What factors contributed to MSB's expense reduction?

Mesabi Trust (MSB) experienced a decline in total expenses, which can be attributed to several key factors:

1. **Decrease in Royalty Payments**: The primary factor contributing to MSB's reduced expenses is the decrease in royalty payments received from Cliffs, the parent company of Northshore. For the three months ended March 31, 2025, Mesabi Trust was credited with a base royalty of $1,067,762 and a bonus royalty of $1,281,315, totaling $2,422,329. This amount is lower compared to the royalties received for the same period in the previous year, where Mesabi Trust was credited with royalties based on shipments of 1,006,692 tons of iron ore.
2. **Volume of Iron Ore Shipments**: The reduction in the volume of iron ore pellets and other products produced or shipped by Northshore is a significant factor. Cliffs credited Mesabi Trust with 457,728 tons of iron ore shipments in Q1 2025, a decline from 1,006,692 tons in Q1 2024. This decrease in volume directly impacts the royalties received by Mesabi Trust.
3. **Economic Conditions and Weather**: The variability in royalties received by Mesabi Trust is influenced by broader economic conditions and weather-related factors. These factors can cause significant fluctuations in the volume of iron ore shipments and, consequently, the royalties received. For instance, the decline in shipments from May 2022 until April 2023 was due to operational decisions and weather conditions.

In summary, the reduction in MSB's expenses can be attributed to a combination of decreased royalty payments from Cliffs, lower volume of iron ore shipments, and the impact of economic conditions and weather. These factors collectively contribute to the overall decrease in MSB's total expenses.