REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

07/06/2021 13:04

The information contained in this release was correct as at 30 April 2021.
Information on the Company’s up to date net asset values can be found on the
London Stock Exchange website at:

https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.

BLACKROCK WORLD MINING TRUST PLC (LEI - LNFFPBEUZJBOSR6PW155)

All information is at 30 April 2021 and unaudited.
 

 Performance at month end with net income reinvested                                            
                                                                                                
                                                             One   Three     One  Three    Five 
                                                           Month  Months    Year  Years   Years 
 Net asset value                                            8.9%   17.4%   77.1%  65.1%  168.0% 
 Share price                                               10.1%   20.9%  109.0%  97.4%  224.6% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*    8.7%   19.0%   59.8%  47.2%  122.4% 
                                                                                                
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 

At month end

 Net asset value (including income) (1):       616.94p 
 Net asset value (capital only):               602.58p 
 (1)Includes net revenue of 14.36p                     
 Share price:                                  632.00p 
 Premium to NAV (2):                              2.4% 
 Total assets:                               £1,241.4m 
 Net yield (3):                                   3.3% 
 Net gearing:                                    10.2% 
 Ordinary shares in issue:                 179,125,814 
 Ordinary shares held in Treasury:          13,886,028 
 Ongoing charges (4):                             0.9% 

(2) Premium to NAV including income.
(3) Based on two quarterly interim dividends of 4.00p per share declared on 12
November and 19 August 2020 and a final dividend of 8.30p per share announced
on 5 March 2021 in respect of the year ended 31 December 2020, and an interim
dividend of 4.50p per share declared on 29 April 2021 in respect of the year
ending 31 December 2021.
(4) Calculated as a percentage of average net assets and using expenses,
excluding finance costs, for the year ended 31 December 2020.

 Country Analysis     Total  Assets (%)   Sector Analysis         Total  Assets (%) 
                                                                                    
 Global                            66.0   Diversified                          40.1 
 Australasia                        7.2   Copper                               20.9 
 Latin America                      6.9   Gold                                 18.7 
 South Africa                       5.8   Platinum Group Metals                 5.3 
 Canada                             4.2   Iron Ore                              5.0 
 Other Africa                       2.7   Steel                                 4.3 
 United States                      2.2   Industrial Minerals                   2.0 
 Indonesia                          1.3   Nickel                                1.3 
 United Kingdom                     1.0   Silver & Diamonds                     0.2 
 Russia                             0.8   Zinc                                  0.2 
 Net Current Assets                 1.9   Aluminium                             0.1 
                                          Net Current Assets                    1.9 
                                  -----                                             
                                  100.0                                       ----- 
                                  =====                                       100.0 
                                                                              ===== 
                                                                                    

   

 Ten largest investments                  
                                          
 Company                   Total Assets % 
                                          
 Vale:                                    
 Equity                               6.8 
 Debenture                            3.8 
 BHP                                  8.1 
 Rio Tinto                            7.7 
 Anglo American                       7.7 
 Freeport-McMoRan                     6.3 
 Glencore                             4.0 
 Newmont Mining                       3.9 
 Barrick Gold                         3.2 
 OZ Minerals:                             
 Royalty                              1.7 
 Equity                               1.4 
 First Quantum Minerals                   
 Equity                               1.8 
 Royalty                              1.3 

   

 Asset Analysis       Total Assets (%) 
                                       
 Equity                           92.3 
 Bonds                             3.1 
 Preferred Stock                   2.6 
 Warrants                          0.1 
 Net Current Assets                1.9 
                                 ----- 
                                 100.0 
                                 ===== 

Commenting on the markets, Evy Hambro and Olivia Markham, representing the
Investment Manager noted:

Performance

The Company’s NAV returned +8.9% in April, outperforming its reference
index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return),
which returned +8.7% (Figures in GBP).

April was a strong month for the mining sector both in absolute terms and
relative to broader equity markets, with the MSCI ACWI TR Index rising by
4.2%. Mined commodity prices were buoyant, with copper and iron ore (62% fe.)
soaring +11.9% and +13.6% respectively. For reference, both copper and iron
ore have hit fresh all-time highs.

Rising optimism around the post COVID-19 global economic recovery and robust
economic activity in China supported prices, with China’s manufacturing PMI
at 51.9 and its steel production at record levels. Meanwhile, US President Joe
Biden proposed a $2 trillion infrastructure plan which also contributed
positively to expectations around the US’s commodity demand.

Strategy and Outlook

We are optimistic on COVID-19 vaccine rollouts supporting global economic
growth and, in turn, commodity demand. Meanwhile, our analysis shows that the
mining sector has performed particularly strongly during periods with
significant increases in inflation expectations which we believe we could see
this year.

Increased fiscal stimulus globally aimed at kick-starting economies in the
COVID-19 crisis is being geared towards infrastructure spending which should
support mined commodity demand. Meanwhile, we see the mining sector playing a
crucial role in supplying the materials required for low carbon technologies
e.g. wind turbines and solar panels.

Capital expenditure has been slashed by the miners since the peak in 2013,
which is constraining new commodity supply and supporting prices. Whilst
capital expenditure has risen since 2016, it is still a long way below the
peak and we are encouraged by rhetoric from management teams around continued
capital discipline.

Mining companies have focused on paying down debt in recent years and balance
sheets are exceptionally strong today as a result. Given ongoing discipline,
capital is being returned to shareholders in the form of dividends and
buybacks. Meanwhile, we see potential for dividend upside given that prices
for mined commodities have surprised to the upside e.g. iron ore.

All data points are in USD terms unless stated otherwise.

24 May 2021

Latest information is available by typing www.blackrock.com/uk/brwm on the
internet. Neither the contents of the Manager’s website nor the contents of
any website accessible from hyperlinks on the Manager’s website (or any
other website) is incorporated into, or forms part of, this announcement.



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