MESABI TRUST Business Summary

Mesabi Trust (MSB) operates as a passive royalty trust, generating revenue through the collection of royalties from iron ore mining operations at the Peter Mitchell Mine in Minnesota. Its business model is centered on a pass-through structure where income is derived from two primary sources: base royalties, calculated at a fixed rate per ton of iron ore pellets shipped, and bonus royalties, which trigger when the realized selling price of iron ore exceeds specific thresholds. The trust’s primary segment is iron ore mining, with all operational activities, including extraction and processing, handled by Northshore Mining Company, a subsidiary of Cleveland-Cliffs Inc. Mesabi Trust competes within the niche of publicly traded royalty trusts against entities such as San Juan Basin Royalty Trust, Permianville Royalty Trust, and Sabine Royalty Trust, distinguishing itself as a pure-play exposure to domestic steel and iron ore pricing without the capital expenditures or operational risks of a traditional mining operator. Established in 1961, the trust is managed by a leadership team of individual and corporate trustees rather than a traditional executive suite, as it maintains no employees or officers. The current individual trustees include Robert C. Berglund, James A. Ehrenberg, Michael P. Mlinar, and Robin Radke, who collectively oversee governance and distributions. Michael Mlinar brings significant industry pedigree as a former Vice President of North American Iron Ore Initiatives at Cleveland-Cliffs, while James Ehrenberg offers extensive experience in corporate trust services from his tenure at U.S. Bank. Deutsche Bank Trust Company Americas serves as the Corporate Trustee, providing administrative and clerical support. The trust is notable for its high institutional ownership, with Horizon Kinetics Asset Management LLC serving as a primary investor alongside other significant holders like Valueworks LLC and Beddow Capital Management.