How did MSB's expenses impact profits in Q2 2025?

Mesabi Trust's (MSB) expenses did not significantly impact profits in Q2 2025, as indicated by the available data.

1. **Royalty Payments and Income**: MSB received a total of $2,422,329 in royalties from Cliffs for Q1 2025, which reflects the shipments of 457,728 tons of iron ore during that quarter. This amount does not include any adjustments or additional third-party sales transactions, which suggests that MSB's income for the quarter was primarily derived from the reported royalties.

|code|Ticker|Name|Date|Selling, General, and Administrative Expenses|Net Income|market_code|
|---|---|---|---|---|---|---|
|MSB|MSB.N|Mesabi Trust|2024 Q3|810000|4086066|169|
|MSB|MSB.N|Mesabi Trust|2024 Q4|-2022051|4690791|169|
|MSB|MSB.N|Mesabi Trust|2025 Q1|2766787|3483785|169|
|MSB|MSB.N|Mesabi Trust|2025 Q2|1092015|5397894|169|

2. **Dividend Declaration**: MSB declared a quarterly dividend of $0.56 per share on April 16, 2025, payable on May 20, 2025, with an ex-dividend date of April 30, 2025. This dividend declaration does not provide direct information about expenses but indicates a stable income stream, which is consistent with MSB's business model as a royalty trust.
3. **Business Model and Revenue Stability**: MSB's revenue model is based on royalties from iron ore mining activities, which provides a relatively stable income stream compared to direct mining operations. This structure minimizes the impact of day-to-day operational expenses on profit margins. The trust's focus on asset conservation and revenue generation through a unique trust model suggests that while expenses are inevitable, they are managed in a way that maintains a consistent return for unitholders.

In conclusion, MSB's expenses, as reflected in the available data, did not have a significant negative impact on profits in Q2 2025. The trust's revenue model, which is based on royalties, provides a stable income stream that is less susceptible to the volatility often associated with mining operations' direct costs.