Mesabi Trust is a New York-based royalty trust focused on earning revenue through royalties from iron ore mining, primarily linked to its mineral properties and leasehold agreements.

# Mesabi Trust Overview

**Company Name:** Mesabi Trust  
**Location:** New York, New York  
**Established:** 1961

## Business Model

Mesabi Trust is a pass-through royalty trust primarily engaged in the business of iron ore mining. The Trust earns revenue through royalties from its mineral properties. Its operations are concentrated mainly on the collection of leasehold royalties stemming from its ownership of iron ore resources.

### Key Operations:

- **Royalty Structure:** 
  - The Trust receives royalties based on the sales of iron ore pellets produced by Northshore Mining Company, a subsidiary of Cleveland-Cliffs Inc.
  - The revenue is derived predominantly from calculating royalties based on the highest price from arms-length transactions for iron ore pellets.

- **Mining Operations:** 
  - It has significant interests in land and mineral rights, particularly centered on the Northshore mine located in Minnesota.

## Financial Information

### Revenue and Profitability
- **Revenue Model:** The Trust derives the majority of its income from leasing mineral rights and receiving royalties.
- **Recent Financial Performance:**
  - **Total Revenue:** Information from the fiscal year ended January 31, 2025, will provide details on the exact amount of revenue generated, but the Trust was involved in a significant arbitration process concerning underpaid royalties, resulting in a payment of approximately $71.2 million.
  - **Income:** Specific numbers for net income will need to reference detailed financial statements from the annual report.

### Customer Base
- **Number of Customers:** The Trust primarily deals with Cleveland-Cliffs Inc. for its iron ore pellets, with Northshore Mining being the direct operational entity.
- The customer base is largely concentrated in the iron ore sales market, as the Trust doesn’t directly engage consumers or individuals but rather acts as a facilitator of royalties due to the operators of the mines.

### Employment
- **Employees:** Mesabi Trust does not have any directors, officers, or employees. Operations and compliance are managed by the Corporate Trustee, Deutsche Bank Trust Company Americas, who oversees administrative and operational aspects.
  
## Market Position
- As a royalty trust, Mesabi Trust operates with minimal operational overhead normally associated with traditional companies, focusing primarily on legal structures to manage its revenues efficiently, including distributions to unitholders.

## Governance
- **Board of Trustees:** The Trust is governed by a board of Individual Trustees consisting of industry veterans with extensive backgrounds in mining and corporate trust practices.
  
## Summary
Mesabi Trust leverages its mineral rights to generate income through leasehold royalties primarily linked to iron ore mining activities. It has established a significant history and robust operational structure centered around its relationships with major mining entities. Due to its unique corporate structure as a trust, it has lower operationalfootprint and directly transfers revenues to its unitholders, with much of the financial processes overseen by external trustees and agencies.

Mesabi Trust is a pass-through royalty trust involved in the iron ore mining business, primarily generating revenue from leasehold royalties from Northshore Mining Company.

# Mesabi Trust Summary

## Overview
Mesabi Trust is a pass-through royalty trust primarily involved in the iron ore mining business. The trust generates revenue primarily from leasehold royalties from its properties, which are leased to Northshore Mining Company, a subsidiary of Cleveland-Cliffs Inc., a significant player in the iron ore market.

## Business Segments
- **Iron Ore Mining**: Mesabi Trust's sole business segment focuses on collecting royalties from Northshore Mining, which operates iron ore mining facilities in Minnesota. The trust holds mineral rights to certain properties, allowing it to earn royalties based on the iron ore produced.

## Financial Highlights
- **Revenue**: The trust's revenue is primarily driven by leasehold royalties connected to iron ore production. While specific figures for the fiscal year ended January 31, 2024, aren't detailed in the provided document, previous years typically showcase significant revenue driven by iron ore markets.
  
- **Income**: Mesabi Trust’s income is derived from royalty payments, which can fluctuate based on iron ore market prices. The trust must adhere to accounting principles that focus on profit distribution to Unitholders.

- **Market Value**: As of July 31, 2023, the aggregate market value of the units held by non-affiliates of the trust was approximately $257.7 million.

## Operational Details
- **Customers**: The trust's primary customer is Northshore Mining Company, which is responsible for producing and selling the iron ore. The earnings from this business relationship reflect royalty payments based on iron ore sales pricing.

- **Employees**: Mesabi Trust does not have any employees, as the Corporate Trustee (Deutsche Bank Trust Company Americas) oversees asset management and financial operations.

## Strategic Importance
The trust's operations are critical in providing a steady income for its Unitholders, who benefit from the profitability of the iron ore sector. Given the trust's focus on royalties, it is particularly sensitive to fluctuations in the commodity markets for iron ore.

## Summary
- **Nature of Business**: Iron ore mining through royalty agreements.
- **Number of Customers**: Primarily one main customer, Northshore Mining Company.
- **Employees**: No direct employees; managed by a Corporate Trustee.
- **Revenue**: Based on iron ore production and commodity pricing; specific numbers for FY 2024 are not disclosed.
- **Income**: Subject to variations in iron ore market conditions.

Mesabi Trust plays an essential role in the iron ore supply chain and provides a mechanism for investors to partake in the mining sector without direct operational involvement.

MESABI TRUST

10-K / April 24, 2025

10-K / April 24, 2024

10-K / April 24, 2025

Mesabi Trust Overview

Business Model

Key Operations:

Financial Information

Revenue and Profitability

Customer Base

Employment

Market Position

Governance

Summary