REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

16/11/2020 12:15

The information contained in this release was correct as at 31 October 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 October 2020 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%    0.0%  18.5%  23.2%  137.6% 
 Share price                                               -0.4%    0.0%  26.9%  24.4%  137.7% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*   -1.5%   -1.9%  10.9%  13.2%  121.5% 
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 

At month end

 Net asset value (including income) (1):       448.50p 
 Net asset value (capital only):               438.66p 
 (1)Includes net revenue of 9.84p                      
 Share price:                                  400.00p 
 Discount to NAV (2):                            10.8% 
 Total assets:                                  871.2m 
 Net yield (3):                                   5.5% 
 Net gearing:                                    12.3% 
 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 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 and two quarterly
interim dividends of 4.00p per share declared on 30 April 2020 and 19 August
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                            65.2   Gold                                 34.7 
 Australasia                        9.0   Diversified                          31.1 
 Latin America                      7.6   Copper                               19.4 
 Canada                             5.3   Platinum Group Metals                 2.7 
 South Africa                       3.9   Nickel                                2.3 
 United Kingdom                     2.5   Iron                                  1.9 
 United States                      1.4   Steel                                 1.9 
 Other Africa                       1.4   Industrial Minerals                   1.7 
 Russia                             1.3   Iron Ore                              1.6 
 Indonesia                          1.3   Materials                             1.0 
 Argentina                          0.1   Zinc                                  0.4 
 Net Current Assets                 1.0   Silver & Diamonds                     0.2 
                                  -----   Aluminium                             0.1 
                                  100.0   Net Current Assets                    1.0 
                                  =====                                       ----- 
                                                                              100.0 
                                                                              ===== 

   

 Ten largest investments                         
                                                 
 Company                          Total Assets % 
                                                 
 Vale:                                           
 Equity                                      5.4 
 Debenture                                   3.7 
 BHP                                         7.1 
 Rio Tinto                                   6.6 
 Newmont Mining                              6.4 
 Anglo American                              6.3 
 Barrick Gold                                6.1 
 Wheaton Precious Metals                     4.8 
 Freeport-McMoRan Copper & Gold              4.4 
 OZ Minerals:                                    
 Royalty                                     2.1 
 Equity                                      1.7 
 First Quantum Minerals:                         
 Equity                                      1.6 
 Debt                                        1.9 

   

 Asset Analysis       Total Assets (%) 
                                       
 Equity                           93.0 
 Bonds                             4.2 
 Preferred Stock                   1.9 
 Option                           -0.1 
 Net Current Assets                1.0 
                                 ----- 
                                 100.0 
                                 ===== 

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

Performance

The Company’s NAV returned -1.7% in October, underperforming its reference
index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return),
which returned -1.5% (Figures in GBP).

Global equity markets lost ground in October, amid rising COVID-19 infection
rates and the announcements of further lockdowns, particularly across Europe.
In addition, the lead up to the US election created volatility within the
market, as a result of the divergence in views between the two opposing
parties, and the inability to get a stimulus package passed in the US in the
run up to the election. For reference, the MSCI AC World Index fell by 2.5%.

Economic data from China pointed to a continued strong recovery. China’s Q3
GDP growth came in at +4.9%, having been at -6.8% back in Q1. Elsewhere, South
Korea and Japan followed China in announcing aims to achieve carbon
neutrality, with both countries targeting 2050.  Investment in lower carbon
technologies from these countries could be a strong source of new demand for
mined commodities over the coming years.

The mining sector outperformed broader equity markets but still posted
negative returns. Mined commodity price performance was mixed with, for
example, the copper price up by 0.6% and gold and iron ore (62% fe.) prices
down by 1.0% and 1.7% respectively (albeit gold and iron ore prices remaining
at elevated levels). Turning to the companies, Q3 2020 results were generally
solid and it was encouraging to see the miners remaining focused on capital
discipline.

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 are mostly up on a year-to-date basis, whilst costs are relatively
stable, meaning we should see strong earnings growth from the miners this
year. Should inflation start to rise as a result of the unprecedented monetary
and fiscal policy we are seeing today, then we would expect this to put upward
pressure on commodity prices. 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.

16 November 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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