REG-BlackRock World Mining Trust Plc: Portfolio Update

BlackRock World Mining TrustAnnouncement

18/07/2023 16:30

The information contained in this release was correct as at 30 June 2023.
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 June 2023 and unaudited.
 

 Performance at month end with net income reinvested                                           
                                                                                               
                                                          One    Three   One    Three  Five    
                                                          Month  Months  Year   Years  Years   
 Net asset value                                          4.9%   -7.0%   11.2%  68.1%  80.4%   
 Share price                                              2.2%   -9.5%   11.0%  87.9%  108.3%  
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*  3.8%   -7.5%   10.2%  47.6%  52.7%   
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                               

At month end

 Net asset value (including income) 1 :  612.43p      
 Net asset value (capital only):         603.40p      
 Share price:                            599.00p      
 Discount to NAV 2 :                     2.2%         
 Total assets:                           £1,321.1m    
 Net yield 3 :                           6.7%         
 Net gearing:                            10.3%        
 Ordinary shares in issue:               191,183,036  
 Ordinary shares held in Treasury:       1,828,806    
 Ongoing charges 4 :                     1.0%         
 Ongoing charges 5 :                     0.8%         
                                                      

 

1 Includes net revenue of 9.03p

2 Discount to NAV including income.

3 Based on a second and third interim dividend of 5.50p per share declared on
23 August 2022 and 16 November 2022 respectively, a final dividend of 23.50p
per share declared on 2 March 2023 with ex-date 9 March 2023 and pay date of
26 April 2023 in respect of the year ended 31 December 2022, and a first
interim dividend of 5.50p per share declared on 18 April 2023 with ex-date 4
May 2023 and pay date of 31 May 2023, in respect of the year ending 31
December 2023.

4 The Company’s ongoing charges are calculated as a percentage of average
daily net assets and using the management fee and all other operating
expenses, excluding finance costs, direct transaction costs, custody
transaction charges, VAT recovered, taxation and certain other non-recurring
items for the year ended 31 December 2022.

5 The Company’s ongoing charges are calculated as a percentage of average
daily gross assets and using the management fee and all other operating
expenses, excluding finance costs, direct transaction costs, custody
transaction charges, VAT recovered, taxation and certain other non-recurring
items for the year ended 31 December 2022.


 

 Country Analysis    Total         
                      Assets (%)   
                                   
 Global              64.4          
 Australasia         10.1          
 Latin America       8.8           
 United States       6.2           
 Canada              4.2           
 Other Africa        2.8           
 Indonesia           0.9           
 South Africa        0.3           
 United Kingdom      0.1           
 Net Current Assets  2.2           
                     -----         
                     100.0         
                     =====         
                                   

 

 

 Sector Analysis        Total         
                         Assets (%)   
                                      
 Diversified            34.9          
 Copper                 22.4          
 Gold                   15.2          
 Industrial Minerals    7.7           
 Steel                  6.5           
 Aluminium              3.0           
 Platinum Group Metals  2.2           
 Iron Ore               2.1           
 Nickel                 1.5           
 Uranium                1.1           
 Mining Services        1.1           
 Zinc                   0.1           
 Net Current Assets     2.2           
                        -----         
                        100.0         
                        =====         
                                      

 

 

 

 

 

 Ten largest investments                  
                                          
 Company                  Total Assets %  
                                          
 Vale:                                    
 Equity                   6.5             
 Debenture                2.4             
 BHP                      8.6             
 Glencore                 7.7             
 Teck Resources           4.4             
 Freeport-McMoRan         3.8             
 First Quantum Minerals:                  
 Equity                   2.8             
 Bond                     0.7             
 Newmont Mining           3.1             
 Wheaton Precious Metals  3.0             
 Ivanhoe:                                 
 Equity                   1.8             
 Bond                     0.9             
 ArcelorMittal            2.7             
                                          


 

 

 Asset Analysis      Total Assets (%)  
 Equity              94.7              
 Bonds               3.1               
 Net Current Assets  2.2               
                     -----             
                     100.0             
                     =====             
                                       

 

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 After a difficult May, the mining sector rebounded in June as market sentiment towards China improved on expectations that the Chinese administration will announce fresh stimulus measures in H2. This helped boost mined commodity prices with, for example, copper and iron ore (62% fe.) prices rising by +3.1% and +13.4% respectively. The copper market also saw draws on inventories as inventory cover trended back towards the record lows seen in January.  Precious metals prices were soft, however, with gold and 
 silver prices falling by -2.8% and -3.4% respectively as rising US interest rate expectations were a headwind. Meanwhile, global equity markets posted positive performance, with the MSCI ACWI TR Index rising by +5.6%, but returns were relatively concentrated in large-cap technology stocks which benefited from hype around artificial intelligence.                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Strategy and Outlook                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 We do not expect the mining sector to be immune to deteriorating global economic growth. However, whilst recession looms for developed markets, the most important economy for mining, China, is moving in the opposite direction, re-opening following a year of lockdowns and a strict zero-Covid policy.  Meanwhile, mined commodity markets are generally tight, with inventories for many commodities at historic lows. At the same time, mined supply is being constrained by the underinvestment of recent years and     
 continued capital discipline. Mining companies are in an excellent financial position, in our view, with high levels of free cash flow, rock-solid balance sheets and a continued focus on returning capital to shareholders.  Last year, we saw greater appreciation of the role mining companies will need to play in supplying the materials required for lower carbon technologies like wind turbines, solar panels and electric vehicles. In 2023, we are seeing Brown to Green emerge as a key theme, where mining        
 companies are focusing on reducing the greenhouse gas emissions intensity associated with their production. We expect to see a re-rating for the mining companies able to best navigate this and are playing this in the portfolio.  All data points are in USD terms unless stated otherwise.                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 19 July 2023  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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