Mesabi Trust Reports Q2 2026 Royalty Payment of $1.81M

What Happened

• Mesabi Trust filed a Form 8-K (dated July 31, 2026; Items 2.02 and 7.01) announcing it received Cleveland‑Cliffs’ quarterly royalty report on July 30, 2026 for the quarter ended June 30, 2026.
• For Q2 2026, Mesabi Trust was credited with a base royalty of $1,585,696 and a bonus royalty of $0. A separate payment of $222,083 was paid to the Mesabi Land Trust, bringing total payments received on July 30, 2026 to $1,807,779.
• Cliffs reported 902,331 tons of iron ore shipped from Northshore in the quarter (versus 924,442 tons in Q2 2025). Cliffs indicated bonus royalties were zero because deemed shipment prices were below the 2026 adjusted bonus threshold of $71.70/ton; reported prices were based on third‑party sales in Sept. and Dec. 2025. Royalties are based on estimated prices and remain subject to verification and adjustment.

Key Details

• Total royalty payments received by Mesabi Trust on July 30, 2026: $1,807,779.
• Base royalty credited to Mesabi Trust: $1,585,696; bonus royalty: $0.
• Tons credited for Q2 2026 shipments: 902,331 (Q2 2025: 924,442).
• Bonus threshold for 2026: $71.70 per ton; royalty calculations use estimated prices and may be adjusted.

Why It Matters

• Royalties are the primary source of cash available for distributions to Mesabi Trust unitholders; the amount and timing of royalty receipts directly affect potential distributions.
• A $0 bonus royalty this quarter reflects lower realized prices for deemed shipments, illustrating that distributions can vary significantly quarter to quarter based on shipment volumes, contract pricing, third‑party sales and other factors.
• The filing reiterates that reported royalty amounts are based on estimates and are subject to verification and adjustments, and that future production curtailments or pricing changes could materially affect future royalties and distributions. For more detail on risks, see Mesabi Trust’s Form 10‑K (fiscal year ended Jan. 31, 2026) and recent 10‑Q.