REG-BlackRock World Mining Trust Plc: Portfolio Update

BlackRock World Mining TrustAnnouncement

24/12/2024 11:45

BLACKROCK WORLD MINING TRUST PLC (LEI – LNFFPBEUZJBOSR6PW155

All information is at 30 November 2024 and unaudited.
 

 Performance at month end with net income reinvested                                          
                                                                                              
                                                          One    Three   One    Three  Five   
                                                          Month  Months  Year   Years  Years  
 Net asset value                                          -1.2%  4.3%    3.7%   15.5%  84.5%  
 Share price                                              -3.5%  -1.1%   -1.0%  15.1%  97.3%  
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*  -2.5%  1.8%    4.5%   17.0%  65.1%  
                                                                                              
 * (Total return)  Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                              

At month end

 Net asset value (including income) 1 :  561.14p      
 Net asset value (capital only):         555.18p      
 Share price:                            509.00p      
 Discount to NAV 2 :                     9.3%         
 Total assets:                           £1,205.6m    
 Net yield 3 :                           6.6%         
 Net gearing:                            11.1%        
 Ordinary shares in issue:               191,018,036  
 Ordinary shares held in Treasury:       1,993,806    
 Ongoing charges 4 :                     0.91%        
 Ongoing charges 5 :                     0.81%        
                                                      

 

1 Includes net revenue of 5.96p.

2 Discount to NAV including income.

3 Based on the final dividend of 17.00p per share declared on 7 March 2024
with ex date 21 March and pay date 14 May 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 24 June 2024, and second
interim dividend of 5.50p per share declared on 23 August 2024 with ex date 05
September 2024 and pay date 30 September 2024 and third interim dividend of
5.50p per share declared on 15 November 2024 with ex date 28 November 2024 and
pay date 20 December 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              60.3          
 Canada              12.2          
 Latin America       7.6           
 Australasia         6.5           
 United States       6.3           
 Other Africa        3.8           
 South Africa        1.4           
 Indonesia           0.7           
 Net Current Assets  1.2           
                     -----         
                     100.0         
                     =====         
                                   

 

 

 Sector Analysis        Total         
                         Assets (%)   
                                      
 Diversified            33.6          
 Copper                 23.9          
 Gold                   21.9          
 Steel                  4.8           
 Uranium                3.4           
 Iron Ore               3.0           
 Industrial Minerals    2.9           
 Aluminium              2.4           
 Platinum Group Metals  1.7           
 Nickel                 1.1           
 Zinc                   0.1           
 Net Current Assets     1.2           
                        -----         
                        100.0         
                        =====         
                                      

 

 

 

 

 

 

 

 Ten largest investments                  
                                          
 Company                  Total Assets %  
                                          
 BHP:                                     
 Equity                   6.8             
 Royalty                  1.5             
 Rio Tinto                6.8             
 Glencore                 5.9             
 Anglo American           5.7             
 Vale:                                    
 Equity                   2.7             
 Debenture                2.4             
 Agnico Eagle Mines       5.0             
 Freeport-McMoRan         4.6             
 Wheaton Precious Metals  3.9             
 Cameco Corp              3.5             
 Teck Resources           3.1             
                                          

 

 Asset Analysis      Total Assets (%)  
 Equity              96.0              
 Bonds               1.5               
 Preferred Stock     0.8               
 Convertible Bond    0.6               
 Option              -0.1              
 Net Current Assets  1.2               
                     -----             
                     100.0             
                     =====             
                                       
                                       

 

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance  The Company’s NAV fell by 1.2% in November 2024, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return) which declined by 2.5% (performance figures in GBP).  November 2024 was a challenging month for the mining sector, which underperformed broader equity markets represented by the MSCI All Country World Index, which returned 3.7%. The mining sector experienced volatility as Donald Trump’s US election victory increased uncertainty around future    
 trade tensions with China. The election result also led to outperformance from US stocks, including US mining companies. Meanwhile, stimulus measures announced by China had an underwhelming effect on commodity demand expectations.  Performance in the commodities space was mixed, with iron ore (62% Fe) and nickel prices rising by 1.0% and 1.4% respectively, whilst copper fell by 5.1%.  In the precious metals space, gold and silver prices fell by 3.0% and 8.0% respectively, as the US dollar strengthened      
 significantly following Trump's election, creating a headwind.  Uranium supply-side risk increased as Russia announced temporary restrictions on the export of enriched uranium to the US. Additionally, technology hyperscalers have expressed a preference for nuclear energy to power their artificial intelligence (AI) data centers, boosting sentiment for uranium and uranium mining companies. Increasing global demand for nuclear energy and significant supply constraints could lead to a tighter market in the     
 coming years.  Strategy and Outlook  Near term, we expect performance to be driven by the China stimulus situation, which is evolving, and we are watching closely to see if it translates into a pickup in demand. Longer term, we expect mined commodity demand growth to be driven by increased global infrastructure build out, particularly related to the low carbon transition and increased power demand.  Meanwhile, the supply side of the equation is constrained. Mining companies have focused on capital          
 discipline in recent years, meaning they have opted to pay down debt, reduce costs and return capital to shareholders, rather than investing in production growth. This is limiting new supply coming online and there is unlikely to be a quick fix, given the time lags involved in investing in new mining projects. The cost of new projects has also risen significantly and recent mergers and acquisitions activity in the sector suggests that, like us, strategic buyers see an opportunity in existing assets in the  
 listed market, currently trading well below replacement costs. Other issues restricting supply include cases of governments closing mines, permitting issues and a general lack of shovel-ready projects. Turning to the companies, balance sheets in the sector are very strong relative to history. Despite this, valuations are low relative to historic averages and relative to broader equity markets.                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 24 December 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/22397/4086452/3189357.pdf)  



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