Mesabi Trust Declares Distribution



    NEW YORK, April 13 /CNW/ - The Trustees of Mesabi Trust (NYSE:   MSB)
declared a distribution of four and one-half cents ($0.045) per Unit of
Beneficial Interest payable on May 20, 2007 to Mesabi Trust Unitholders of
record at the close of business on April 30, 2007. This compares to a
distribution of thirty cents ($0.30) per Unit for the same period last year.

    The decrease in the distribution of twenty five and one-half cents
($0.255) per Unit as compared to the same quarter last year is due to two
factors: price adjustments for shipments made during prior years were
substantially lower during the current fiscal quarter compared to a year ago,
and there were no shipments of iron ore pellets during the first calendar
quarter of 2007. In the same period one year ago, the Trust received
substantial royalty payments representing final and estimated price
adjustments totaling $3,112,536 for pellets shipped in previous years,
compared with the Trust expecting to receive payments of only $359,911 for
final and estimated price adjustments during the current fiscal quarter.

    The Trust receives royalties based on the volume of shipments and the
selling prices of iron ore pellets shipped by Northshore Mining Company
("Northshore"), the lessee/operator of the Mesabi Trust lands. Because the
Great Lakes shipping lanes are frozen or not navigable during most of the
first calendar quarter, there are normally few or no shipments of iron ore
pellets from Northshore during that time. Although Northshore did add iron ore
pellets to its inventory through continued production in the first calendar
quarter of 2007, there were no pellets shipped during this period so the Trust
was credited with only the minimum advance royalty. Comparatively, Northshore
did make some shipments in the first calendar quarter of 2006 and thus the
Trust received base and bonus royalties in excess of the minimum advance
royalty with respect to that quarter.

    The total royalty payment expected to be received by Mesabi Trust on
April 30, 2007 is $644,591 (which includes the fee royalty expected to be
received by the Mesabi Land Trust). Because no shipments of iron ore were made
by Northshore during the first calendar quarter of 2007, Mesabi Trust was
credited with only a minimum advance royalty of $191,628 and no bonus royalty
will be paid to the Trust for the quarter. As noted above, part of the total
royalty payment expected to be received by the Trust on April 30 is an
aggregate amount of $359,911, which primarily represents final and estimated
pricing adjustments for shipments of iron ore in prior years. These payments
will be subject to further adjustment in the future, which adjustments may be
positive or negative. Such adjustments will be made, if any, pursuant to term
contracts between Northshore, Northshore's parent Cleveland-Cliffs Inc ("CCI")
and certain of their customers (the "CCI Pellet Agreements"), and the
adjustments will not be communicated to the Trust until after the end of a
contract year.

    As previously disclosed by Mesabi Trust, the prices under the CCI Pellet
Agreements are subject to interim and final pricing adjustments, dependent in
part on multiple price and inflation index factors that are not known until
after the end of a contract year. This can result in significant and frequent
variations in royalties received by Mesabi Trust (and in turn the resulting
amount available for distribution to Unitholders by the Trust) from quarter to
quarter and on a comparative historical basis. Royalty payments received by
the Trust in 2006 and 2007 continue to reflect pricing estimates for shipments
of iron ore products that may be subject to further adjustment (upward or
downward) in accordance with the CCI Pellet Agreements. CCI has not provided
Mesabi Trust with projections about any possible pricing (and resulting
royalty) adjustments that might impact future distributions. Accordingly,
these variations, which can be positive or negative, cannot be predicted by
Mesabi Trust.

    The volume of shipments of iron ore pellets by Northshore varies from
quarter to quarter and year to year based on a number of factors, including
weather conditions on the Great Lakes, the requested delivery schedules of
customers and general economic conditions in the iron ore industry. The
royalties paid to the Trust are dependent on the volume of shipments of iron
ore pellets for the quarter and the year to date, the pricing of the iron ore
product sales and the percentage of iron ore pellet shipments from Mesabi
Trust lands rather than from other lands. Northshore has not provided the
Mesabi Trustees with a forecast of the production of iron ore pellets from
Northshore, the volume of shipments of iron ore pellets or the percentage of
such production and shipments that will be from Mesabi Trust iron ore.

    This press release contains certain forward-looking statements with
respect to iron ore pellet production, iron ore pricing, shipments by
Northshore in 2007 and royalty (including bonus royalty) amounts, which
statements are intended to be made under the safe harbor protections of the
Private Securities Litigation Reform Act of 1995, as amended. Actual
production, prices and shipments of iron ore pellets, price adjustments if
any, as well as actual royalty levels (including bonus royalties) could differ
materially from current expectations due to inherent risks such as general and
industry economic trends, uncertainties arising from war, terrorist events and
other global events, higher or lower demand for steel and iron ore, higher
imports of steel and iron ore substitutes, processing difficulties,
consolidation and restructuring in the domestic steel market, indexing
features in CCI Pellet Agreements resulting in adjustments to royalties
payable to the Trust or other factors. Further, substantial portions of
royalties earned by Mesabi Trust are based on estimated prices that are
subject to interim and final adjustments, which can be positive or negative,
and are dependent in part on multiple price and inflation index factors under
agreements to which the Trust is not a party and that are not known and
communicated to the Trust until after the end of a contract year. Although the
Mesabi Trustees believe that any such forward-looking statements are based on
reasonable assumptions, such statements are subject to risks and
uncertainties, which could cause actual results to differ materially.




For further information:

For further information: Mesabi Trust SHR Unit Deutsche Bank Trust
Company Americas 615-835-2749

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MESABI TRUST

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