Mesabi Trust (MSB) 10-K 15 Apr 15 2015 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Jan. 31, 2015	Apr. 13, 2015	Jul. 31, 2014
Document and Entity Information
Entity Registrant Name	MESABI TRUST
Entity Central Index Key	65172
Document Type	10-K
Document Period End Date	31-Jan-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$243,333,174
Entity Common Stock, Shares Outstanding		13,120,010
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Jan. 31, 2015	Jan. 31, 2014
ASSETS
CASH AND CASH EQUIVALENTS	$8,717,943	$7,719,963
U.S. GOVERNMENT SECURITIES, at amortized cost (which approximates market)	510,573	205,055
ACCRUED INCOME RECEIVABLE	558,385	63,253
PREPAID EXPENSE	54,957	54,950
CURRENT ASSETS	9,841,858	8,043,221
U.S. GOVERNMENT SECURITIES, at amortized cost (which approximates market)	255,759	510,573
Assignments of leased property
Amended assignment of Peters Lease	1	1
Assignment of Cloquet Leases	1	1
Certificate of beneficial interest for 13,120,010 units of Land Trust	1	1
TOTAL FIXED PROPERTY, including intangibles, at nominal values	3	3
TOTAL ASSETS	10,097,620	8,553,797
LIABILITIES, UNALLOCATED RESERVE AND TRUST CORPUS
DISTRIBUTION PAYABLE	8,396,806	7,478,406
ACCRUED EXPENSES	89,687	91,294
TOTAL LIABILITIES	8,486,493	7,569,700
UNALLOCATED RESERVE	1,611,124	984,094
TRUST CORPUS	3	3
TOTAL LIABILITIES, UNALLOCATED RESERVE AND TRUST CORPUS	$10,097,620	$8,553,797

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical)	Jan. 31, 2015	Jan. 31, 2014
BALANCE SHEETS
Certificate of beneficial interest of land trust, units	13,120,010	13,120,010

STATEMENTS_OF_INCOME

STATEMENTS OF INCOME (USD $)	12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2013
REVENUES
Royalties under amended lease agreements	$25,398,310	$21,497,563	$30,767,335
Royalties under Peters Lease fee	672,736	545,028	794,146
Interest	9,069	2,562	1,464
Total revenues	26,080,115	22,045,153	31,562,945
EXPENSES
Compensation of Trustees	223,390	213,373	248,624
Corporate Trustee's administrative fees	62,500	62,500	62,500
Professional fees and expenses:
Legal	452,248	306,564	214,629
Accounting	125,377	106,699	116,563
Mining consultant and field representatives	28,541	53,680	25,368
Insurance	120,109	121,724	120,843
Annual stock exchange fee	42,255	42,115	38,444
Transfer agent's and registrar's fees	9,603	8,081	8,381
Other Trust expenses	248,244	74,128	72,856
Total expenses	1,312,267	988,864	908,208
NET INCOME	$24,767,848	$21,056,289	$30,654,737
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING	13,120,010	13,120,010	13,120,010
NET INCOME PER UNIT (in dollars per unit)	$1.89	$1.61	$2.34

