Mesabi Trust Keeps Distribution Steady

Iron ore mining specialist Mesabi Trust (NYSE: MSB  ) announced yesterday its third-quarter distribution of $0.51 per unit, an 11% increase in the payout from last quarter, but 55% lower than the $1.13-per-unit rate paid in the third quarter of 2012.

Royalties are paid to Mesabi by Northshore Mining based on the volume of shipments of iron ore pellets for the particular quarter and year to date, the pricing of iron ore product sales, and the percentage of iron ore pellet shipments from Mesabi Trust lands rather than from non-Mesabi Trust lands. The volumes can vary from quarter to quarter and year to year based on a number of factors, including the requested delivery schedules of customers, general economic conditions in the iron ore industry, and weather conditions on the Great Lakes.

Further, the prices determined under contracts among Northshore, its parent Cliffs Natural Resources, and their customers are subject to interim and final pricing adjustments that are not known until after the end of a contract year under the agreements between them. Such factors can result in significant variations in the amount of royalties received by Mesabi Trust.

In the third calendar quarter of 2013, Northshore shipped 1.36 million tons of iron ore pellets excavated from Mesabi Trust lands, compared with 2.41 million tons of iron ore pellets during last year's third calendar.

The board of directors said the quarterly dividend is payable on Nov. 20 to the holders of record at the close of business on Oct. 30. The regular dividend payment equates to a $2.04-per-share annual dividend, yielding 9.4% based on the closing price Friday of Mesabi Trust's stock.

MSB Dividend Chart

MSB Dividend data by YCharts

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2680142, ~/Articles/ArticleHandler.aspx, 9/27/2016 8:41:48 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 3:59 PM
MSB $9.14 Down -0.01 -0.11%
Mesabi Trust CAPS Rating: **