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Great Northern Iron Ore Properties Trust Reports Operating Results (10-Q)

July 21, 2011 | About:
10qk

10qk

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Great Northern Iron Ore Properties Trust (GNI) filed Quarterly Report for the period ended 2011-06-30.

Great Northern Iron Ore has a market cap of $156.4 million; its shares were traded at around $104.29 with a P/E ratio of 7.9 and P/S ratio of 7.5. The dividend yield of Great Northern Iron Ore stocks is 11.5%. Great Northern Iron Ore had an annual average earning growth of 7.4% over the past 10 years.

Highlight of Business Operations:

We have previously provided information in our various Securities and Exchange Commission filings, including our Annual Report, about the final distribution payable to the certificate holders upon the Trust s termination. The exact final distribution, though not determinable at this time, will generally consist of the sum of the Trust s net monies (essentially, total assets less liabilities and properties) and the balance in the Principal Charges account, less any and all expenses and obligations of the Trust upon termination. To offer a hypothetical example, without factoring in any expenses and obligations of the Trust upon its termination, and using the financial statement values as of December 31, 2010, the net monies were approximately $7,486,000 and the Principal Charges account balance was approximately $4,840,000, resulting in a final distribution payable of approximately $12,326,000, or about $8.22 per share. After payment of this final distribution, the certificates of beneficial interest (shares) would be cancelled and have no further value. It is important to note, however, that the actual net monies on hand and the Principal Charges account balance will most likely fluctuate during the ensuing years and will not be “final” until after the termination and wind-down of the Trust. The Trust offers this example to further inform investors about the conceptual nature of the final distribution and does not imply or guarantee a specific known final distribution amount.

Royalties increased $3,613,017 and $1,286,199 during the six months and three months ended June 30, 2011, respectively, as compared to the same periods in 2010, due mainly to a higher overall average earned royalty rate caused by escalation of producer price indices.

Interest and other income decreased $51,196 and $3,092 during the six months and three months ended June 30, 2011, respectively, as compared to the same periods in 2010, due mainly to less gravel revenues received and reduced yields on the Trust s investments.

Costs and expenses increased $179,059 and $74,015 during the six months and three months ended June 30, 2011, respectively, as compared to the same periods in 2010, due mainly to increased legal expenditures associated with the execution of a new lease and additional pension expense pertaining to the defined benefit pension plan.

At their meeting held on June 10, 2011, the Trustees declared a distribution of $3.00 per share, amounting to $4,500,000 payable July 29, 2011, to certificate holders of record at the close of business on June 30, 2011. The Trustees have now declared two quarterly distributions in 2011. The first, in the amount of $2.25 per share, was paid on April 29, 2011, to certificate holders of record on March 31, 2011; and the second, that being the current distribution. The first and second quarter 2010 distributions were $2.00 and $2.75 per share, respectively. The Trustees intend to continue quarterly distributions and set the record date as of the last business day of each quarter. The next distribution will be paid in late October 2011 to certificate holders of record on September 30, 2011.

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