Summary
- Mesabi Trust has been a great investment for decades with steady price appreciation and a high rate of dividends.
- The temporary closure of its main resource asset by a mining unit of Cleveland-Cliffs has halted nearly all royalty revenue.
- Few net assets exist to back up Mesabi's underlying value until the Peter Mitchell mine is restarted. Dividends have been slashed to zero.
- Then a recession could hit in 2023-24, hurting iron ore pricing and future discounted values of royalty payments.
- The chart pattern remains weak. I suggest selling the January rally in trust pricing.
For further details see:
Operating Issues And Recession Pricing Next: Avoid Mesabi Trust