REG-BlackRock World Mining Trust Plc: Portfolio Update

BlackRock World Mining TrustAnnouncement

Today 18:15

BLACKROCK WORLD MINING TRUST PLC (LEI) – LNFFPBEUZJBOSR6PW155

All information is at 30 April 2025 and unaudited.
 

 Performance at month end with net income reinvested                                            
                                                                                                
                                                          One    Three   One     Three   Five   
                                                          Month  Months  Year    Years   Years  
 Net asset value                                          -1.7%  -2.2%   -9.9%   -15.7%  84.6%  
 Share price                                              -2.4%  -5.6%   -17.1%  -24.6%  92.3%  
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*  -2.2%  -1.1%   -9.2%   -6.6%   71.4%  
                                                                                                
 * (Total return)  Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                                

At month end

 Net asset value (including income) 1 :  515.79p      
 Net asset value (capital only):         507.50p      
 Share price:                            463.00p      
 Discount to NAV 2 :                     10.2%        
 Total assets:                           £1,062.9m    
 Net yield 3 :                           5.0%         
 Net gearing:                            6.8%         
 Ordinary shares in issue:               187,936,036  
 Ordinary shares held in Treasury:       5,075,806    
 Ongoing charges 4 :                     0.95%        
 Ongoing charges 5 :                     0.84%        
                                                      

 

1 Includes net revenue of 8.29p.

2 Discount to NAV including income.

3 Based on the first interim dividend of 5.50p per share declared on 10 May
2024, a second interim dividend of 5.50p per share declared on 23 August 2024,
third interim dividend of 5.50p per share declared on 15 November 2024 and the
final dividend of 6.50p per share declared on 6 March 2025 with ex date 20
March and pay date 27 May 2025 in respect of the year ended 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 2024.

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 2024.


 

 Country Analysis    Total         
                      Assets (%)   
                                   
 Global              55.9          
 Canada              11.9          
 Latin America       9.2           
 Australasia         7.9           
 United States       5.7           
 Other Africa        3.3           
 South Africa        3.1           
 Indonesia           0.4           
 Net Current Assets  2.6           
                     -----         
                     100.0         
                     =====         
                                   

 

 

 Sector Analysis        Total         
                         Assets (%)   
                                      
 Gold                   32.3          
 Diversified            26.7          
 Copper                 22.0          
 Steel                  5.7           
 Industrial Minerals    2.4           
 Iron Ore               2.2           
 Platinum Group Metals  2.2           
 Aluminium              1.0           
 Uranium                0.8           
 Nickel                 0.6           
 Silver                 0.6           
 Coppers                0.4           
 Materials              0.3           
 Zinc                   0.2           
 Net Current Assets     2.6           
                        -----         
                        100.0         
                        =====         
                                      

 

 

 

 

 

 

 

 Ten largest investments                    
                                            
 Company                  Total Assets %    
                                            
 Agnico Eagle Mines       7.5               
 Rio Tinto                7.5               
 BHP:                                       
 Equity                   4.6               
 Royalty                  1.9               
 Vale:                                      
 Equity                   3.8               
 Debenture                2.5               
 Wheaton Precious Metals  5.2               
 Anglo American           4.3               
 Freeport-McMoRan         4.3               
 Kinross Gold             3.9               
 Newmont                  3.6               
 Glencore                 2.9               
                                            
                                            

 

 Asset Analysis      Total Assets (%)  
 Equity              94.3              
 Bonds               1.9               
 Convertible Bond    0.7               
 Preferred Stock     0.5               
 Net Current Assets  2.6               
                     -----             
                     100.0             
                                       

 

 

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance The mining sector and broader equity markets experienced notable volatility in April 2025, primarily driven by the announcement of tariffs and the resulting uncertainty regarding global economic growth. For context, the MSCI All Country World Index rose by 0.9% over the month. The mining sector also faced protectionist measures from regions including Europe, South Korea, Vietnam and India, which have initiated anti-dumping actions against China. These measures support domestic capacity and      
 reduce the deflationary impact of low-priced Chinese exports, creating a positive backdrop for the sector over the longer term in our view. We await China’s response to escalating tensions with the U.S., which will be important in sustaining its domestic economic momentum.  Gold stood out as a relative outperformer amid this environment, benefiting from a weaker U.S. dollar and increased market volatility. Strong central bank purchases and robust retail demand, particularly in Asia, have further supported  
 the gold price. Within precious metals, the gold price increased by 5.9%, while the silver price declined by 3.3%. Commodity performance was generally weak: prices for iron ore (62% Fe), copper and nickel fell by 5.4%, 5.6% and 3.1% respectively.  April also saw market dislocations due to tariff uncertainties, notably in copper, where Comex prices traded at approximately a 10% premium over LME prices.  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 M&A 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.                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 20 May 2025  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/22397/4152814/3460677.pdf)  



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