (based on credited shipments of 2,406,218 tons of iron ore mined from Mesabi Trust lands as described further below). Mesabi Trust also expects to be credited with a bonus royalty in the amount of $5,633,175 based on the average sales price per ton of iron ore pellets and the volume of shipments during the third calendar quarter of 2012. In addition, as discussed above, Northshore applied a $884,835 negative price adjustment to base and bonus royalties previously received by the Trust for shipments by Northshore during the first and second quarters of this year, thereby reducing the total royalty payment expected to be received on October 30, 2012 by Mesabi Trust from Northshore to $14,981,365 (which includes a royalty payment of $237,865 payable to the Mesabi Land Trust).

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,558.24 -125.34 -0.71%
S&P 500 2,051.80 -16.96 -0.82%
NASDAQ 4,921.2710 -70.6690 -1.42%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs