Mesabi Trust Reports Decline in Revenue and Net Income for Quarter and Six-Month Period Ended July 31, 2025

Mesabi Trust reported a decline in financial performance for the three and six months ended July 31, 2025, compared to the same periods in 2024. Total revenues for the quarter were $5.6 million, down from $6.5 million in the prior year, while revenues for the six-month period decreased to $10.3 million from $12.7 million. The Trust's net income for the quarter was $4.7 million, a decrease of 12% from $5.4 million in the previous year, and for the six months, net income fell to $8.4 million from $8.9 million. The decline in revenue and profitability was primarily attributed to lower royalty income resulting from decreased iron ore pricing and shipments.

The Trust's royalty income for the three months ended July 31, 2025, was $5.4 million, down from $6.3 million in the same quarter of 2024. This decrease was driven by a reduction in both base overriding royalties and bonus royalties, which fell by $348,039 and $528,224, respectively. For the six-month period, total royalty income decreased to $9.8 million from $12.3 million, with base overriding royalties down by $1.3 million and bonus royalties down by $1.2 million. The Trust's fee royalties, however, saw a slight increase, reflecting a higher royalty rate during the current period.

Operationally, Mesabi Trust reported that production and shipments of iron ore pellets from its lands totaled 943,955 tons for the quarter, a decrease from 974,532 tons in the prior year. For the six-month period, production and shipments were 1.6 million tons, down from nearly 2 million tons in 2024. The decline in production was attributed to an extended maintenance shutdown at Northshore Mining Company in February 2025, which impacted overall output and shipments.

In terms of financial management, the Trust declared a distribution of $0.12 per unit for the quarter, significantly lower than the $0.30 per unit declared in the same quarter last year. The total distribution for the six months was $0.68 per unit, compared to $0.59 in the previous year. The Trust's unallocated reserve increased slightly to $22.8 million as of July 31, 2025, from $22.1 million a year earlier, primarily due to a decrease in distribution payable and an increase in unallocated cash and cash equivalents.

Looking ahead, Mesabi Trust's outlook remains cautious due to ongoing uncertainties in the iron ore market, including pricing volatility and potential impacts from regulatory developments related to Northshore's operations. The Trust's future distributions will depend heavily on the volume of iron ore produced and shipped, as well as the pricing of those products. The Trustees continue to monitor economic conditions and the operational decisions of Northshore, which significantly influence the Trust's financial performance and cash available for distribution to unitholders.