STATEMENTS_OF_UNALLOCATED_RESE

STATEMENTS OF UNALLOCATED RESERVE AND TRUST CORPUS (Equity) (USD $)	Unallocated Reserve Number of Units	Unallocated Reserve	Trust Corpus	Total
		USD ($)	USD ($)	USD ($)
BALANCE at Jan. 31, 2012		$1,031,508	$3
BALANCE (in units) at Jan. 31, 2012	13,120,010
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Distribution paid $.88, $.32, $.00, $.51, $.46, $.08, $1.13 , $.64, $.065, per unit for November 20, 2014, August 20, 2014, May 20, 2014, November 20, 2013, August 20, 2013, May 20, 2013, November 20, 2012, August 20, 2012, May 20, 2012, respectively		-852,801
BALANCE at May. 20, 2012
BALANCE at Jan. 31, 2012		1,031,508	3
BALANCE (in units) at Jan. 31, 2012	13,120,010
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Distribution paid $.88, $.32, $.00, $.51, $.46, $.08, $1.13 , $.64, $.065, per unit for November 20, 2014, August 20, 2014, May 20, 2014, November 20, 2013, August 20, 2013, May 20, 2013, November 20, 2012, August 20, 2012, May 20, 2012, respectively		-8,396,806
BALANCE at Aug. 20, 2012
BALANCE at Jan. 31, 2012		1,031,508	3
BALANCE (in units) at Jan. 31, 2012	13,120,010
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Distribution paid $.88, $.32, $.00, $.51, $.46, $.08, $1.13 , $.64, $.065, per unit for November 20, 2014, August 20, 2014, May 20, 2014, November 20, 2013, August 20, 2013, May 20, 2013, November 20, 2012, August 20, 2012, May 20, 2012, respectively		-14,825,611
BALANCE at Nov. 20, 2012
BALANCE at Oct. 31, 2012
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Distribution declared $.64, $.57, $.49 per unit for January 16, 2015, January 17, 2014, January 15, 2013 respectively and paid on February 20, 2015, 2014 and 2012, respectively		-6,428,805
BALANCE at Jan. 31, 2013		1,182,222	3
BALANCE (in units) at Jan. 31, 2013	13,120,010
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Distribution paid $.88, $.32, $.00, $.51, $.46, $.08, $1.13 , $.64, $.065, per unit for November 20, 2014, August 20, 2014, May 20, 2014, November 20, 2013, August 20, 2013, May 20, 2013, November 20, 2012, August 20, 2012, May 20, 2012, respectively		-1,049,601
BALANCE at May. 20, 2013
BALANCE at Jan. 31, 2013		1,182,222	3
BALANCE (in units) at Jan. 31, 2013	13,120,010
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Distribution paid $.88, $.32, $.00, $.51, $.46, $.08, $1.13 , $.64, $.065, per unit for November 20, 2014, August 20, 2014, May 20, 2014, November 20, 2013, August 20, 2013, May 20, 2013, November 20, 2012, August 20, 2012, May 20, 2012, respectively		-6,035,205
BALANCE at Aug. 20, 2013
BALANCE at Jan. 31, 2013		1,182,222	3
BALANCE (in units) at Jan. 31, 2013	13,120,010
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Distribution paid $.88, $.32, $.00, $.51, $.46, $.08, $1.13 , $.64, $.065, per unit for November 20, 2014, August 20, 2014, May 20, 2014, November 20, 2013, August 20, 2013, May 20, 2013, November 20, 2012, August 20, 2012, May 20, 2012, respectively		-6,691,205
BALANCE at Nov. 20, 2013
BALANCE at Oct. 31, 2013
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Net income				5,092,605
Distribution declared $.64, $.57, $.49 per unit for January 16, 2015, January 17, 2014, January 15, 2013 respectively and paid on February 20, 2015, 2014 and 2012, respectively		-7,478,406
BALANCE at Jan. 31, 2014		984,094	3	3
BALANCE (in units) at Jan. 31, 2014	13,120,010
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Distribution paid $.88, $.32, $.00, $.51, $.46, $.08, $1.13 , $.64, $.065, per unit for November 20, 2014, August 20, 2014, May 20, 2014, November 20, 2013, August 20, 2013, May 20, 2013, November 20, 2012, August 20, 2012, May 20, 2012, respectively		-4,198,403
BALANCE at Aug. 20, 2014
BALANCE at Jan. 31, 2014		984,094	3
BALANCE (in units) at Jan. 31, 2014	13,120,010
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Distribution paid $.88, $.32, $.00, $.51, $.46, $.08, $1.13 , $.64, $.065, per unit for November 20, 2014, August 20, 2014, May 20, 2014, November 20, 2013, August 20, 2013, May 20, 2013, November 20, 2012, August 20, 2012, May 20, 2012, respectively		-11,545,609
BALANCE at Nov. 20, 2014
BALANCE at Oct. 31, 2014
Increase (Decrease) in Unallocated Reserve and Trust Corpus
Net income				5,674,482
Distribution declared $.64, $.57, $.49 per unit for January 16, 2015, January 17, 2014, January 15, 2013 respectively and paid on February 20, 2015, 2014 and 2012, respectively		-8,396,806
BALANCE at Jan. 31, 2015		$1,611,124	$3	$3
BALANCE (in units) at Jan. 31, 2015	13,120,010

STATEMENTS_OF_UNALLOCATED_RESE1

STATEMENTS OF UNALLOCATED RESERVE AND TRUST CORPUS (Parenthetical) (USD $)	3 Months Ended
	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Jan. 31, 2014	Oct. 31, 2013	Jul. 31, 2013	Jan. 31, 2013	Oct. 31, 2012	Jul. 31, 2012
STATEMENTS OF UNALLOCATED RESERVE AND TRUST CORPUS
Distribution paid (in dollars per unit)	$0.88	$0.32	$0	$0.51	$0.46	$0.08	$1.13	$0.64	$0.07
Distributions declared per unit (in dollars per unit)	$0.64			$0.57			$0.49

