REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

17/09/2020 14:30

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

 Performance at month end with net income reinvested                                           
                                                                                               
                                                             One   Three    One  Three    Five 
                                                           Month  Months   Year  Years   Years 
 Net asset value                                            2.4%   16.5%  16.8%  20.4%  140.0% 
 Share price                                                1.0%   19.3%  23.5%  23.7%  145.8% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*    0.7%   13.2%  11.5%  10.2%  121.2% 
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 

At month end

 Net asset value (including income) (1):       459.37p 
 Net asset value (capital only):               454.41p 
 (1)Includes net revenue of 4.96p                      
 Share price:                                  404.00p 
 Discount to NAV (2):                             12.1 
 Total assets:                                  887.5m 
 Net yield (3):                                   5.4% 
 Net Cash:                                       14.1% 
 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
19 August 2020 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 (%)   Sector Analysis           Total  Assets (%) 
                                                                                         
 Global                               66.3   Gold                                   37.0 
 Australasia                           9.6   Diversified                            31.8 
 Latin America                         7.5   Copper                                 18.2 
 Canada                                5.7   Industrial Minerals                     3.0 
 South Africa                          3.7   Platinum Group Metals                   2.7 
 United Kingdom                        3.5   Nickel                                  2.6 
 Russia                                1.7   Iron Ore                                1.8 
 Other Africa                          1.2   Steel                                   1.7 
 Indonesia                             1.0   Iron                                    1.4 
 United States                         0.8   Materials                               0.4 
 Argentina                             0.1   Silver & Diamonds                       0.3 
 Other Net Liabilities                -1.1   Aluminium                               0.1 
                                     -----   Zinc                                    0.1 
                                     100.0   Net Current Liabilities                -1.1 
                                     =====                                         ----- 
                                                                                   100.0 
                                                                                   ===== 

   

 Top 10 holdings                  Fund % 
                                         
 BHP                                10.3 
 Vale:                                   
 Equity                              4.9 
 Debenture                           3.2 
 Rio Tinto                           6.9 
 Barrick Gold                        6.9 
 Newmont Mining                      6.7 
 Wheaton Precious Metals             5.5 
 Anglo American                      5.3 
 Freeport-McMoRan Copper & Gold      4.0 
 OZ Minerals:                            
 Royalty                             2.0 
 Equity                              1.6 
 Franco-Nevada                       3.1 

   

 Asset Analysis            Total Assets (%) 
                                            
 Equity                                94.5 
 Bonds                                  4.9 
 Preferred Stock                        1.7 
 Net Current Liabilities               -1.1 
                                      ----- 
                                      100.0 
                                      ===== 

Commenting on the markets, Evy Hambro and Olivia Markham, representing the
Investment Manager noted:

Performance

The Company’s NAV increased by +2.4% in August, outperforming its reference
index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return),
which returned +0.7% (Figures in GBP).

Global equity markets rose in August, amid continued signs of a global
recovery, for reference the MSCI AC World Index rose by +6.0%. Economic data
points further indicated the continued recovery in global activity, with US,
Euro and China Manufacturing PMI statistics all above 50.

Against this macroeconomic backdrop, mined commodities performed well overall
during the month. China’s infrastructure investment appeared to support
copper and iron ore demand in particular, prices of which were up +4.3% and
+15.1% respectively. Meanwhile, global mined copper supply remained notably
down versus recent years as the spread of COVID-19 in South America continued
to disrupt operations.

Within the Company, our exposure to copper companies benefitted relative
performance, with positions in Freeport-McMoRan, Ero Copper and Cerro Verde
among the top performers. On the negative side, our position in Australian
gold producer, Northern Star Resources, was one of the largest detractors. The
company underperformed as the gold price declined modestly and as Australian
dollar strength negatively impacted its margin outlook.

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, and the sector should see strong earnings growth on the
back of that. 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

17 September 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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