Note 4. On April 30, 2020, the Trustees received the quarterly royalty report of iron ore product shipments from Silver Bay, Minnesota during the calendar quarter ended March 31, 2020 from Cleveland-Cliffs Inc. (“Cliffs”), the parent company of Northshore.

On April 13, 2020, the Trustees declared a distribution of $0.56 per Unit of Beneficial Interest payable on May 20, 2020 to Mesabi Trust Unitholders of record at the close of business on April 30, 2020.

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, 2020 and January 31, 2020, the unallocated cash and U.S. Government securities portion of the Trust’s Unallocated Reserve was comprised of the following components:


	April 30, 2020 (unaudited)		January 31, 2020
Cash and U.S. Government securities	$	14,283,675	$	23,510,129
Distribution payable		(7,347,206)		(9,184,007)

Unallocated cash and U.S. Government securities	$	6,936,469	$	14,326,122

A reconciliation of the Trust’s Unallocated Reserve and Trust Corpus for the three months ended April 30, 2020 and 2019 is as follows:


		Unallocated		Trust
		Reserve		Corpus		Total
Balances at January 31, 2020	$	11,831,014	$	3	$	11,831,017

Net income		1,611,621		—		1,611,621
Distributions declared - $0.5600 per share		(7,347,206)		—		(7,347,206)

Balances at April 30, 2020	$	6,095,429	$	3	$	6,095,432


		Unallocated		Trust
		Reserve		Corpus		Total
Balances at January 31, 2019	$	16,805,689	$	3	$	16,805,692

Net income		4,910,288		—		4,910,288
Distributions declared - $0.8900 per share		(11,676,809)		—		(11,676,809)

Balances at April 30, 2019	$	10,039,168	$	3	$	10,039,171