Mesabi Trust (MSB) declared a distribution of 70 cents per unit payable on Feb. 20 to unitholders of record at the close of business on Jan. 30. That compares with a distribution of $1.39 per unit for the same period last year.

The  decrease is primarily attributable to a lower volume of iron ore shipments at lower prices during the three-month period ended Sept. 30 and to the trust’s receipt of total royalty payments of $12,095,964 on Oct. 30, 2019, from Northshore Mining Company, which was lower than the total royalty payments of $18,259,954 received from Northshore in October 2018. 

The payment also reflects that the trust’s most recent balance sheet includes a contract liability representing iron ore that has not been shipped by Northshore, but for which the trust has received a royalty payment based on an initial estimated price. Revenue will be recognized in accordance with the trust’s revenue recognition policy at the estimated prices for iron ore products sold under the Cliffs Pellet Agreement as shipments of the products are actually made.