What caused MSB's net profit to skyrocket in Q3 2025?

Mesabi Trust's (MSB) net profit experienced a significant increase in Q3 2025, primarily driven by the receipt of substantial royalty payments from Cliffs, the parent company of Northshore. Here's a detailed analysis: 1. **Royalty Payments from Cliffs**: On April 30, 2025, Mesabi Trust received a total of $2,422,329 in royalties from Cliffs for the three months ended March 31, 2025. This amount includes a base royalty of $1,067,762 and a bonus royalty of $1,281,315. The inclusion of a bonus royalty, which is tied to the volume of iron ore pellets and other products produced or shipped, contributed significantly to the overall royalty payment. 2. **Volume of Iron Ore Shipments**: Cliffs credited Mesabi Trust with 457,728 tons of iron ore shipments in Q1 2025, compared to 1,006,692 tons in the same period of the previous year. Although there was a decline in the volume of iron ore pellets shipped, the total volume of iron ore products produced or shipped by Northshore varied based on multiple factors, including Cliffs' operational decisions and general economic conditions in the iron ore industry. 3. **Absence of Adjustments**: The royalty payment received by Mesabi Trust did not include any adjustments related to prior quarters. This means that the royalties recognized in Q3 2025 were solely based on the current quarter's shipments and production, without any adjustments that could have either increased or decreased the royalties. In conclusion, Mesabi Trust's net profit skyrocketed in Q3 2025 due to the receipt of substantial royalty payments from Cliffs, which were primarily based on the volume of iron ore pellets and other products produced or shipped during the quarter. The absence of adjustments related to prior quarters also contributed to the significant increase in net profit.