Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2018 | Jun. 08, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | MESABI TRUST | |
Entity Central Index Key | 65,172 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 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 | Q1 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | Apr. 13, 2018 | Apr. 30, 2018 | Apr. 30, 2017 |
REVENUES | |||
Royalty income | $ 6,646,670 | $ 4,760,429 | |
Interest | 37,377 | 6,542 | |
Total revenues | 6,684,047 | 4,766,971 | |
EXPENSES | |||
Expenses | 368,199 | 295,046 | |
Net income | $ 6,315,848 | $ 4,471,925 | |
WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING | 13,120,010 | 13,120,010 | |
Net income per unit (Note 2) (in dollars per unit) | $ 0.4814 | $ 0.3408 | |
Distributions declared per unit (Note 3) (in dollars per unit) | $ 0.45 | $ 0.4500 | $ 0.5500 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Apr. 30, 2018 | Jan. 31, 2018 | Apr. 30, 2017 | Jan. 31, 2017 |
ASSETS | ||||
Cash and cash equivalents | $ 3,029,479 | $ 314,835 | $ 12,009,469 | $ 13,695,168 |
U.S. Government securities, current, at amortized cost (which approximates market) | 8,315,795 | 23,797,451 | ||
Accrued income receivable | 4,294,659 | 1,956,091 | ||
Contract asset | 1,430,427 | 99,264 | ||
Prepaid expenses | 69,151 | 54,640 | ||
Current assets | 17,139,511 | 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 | 17,139,514 | 26,222,284 | ||
LIABILITIES, UNALLOCATED RESERVE AND TRUST CORPUS | ||||
Distribution payable | 5,904,005 | 15,481,612 | ||
Accrued expenses | 216,988 | 133,994 | ||
Total liabilities | 6,120,993 | 15,615,606 | ||
Unallocated reserve | 11,018,518 | 10,606,675 | ||
Trust corpus | 3 | 3 | ||
Total liabilities, unallocated reserve and trust corpus | $ 17,139,514 | $ 26,222,284 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - shares | Apr. 30, 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 ($) | 3 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Operating activities | ||
Royalties received | $ 2,997,561 | $ 366,840 |
Interest received | 16,755 | 3,545 |
Expenses paid | (299,716) | (301,911) |
Net cash from operating activities | 2,714,600 | 68,474 |
Investing activities | ||
Maturities of U.S. Government securities | 15,853,108 | 82,628 |
Purchases of U.S. Government securities | (371,452) | |
Net cash from (used for) investing activities | 15,481,656 | 82,628 |
Financing activity | ||
Distributions to unitholders | (15,481,612) | (1,836,801) |
Net change in cash and cash equivalents | 2,714,644 | (1,685,699) |
Cash and cash equivalents, beginning of period | 314,835 | 13,695,168 |
Cash and cash equivalents, end of period | 3,029,479 | 12,009,469 |
Reconciliation of net income to net cash from operating activities | ||
Net income | 6,315,848 | 4,471,925 |
Increase in accrued income receivable | (2,338,568) | (1,186,953) |
Increase in contract asset | (1,331,163) | (1,110,218) |
Increase in prepaid expense | (14,511) | (11,369) |
Increase in accrued expenses | 82,994 | 4,504 |
Decrease in contract liability | (2,099,415) | |
Net cash from operating activities | 2,714,600 | 68,474 |
Non cash financing activity | ||
Distributions declared and payable | $ 5,904,005 | $ 7,216,006 |
NATURE OF BUSINESS AND ORGANIZA
NATURE OF BUSINESS AND ORGANIZATION | 3 Months Ended |
Apr. 30, 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 months ended April 30, 2018 and 2017, (b) the financial position at April 30, 2018 and (c) the cash flows for the three months ended April 30, 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 April 30, 2017 April 30, 2017 (As Previously Reported) Adoption of ASC 606 (As Adjusted) Condensed Statements of Operations Revenues Royalty income $ 3,650,211 $ 1,110,218 $ 4,760,429 Interest 6,542 — 6,542 Total revenues 3,656,753 1,110,218 4,766,971 Expenses 295,046 — 295,046 Net income $ 3,361,707 $ 1,110,218 $ 4,471,925 WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING Number of units outstanding 13,120,010 13,120,010 13,120,010 Net income per unit $ 0.2562 $ 0.0846 $ 0.3408 Distributions declared per unit $ 0.5500 $ — $ 0.5500 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 