Mesabi Trust press release

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Distribution announcement

The Trustees of Mesabi Trust (NYSE: MSB) declared a distribution of one dollar and seventy-five cents ($ 1.75) per unit of beneficial interest payable on February 20, 2022 to unitholders of Mesabi Trust of record in the close of business on January 30, 2022. This compares to a distribution of forty-six cents ($ 0.46) per unit for the same period last year.

The increase of one dollar and twenty-nine cents ($ 1.29 per Unit) in the current distribution, compared to the distribution announced by the Trust for the same period last year, is mainly due to the receipt by the Trust total royalty payments of $ 19,053,159 (which includes $ 2,833,687 for past royalties underpaid on DR grade pellets in 2019 and 2020, including interest, as per the final award decision AAA received by the Trust on October 1, 2021) from Cleveland-Cliffs Inc. (“Cliffs”), the parent company of Northshore Mining Company (“Northshore”), which exceeded the total royalty payments of $ 5,925,181 received by the Cliffs Trust in October 2020. In addition to the collection of underpaid royalties in accordance with the final AAA award, the increase in the royalty received by the Trust for the third calendar quarter of 2021, compared to to the royalty received for the third quarter civ it of 2020, is mainly attributable to the higher prices of iron ore products reflected in the royalty calculations of the third quarter of 2021, and a higher volume of shipments during the third quarter of 2021, compared to shipments in the third quarter 2020. Finally, the announcement of the Trust today also reflects the determination of the Trustees that Mesabi Trust should have sufficient reserves to make such a distribution while maintaining an appropriate level of unallocated reserves in order for the Trust to be able to meet current and future expenses, and present and future liabilities (whether fixed or contingent) that may arise, including expenses that would be incurred during any potentially prolonged period of inactivity of Northshore Mining operations in the ‘to come up.

Cliffs has not informed the Trust of any implementation or changes to its publicly announced plans to move production of DR grade pellets from Northshore to Menorca, no longer to sell pellets to third parties in the years to come. and to keep the Northshore inactive. crashes from time to time.

Northshore’s quarterly royalty payments for iron ore shipments during the fourth calendar quarter, which are payable to Mesabi Trust under the royalty agreement, are due on January 30, 2022, along with the quarterly royalty report. After receiving the Quarterly Royalty Report, Mesabi Trust plans to file a summary of the Quarterly Royalty Report with the Securities and Exchange Commission in a current report on Form 8-K.

Forward-looking statements

This press release contains certain forward-looking statements regarding the production of iron ore pellets, iron ore pricing and price adjustments, shipments by Northshore in 2022, royalty amounts (including bonus royalties), timing of quarterly royalty payments and quarterly royalty reports, idling of Northshore operations and other matters, which statements are intended to be made under the safe harbor protections of the Private Securities Litigation Reform Act of 1995, as amended. Actual production, prices, price adjustments and shipments of iron ore pellets, as well as actual royalty payments (including bonus royalties) could differ materially from current expectations due to risks and uncertainties. inherent such as unfavorable economic trends for business and industry, uncertainties arising from war, terrorist events, potential future impacts of the coronavirus pandemic (COVID-19) and other global events, a demand for more or lower of customers for steel and iron ore, decisions of mining operators regarding downsizing or idling of production lines or entire plants, announcements and implementation of commercial tariffs, uncertainties in matters environmental compliance, difficulties in obtaining and renewing the necessary operating permits, increased imports of steel and sub iron ore statuses, processing difficulties, consolidation and restructuring of the domestic steel market, indexation features of the Cliffs Pellet agreements leading to adjustments to royalties payable to Mesabi Trust and other factors. In addition, substantial parts of the royalties collected by Mesabi Trust are based on estimated prices which are subject to quarterly and final adjustments, which may be positive or negative, and depend in part on several price index factors and inflation within the framework of customer agreements to which Mesabi Trust is not a party and which are only known after the end of a contractual year. Although the Trustees of Mesabi believe that these forward-looking statements are based on reasonable assumptions, these statements are subject to risks and uncertainties, which could cause actual results to differ materially. Additional information regarding these and other risks and uncertainties is contained in the documents filed by the Trust with the Securities and Exchange Commission, including its annual report on Form 10-K and its quarterly reports on Form 10-Q. Mesabi Trust assumes no obligation to publicly update or revise any forward-looking statements made herein to reflect events or circumstances after the date hereof.

SHR Mesabi Trust Unit

Deutsche Bank Trust Company Americas


Source: Mesabi Trust

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