MSB
- Mesabi Trust
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Overview
Company Summary
Mesabi Trust (MSB) is a unique type of investment trust that holds interests in a range of iron ore properties located in the Mesabi Iron Range in northern Minnesota. The trust was formed in 1961 and is structured in a way that allows its shareholders to benefit from the royalties earned by the mining companies operating on its properties.
Mesabi Trust does not directly engage in any mining or exploration activities itself. Instead, it leases its properties to mining companies, primarily Northshore Mining Company, which is a subsidiary of Cleveland-Cliffs Inc. In return for the lease, the mining companies pay Mesabi Trust royalties based on the volume of iron ore extracted and sold from the leased properties.
The royalty income generated by Mesabi Trust is distributed to its shareholders on a quarterly basis as cash dividends. The amount of dividends paid to shareholders fluctuates based on several factors, including the price of iron ore, production volumes, and mining costs. Therefore, the income earned by shareholders may vary from quarter to quarter.
As an investment trust, Mesabi Trust provides investors with an opportunity to indirectly participate in the iron ore industry's performance without having to be directly involved in mining operations. Investors can acquire shares of Mesabi Trust on stock exchanges like any other publicly traded company.
It's worth noting that Mesabi Trust is a passive entity and its success is closely linked to the overall iron ore market conditions and the performance of the mining companies operating on its properties.