northshore

Royalty Holder………….Mesabi Trust
Revenue……………..…..……………$30m
Mine Life...…………………Undisclosed
Commodity……………………….Iron Ore
Operator…………….Cliffs Natural Res

#17 Mesabi Trust

New York-based Mesabi Trust boasts a $171m market cap, feeding off the Peter Mitchell iron ore mine in Minnesota.

The mine is one of the last functioning parts of troubled mining group Cliffs, which is currently being broken apart, after an ill-timed acquisition spree outside the US.

Royalty revenue is erratic, fluctuating with shipments, a bonus royalty and land royalty payments, but the operations can ship 6.2m tonnes per annum and Mesabi's revenue tripped through $30m in 2013.

Administered by Deutsche Bank, Mesabi's trust structure might block corporate activity. It also contains some bizarre tax quirks. Its royalty rights, for example, lapse 21 year after the last person dies on a list of 25, but as the trust was only formed in 1961, it is likely to still have plenty of kicking legs.

 

 

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