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2013
OPERATING ACTIVITIES
Royalties received	$25,576,105	$22,197,875	$31,731,348
Interest received	8,878	2,078	1,524
Expenses paid	-1,313,881	-930,877	-1,042,405
NET CASH FROM OPERATING ACTIVITIES	24,271,102	21,269,076	30,690,467
INVESTING ACTIVITIES
Maturities of U.S. Government securities	205,056	438,875	35,000
Purchases of U.S. Government Securities	-255,760	-510,633	-205,054
NET CASH FROM (USED FOR) INVESTING ACTIVITIES	-50,704	-71,758	-170,054
FINANCING ACTIVITY
Distributions to unitholders	-23,222,418	-20,204,816	-34,046,426
NET CHANGE IN CASH AND CASH EQUIVALENTS	997,980	992,502	-3,526,013
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	7,719,963	6,727,461	10,253,474
CASH AND CASH EQUIVALENTS, END OF YEAR	8,717,943	7,719,963	6,727,461
RECONCILIATION OF NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
Net income	24,767,848	21,056,289	30,654,737
Decrease (increase) in accrued income receivable	-495,132	154,800	169,927
Decrease (increase) in prepaid expense	-7	1,623	-2,806
Increase (decrease) in accrued expenses	-1,607	56,364	-131,391
NET CASH FROM OPERATING ACTIVITIES	24,271,102	21,269,076	30,690,467
NON CASH FINANCING ACTIVITY
Distributions declared and payable	$8,396,806	$7,478,406	$6,428,805