Three Months Ended Three Months Ended April 30, 2017 April 30, 2017 (As Previously Reported) Adoption of ASC 606 (As Adjusted) Condensed Statements of Cash Flows Operating activities Royalties received $ 366,840 $ — $ 366,840 Interest received 3,545 — 3,545 Expenses paid (301,911) — (301,911) Net cash from operating activities 68,474 — 68,474 Investing activities Maturities of U.S. Government securities 82,628 — 82,628 Financing activity Distributions to unitholders (1,836,801) — (1,836,801) Net change in cash and cash equivalents (1,685,699) — (1,685,699) Cash and cash equivalents, beginning of year 13,695,168 — 13,695,168 Cash and cash equivalents, end of year $ 12,009,469 $ — $ 12,009,469 Reconciliation of net income to net cash from operating activities Net income $ 3,361,707 $ 1,110,218 $ 4,471,925 Increase in accrued income receivable (1,186,953) — (1,186,953) Increase in contract asset — (1,110,218) (1,110,218) Increase in prepaid expense (11,369) — (11,369) Increase in accrued expenses 4,504 — 4,504 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 $ 68,474 $ — $ 68,474 Non cash financing activity Distributions declared and payable $ 7,216,006 $ — $ 7,216,006 gggg g |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Apr. 30, 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 months ended April 30: 2018 2017 Base overriding royalties $ 3,857,485 $ 2,646,414 Bonus royalties 2,634,231 1,965,520 Fee royalties 154,954 148,495 Total royalty income $ 6,646,670 $ 4,760,429 Base overriding royalties The performance obligation for the base overriding royalty consists of providing Northshore Mining (“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. For the three months ended April 30, 2018, the Trust recorded $4,294,659 of accrued income receivable as reflected on the Condensed Balance Sheet as of April 30, 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 first fiscal quarter based on shipments during the month of April 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. The Trust includes contractual amounts due within accrued income receivable. Contract asset $1,430,427 of a contract asset is reflected on the Condensed Balance Sheet as of April 30, 2018 (unaudited). As of January 31, 2018 the Trust recorded a contract asset of $99,264. The contract asset is accounted for and reported for the Trust’s first fiscal quarter 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 | 3 Months Ended |
Apr. 30, 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 | 3 Months Ended |
Apr. 30, 2018 | |
UNALLOCATED RESERVE AND DISTRIBUTIONS | |
ROYALTY AGREEMENT, UNALLOCATED RESERVE AND DISTRIBUTIONS | Note 4. On April 26, 2018, the Trustees received the quarterly royalty report of iron ore product shipments from Silver Bay, Minnesota during the quarter ended March 31, 2018 from Cleveland-Cliffs Inc., formerly known as Cliffs Natural Resources Inc. (“Cleveland-Cliffs”), the parent company of Northshore. On April 13, 2018, the Trustees declared a distribution of $0.45 per Unit of Beneficial Interest payable on May 20, 2018 to Mesabi Trust Unitholders of record at the close of business on April 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 April 30, 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: April 30, 2018 (unaudited) January 31, 2018 Cash and U.S. Government securities $ 11,345,274 $ 24,112,286 Distribution payable (5,904,005) (15,481,612) Unallocated cash and U.S. $ 5,441,269 $ 8,630,674 A reconciliation of the Trust’s Unallocated Reserve from January 31, 2018 to April 30, 2018 is as follows: Unallocated Reserve, January 31, 2018 $ 10,606,675 Net income 6,315,848 Distributions declared (5,904,005) Unallocated Reserve, April 30, 2018 $ 11,018,518 |
SUMMARY OF SIGNIFICANT ACCOUN10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Apr. 30, 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) | 3 Months Ended |
