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Mesabi Trust Reports Operating Results (10-Q)

December 06, 2012 | About:
10qk

10qk

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Mesabi Trust (MSB) filed Quarterly Report for the period ended 2012-10-31.

Mesoblast Ltd. has a market cap of $1.72 billion; its shares were traded at around $5.39 . Mesoblast Ltd. had an annual average earning growth of 21.8% over the past 10 years.

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The table below shows that the base overriding royalties and the bonus royalties for the three months ended October 31, 2012, as compared to the three months ended October 31, 2011, decreased by $872,862 and $1,325,066, respectively. Fee royalties increased by $44,528 over the same period. The decreases in the base overriding royalties and the bonus royalties are both attributable to lower realized sales prices per ton, as compared to the three months ended October 31, 2011.

The table below shows that the base overriding royalties and the bonus royalties for the nine months ended October 31, 2012, as compared to the nine months ended October 31, 2011, decreased by $450,740 and $667,778, respectively. Fee royalties increased by $109,488 over the same period. The decreases in the base overriding royalties and the bonus royalties are both attributable to lower realized sales prices per ton, as compared to the nine months ended October 31, 2011.

Net income for the three months ended October 31, 2012 was $11,624,026, a decrease of $2,132,311 compared to the three months ended October 31, 2011. As with the decrease in total royalty income, the decrease in net income for the quarter ended October 31, 2012 was the result of lower sales prices per ton of iron ore pellets shipped, partially offset by an increase in the volume of tons shipped.

Net income for the nine months ended October 31, 2012 was $25,867,203, a decrease of $1,084,679 as compared to the nine months ended October 31, 2011. The decrease in net income for the nine months ended October 31, 2012 was the result of lower sales prices per ton of iron ore pellets shipped, partially offset by an increase in the volume of tons shipped. The Trusts expenses for the nine month period ended October 31, 2012 increased when compared with the Trusts expenses for the nine month period ended October 31, 2011. The primary factor resulting in higher expenses was the accrual of additional fees payable to the Corporate Trustee in accordance with the Agreement of the Trust and additional fees for the preparation and filing of the Trusts financial statements in XBRL format. The table below summarizes the Trusts income and expenses for the nine months ended October 31, 2012 and October 31, 2011.

The Trustees have determined that the unallocated cash and U.S. Government securities portion of the Unallocated Reserve should be maintained at a prudent level, usually within the range of $500,000 to $1,000,000, to meet present or future liabilities of the Trust. Although the actual amount of the Unallocated Reserve will fluctuate from time to time and may increase or decrease from its current level, it is currently intended that future distributions will be highly dependent upon royalty income as it is received and the level of Trust expenses. The amount of future royalty income available for distribution will be subject to the volume of iron ore product shipments and the dollar level of sales by Northshore. Shipping activity is greatly reduced during the winter months and economic conditions, particularly those affecting the steel industry, may adversely affect the amount and timing of such future shipments and sales. The Trustees will continue to monitor the economic circumstances of the Trust to strike a responsible balance between distributions to Unitholders and the need to maintain reserves at a prudent level, given the unpredictable nature of the iron ore industry, the Trusts dependence on the actions of the lessee/operator, and the fact that the Trust essentially has no other liquid assets.

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