NATURE_OF_BUSINESS_AND_ORGANIZ

NATURE OF BUSINESS AND ORGANIZATION	12 Months Ended
	Jan. 31, 2015
NATURE OF BUSINESS AND ORGANIZATION
NATURE OF BUSINESS AND ORGANIZATION
	NOTE 1 -               NATURE OF BUSINESS AND ORGANIZATION
	Nature of Business
	Mesabi Trust was created in 1961 upon the liquidation of Mesabi Iron Company. The sole purpose of the Trust, as set forth in the Agreement of Trust dated as of July 18, 1961, is to conserve and protect the Trust Estate and to collect and distribute the income and proceeds there from to the Trust’s certificate holders after the payment of, or provision for, expenses and liabilities. The Agreement of Trust prohibits the Trust from engaging in any business.  In accordance with the Agreement of Trust, the Trust will terminate twenty-one years after the death of the survivor of twenty-five persons named in an exhibit to the Agreement of Trust, the youngest of whom was believed to be fifty-four years old as of October 1, 2014.
	The lessee/operator of Mesabi Trust’s mineral interests is Northshore Mining Corporation (NMC), a subsidiary of Cliffs Natural Resources Inc. (Cliffs). Cliffs is among the world’s largest producers of iron ore products. Prior to September 30, 1994, the lessee/operator had been a subsidiary of Cyprus Amax Minerals Company and was named Cyprus Northshore Mining Corporation (Cyprus NMC).
	Organization
	The beneficial interest in Mesabi Trust is represented by 13,120,010 transferable units distributed on July 27, 1961 to shareholders of Mesabi Iron Company.
	The Trust’s status as a grantor trust was confirmed by letter ruling addressed to Mesabi Iron Company from the Internal Revenue Service in 1961. As a grantor trust, Mesabi is exempt from Federal income taxes and its income is taxable directly to the Unitholders.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jan. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	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, 2015 and 2014, the Trust held $8,717,943 and $7,719,963, respectively, in a money market fund that invests primarily in obligations of the U.S. Treasury, which it considers to be cash and cash equivalents.
	Investments
	The Trust invests solely in U.S. Government securities. The Trustees determine the appropriate classifications of the securities at the time they are acquired and evaluate the appropriateness of such classifications as of each balance sheet date.
	The U.S. Government securities are classified as held-to-maturity securities as the Trust has the positive intent and ability to hold to maturity and are therefore stated at amortized cost.
	Revenue Recognition
	Royalty income under the amended lease agreements with NMC is recognized as it is earned. Under such agreements, royalties are earned upon shipment from Silver Bay, Minnesota (NMC’s location), regardless of whether the actual sales proceeds for any shipment are received by NMC’s parent, Cliffs.  The amount of base overriding royalties and royalty bonuses payable are determined on the volume of tonnage shipped from Silver Bay, Minnesota during each calendar quarter and the actual proceeds to Cliffs resulting from such shipments.
	Royalty income includes accrued income receivable.  Accrued income receivable represents royalty income earned but not yet received by the Trust under the royalty agreements described elsewhere in these notes.   Accrued income receivable is calculated based on (i) shipments during the last month of Mesabi Trust’s fiscal year, if any, and (ii) net price adjustments resulting from the price adjustment mechanisms in the agreements between Cliffs and its customers that determine the final sales price of the shipments from Silver Bay, Minnesota.
	Adjustments to royalty income may result from changes in final reconciliations of tonnage shipped by NMC with the final amounts received from NMC customers.  Adjustments may also result from revisions to estimated prices previously used to record revenue for tonnage shipped.  Pricing decreases may give rise to negative price adjustments which may be applied against future royalty income recognized by the Trust.
	During the fourth quarter of fiscal 2015, negative price adjustments were recorded by Mesabi Trust as an offset to accrued income receivable due to price adjustment mechanisms in the agreements between Cliffs and its customers that determine the final sales price of the shipments from NMC with respect to certain shipments during calendar year 2013.  As of January 31, 2015, the Trust recognized revenue related to approximately 702,400 tons of iron ore that were shipped by NMC as of December 31, 2014, but for which Cliffs has indicated that final pricing is not yet known.  Pricing related to these tons is expected to be finalized in the first calendar quarter of 2016.
	Royalty income under the Peters Lease fee agreement is also recognized quarterly as it is earned. Under such agreement, however, royalties are earned at the option of NMC either upon mining of crude ore from Peters Lease lands or upon shipment from Silver Bay of iron ore product produced from Peters Lease lands.
	Fixed Property, Including Intangibles
	The Trust’s fixed property, including intangibles, is recorded at nominal values and includes the following:
	1.        The entire beneficial interest as assignor in the Amended Peters Lease Assignment and the Amended Cloquet Lease Assignment covering taconite properties in Minnesota which are leased to NMC.
	2.The entire beneficial interest in Mesabi Land Trust which owns a 20% fee interest in the lands subject to the Peters Lease and the entire fee interest in other properties in Minnesota.
	Net Income Per Unit
	Net income per unit is computed by dividing net income by the weighted average number of units outstanding.
	Concentration of Credit Risk
	Financial instruments which potentially subject the Trust to concentrations of credit risk consist primarily of cash that is maintained at an FDIC insured financial institution. At times during the year the Trust’s cash balance may exceed insured limits.
	As further described in Note 1, NMC is the lessee/operator of the Mesabi Trust land.  All royalty income earned by the Trust is received from NMC, and accordingly, substantially all of the accrued income receivable is also due from NMC.
	Accounting Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires the Trustees to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.  Specifically, the accrued income receivable, deferred royalty revenue and related royalty revenue are significant estimates which are subject to change in the near term, and changes to these estimates could have a material effect on the Trust’s financial statements.
	Subsequent Events
	Material subsequent events are evaluated for recognition or disclosure in the accompanying financial statements.
	Fair Value Measures
	Valuation Hierarchy
	GAAP establishes a three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.
		·	Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets.
		·	Level 2 — Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
		·	Level 3 — Valuation is based upon other unobservable inputs that are significant to the fair value measurement.
	The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety.
	The carrying amounts of financial instruments approximated fair value as of January 31, 2015 and 2014, because of the relative short maturity of these instruments.
	Recent Accounting Pronouncements
	The Trust has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on the Trust’s financial condition or results of its operations. The Trust would like to draw further attention to the following issued pronouncement regarding the accounting for revenue from contracts with customers:
	Revenue from Contracts with Customers
	In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” which supersedes the guidance in “Revenue Recognition (Topic 605)” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Trust is evaluating the new standard, but do not expect this standard to have a material impact on our consolidated financial statements.
	Various accounting standards and interpretations were issued during the fiscal year ended January 31, 2015. The Trust has evaluated the recently issued accounting pronouncements that are effective for the fiscal year ended January 31, 2015 and believe they will not have a material effect on the Trust’s financial position, results of operations or cash flows when adopted.

U_S_GOVERNMENT_SECURITIES

U. S. GOVERNMENT SECURITIES	12 Months Ended
	Jan. 31, 2015
U. S. GOVERNMENT SECURITIES
U. S. GOVERNMENT SECURITIES
	U.S. government securities at January 31, 2015 and 2014 are classified as held-to-maturity and mature as follows:
		2015				2014
		Carrying				Carrying
		Value		Fair Value		Value		Fair Value
	Due within one year	$	510,573	$	501,668	$	205,055	$	205,057
	Due after one year	255,759		255,487		510,573		507,996
		$	766,332	$	757,155	$	715,628	$	713,053
	The fair value of U.S. government securities have been valued using level 1 inputs.