Apr. 30, 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 April 30, 2017 April 30, 2017 (As Previously Reported) Adoption of ASC 606 (As Adjusted) Condensed Statements of Operations Revenues Royalty income $ 3,650,211 $ 1,110,218 $ 4,760,429 Interest 6,542 — 6,542 Total revenues 3,656,753 1,110,218 4,766,971 Expenses 295,046 — 295,046 Net income $ 3,361,707 $ 1,110,218 $ 4,471,925 WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING Number of units outstanding 13,120,010 13,120,010 13,120,010 Net income per unit $ 0.2562 $ 0.0846 $ 0.3408 Distributions declared per unit $ 0.5500 $ — $ 0.5500 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 Three Months Ended Three Months Ended April 30, 2017 April 30, 2017 (As Previously Reported) Adoption of ASC 606 (As Adjusted) Condensed Statements of Cash Flows Operating activities Royalties received $ 366,840 $ — $ 366,840 Interest received 3,545 — 3,545 Expenses paid (301,911) — (301,911) Net cash from operating activities 68,474 — 68,474 Investing activities Maturities of U.S. Government securities 82,628 — 82,628 Financing activity Distributions to unitholders (1,836,801) — (1,836,801) Net change in cash and cash equivalents (1,685,699) — (1,685,699) Cash and cash equivalents, beginning of year 13,695,168 — 13,695,168 Cash and cash equivalents, end of year $ 12,009,469 $ — $ 12,009,469 Reconciliation of net income to net cash from operating activities Net income $ 3,361,707 $ 1,110,218 $ 4,471,925 Increase in accrued income receivable (1,186,953) — (1,186,953) Increase in contract asset — (1,110,218) (1,110,218) Increase in prepaid expense (11,369) — (11,369) Increase in accrued expenses 4,504 — 4,504 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 $ 68,474 $ — $ 68,474 Non cash financing activity Distributions declared and payable $ 7,216,006 $ — $ 7,216,006 |
SUMMARY OF SIGNIFICANT ACCOUN12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Apr. 30, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of disaggregation of revenue | 2018 2017 Base overriding royalties $ 3,857,485 $ 2,646,414 Bonus royalties 2,634,231 1,965,520 Fee royalties 154,954 148,495 Total royalty income $ 6,646,670 $ 4,760,429 |
ROYALTY AGREEMENT, UNALLOCATE13
ROYALTY AGREEMENT, UNALLOCATED RESERVE AND DISTRIBUTIONS (Tables) | 3 Months Ended |
Apr. 30, 2018 | |
UNALLOCATED RESERVE AND DISTRIBUTIONS | |
Schedule of unallocated cash and U.S. Government securities portion of the Trust's Unallocated Reserve | April 30, 2018 (unaudited) January 31, 2018 Cash and U.S. Government securities $ 11,345,274 $ 24,112,286 Distribution payable (5,904,005) (15,481,612) Unallocated cash and U.S. $ 5,441,269 $ 8,630,674 |
Schedule of reconciliation of Trust's Unallocated Reserve | Unallocated Reserve, January 31, 2018 $ 10,606,675 Net income 6,315,848 Distributions declared (5,904,005) Unallocated Reserve, April 30, 2018 $ 11,018,518 |
NATURE OF BUSINESS AND ORGANI14
NATURE OF BUSINESS AND ORGANIZATION (Details) - USD ($) | Apr. 13, 2018 | Apr. 30, 2018 | Apr. 30, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Royalty income | $ 6,646,670 | $ 4,760,429 | |
Interest | 37,377 | 6,542 | |
Total revenues | 6,684,047 | 4,766,971 | |
Expenses | 368,199 | 295,046 | |
Net income | $ 6,315,848 | $ 4,471,925 | |
Number of units outstanding | 13,120,010 | 13,120,010 | |
Net income per unit (Note 2) (in dollars per unit) | $ 0.4814 | $ 0.3408 | |
Distributions declared per unit (Note 3) (in dollars per unit) | $ 0.45 | $ 0.4500 | $ 0.5500 |
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 | $ 1,110,218 | ||
Total revenues | 1,110,218 | ||
Net income | $ 1,110,218 | ||
Number of units outstanding | 13,120,010 | ||
Net income per unit (Note 2) (in dollars per unit) | $ 0.0846 | ||
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 | $ 3,650,211 | ||
Interest | 6,542 | ||
Total revenues | 3,656,753 | ||
Expenses | 295,046 | ||
Net income | $ 3,361,707 | ||
Number of units outstanding | 13,120,010 | ||
Net income per unit (Note 2) (in dollars per unit) | $ 0.2562 | ||
Distributions declared per unit (Note 3) (in dollars per unit) | $ 0.5500 |
NATURE OF BUSINESS AND ORGANI15
NATURE OF BUSINESS AND ORGANIZATION - B/S (Details) - USD ($) | Apr. 30, 2018 | Jan. 31, 2018 | Apr. 30, 2017 | Jan. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | $ 3,029,479 | $ 314,835 | $ 12,009,469 | $ 13,695,168 |
U.S. Government securities, current, at amortized cost (which approximates market) | 8,315,795 | 23,797,451 | ||
