REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

15/10/2020 16:55

The information contained in this release was correct as at 30 September
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 30 September 2020 and unaudited.
 

 Performance at month end with net income reinvested                                           
                                                                                               
                                                             One   Three    One  Three    Five 
                                                           Month  Months   Year  Years   Years 
 Net asset value                                           -0.7%    7.5%  17.2%  29.6%  163.6% 
 Share price                                               -0.6%    7.8%  21.0%  31.6%  161.2% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*   -1.2%    5.6%  10.7%  18.4%  143.2% 
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                               

At month end

 Net asset value (including income) (1):       456.18p 
 Net asset value (capital only):               446.49p 
 (1)Includes net revenue of 9.69p                      
 Share price:                                  401.50p 
 Discount to NAV (2):                            12.0% 
 Total assets:                                  884.5m 
 Net yield (3):                                   5.5% 
 Net gearing:                                    11.1% 
 Ordinary shares in issue:                 173,550,814 
 Ordinary shares held in Treasury:          19,461,028 
 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 30 April 2020 for the year ending 31 December 2020 and a
quarterly interim dividend of 4.00p per share declared on 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.
(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                                66.5 
 Australasia                            7.9 
 Latin America                          7.6 
 Canada                                 5.7 
 South Africa                           3.8 
 United Kingdom                         2.7 
 Russia                                 1.5 
 United States                          1.4 
 Other Africa                           1.2 
 Indonesia                              1.0 
 Argentina                              0.1 
 Other Net Assets                       0.6 
                         ------- 100.0 ==== 
                                              
 Sector Analysis           Total Assets (%) 
 Gold                                  37.0 
 Diversified                           31.3 
 Copper                                18.1 
 Platinum Group Metals                  2.9 
 Nickel                                 2.1 
 Industrial Minerals                    2.0 
 Steel                                  1.9 
 Iron Ore                               1.7 
 Iron                                   0.9 
 Materials                              0.9 
 Zinc                                   0.3 
 Silver & Diamonds                      0.2 
 Aluminium                              0.1 
 Net Current Assets                     0.6 
                         ------- 100.0 ==== 
                                            

   

 Top 10 holdings                  Company % 
 Vale:                                      
 Equity                                 5.3 
 Debenture                              3.8 
 BHP                                    8.2 
 Rio Tinto                              7.1 
 Barrick Gold                           6.9 
 Newmont Mining                         6.7 
 Anglo American                         5.5 
 Wheaton Precious Metals                5.3 
 Freeport-McMoRan Copper & Gold         4.2 
 OZ Minerals:                               
 Royalty                                2.1 
 Equity                                 1.6 
 Franco-Nevada                          3.1 

   

 Asset Analysis   Total Assets (%) 

Equity                                                               
      93.4
Bonds                                                                   
    4.1
Preferred
Stock                                               
         1.9
Net Current
Assets                                        
          0.6

    ------- 100.0 ===== 

   

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 The Company’s NAV returned -0.7% in September, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which returned -1.2% (Figures in GBP).                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Global equity markets lost ground in September, amid rising COVID-19 infection rates across much of Western Europe and renewed concerns about the strength of the global economic recovery. For reference, the MSCI AC World Index fell by 3.4%. Elsewhere, the US Federal Reserve disappointed expectations with respect to further stimulus to spur inflation and support the economy on a short-term basis, potentially driving the tick up in real interest rates.                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 The mining sector pulled back in September following a strong run in August. Most mined commodities were down over the month, with US dollar strength acting as a headwind. For reference, copper, gold and iron ore (62% fe.) prices fell by -0.4%, -3.5% and -4.4% respectively, albeit remaining at elevated prices, all still well above where they started the year. Market sentiment appeared to be negatively impacted by mounting fears around COVID-19 second waves. Economic activity data continued to be            
 encouraging, however, with China’s manufacturing PMI coming in at 51.5, up from 51.0 in August, for example. China also announced an aim to achieve carbon neutrality before 2060 during the month, in a move seen as hugely significant in the fight against climate change.                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Within the portfolio, our exposure to the diversified mining sub-sector contributed positively, with the Vale debentures being the largest contributor to relative performance. Elsewhere, our holding in platinum group metal (PGM) producer, Northam Platinum, also appeared amongst the top performers over the month. The Company benefited from its significant exposure to rhodium, the price of which rallied over the month owing to growing demand for the metal for use in cleaning vehicle emissions and disruptions 
 in supply from South Africa.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Strategy and Outlook                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 We expect continued volatility as the COVID-19 pandemic evolves and believe broader equity markets could be vulnerable to a pull back 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 months, 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 15 October 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.                                                                                                                                                                                                                        



Copyright (c) 2020 PR Newswire Association,LLC. All Rights Reserved