ROYALTY_AGREEMENT

ROYALTY AGREEMENT	12 Months Ended
	Jan. 31, 2015
ROYALTY AGREEMENT
ROYALTY AGREEMENT
	NOTE 4 -               ROYALTY AGREEMENT
	The current royalty rate schedule became effective on August 17, 1989, which was established pursuant to certain agreements (the “Amended Assignment Agreements”) the Trust entered into with Cyprus Northshore Mining Corporation (“Cyprus NMC”).  Pursuant to the Amended Assignment Agreements, overriding royalties are determined by both the volume and selling price of iron ore products shipped.
	Pursuant to the Amended Assignment Agreements, NMC is obligated to pay Mesabi Trust base overriding royalties, in varying amounts constituting a percentage of the gross proceeds of shipments, from Silver Bay, Minnesota, of iron ore product produced from Mesabi Trust lands or, to a limited extent, other lands.  NMC is obligated to make payments of overriding royalties on product shipments within 30 days following the calendar quarter in which such shipments occur.  NMC resumed mining operations and shipping product from Silver Bay in the second calendar quarter of 1990, and the first payment of overriding royalties was made in July 1990.
	Royalty bonuses are payable on all iron ore products produced from Mesabi Ore shipped from Silver Bay during a calendar quarter and sold at prices above the Adjusted Threshold Price.  The Adjusted Threshold Price was $51.55 per ton for calendar year 2013, $52.31 per ton for calendar year 2014, and will be $53.01 per ton for calendar year 2015.  The Adjusted Threshold Price is subject to adjustment (but not below $30 per ton) for inflation and deflation and is determined each year on the basis of the change in the Gross Domestic Product Implicit Price Deflator, a broad based index of inflation and deflation published quarterly by the U.S. Department of Commerce.
	NMC is obligated to pay to Mesabi Trust a minimum advance royalty of $500,000 per annum, subject to adjustment for inflation and deflation (but not below $500,000), which is credited against base overriding royalties and royalty bonuses. NMC is obligated to make quarterly payments of the minimum advance royalty in January, April, July and October of each year. For the calendar year ending December 31, 2015, the minimum advance royalty threshold is $883,875. The minimum annual advance royalty threshold was $872,156 and $859,429, for the calendar years ended December 31, 2014 and 2013, respectively.

UNALLOCATED_RESERVE_AND_DISTRI

UNALLOCATED RESERVE AND DISTRIBUTIONS	12 Months Ended
	Jan. 31, 2015
UNALLOCATED RESERVE AND DISTRIBUTIONS
UNALLOCATED RESERVE AND DISTRIBUTIONS
	NOTE 5 -              UNALLOCATED RESERVE AND DISTRIBUTIONS
	The Trustees have historically determined that the unallocated cash and U.S. Government securities portion of the Unallocated Reserve should be maintained at a prudent level, usually within the range of $500,000 to $1,000,000, to meet present or future liabilities of the Trust.  Accordingly, although the actual amount of the Unallocated Reserve will fluctuate from time to time, and may increase or decrease from its current level, it is currently anticipated that future distributions will be highly dependent upon royalty payments received quarterly and the level of Trust expenses that the Trustees expect to occur in subsequent quarters.
	As of January 31, 2015 and January 31, 2014, the unallocated cash and U.S. Government securities portion of the Trust’s Unallocated Reserve consisted of the following components:
		January 31, 2015			January 31, 2014
	Cash and U.S. Government securities	$	9,484,275		$	8,435,591
	Distribution payable	8,396,806			7,478,406
	Unallocated cash and U.S. Government securities	$	1,087,469		$	957,185
	A reconciliation of the Trust’s Unallocated Reserve from January 31, 2014 to January 31, 2015 is as follows:
	Unallocated Reserve, January 31, 2014	$	984,094
	Net income, twelve months ended January 31, 2015	24,767,848
	Distributions declared	(24,140,818		)
	Unallocated Reserve, January 31, 2015	$	1,611,124
	The Trustees determine the level of distributions on a quarterly basis after receiving notification from NMC as to the amount of royalty income that will be received and after determination of any known or anticipated expenses, liabilities and obligations of the Trust.  As a result of fluctuations in the accrued income receivable portion of the Unallocated Reserve, future distributions may vary depending upon the adjustments to royalty income, which are determined by NMC, and the level of Trust expenses that the Trustees anticipate occurring in subsequent quarters.
	During the fiscal years ended January 31, 2015, 2014, and 2013, the Trustees distributed cash payments totaling $23,222,418 ($1.770 per Unit), $20,204,816 ($1.540 per Unit), and $34,046,426 ($2.595 per Unit), respectively. In addition, in January 2015 the Trustees declared a distribution of $0.64 per Unit of beneficial interest, which was paid in February 2015.

