How did MSB's royalty income surge in Q3 2025?

Mesabi Trust (MSB) did not experience a surge in royalty income in Q3 2025. In fact, the royalties received by Mesabi Trust from Cliffs, the parent company of Northshore, for Q1 2025 were lower than those of the previous year. 1. **Decrease in Iron Ore Shipments**: The royalties received by Mesabi Trust are directly linked to the volume of iron ore shipments. In Q1 2025, Cliffs credited Mesabi Trust with 457,728 tons of iron ore shipments, which is a significant decline from the 1,006,692 tons shipped in the same period of the previous year. This reduction in volume is due to operational decisions, economic conditions, and weather factors. 2. **No Adjustments or Additional Sales Transactions**: The royalties reported in Q1 2025 did not include any adjustments related to previous quarters, nor were there any new third-party arm's-length sales transactions recorded. This indicates that there were no one-time or additional factors that would have boosted the royalties for this period. 3. **Stability of Royalty Payments**: The total royalty payments received by Mesabi Trust on April 30, 2025, were $2,422,329. This amount includes a base royalty of $1,067,762 and a bonus royalty of $1,281,315, as well as a payment to the Mesabi Land Trust of $73,252. While the total amount received was consistent with the previous quarter, the decline in volume highlights the volatility in royalties that Mesabi Trust faces due to the broader economic and industry trends. In conclusion, Mesabi Trust's royalty income did not surge in Q3 2025, and the royalties received were lower than those of the previous year due to a decrease in iron ore shipments and no adjustments or additional transactions.