REG-BlackRock World Mining Trust Plc: Portfolio Update

BlackRock World Mining TrustAnnouncement

27/06/2024 10:45

BLACKROCK WORLD MINING TRUST PLC (LEI - LNFFPBEUZJBOSR6PW155)

All information is at 31 May 2024 and unaudited.
 

 Performance at month end with net income reinvested                                           
                                                                                               
                                                          One    Three   One    Three  Five    
                                                          Month  Months  Year   Years  Years   
 Net asset value                                          3.3%   20.2%   10.9%  14.0%  107.7%  
 Share price                                              2.0%   24.9%   7.0%   9.7%   139.2%  
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*  0.9%   16.2%   18.3%  14.1%  85.9%   
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                               

At month end

 Net asset value (including income) 1 :  611.09p      
 Net asset value (capital only):         605.40p      
 Share price:                            590.00p      
 Discount to NAV 2 :                     3.5%         
 Total assets:                           £1,301.8m    
 Net yield 3 :                           5.7%         
 Net gearing:                            12.8%        
 Ordinary shares in issue:               191,183,036  
 Ordinary shares held in Treasury:       1,828,806    
 Ongoing charges 4 :                     0.91%        
 Ongoing charges 5 :                     0.81%        

 

1 Includes net revenue of 5.69p.

2 Discount to NAV including income.

3 Based on a second interim dividend of 5.50p per share declared on 24 August
2023, a third interim dividend of 5.50p per share declared on 11 October 2023
and a final dividend of 17.00p per share declared on 7 March 2024 in respect
of the year ended 31 December 2023 and a first interim dividend of 5.50p per
share declared on 10 May 2024 with ex date 30 May 2024 and pay date 28 June
2024, in respect of the year ending 31 December 2024.

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 2023.

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 2023.


 

 Country Analysis         Total         
                           Assets (%)   
                                        
 Global                   63.3          
 Canada                   8.6           
 Latin America            8.6           
 United States            8.5           
 Australasia              7.4           
 Other Africa             3.7           
 Indonesia                0.7           
 South Africa             0.1           
 Net Current Liabilities  -0.9          
                          -----         
                          100.0         
                          =====         
                                        

 

 

 Sector Analysis          Total         
                           Assets (%)   
                                        
 Diversified              35.4          
 Copper                   24.7          
 Gold                     17.4          
 Steel                    7.7           
 Industrial Minerals      4.8           
 Aluminium                3.5           
 Iron Ore                 2.1           
 Platinum Group Metals    1.8           
 Uranium                  1.7           
 Nickel                   1.2           
 Mining Services          0.5           
 Zinc                     0.1           
 Net Current Liabilities  -0.9          
                          -----         
                          100.0         
                          =====         
                                        

 

 

 

 

 

 

 

 Ten largest investments                  
                                          
 Company                  Total Assets %  
                                          
 Glencore                 8.0             
 BHP:                                     
 Equity                   6.0             
 Royalty                  1.5             
 Rio Tinto                6.0             
 Vale:                                    
 Equity                   3.5             
 Debenture                2.5             
 Anglo American           5.2             
 Freeport-McMoRan         4.6             
 Newmont                  4.4             
 Teck Resources           3.7             
 Norsk Hydro ASA          3.5             
 Agnico Eagle Mines       3.4             
                                          
                                          
                                          
                                          
                                          

 

 Asset Analysis           Total Assets (%)  
 Equity                   98.1              
 Bonds                    1.5               
 Preferred Stock          0.8               
 Convertible Bonds        0.6               
 Option                   -0.1              
 Net Current Liabilities  -0.9              
                          -----             
                          100.0             
                          =====             
                                            
                                            

 

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance  The Company’s NAV rose by 3.3% in May, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which returned +0.9% (performance figures in GBP).  After a strong run in April, most mined commodity prices were relatively flat through May. The copper price reached a new all-time high of US$5.20/lb during the month but pulled back to end the period up by just 0.2%. The standout performer was silver, with its price rising by 14.8% on strong physical  
 demand in Asia.  Sentiment around China improved on signs of better economic activity, with the Caixin General Manufacturing PMI rising to 51.7. China also announced support for its struggling property market, with its central bank setting up a 300 billion yuan (US$42 billion) facility for local state-owned enterprises to buy unsold homes.  In company news, after a month of negotiations, BHP withdrew its proposed takeover of Anglo American after the companies failed to reach an agreement. Anglo American    
 then announced plans to restructure its business, which included a spin off of its platinum business unit.  Strategy and Outlook  China has re-opened but with less impact than had been expected. Uncertainty persists around China’s commodity demand, but we are seeing the Chinese administration announce financial support incrementally.  Longer term, we are excited by the structural demand growth for a range of mined commodities that will result from the low carbon transition. Meanwhile, commodity supply is   
 likely to be constrained by the capital discipline of recent years, whilst inventories for many mined commodities are at historic lows. Mining companies have low levels of debt, continue to return capital to shareholders but appear to be entering a higher capital expenditure phase.  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.                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 27 June 2024  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.                                                                                                                                                                                                          

 

 Release (https://mb.cision.com/Main/22397/4007225/2888919.pdf)  



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