SUMMARY_OF_QUARTERLY_EARNINGS_

SUMMARY OF QUARTERLY EARNINGS (UNAUDITED)	12 Months Ended
	Jan. 31, 2015
SUMMARY OF QUARTERLY EARNINGS (UNAUDITED)
SUMMARY OF QUARTERLY EARNINGS (UNAUDITED)
	NOTE 6 -               SUMMARY OF QUARTERLY EARNINGS (UNAUDITED)
	The quarterly results of operations for the years ended January 31, 2014 and 2013 are presented below:
		2015
		First		Second		Third		Fourth
		Quarter		Quarter		Quarter		Quarter
	Revenue	$	503,435	$	7,860,360	$	11,782,758	$	5,933,562
	Expenses	366,217		443,818		243,152		259,080
	Net income	$	137,218	$	7,416,542	$	11,539,606	$	5,674,482
	Net income per unit	$	0.010	$	0.565	$	0.880	$	0.433
		2014
		First		Second		Third		Fourth
		Quarter		Quarter		Quarter		Quarter
	Revenue	$	2,528,807	$	7,834,715	$	6,347,628	$	5,334,003
	Expenses	326,418		209,935		211,113		241,398
	Net income	$	2,202,389	$	7,624,780	$	6,136,515	$	5,092,605
	Net income per unit	$	0.168	$	0.581	$	0.468	$	0.388

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jan. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash and Cash Equivalents
	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, 2015 and 2014, the Trust held $8,717,943 and $7,719,963, respectively, in a money market fund that invests primarily in obligations of the U.S. Treasury, which it considers to be cash and cash equivalents.
Investments
	Investments
	The Trust invests solely in U.S. Government securities. The Trustees determine the appropriate classifications of the securities at the time they are acquired and evaluate the appropriateness of such classifications as of each balance sheet date.
	The U.S. Government securities are classified as held-to-maturity securities as the Trust has the positive intent and ability to hold to maturity and are therefore stated at amortized cost.
Revenue Recognition
	Revenue Recognition
	Royalty income under the amended lease agreements with NMC is recognized as it is earned. Under such agreements, royalties are earned upon shipment from Silver Bay, Minnesota (NMC’s location), regardless of whether the actual sales proceeds for any shipment are received by NMC’s parent, Cliffs.  The amount of base overriding royalties and royalty bonuses payable are determined on the volume of tonnage shipped from Silver Bay, Minnesota during each calendar quarter and the actual proceeds to Cliffs resulting from such shipments.
	Royalty income includes accrued income receivable.  Accrued income receivable represents royalty income earned but not yet received by the Trust under the royalty agreements described elsewhere in these notes.   Accrued income receivable is calculated based on (i) shipments during the last month of Mesabi Trust’s fiscal year, if any, and (ii) net price adjustments resulting from the price adjustment mechanisms in the agreements between Cliffs and its customers that determine the final sales price of the shipments from Silver Bay, Minnesota.
	Adjustments to royalty income may result from changes in final reconciliations of tonnage shipped by NMC with the final amounts received from NMC customers.  Adjustments may also result from revisions to estimated prices previously used to record revenue for tonnage shipped.  Pricing decreases may give rise to negative price adjustments which may be applied against future royalty income recognized by the Trust.
	During the fourth quarter of fiscal 2015, negative price adjustments were recorded by Mesabi Trust as an offset to accrued income receivable due to price adjustment mechanisms in the agreements between Cliffs and its customers that determine the final sales price of the shipments from NMC with respect to certain shipments during calendar year 2013.  As of January 31, 2015, the Trust recognized revenue related to approximately 702,400 tons of iron ore that were shipped by NMC as of December 31, 2014, but for which Cliffs has indicated that final pricing is not yet known.  Pricing related to these tons is expected to be finalized in the first calendar quarter of 2016.
	Royalty income under the Peters Lease fee agreement is also recognized quarterly as it is earned. Under such agreement, however, royalties are earned at the option of NMC either upon mining of crude ore from Peters Lease lands or upon shipment from Silver Bay of iron ore product produced from Peters Lease lands.
Fixed Property, Including Intangibles
	Fixed Property, Including Intangibles
	The Trust’s fixed property, including intangibles, is recorded at nominal values and includes the following:
	1.        The entire beneficial interest as assignor in the Amended Peters Lease Assignment and the Amended Cloquet Lease Assignment covering taconite properties in Minnesota which are leased to NMC.
	2.The entire beneficial interest in Mesabi Land Trust which owns a 20% fee interest in the lands subject to the Peters Lease and the entire fee interest in other properties in Minnesota.
Net Income Per Unit
	Net Income Per Unit
	Net income per unit is computed by dividing net income by the weighted average number of units outstanding.
Concentration of Credit Risk
	Concentration of Credit Risk
	Financial instruments which potentially subject the Trust to concentrations of credit risk consist primarily of cash that is maintained at an FDIC insured financial institution. At times during the year the Trust’s cash balance may exceed insured limits.
	As further described in Note 1, NMC is the lessee/operator of the Mesabi Trust land.  All royalty income earned by the Trust is received from NMC, and accordingly, substantially all of the accrued income receivable is also due from NMC.
Accounting Estimates
	Accounting Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires the Trustees to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.  Specifically, the accrued income receivable, deferred royalty revenue and related royalty revenue are significant estimates which are subject to change in the near term, and changes to these estimates could have a material effect on the Trust’s financial statements.
Subsequent Events
	Subsequent Events
	Material subsequent events are evaluated for recognition or disclosure in the accompanying financial statements.
Fair Value Measures
	Fair Value Measures
	Valuation Hierarchy
	GAAP establishes a three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.
		·	Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets.
		·	Level 2 — Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
		·	Level 3 — Valuation is based upon other unobservable inputs that are significant to the fair value measurement.
	The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety.
	The carrying amounts of financial instruments approximated fair value as of January 31, 2015 and 2014, because of the relative short maturity of these instruments.
Recent Accounting Pronouncements
	Recent Accounting Pronouncements
	The Trust has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on the Trust’s financial condition or results of its operations. The Trust would like to draw further attention to the following issued pronouncement regarding the accounting for revenue from contracts with customers:
	Revenue from Contracts with Customers
	In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” which supersedes the guidance in “Revenue Recognition (Topic 605)” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Trust is evaluating the new standard, but do not expect this standard to have a material impact on our consolidated financial statements.
	Various accounting standards and interpretations were issued during the fiscal year ended January 31, 2015. The Trust has evaluated the recently issued accounting pronouncements that are effective for the fiscal year ended January 31, 2015 and believe they will not have a material effect on the Trust’s financial position, results of operations or cash flows when adopted.

