Monitor iron ore pricing trends and next quarter's royalty report for bonus recovery. Expect continued low distributions unless the benchmark price exceeds $71.70/ton. The stock may reprice downward as the market absorbs the structural loss of bonus royalty income.
Price Chart
Executive Summary
Mesabi Trust received Q1 2026 royalty payment of $1,625,300, including a base royalty of $1,201,501 but zero bonus royalty for the first time in years (excluding prior idling period) because deemed shipment prices fell below the $71.70/ton bonus threshold. Although shipment volume more than doubled to 938,572 tons, the absence of bonus royalty signals persistently low iron ore pricing, pressuring future distributions.
Key Facts
- Total royalty payments received on April 30, 2026: $1,625,300
- Base royalty: $1,201,501; bonus royalty: $0 (zero)
- Positive prior-quarter adjustments: $243,986; Mesabi Land Trust payment: $179,813
- First quarter since May 2022–April 2023 idling period with no bonus royalty
- All deemed shipments below 2026 adjusted bonus royalty threshold of $71.70 per ton
- Shipment volume: 938,572 tons in Q1 2026 vs 457,728 tons in Q1 2025
Financial Impact
Quarterly royalty income of $1.625M, with zero bonus component; prior year comparable not provided, but prior distribution cut from $0.56 to $0.24 per unit signals declining cash flow
Risk Factors
- Bonus royalty may remain zero if iron ore prices stay weak
- Further reduction in distribution per unit possible
- Dependence on Cleveland-Cliffs' production and pricing decisions
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-054941 |
| Document: msb-20260430xex99d1.htm | 0001104659-26-054941 |
| Document: 0001104659-26-054941-index-headers.html | 0001104659-26-054941 |
| Document: 0001104659-26-054941-index.html | 0001104659-26-054941 |
| Document: 0001104659-26-054941.txt | 0001104659-26-054941 |
| 8-K Data (Synthetic) | 0001104659-26-054941 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 4, 2026 21w ago | 8-K | $28.06 $22.98 | ▲ +18.10% | ▲ +20.84% | $18.90 (+32.64%) |
Apr 14, 2026 24w ago | 8-K | $31.29 $25.10 | ▲ +19.77% | ▲ +27.91% | $18.90 (+39.59%) |
US Market Status
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