MESABI TRUST 8-K

What Happened

• Mesabi Trust (MSB) filed an 8‑K (May 4, 2026) reporting that on April 30, 2026 it received the quarterly royalty report and royalty payments from Cleveland‑Cliffs Inc. (Cliffs) covering iron ore shipments for the quarter ended March 31, 2026. The Trust was credited with a base royalty of $1,201,501 and a bonus royalty of $0 for Q1 2026. Cliffs also applied positive prior‑period adjustments of $243,986; a payment of $179,813 was shown for the Mesabi Land Trust. The filing reports total royalty payments received on April 30, 2026 as $1,625,300.
• Cliffs credited the Trust with 938,572 tons shipped in Q1 2026 (vs. 457,728 tons in Q1 2025). Cliffs reported that deemed shipment prices for the quarter were based on a third‑party sale from September 2025 and that all deemed shipments were below the 2026 adjusted bonus threshold of $71.70/ton, resulting in no bonus royalty for the quarter. Royalties are based on estimated prices and are subject to verification and adjustment.

Key Details

• Date received/filed: Royalty report received April 30, 2026; Form 8‑K filed May 4, 2026.
• Payment amounts: Base royalty $1,201,501; bonus royalty $0; prior‑period adjustments +$243,986; Mesabi Land Trust payment $179,813; total reported $1,625,300.
• Volume: 938,572 tons credited to Mesabi Trust for Q1 2026 vs. 457,728 tons in Q1 2025.
• Other filings: Mesabi Trust’s audited Form 10‑K for fiscal year ended Jan 31, 2026 was filed April 22, 2026 (audited financials available to unitholders).

Why It Matters

• For unitholders, the royalty payment drives cash available for any distribution. The absence of a bonus royalty this quarter (bonus = $0) highlights that quarterly payments can vary sharply based on shipment pricing and how Cliffs calculates deemed prices.
• The filing emphasizes that royalties are based on estimated prices, are subject to adjustment, and that future shipments, pricing, or operational decisions (including potential curtailments or idling) could materially change royalty income and distributions. This quarterly result should not be assumed indicative of future quarters.