U_S_GOVERNMENT_SECURITIES_Tabl

U. S. GOVERNMENT SECURITIES (Tables)	12 Months Ended
	Jan. 31, 2015
U. S. GOVERNMENT SECURITIES
Schedule of U.S. government securities classified as held-to-maturity
		2015				2014
		Carrying				Carrying
		Value		Fair Value		Value		Fair Value
	Due within one year	$	510,573	$	501,668	$	205,055	$	205,057
	Due after one year	255,759		255,487		510,573		507,996
		$	766,332	$	757,155	$	715,628	$	713,053

UNALLOCATED_RESERVE_AND_DISTRI1

UNALLOCATED RESERVE AND DISTRIBUTIONS (Tables)	12 Months Ended
	Jan. 31, 2015
UNALLOCATED RESERVE AND DISTRIBUTIONS
Schedule of unallocated cash and U.S. Government securities portion of the Trust's Unallocated Reserve
		January 31, 2015			January 31, 2014
	Cash and U.S. Government securities	$	9,484,275		$	8,435,591
	Distribution payable	8,396,806			7,478,406
	Unallocated cash and U.S. Government securities	$	1,087,469		$	957,185
Schedule of reconciliation of Trust's Unallocated Reserve
	Unallocated Reserve, January 31, 2014	$	984,094
	Net income, twelve months ended January 31, 2015	24,767,848
	Distributions declared	(24,140,818		)
	Unallocated Reserve, January 31, 2015	$	1,611,124

SUMMARY_OF_QUARTERLY_EARNINGS_1

SUMMARY OF QUARTERLY EARNINGS (UNAUDITED) (Tables)	12 Months Ended
	Jan. 31, 2015
SUMMARY OF QUARTERLY EARNINGS (UNAUDITED)
Summary of quarterly results of operations
		2015
		First		Second		Third		Fourth
		Quarter		Quarter		Quarter		Quarter
	Revenue	$	503,435	$	7,860,360	$	11,782,758	$	5,933,562
	Expenses	366,217		443,818		243,152		259,080
	Net income	$	137,218	$	7,416,542	$	11,539,606	$	5,674,482
	Net income per unit	$	0.010	$	0.565	$	0.880	$	0.433
		2014
		First		Second		Third		Fourth
		Quarter		Quarter		Quarter		Quarter
	Revenue	$	2,528,807	$	7,834,715	$	6,347,628	$	5,334,003
	Expenses	326,418		209,935		211,113		241,398
	Net income	$	2,202,389	$	7,624,780	$	6,136,515	$	5,092,605
	Net income per unit	$	0.168	$	0.581	$	0.468	$	0.388

