Frankly, even though I am long and might be considered biased, I think this is undervalued based on the following.
NEW YORK--(Business Wire)--The Trustees of Mesabi Trust (NYSE: MSB) declared a distribution of fifty-one and one-half cents ($0.515) per Unit of Beneficial Interest payable on February 20, 2008 to Mesabi Trust Unitholders of record at the close of business on January 30, 2008. This compares to a distribution of thirty-one and one-half cents ($0.315) per Unit for the same period last year.
The increase in the distribution of twenty cents ($0.20) per Unit as compared to the same quarter last year is due to significantly higher shipments of iron ore pellets during the fourth calendar quarter of 2007. 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. Although iron ore pellet prices realized by Northshore with respect to pellets shipped from Mesabi Trust lands were, on average, approximately 3.7 % lower during the fourth calendar quarter of 2007 as compared to the fourth quarter of 2006, the total shipments of iron ore pellets credited to the Trust in the fourth quarter of 2007 increased from 764,807 gross tons in the fourth quarter of 2006 to 1,330,068 gross tons in the fourth quarter of 2007, an increase of 74%. The distribution announced today also reflects certain negative adjustments to royalties paid to the Trust in the second and third calendar quarters of 2007, as discussed more fully below.