Financial Analysis

Recent Accounting Pronouncements In July 2025, the FASB issued ASU No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . The ASU is intended to simplify the application of Topic 326 for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606 by providing all entities with a practical expedient to assume that current conditions as of the balance sheet date do not change over the remaining life of the asset. The ASU is effective for annual reporting periods beginning after December 15, 2025, including interim reporting periods within those annual reporting periods, with early adoption permitted. The Trust does not expect the adoption of this standard to have a material impact on the Trusts financial statements. The Trust has evaluated other recently issued accounting pronouncements and interpretations that are effective for the fiscal year ended January 31, 2026, and has determined they do not have a material effect on the Trusts financial position, results of operations or cash flows. The Trust has also evaluated accounting standards and interpretations that were issued during the fiscal year ended January 31, 2026, that will be effective for subsequent fiscal years and does not believe they will have a material effect on the Trusts financial position, results of operations or cash flows when adopted. …

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents The Trust considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. As of January 31, 2026 and 2025, the Trust held $23,162,609 and $100,204,531, respectively, in U.S. Government Securities with maturities of less than three months, or a money market fund that invests primarily in obligations of the U.S. Treasury, which it considers to be cash equivalents. Revenue Recognition The Trust accounts for revenue in accordance with ASC 606 - Revenue from Contracts with Customers . All revenue is recognized as the performance obligations are satisfied. In accordance with the Royalty Agreement, the Trust recognizes revenue for providing access to the lands and minerals only after the consideration that it is entitled to receive is determinable. Prior to the outcome of the arbitration that commenced on December 9, 2019, as described further below, the Trust was not entitled to consideration for base and bonus royalties until product was shipped from the NMC facility in Silver Bay, Minnesota. After the outcome of the arbitration and consistent with Cliffs payment and pricing practices, the Trust is entitled to payment upon production of pellets to be sold for internal use by facilities owned by Cliffs or its subsidiaries. As a result, the Trust recognizes revenue for internal use pellets upon production of those pellets, which are deemed to be shipped und …

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Three Months Ended April 30, 2026 2025 Base overriding royalties $ 1,885,699 $ 2,425,094 Bonus royalties 1,783,835 Fee royalties 192,112 140,543 Total royalty income $ 2,077,811 $ 4,349,472 …

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Note 2. Net income per unit is based on 13,120,010 units outstanding during all periods presented. The Trust accounts for revenue in accordance with ASC 606 - Revenue from Contracts with Customers. All revenue is recognized as the performance obligations are satisfied. Mesabi Trust holds all of the interests formerly owned by Mesabi Iron Company (MIC), including all right, title and interest in the Amendment of Assignment, Assumption and Further Assignment of Peters Lease dated August 17, 1989 among the trustees of Mesabi Trust, Bruce D. Sherling, as Trustee in Bankruptcy for the Estate of Reserve Mining Company, and Cypress Northshore Mining Corporation, predecessor to Northshore Mining Company (referred to as the Amended Assignment of Peters Lease or the Royalty Agreement). In accordance with the Royalty Agreement, the Trust recognizes revenue for providing access to the lands and minerals only after the consideration that it is entitled to receive is determinable. The Trust is entitled to payment upon production of pellets to be sold for internal use by facilities owned by Cleveland-Cliffs Inc. (Cliffs), the parent company of Northshore Mining Company (Northshore or NMC), or its subsidiaries. As a result, the Trust recognizes revenue for internal use pellets upon production of those pellets, which are deemed to be shipped under the Royalty Agreement, regardless of pellet grade. Pellets that are not designated for internal use by Cliffs, or its subsidiaries, are recognized …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing