Mesabi Trust (MSB) 10-Q 7 Sep 18 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 31, 2018	Sep. 07, 2018
Document and Entity Information
Entity Registrant Name	MESABI TRUST
Entity Central Index Key	65,172
Document Type	10-Q
Document Period End Date	Jul. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--01-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		13,120,010
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	Jul. 13, 2018	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2018	Jul. 31, 2017
REVENUES
Royalty income		$ 19,125,069	$ 14,230,174	$ 25,771,739	$ 18,990,603
Interest		26,883	7,273	64,260	13,815
Total revenues		19,151,952	14,237,447	25,835,999	19,004,418
EXPENSES
Expenses		280,497	240,493	648,696	535,539
Net income		$ 18,871,455	$ 13,996,954	$ 25,187,303	$ 18,468,879
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING		13,120,010	13,120,010	13,120,010	13,120,010
Net income per unit (Note 2) (in dollars per unit)		$ 1.4384	$ 1.0668	$ 1.9198	$ 1.4077
Distributions declared per unit (Note 3) (in dollars per unit)	$ 0.22	$ 0.2200	$ 0.1600	$ 0.6700	$ 0.7100

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Jul. 31, 2018	Jan. 31, 2018	Jul. 31, 2017	Jan. 31, 2017
ASSETS
Cash and cash equivalents	$ 196,826	$ 314,835	$ 10,797,128	$ 13,695,168
U.S. Government securities, current, at amortized cost (which approximates market)	17,901,973	23,797,451
Accrued income receivable	8,776,515	1,956,091
Contract asset	3,006,907	99,264
Prepaid expenses	152,265	54,640
Current assets	30,034,486	26,222,281
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	3	3
Total assets	30,034,489	26,222,284
LIABILITIES, UNALLOCATED RESERVE AND TRUST CORPUS
Distribution payable	2,886,402	15,481,612
Accrued expenses	144,512	133,994
Total liabilities	3,030,914	15,615,606
Unallocated reserve	27,003,572	10,606,675
Trust corpus	3	3
Total liabilities, unallocated reserve and trust corpus	$ 30,034,489	$ 26,222,284

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - shares	Jul. 31, 2018	Jan. 31, 2018
Condensed Balance Sheets
Certificate of beneficial interest of Land Trust, units	13,120,010	13,120,010

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	6 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Operating activities
Royalties received	$ 16,056,417	$ 8,723,576
Interest received	51,515	12,571
Expenses paid	(735,803)	(670,622)
Net cash from operating activities	15,372,129	8,065,525
Investing activities
Maturities of U.S. Government securities	24,168,903	82,628
Purchases of U.S. Government securities	(18,273,425)	(1,993,386)
Net cash from (used for) investing activities	5,895,478	(1,910,758)
Financing activity
Distributions to unitholders	(21,385,616)	(9,052,807)
Net change in cash and cash equivalents	(118,009)	(2,898,040)
Cash and cash equivalents, beginning of period	314,835	13,695,168
Cash and cash equivalents, end of period	196,826	10,797,128
Reconciliation of net income to net cash from operating activities
Net income	25,187,303	18,468,879
Increase in accrued income receivable	(6,820,424)	(6,175,819)
Increase in contract asset	(2,907,643)	(1,993,037)
Increase in prepaid expense	(97,625)	(86,177)
Increase (decrease) in accrued expenses	10,518	(48,906)
Decrease in contract liability		(2,099,415)
Net cash from operating activities	15,372,129	8,065,525
Non cash financing activity
Distributions declared and payable	$ 2,886,402	$ 2,099,202

NATURE OF BUSINESS AND ORGANIZA

NATURE OF BUSINESS AND ORGANIZATION	6 Months Ended
	Jul. 31, 2018
NATURE OF BUSINESS AND ORGANIZATION
NATURE OF BUSINESS AND ORGANIZATION	Note 1. The financial statements and notes to financial statements included herein have been prepared without audit (except for the balance sheet at January 31, 2018) in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Trustees, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the results of operations for the three and six months ended July 31, 2018 and 2017, (b) the financial position at July 31, 2018 and (c) the cash flows for the six months ended July 31, 2018 and 2017, have been made. For further information, refer to the financial statements and footnotes included in Mesabi Trust’s Annual Report on Form 10-K for the year ended January 31, 2018. Recent Accounting Pronouncements Revenue from Contracts with Customers Mesabi Trust adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers and ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (“ASC 606”) on February 1, 2018 using the full retrospective transition method, under which it is required to revise its financial statements for the year ended January 31, 2018, as well as any applicable interim periods within the year ended January 31, 2018, as if ASC 606 had been effective for those periods. Under ASC 606, the Trust recognizes 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. See Note 2 for disclosures required by ASU 2014-09, including the Trust’s revenue recognition accounting policies. The cumulative effect of adopting ASC 606 was an increase in the January 31, 2018 unallocated reserve of approximately $99,000. The following tables present the effect of the adoption of ASC 606 on the Trust’s financial statements included in this report. Three Months Ended Three Months Ended Six Months Ended Six Months Ended July 31, 2017 July 31, 2017 July 31, 2017 July 31, 2017 (As Previously Reported) Adoption of ASC 606 (As Adjusted) (As Previously Reported) Adoption of ASC 606 (As Adjusted) Condensed Statements of Operations Revenues Royalty income $ 13,347,355 $ 882,819 $ 14,230,174 $ 16,997,566 $ 1,993,037 $ 18,990,603 Interest 7,273 — 7,273 13,815 — 13,815 Total revenues 13,354,628 882,819 14,237,447 17,011,381 1,993,037 19,004,418 Expenses 240,493 — 240,493 535,539 — 535,539 Net income $ 13,114,135 $ 882,819 $ 13,996,954 $ 16,475,842 $ 1,993,037 $ 18,468,879 WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING Number of units outstanding 13,120,010 — 13,120,010 13,120,010 — 13,120,010 Net income per unit $ 0.9996 $ 0.0673 $ 1.0668 $ 1.2558 $ 0.1519 $ 1.4077 Distributions declared per unit $ 0.1600 $ — $ 0.1600 $ 0.7100 $ — $ 0.7100 January 31, 2018 January 31, 2018 (As Previously Reported) Adoption of ASC 606 (As Adjusted) Condensed Balance Sheets Assets Cash and cash equivalents $ 314,835 $ — $ 314,835 U.S. Government securities, at amortized cost (which approximates market) 23,797,451 — 23,797,451 Accrued income receivable 1,956,091 — 1,956,091 Contract asset — 99,264 99,264 Prepaid expenses 54,640 — 54,640 Current assets 26,123,017 99,264 26,222,281 Fixed property, including intangibles, at nominal values 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 3 — 3 Total assets $ 26,123,020 $ 99,264 $ 26,222,284 Liabilities, Unallocated Reserve And Trust Corpus Liabilities Distribution payable $ 15,481,612 $ — $ 15,481,612 Accrued expenses 133,994 — 133,994 Total liabilities 15,615,606 — 15,615,606 Unallocated reserve 10,507,411 99,264 10,606,675 Trust corpus 3 — 3 Total liabilities, unallocated reserve and trust corpus $ 26,123,020 $ 99,264 $ 26,222,284 Six Months Ended Six Months Ended July 31, 2017 July 31, 2017 (As Previously Reported) Adoption of ASC 606 (As Adjusted) Condensed Statements of Cash Flows Operating activities Royalties received $ 8,723,576 $ — $ 8,723,576 Interest received 12,571 — 12,571 Expenses paid (670,622) — (670,622) Net cash from operating activities 8,065,525 — 8,065,525 Investing activities Maturities of U.S. Government securities 82,628 82,628 Purchases of U.S. Government securities (1,993,386) — (1,993,386) Net cash used for investing activities (1,910,758) — (1,910,758) Financing activity Distributions to unitholders (9,052,807) — (9,052,807) Net change in cash and cash equivalents (2,898,040) — (2,898,040) Cash and cash equivalents, beginning of year 13,695,168 — 13,695,168 Cash and cash equivalents, end of year $ 10,797,128 $ — $ 10,797,128 Reconciliation of net income to net cash from operating activities Net income $ 16,475,842 $ 1,993,037 $ 18,468,879 Increase in accrued income receivable (6,175,819) — (6,175,819) Increase in contract asset — (1,993,037) (1,993,037) Increase in prepaid expense (86,177) — (86,177) Increase in accrued expenses (48,906) — (48,906) Decrease in deferred royalty revenue (2,099,415) 2,099,415 — Decrease in contract liability — (2,099,415) (2,099,415) Net cash from operating activities $ 8,065,525 $ — $ 8,065,525 Non cash financing activity Distributions declared and payable $ 2,099,202 $ — $ 2,099,202 gggg g

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jul. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Note 2. Net income per unit is based on 13,120,010 units outstanding during the period. 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. Disaggregation of Revenues The following table represents a disaggregation of revenue for the three and six months ended July 31, 2018 and July 31, 2017: Three Months Ended July 31, 2018 2017 Base overriding royalties $ 11,445,963 $ 7,258,798 Bonus royalties 7,515,672 6,857,645 Fee royalties 163,434 113,731 Total royalty income $ 19,125,069 $ 14,230,174 Six Months Ended July 31, 2018 2017 Base overriding royalties $ 15,303,448 $ 9,905,212 Bonus royalties 10,149,903 8,823,164 Fee royalties 318,388 262,227 Total royalty income $ 25,771,739 $ 18,990,603 Base overriding royalties The performance obligation for the base overriding royalty consists of providing Northshore Mining Company (“Northshore”) access to the Peters Lands, Cloquet Lands, and Mesabi Lands and the right to mine on these lands. The consideration to be received from this access relates to the volume of iron ore shipped by Northshore. Mesabi Trust receives royalties at the greater of (i) the aggregate quantity of iron ore products shipped that were mined from Mesabi Trust Lands, and (ii) a portion of the aggregate quantity of all iron ore products shipped from Silver Bay that were mined from any lands, such portion being 90% of the first four million tons shipped from Silver Bay during such year, 85% of the next two million tons shipped during such year, and 25% of all tonnage shipped during such year in excess of six million tons. The royalty percentage paid to the Trust increases as the aggregate tonnage of iron ore products shipped, attributable to the Trust, in any calendar year increases past each of the first four one-million ton volume thresholds. The base overriding royalties contain variable consideration, as the transaction price is based on a percentage that varies based on the total cumulative tons of iron ore shipped for the calendar year. The Trust estimates the variable consideration it expects to be entitled to receive over the contractual period associated with royalty agreement, which resets the royalty percentages at the beginning of each calendar year. The Trust evaluates the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, the Trust includes the variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. For the base overriding royalties, the Trust estimates the base overriding royalty percentage using the expected value method, which calculates the estimate based off the historical, current, and forecasted shipments. The Trust recognizes base overriding royalties on a quarterly basis based on the actual shipments for the fiscal quarter at the estimated royalty percentage as described above and based on the estimated prices for iron ore products sold under the Cliffs Pellet Agreements. Bonus royalties The performance obligation for the bonus royalties consists of providing Northshore Mining access to the Peters Lands, Cloquet Lands, and Mesabi Lands and the right to mine on these lands and the consideration to be received from this access relates to the volume of iron ore shipped by Northshore. The Trust recognizes bonus royalties on a quarterly basis based on the actual shipments of the fiscal quarter at the actual royalty percentage for those shipments and based on the anticipated prices for iron ore products sold under the Cliffs Pellet Agreements. Fee royalties The performance obligation for the fee royalties consists of the volume of crude ore mined on a quarterly basis. The Trust recognizes fee royalties on a quarterly basis based on the actual crude ore mined during the fiscal quarter. Accrued income receivable The accrued income receivable is included in net income per unit. The Trust recorded $8,776,515 of accrued income receivable as reflected on the Condensed Balance Sheet as of July 31, 2018 (unaudited). As of January 31, 2018, the Trust recorded accrued income receivable of $1,956,091. Accrued income receivable is accounted for and reported for the Trust’s fiscal quarter based on shipments during the month of July at estimated prices for iron ore products sold under the Cliffs Pellet Agreements, even though such accrued income receivable is not available for distribution to the holders of Certificates of Beneficial Interest in Mesabi Trust (“Unitholders”) until the applicable royalties are actually received by the Trust. Accrued income receivable also includes accruals for anticipated pricing adjustments, which can be positive or negative. Contract asset A contract asset in the amount of $3,006,907 is reflected on the Condensed Balance Sheet as of July 31, 2018 (unaudited). As of January 31, 2018 the Trust recorded a contract asset of $99,264. The contract asset is based on the revenue recognized on the base overriding royalties, at the estimated prices for iron ore products sold under the Cliffs Pellet Agreements, that will be collected in subsequent quarters as the uncertainty associated with the variable consideration is resolved. The contract asset is not available for distribution to the Unitholders until the applicable royalties are actually received by the Trust. The Trust includes estimated future royalty rates on current contracted volumes within contract asset. Contract liability The contract liability represents an estimate of decreases in royalty revenue related to tons of iron ore that were shipped by Northshore, but for which Northshore has indicated that final pricing is not yet known and is adjusted in accordance with the Trust’s revenue recognition policy each quarter as updated pricing information is received.

DIVIDEND AND DISTRIBUTION

DIVIDEND AND DISTRIBUTION	6 Months Ended
	Jul. 31, 2018
DIVIDEND AND DISTRIBUTION
DIVIDEND AND DISTRIBUTION	Note 3. The Trustees determine whether to declare a distribution each year in April, July, October and January. The Trust’s financial statements are prepared on an accrual basis and present the Trust’s results of operations based on each of the Trust’s fiscal quarters, which end one month after the close of each calendar quarter. Because (i) distributions, if any, are declared by the Trustees based on, among other considerations, the amount of royalties actually paid to the Trust through the end of each calendar quarter prior to April, July, October and January of each year, the Trustees’ evaluation of known and projected Trust expenses in the current and future quarters, the then-current level of Unallocated Reserve and general economic conditions, and (ii) the Trust’s Net Income is calculated as of the end of each fiscal quarter, the distributions declared by the Trust are not equivalent to the Trust’s Net Income during the periods reported in this quarterly report on Form 10-Q.

ROYALTY AGREEMENT, UNALLOCATED

ROYALTY AGREEMENT, UNALLOCATED RESERVE AND DISTRIBUTIONS 10Q	6 Months Ended
	Jul. 31, 2018
UNALLOCATED RESERVE AND DISTRIBUTIONS
ROYALTY AGREEMENT, UNALLOCATED RESERVE AND DISTRIBUTIONS	Note 4. On July 26, 2018, the Trustees received the quarterly royalty report of iron ore product shipments from Silver Bay, Minnesota during the calendar quarter ended June 30, 2018 from Cleveland-Cliffs Inc., formerly known as Cliffs Natural Resources Inc. (“Cleveland-Cliffs”), the parent company of Northshore. On July 13, 2018, the Trustees declared a distribution of $0.22 per Unit of Beneficial Interest payable on August 20, 2018 to Mesabi Trust Unitholders of record at the close of business on July 30, 2018. Each quarter, as authorized by the Agreement of Trust, the Trustees evaluate all relevant factors including all costs, expenses, obligations, and present and future liabilities of the Trust (whether fixed or contingent) in determining the prudent level of unallocated reserve in light of the unpredictable nature of the iron ore industry and current economic conditions. Pursuant to the Agreement of Trust, the Trustees make decisions about cash distributions to Unitholders based on the royalty payments it receives from Northshore when received, rather than as royalty income is recorded in accordance with the Trust’s revenue recognition policy. Refer to Note 3 for further information. As of July 31, 2018 and January 31, 2018, the unallocated cash and U.S. Government securities portion of the Trust’s Unallocated Reserve was comprised of the following components: July 31, 2018 (unaudited) January 31, 2018 Cash and U.S. Government securities $ 18,098,799 $ 24,112,286 Distribution payable (2,886,402) (15,481,612) Unallocated cash and U.S. Government securities $ 15,212,397 $ 8,630,674 A reconciliation of the Trust’s Unallocated Reserve from January 31, 2018 to July 31, 2018 is as follows: Unallocated Reserve, January 31, 2018 $ 10,606,675 Net income 25,187,303 Distributions declared (8,790,406) Unallocated Reserve, July 31, 2018 $ 27,003,572

SUMMARY OF SIGNIFICANT ACCOUN10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jul. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.

NATURE OF BUSINESS AND ORGANI11

NATURE OF BUSINESS AND ORGANIZATION - New ASU (Tables)	6 Months Ended
	Jul. 31, 2018
Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Schedule of effect of adoption	Three Months Ended Three Months Ended Six Months Ended Six Months Ended July 31, 2017 July 31, 2017 July 31, 2017 July 31, 2017 (As Previously Reported) Adoption of ASC 606 (As Adjusted) (As Previously Reported) Adoption of ASC 606 (As Adjusted) Condensed Statements of Operations Revenues Royalty income $ 13,347,355 $ 882,819 $ 14,230,174 $ 16,997,566 $ 1,993,037 $ 18,990,603 Interest 7,273 — 7,273 13,815 — 13,815 Total revenues 13,354,628 882,819 14,237,447 17,011,381 1,993,037 19,004,418 Expenses 240,493 — 240,493 535,539 — 535,539 Net income $ 13,114,135 $ 882,819 $ 13,996,954 $ 16,475,842 $ 1,993,037 $ 18,468,879 WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING Number of units outstanding 13,120,010 — 13,120,010 13,120,010 — 13,120,010 Net income per unit $ 0.9996 $ 0.0673 $ 1.0668 $ 1.2558 $ 0.1519 $ 1.4077 Distributions declared per unit $ 0.1600 $ — $ 0.1600 $ 0.7100 $ — $ 0.7100 January 31, 2018 January 31, 2018 (As Previously Reported) Adoption of ASC 606 (As Adjusted) Condensed Balance Sheets Assets Cash and cash equivalents $ 314,835 $ — $ 314,835 U.S. Government securities, at amortized cost (which approximates market) 23,797,451 — 23,797,451 Accrued income receivable 1,956,091 — 1,956,091 Contract asset — 99,264 99,264 Prepaid expenses 54,640 — 54,640 Current assets 26,123,017 99,264 26,222,281 Fixed property, including intangibles, at nominal values 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 3 — 3 Total assets $ 26,123,020 $ 99,264 $ 26,222,284 Liabilities, Unallocated Reserve And Trust Corpus Liabilities Distribution payable $ 15,481,612 $ — $ 15,481,612 Accrued expenses 133,994 — 133,994 Total liabilities 15,615,606 — 15,615,606 Unallocated reserve 10,507,411 99,264 10,606,675 Trust corpus 3 — 3 Total liabilities, unallocated reserve and trust corpus $ 26,123,020 $ 99,264 $ 26,222,284 Six Months Ended Six Months Ended July 31, 2017 July 31, 2017 (As Previously Reported) Adoption of ASC 606 (As Adjusted) Condensed Statements of Cash Flows Operating activities Royalties received $ 8,723,576 $ — $ 8,723,576 Interest received 12,571 — 12,571 Expenses paid (670,622) — (670,622) Net cash from operating activities 8,065,525 — 8,065,525 Investing activities Maturities of U.S. Government securities 82,628 82,628 Purchases of U.S. Government securities (1,993,386) — (1,993,386) Net cash used for investing activities (1,910,758) — (1,910,758) Financing activity Distributions to unitholders (9,052,807) — (9,052,807) Net change in cash and cash equivalents (2,898,040) — (2,898,040) Cash and cash equivalents, beginning of year 13,695,168 — 13,695,168 Cash and cash equivalents, end of year $ 10,797,128 $ — $ 10,797,128 Reconciliation of net income to net cash from operating activities Net income $ 16,475,842 $ 1,993,037 $ 18,468,879 Increase in accrued income receivable (6,175,819) — (6,175,819) Increase in contract asset — (1,993,037) (1,993,037) Increase in prepaid expense (86,177) — (86,177) Increase in accrued expenses (48,906) — (48,906) Decrease in deferred royalty revenue (2,099,415) 2,099,415 — Decrease in contract liability — (2,099,415) (2,099,415) Net cash from operating activities $ 8,065,525 $ — $ 8,065,525 Non cash financing activity Distributions declared and payable $ 2,099,202 $ — $ 2,099,202

SUMMARY OF SIGNIFICANT ACCOUN12

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jul. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of disaggregation of revenue	Three Months Ended July 31, 2018 2017 Base overriding royalties $ 11,445,963 $ 7,258,798 Bonus royalties 7,515,672 6,857,645 Fee royalties 163,434 113,731 Total royalty income $ 19,125,069 $ 14,230,174 Six Months Ended July 31, 2018 2017 Base overriding royalties $ 15,303,448 $ 9,905,212 Bonus royalties 10,149,903 8,823,164 Fee royalties 318,388 262,227 Total royalty income $ 25,771,739 $ 18,990,603

ROYALTY AGREEMENT, UNALLOCATE13

ROYALTY AGREEMENT, UNALLOCATED RESERVE AND DISTRIBUTIONS (Tables)	6 Months Ended
	Jul. 31, 2018
UNALLOCATED RESERVE AND DISTRIBUTIONS
Schedule of unallocated cash and U.S. Government securities portion of the Trust's Unallocated Reserve	July 31, 2018 (unaudited) January 31, 2018 Cash and U.S. Government securities $ 18,098,799 $ 24,112,286 Distribution payable (2,886,402) (15,481,612) Unallocated cash and U.S. Government securities $ 15,212,397 $ 8,630,674
Schedule of reconciliation of Trust's Unallocated Reserve	Unallocated Reserve, January 31, 2018 $ 10,606,675 Net income 25,187,303 Distributions declared (8,790,406) Unallocated Reserve, July 31, 2018 $ 27,003,572

NATURE OF BUSINESS AND ORGANI14

NATURE OF BUSINESS AND ORGANIZATION (Details) - USD ($)	Jul. 13, 2018	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2018	Jul. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Royalty income		$ 19,125,069	$ 14,230,174	$ 25,771,739	$ 18,990,603
Interest		26,883	7,273	64,260	13,815
Total revenues		19,151,952	14,237,447	25,835,999	19,004,418
Expenses		280,497	240,493	648,696	535,539
Net income		$ 18,871,455	$ 13,996,954	$ 25,187,303	$ 18,468,879
Number of units outstanding		13,120,010	13,120,010	13,120,010	13,120,010
Net income per unit (Note 2) (in dollars per unit)		$ 1.4384	$ 1.0668	$ 1.9198	$ 1.4077
Distributions declared per unit (Note 3) (in dollars per unit)	$ 0.22	$ 0.2200	$ 0.1600	$ 0.6700	$ 0.7100
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Royalty income			$ 882,819		$ 1,993,037
Total revenues			882,819		1,993,037
Net income			$ 882,819		$ 1,993,037
Net income per unit (Note 2) (in dollars per unit)			$ 0.0673		$ 0.1519
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Royalty income			$ 13,347,355		$ 16,997,566
Interest			7,273		13,815
Total revenues			13,354,628		17,011,381
Expenses			240,493		535,539
Net income			$ 13,114,135		$ 16,475,842
Number of units outstanding			13,120,010		13,120,010
Net income per unit (Note 2) (in dollars per unit)			$ 0.9996		$ 1.2558
Distributions declared per unit (Note 3) (in dollars per unit)			$ 0.1600		$ 0.7100

NATURE OF BUSINESS AND ORGANI15

NATURE OF BUSINESS AND ORGANIZATION - B/S (Details) - USD ($)	Jul. 31, 2018	Jan. 31, 2018	Jul. 31, 2017	Jan. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cash and cash equivalents	$ 196,826	$ 314,835	$ 10,797,128	$ 13,695,168
U.S. Government securities, current, at amortized cost (which approximates market)	17,901,973	23,797,451
Accrued income receivable	8,776,515	1,956,091
Contract asset	3,006,907	99,264
Prepaid expenses	152,265	54,640
Current assets	30,034,486	26,222,281
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	3	3
Total assets	30,034,489	26,222,284
Distribution payable	2,886,402	15,481,612
Accrued expenses	144,512	133,994
Total liabilities	3,030,914	15,615,606
Unallocated reserve	27,003,572	10,606,675
Trust corpus	3	3
Total liabilities, unallocated reserve and trust corpus	$ 30,034,489	26,222,284
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract asset		99,264
Current assets		99,264
Total assets		99,264
Unallocated reserve		99,264
Total liabilities, unallocated reserve and trust corpus		99,264
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cash and cash equivalents		314,835	$ 10,797,128	$ 13,695,168
U.S. Government securities, current, at amortized cost (which approximates market)		23,797,451
Accrued income receivable		1,956,091
Prepaid expenses		54,640
Current assets		26,123,017
Amended assignment of Peters Lease		1
Assignment of Cloquet Leases		1
Certificate of beneficial interest for 13,120,010 units of Land Trust		1
Total fixed property		3
Total assets		26,123,020
Distribution payable		15,481,612
Accrued expenses		133,994
Total liabilities		15,615,606
Unallocated reserve		10,507,411
Trust corpus		3
Total liabilities, unallocated reserve and trust corpus		$ 26,123,020

NATURE OF BUSINESS AND ORGANI16

NATURE OF BUSINESS AND ORGANIZATION - SCF (Details) - USD ($)	6 Months Ended
	Jul. 31, 2018	Jul. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Royalties received	$ 16,056,417	$ 8,723,576
Interest received	51,515	12,571
Expenses paid	(735,803)	(670,622)
Net cash from operating activities	15,372,129	8,065,525
Maturities of U.S. Government securities	24,168,903	82,628
Purchases of U.S. Government securities	(18,273,425)	(1,993,386)
Net cash from (used for) investing activities	5,895,478	(1,910,758)
Distributions to unitholders	(21,385,616)	(9,052,807)
Net change in cash and cash equivalents	(118,009)	(2,898,040)
Cash and cash equivalents, beginning of period	314,835	13,695,168
Cash and cash equivalents, end of period	196,826	10,797,128
Net income	25,187,303	18,468,879
Increase in accrued income receivable	(6,820,424)	(6,175,819)
Increase in contract asset	(2,907,643)	(1,993,037)
Increase in prepaid expense	(97,625)	(86,177)
Decrease in accrued expenses	10,518	(48,906)
Decrease in contract liability		(2,099,415)
Distributions declared and payable	2,886,402	2,099,202
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net income		1,993,037
Increase in contract asset		(1,993,037)
Decrease in deferred royalty revenue		2,099,415
Decrease in contract liability		(2,099,415)
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Royalties received		8,723,576
Interest received		12,571
Expenses paid		(670,622)
Net cash from operating activities		8,065,525
Maturities of U.S. Government securities		82,628
Purchases of U.S. Government securities		(1,993,386)
Net cash from (used for) investing activities		(1,910,758)
Distributions to unitholders		(9,052,807)
Net change in cash and cash equivalents		(2,898,040)
Cash and cash equivalents, beginning of period	$ 314,835	13,695,168
Cash and cash equivalents, end of period		10,797,128
Net income		16,475,842
Increase in accrued income receivable		(6,175,819)
Increase in prepaid expense		(86,177)
Decrease in accrued expenses		(48,906)
Decrease in deferred royalty revenue		(2,099,415)
Distributions declared and payable		$ 2,099,202

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended		6 Months Ended
	Jul. 31, 2018USD ($)shares	Jul. 31, 2017USD ($)	Jul. 31, 2018USD ($)itemMTshares	Jul. 31, 2017USD ($)	Jan. 31, 2018USD ($)shares
Disaggregation of Revenue [Line Items]
Beneficial interest in the Trust (in units) | shares	13,120,010		13,120,010		13,120,010
Disaggregation of Revenue [Abstract]
Royalty Revenue	$ 19,125,069	$ 14,230,174	$ 25,771,739	$ 18,990,603
Base overriding royalties, first tier portion percentage			90.00%
Base overriding royalties, first tier shipment ceiling (in million tons) | MT			4
Base overriding royalties, second tier portion percentage			85.00%
Base overriding royalties, second tier shipment ceiling (in million tons) | MT			2
Base overriding royalties, third tier portion percentage			25.00%
Base overriding royalties, third tier shipment threshold (in million tons) | MT			6
Base overriding royalties, number of volume thresholds for transaction price | item			4
Base overriding royalties, volume threshold for transaction price | MT			1
Accrued income receivable	8,776,515		$ 8,776,515		$ 1,956,091
Contract asset	3,006,907		3,006,907		$ 99,264
Base Overriding Royalties
Disaggregation of Revenue [Abstract]
Royalty Revenue	11,445,963	7,258,798	15,303,448	9,905,212
Bonus Royalties
Disaggregation of Revenue [Abstract]
Royalty Revenue	7,515,672	6,857,645	10,149,903	8,823,164
Fee Royalties
Disaggregation of Revenue [Abstract]
Royalty Revenue	$ 163,434	$ 113,731	$ 318,388	$ 262,227

DIVIDEND AND DISTRIBUTION (Deta

DIVIDEND AND DISTRIBUTION (Details)	6 Months Ended
	Jul. 31, 2018
DIVIDEND AND DISTRIBUTION
Period after the close of each calendar quarter when the fiscal quarter ends	1 month

ROYALTY AGREEMENT, UNALLOCATE19

ROYALTY AGREEMENT, UNALLOCATED RESERVE AND DISTRIBUTIONS (Details) - USD ($)	Jul. 13, 2018	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2018	Jul. 31, 2017	Jan. 31, 2018
UNALLOCATED RESERVE AND DISTRIBUTIONS
Distribution declared or paid (in dollars per unit)	$ 0.22	$ 0.2200	$ 0.1600	$ 0.6700	$ 0.7100
Unallocated Cash and Securities portion of Unallocated Reserve
Cash and U.S. Government securities		$ 18,098,799		$ 18,098,799		$ 24,112,286
Distribution payable		(2,886,402)		(2,886,402)		(15,481,612)
Unallocated cash and U.S. Government securities		15,212,397		15,212,397		$ 8,630,674
Reconciliation of Trust's Unallocated Reserve
Unallocated Reserve at the beginning of the period				10,606,675
Net income		18,871,455	$ 13,996,954	25,187,303	$ 18,468,879
Distributions declared				(8,790,406)
Unallocated Reserve at the end of the period		$ 27,003,572		$ 27,003,572