Accrued income receivable | 4,294,659 | 1,956,091 | ||
Contract asset | 1,430,427 | 99,264 | ||
Prepaid expenses | 69,151 | 54,640 | ||
Current assets | 17,139,511 | 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 | 17,139,514 | 26,222,284 | ||
Distribution payable | 5,904,005 | 15,481,612 | ||
Accrued expenses | 216,988 | 133,994 | ||
Total liabilities | 6,120,993 | 15,615,606 | ||
Unallocated reserve | 11,018,518 | 10,606,675 | ||
Trust corpus | 3 | 3 | ||
Total liabilities, unallocated reserve and trust corpus | $ 17,139,514 | 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 | $ 12,009,469 | $ 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 ($) | 3 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Royalties received | $ 2,997,561 | $ 366,840 |
Interest received | 16,755 | 3,545 |
Expenses paid | (299,716) | (301,911) |
Net cash from operating activities | 2,714,600 | 68,474 |
Maturities of U.S. Government securities | 15,853,108 | 82,628 |
Distributions to unitholders | (15,481,612) | (1,836,801) |
Net change in cash and cash equivalents | 2,714,644 | (1,685,699) |
Cash and cash equivalents, beginning of period | 314,835 | 13,695,168 |
Cash and cash equivalents, end of period | 3,029,479 | 12,009,469 |
Net income | 6,315,848 | 4,471,925 |
Increase in accrued income receivable | (2,338,568) | (1,186,953) |
Increase in contract asset | (1,331,163) | (1,110,218) |
Increase in prepaid expense | (14,511) | (11,369) |
Increase in accrued expenses | 82,994 | 4,504 |
Decrease in contract liability | (2,099,415) | |
Distributions declared and payable | 5,904,005 | 7,216,006 |
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 | 1,110,218 | |
Increase in contract asset | (1,110,218) | |
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 | 366,840 | |
Interest received | 3,545 | |
Expenses paid | (301,911) | |
Net cash from operating activities | 68,474 | |
Maturities of U.S. Government securities | 82,628 | |
Distributions to unitholders | (1,836,801) | |
Net change in cash and cash equivalents | (1,685,699) | |
Cash and cash equivalents, beginning of period | $ 314,835 | 13,695,168 |
Cash and cash equivalents, end of period | 12,009,469 | |
Net income | 3,361,707 | |
Increase in accrued income receivable | (1,186,953) | |
Increase in prepaid expense | (11,369) | |
Increase in accrued expenses | 4,504 | |
Decrease in deferred royalty revenue | (2,099,415) | |
Distributions declared and payable | $ 7,216,006 |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | ||
Apr. 30, 2018USD ($)itemMTshares | Apr. 30, 2017USD ($) | Jan. 31, 2018USD ($)shares | |
Disaggregation of Revenue [Line Items] | |||
Beneficial interest in the Trust (in units) | shares | 13,120,010 | 13,120,010 | |
Disaggregation of Revenue [Abstract] | |||
Royalty Revenue | $ 6,646,670 | $ 4,760,429 | |
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 | $ 4,294,659 | $ 1,956,091 | |
Contract asset | 1,430,427 | $ 99,264 | |
Base Overriding Royalties | |||
Disaggregation of Revenue [Abstract] | |||
Royalty Revenue | 3,857,485 | 2,646,414 | |
Bonus Royalties | |||
Disaggregation of Revenue [Abstract] | |||
Royalty Revenue | 2,634,231 | 1,965,520 | |
Fee Royalties | |||
Disaggregation of Revenue [Abstract] | |||
Royalty Revenue | $ 154,954 | $ 148,495 |
DIVIDEND AND DISTRIBUTION (Deta
DIVIDEND AND DISTRIBUTION (Details) | 3 Months Ended |
Apr. 30, 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 ($) | Apr. 13, 2018 | Apr. 30, 2018 | Apr. 30, 2017 | Jan. 31, 2018 |
UNALLOCATED RESERVE AND DISTRIBUTIONS | ||||
Distribution declared or paid (in dollars per unit) | $ 0.45 | $ 0.4500 | $ 0.5500 | |
Unallocated Cash and Securities portion of Unallocated Reserve | ||||
Cash and U.S. Government securities | $ 11,345,274 | $ 24,112,286 | ||
Distribution payable | (5,904,005) | (15,481,612) | ||
Unallocated cash and U.S. Government securities | 5,441,269 | $ 8,630,674 | ||
Reconciliation of Trust's Unallocated Reserve | ||||
Unallocated Reserve at the beginning of the period | 10,606,675 | |||
Net income | 6,315,848 | $ 4,471,925 | ||
Distributions declared | (5,904,005) | |||
Unallocated Reserve at the end of the period | $ 11,018,518 |