REG-BlackRock World Mng: Portfolio Update
23/06/2020 17:30
The information contained in this release was correct as at 31 May 2020.
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 31 May 2020 and unaudited.
Performance at month end with net income reinvested
One Three One Three Five
Month Months Year Years Years
Net asset value 10.7% 12.9% 8.6% 22.9% 49.2%
Share price 9.4% 13.0% 10.6% 21.6% 50.4%
MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)* 7.0% 9.7% 4.3% 16.3% 41.3%
EMIX Global Mining Index (Net)* 9.8% 16.2% 12.0% 38.6% 64.5%
* (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, EMIX Global Mining Index, Datastream
At month end
Net asset value including income (1): 397.88p
Net asset value capital only: 394.07p
(1)Includes net revenue of 3.81p
Share price: 342.00p
Discount to NAV (2): 14.0%
Total assets: £787.8m
Net yield (3): 6.4%
Net gearing: 9.6%
Ordinary shares in issue: 173,605,020
Ordinary shares held in treasury: 19,406,822
Ongoing charges (4): 0.9%
(2)Discount to NAV including income. (3)Based on two quarterly interim dividends of 4.00p per share declared on 20 August 2019 and 14 November 2019 and a final dividend of 10.00p per share announced on 27 February 2020 in respect of the year ended 31 December 2019 and a quarterly interim dividend of 4.00p per share declared on 30 April 2020 in respect of the year ending 31 December 2020. (4)Calculated as a percentage of average net assets and using expenses, excluding finance costs, for the year ended 31 December 2019.
Sector % Total Country Analysis % Total
Assets Assets
Gold 33.2 Global 63.6
Diversified 32.5 Latin America 8.0
Copper 16.7 Australasia 6.5
Nickel 3.7 Canada 6.1
Industrial Minerals 3.3 United Kingdom 4.6
Platinum Group Metals 2.3 South Africa 3.1
Iron Ore 1.7 Russia 1.4
Steel 1.7 Other Africa 1.1
Materials 0.4 USA 0.9
Silver & Diamonds 0.3 Indonesia 0.7
Aluminium 0.2 Argentina 0.1
Zinc 0.1 Current Assets 3.9
Current Assets 3.9 -----
----- 100.0
100.0 =====
=====
The Largest Investments
Company % Total
Assets
Rio Tinto 9.1
BHP 8.7
Vale:
Equity 4.4
Debenture 3.3
Newmont Mining 6.8
Barrick Gold 6.5
Anglo American 5.6
Wheaton Precious Metals 4.6
OZ Minerals Brazil:
Royalty 2.4
Equity 1.3
Franco-Nevada 3.6
First Quantum Minerals 2.9
Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:
Performance
The Company’s NAV increased by 10.7% in May, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which returned +7.0%. (Figures in GBP) Global equity markets continued to recover in May, as signs of activity restarting and the hopes for antiviral treatments and a vaccine improved equity market sentiment. For reference, the MSCI All Country World Index rose by 4.2%. Elsewhere, tensions between the US and China escalated as markets reacted to China’s move
to impose new national security legislation on Hong Kong. China also dropped its annual GDP target and instead adopted a target to keep urban unemployment below 6% and promised monetary policy support of credit growth “significantly higher” than last year. Mined commodity prices were up almost across the board, as positive economic data from China indicated a recovery in industrial activity. The Caixin China Manufacturing Purchasing Managers’ Index, for example, rose to 50.7 in May, up from 49.4 in April.
The copper price rose by 3.7% over the month, whilst the iron ore (62% fe) price rose by 21.3% to $102.5/tonne. The iron ore (62% fe) price was boosted by improving steel demand, as well as supply concerns as COVID-19 cases began to rise sharply in Brazil.
Strategy and Outlook
We anticipate continued volatility for the mining sector and broader equity market as the full economic implications of COVID-19 become clearer. Given how strong balance sheets are in the mining sector, however, the miners should be well positioned to weather economic weakness relative to other sectors. The capital discipline story remains intact, with mining companies still focused on improving shareholder returns through dividends and buybacks. The mining sector should also be a key beneficiary of
increased infrastructure spending in China and the US, which we expect to come through during the remainder of 2020.
All data points are in USD terms unless stated otherwise.
23 June 2020
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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