REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

24/08/2020 10:35

The information contained in this release was correct as at 31 July 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 July 2020 and unaudited.

 

 Performance at month end with net income reinvested                                           
                                                                                               
                                                             One   Three    One  Three    Five 
                                                           Month  Months   Year  Years   Years 
 Net asset value                                            5.6%   25.8%   7.7%  27.4%  117.4% 
 Share price                                                7.4%   29.3%  12.9%  30.3%  124.3% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*    6.1%   20.2%   5.8%  18.2%  104.0% 
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                               

At month end

 Net asset value (including income) (1):       452.45p 
 Net asset value (capital only):               447.17p 
 (1)Includes net revenue of 5.28p                      
 Share price:                                  404.00p 
 Discount to NAV (2):                            10.7% 
 Total assets:                                 £876.9m 
 Net yield (3):                                   5.4% 
 Net gearing:                                    10.8% 
                                                       
 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.

                        
 Country Analysis        Total Assets (%) 
 Global                              66.7 
 Australasia                          7.8 
 Latin America                        7.4 
 Canada                               5.8 
 South Africa                         3.6 
 United Kingdom                       3.6 
 Russia                               1.6 
 Other Africa                         1.1 
 United States                        0.8 
 Indonesia                            0.8 
 Argentina                            0.1 
 Net Current Assets                   0.7 
                                    ----- 
                                    100.0 
                                    ===== 
                                            
 Sector Analysis         Total Assets (%) 
 Gold                                39.3 
 Diversified                         30.8 
 Copper                              17.1 
 Industrial Minerals                  2.8 
 Nickel                               2.6 
 Platinum Group Metals                2.5 
 Iron Ore                             1.7 
 Steel                                1.6 
 Materials                            0.4 
 Silver & Diamonds                    0.3 
 Aluminium                            0.1 
 Zinc                                 0.1 
 Net Current Assets                   0.7 
                                    ----- 
                                    100.0 
                                    ===== 
                                          

   

 Top 10 holdings                  Fund % 
 Vale                                    
 Equity                              5.3 
 Debenture                           3.2 
 BHP                                 8.1 
 Rio Tinto                           7.6 
 Newmont Mining                      7.2 
 Barrick Gold                        7.1 
 Wheaton Precious Metals             5.9 
 Anglo American                      5.5 
 OZ Minerals Brazil                      
 Royalty                             2.1 
 Equity                              1.6 
 Franco-Nevada                       3.5 
 Freeport-McMoRan Copper & Gold      3.4 

   

                                       
 Asset Analysis       Total Assets (%) 
 Equity                           92.6 
 Bonds                             5.1 
 Preferred Stock                   1.6 
 Net Current Assets                0.7 
                                 ----- 
                                 100.0 
                                 ===== 

   

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 The Company’s NAV increased by 5.6% in July, underperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which returned +6.1%. (Figures in GBP)                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Despite concerns around COVID-19 cases increasing in emerging markets such as Brazil, Iran and India, global economic growth expectations improved during the month as investor confidence was boosted by encouraging news around COVID-19 vaccine research. Chinese economic data was also better-than-expected, with its manufacturing PMI rising to 51.1, up from 50.9 in June, indicating continued expansion.                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Against this backdrop, mined commodity prices were up across the board in July. Copper and iron ore (62% fe.) prices were up by 7.0% and 7.9% respectively on stronger demand from China and concerns around supply disruptions in Central and South America. Elsewhere, the gold price returned +10.7% over the month, reaching a new all-time high of $1,975/oz., with declining real rates appearing to be the main positive tailwind.                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Turning to mining companies, the month saw Q2 production results being announced and, in general, operational disruptions were not as bad as had been feared.                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Within the portfolio, stock selection in the copper sub-sector provided the most significant drag on relative returns during the month, with our positions in Cerro Verde and Ero Copper the largest two detractors.                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Strategy and Outlook                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 We expect continued volatility as the COVID-19 pandemic evolves and believe broader equity markets could be vulnerable to a pullback in the near-term. However, with balance sheets in strong shape, we believe the miners are relatively well positioned to weather economic weakness. Mined commodity prices have performed strongly in recent weeks, with most now up on a year-to-date basis. We expect mined commodity demand to be supported by increased infrastructure spending in China and the US, as well as         
 coordinated green spending initiatives in Europe. The capital discipline story remains intact, with mining companies focused on shareholder returns through dividends and buybacks.                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 All data points are in USD terms unless stated otherwise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 24 August 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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