NATURE_OF_BUSINESS_AND_ORGANIZ1

NATURE OF BUSINESS AND ORGANIZATION (Details)	12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
	item
NATURE OF BUSINESS AND ORGANIZATION
Period of termination of the Trust after the death of the survivor of persons named in the exhibit	21 years
Number of persons named in the exhibit to the Agreement of Trust	25
Age of the youngest survivor	54 years
Beneficial interest in the Trust (in units)	13,120,010	13,120,010

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
	T
Cash and Cash Equivalents
Amount held by the Trust in a money market fund	$8,717,943	$7,719,963
Revenue Recognition
Quantity of iron ore shipped by NMC subject to price determination recognized in revenue (in tons)	702,400
Fixed Property, Including Intangibles
Percentage of fee interest owned by Mesabi Land Trust in the lands subject to the Peters Lease	20.00%

U_S_GOVERNMENT_SECURITIES_Deta

U. S. GOVERNMENT SECURITIES (Details) (U.S. government securities, USD $)	Jan. 31, 2015	Jan. 31, 2014
U.S. government securities
Carrying Value
Due within one year	$510,573	$205,055
Due after one year	255,759	510,573
Total	766,332	715,628
Fair Value
Due within one year	501,668	205,057
Due after one year	255,487	507,996
Total	$757,155	$713,053

ROYALTY_AGREEMENT_Details

ROYALTY AGREEMENT (Details) (Cyprus NMC, USD $)	12 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2013
ROYALTY AGREEMENT
Adjusted threshold price (in dollars per ton)	53.01	52.31	51.55
Maximum
ROYALTY AGREEMENT
Obligation to make payments of overriding royalties on product shipments, period	30 days
Minimum
ROYALTY AGREEMENT
Adjusted threshold price subject to adjustment (in dollars per ton)	30
Obligation to pay advance royalty subject to adjustment	$500,000
Advance royalty	$883,875	$872,156	$859,429

UNALLOCATED_RESERVE_AND_DISTRI2

UNALLOCATED RESERVE AND DISTRIBUTIONS (Details) (USD $)	3 Months Ended								12 Months Ended
	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2013	Jul. 31, 2013	Apr. 30, 2013	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2013
UNALLOCATED RESERVE AND DISTRIBUTIONS
Cash and U.S. Government securities	$9,484,275				$8,435,591				$9,484,275	$8,435,591
Distribution payable	8,396,806				7,478,406				8,396,806	7,478,406
Unallocated cash and U.S. Government securities	1,087,469				957,185				1,087,469	957,185
Reconciliation of unallocated reserve
Unallocated Reserve at the beginning of the period				984,094					984,094
Net income, twelve months ended January 31, 2015	5,674,482	11,539,606	7,416,542	137,218	5,092,605	6,136,515	7,624,780	2,202,389	24,767,848	21,056,289	30,654,737
Distributions declared									-24,140,818
Unallocated Reserve at the end of the period	1,611,124				984,094				1,611,124	984,094
Distributed cash payments									23,222,418	20,204,816	34,046,426
Distributed cash payments (in dollars per unit)									$1.77	$1.54	$2.60
Distribution declared per unit of beneficial interest (in dollars per unit)									$0.64
Minimum
UNALLOCATED RESERVE AND DISTRIBUTIONS
Unallocated cash and U.S. Government securities	500,000								500,000
Maximum
UNALLOCATED RESERVE AND DISTRIBUTIONS
Unallocated cash and U.S. Government securities	$1,000,000								$1,000,000

SUMMARY_OF_QUARTERLY_EARNINGS_2

SUMMARY OF QUARTERLY EARNINGS (UNAUDITED) (Details) (USD $)	3 Months Ended								12 Months Ended
	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2013	Jul. 31, 2013	Apr. 30, 2013	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2013
SUMMARY OF QUARTERLY EARNINGS (UNAUDITED)
Revenue	$5,933,562	$11,782,758	$7,860,360	$503,435	$5,334,003	$6,347,628	$7,834,715	$2,528,807	$26,080,115	$22,045,153	$31,562,945
Expenses	259,080	243,152	443,818	366,217	241,398	211,113	209,935	326,418
NET INCOME	$5,674,482	$11,539,606	$7,416,542	$137,218	$5,092,605	$6,136,515	$7,624,780	$2,202,389	$24,767,848	$21,056,289	$30,654,737
Net income per unit (in dollars per unit)	$0.43	$0.88	$0.56	$0.01	$0.39	$0.47	$0.58	$0.17	$1.89	$1.61	$2.34