Mesabi Trust Reports Net Income of $1.02 Million for the First Quarter of 2023
Mesabi Trust Announces Revenue of $1.85 Million in the First Quarter of 2023
Mesabi Trust,(MSB) a mining royalty tr ust, has released its financial statements for the three months ended April 30, 2023. The trust reported a net income of $1.02 million for the quarter, compared to $13.60 million in the same period last year. The revenue for the first quarter of 2023 amounted to $1.85 million, reflecting a decrease compared to the previous year's revenue of $14.20 million. Let's delve into the details of Mesabi Trust's financial performance.
Revenues Decline to $1.85 Million
Mesabi Trust recorded total revenues of $1.85 million for the first quarter of 2023, representing a significant decrease from the revenue of $14.20 million generated in the same period last year. The decline in revenue can be attributed to lower royalty income, which amounted to $1.71 million, compared to $14.19 million in the first quarter of 2022. Additionally, interest income decreased to $137,533, down from $759 in the previous year's corresponding period.
Net Income Drops to $1.02 Million
The net income for Mesabi Trust in the first quarter of 2023 was $1.02 million, a substantial decrease from the net income of $13.60 million reported in the same period last year. The decline in net income can be primarily attributed to the decrease in royalty income. The weighted average number of units outstanding remained the same at 13,120,010 units. As a result, the net income per unit decreased to $0.0780, compared to $1.0362 in the first quarter of 2022.
Financial Position and Cash Flow
As of April 30, 2023, Mesabi Trust had cash and cash equivalents amounting to $13.10 million, down from $13.97 million as of January 31, 2023. The trust also held accrued income receivable of $1.39 million and prepaid expenses of $112,716. The total assets for the trust were reported at $14.60 million.
On the liability side, accrued expenses amounted to $215,479, while the contract liability stood at $1.93 million. The total liabilities for Mesabi Trust were reported at $2.14 million, with the unallocated reserve totaling $12.46 million. The trust corpus remained unchanged at $3.
In terms of cash flows, Mesabi Trust reported a net cash outflow from operating activities of $863,643 for the first quarter of 2023, compared to a net cash inflow of $13.10 million in the same period last year. The trust did not engage in any significant investing activities during the quarter. Additionally, no distributions were made to unitholders in the first quarter of 2023.
Mesabi Trust's financial statements for the first quarter of 2023 demonstrate a decline in both revenue and net income compared to the previous year. The decrease in royalty income significantly impacted the trust's financial performance. The trust will continue to monitor market conditions and explore opportunities to optimize its operations in the coming quarters.
