REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

21/12/2020 17:40

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

 Performance at month end with net income reinvested                                           
                                                                                               
                                                             One   Three    One  Three    Five 
                                                           Month  Months   Year  Years   Years 
 Net asset value                                            8.3%    5.7%  26.7%  36.8%  186.9% 
 Share price                                               14.3%   13.1%  39.7%  45.2%  212.6% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*    6.8%    4.0%  17.2%  23.1%  156.5% 
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 

At month end

 Net asset value (including income) (1):       481.64p 
 Net asset value (capital only):               474.95p 
 (1)Includes net revenue of 6.69p                      
 Share price:                                  453.00p 
 Discount to NAV (2):                             6.0% 
 Total assets:                                  925.8m 
 Net yield (3):                                   4.9% 
 Net gearing:                                    13.6% 
 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 quarterly interim dividends of 4.00p per share declared on
12 November, 19 August and 30 April 2020 in respect of the year ending 31
December 2020 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 (%)   Sector Analysis           Total  Assets (%) 
                                                                                           
 Global                                 66.6   Diversified                            35.6 
 Australasia                             9.5   Gold                                   28.5 
 Latin America                           7.8   Copper                                 21.2 
 South Africa                            4.8   Iron                                    2.9 
 Canada                                  4.1   Platinum Group Metals                   2.9 
 United Kingdom                          2.4   Nickel                                  2.5 
 Other Africa                            1.6   Steel                                   2.3 
 United States                           1.5   Industrial Minerals                     1.8 
 Indonesia                               1.4   Iron Ore                                1.6 
 Russia                                  1.2   Materials                               1.0 
 Net Current Liabilities                -0.9   Silver & Diamonds                       0.3 
                                       -----   Zinc                                    0.3 
                                               Net Current Liabilities                -0.9 
                                       100.0                                         ----- 
                                       =====                                         100.0 
                                                                                     ===== 

   

 Ten largest investments                         
                                                 
 Company                          Total Assets % 
                                                 
 Vale:                                           
 Equity                                      6.7 
 Debenture                                   3.9 
 Rio Tinto                                   7.3 
 Anglo American                              7.3 
 BHP                                         7.2 
 Freeport-McMoRan Copper & Gold              5.3 
 Newmont Mining                              5.0 
 Barrick Gold                                4.8 
 OZ Minerals:                                    
 Royalty                                     1.9 
 Equity                                      1.8 
 First Quantum Minerals:                         
 Equity                                      1.8 
 Debt                                        1.9 
 Wheaton Precious Metals                     3.5 

   

 Asset Analysis            Total Assets (%) 
                                            
 Equity                                94.8 
 Bonds                                  3.9 
 Preferred Stock                        2.3 
 Option                                -0.1 
 Net Current Liabilities               -0.9 
                                      ----- 
                                      100.0 
                                      ===== 

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

Performance

The Company’s NAV returned 8.3% in November, outperforming its reference
index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return),
which returned 6.8% (Figures in GBP).

Despite renewed lockdowns across Europe and in parts of Asia, global equity
markets performed strongly during November, following the announcement of
progress in a COVID-19 vaccine. This positive sentiment led to one of the
strongest months on record for equities. For reference the MSCI AC World Index
increased by 12.2%.  Economic data also evidenced continued strength in
global activity with, for example, global manufacturing PMIs at 53.7, the
highest level since early 2018.

Most mined commodities performed well with copper and iron ore (62% fe.)
prices rising by 12.9% and 11.0% respectively.  For reference, copper prices
are now at the highest level since February 2013.  Gold bucked the trend,
however, its price falling by 5.7% as improved investor sentiment dampened
demand for ‘safe-haven’ assets.

Within the Company, outperformance was mainly driven by sub-sector
allocation.  Whilst our underweight to the steel sub-sector detracted, this
was more than offset by a positive impact from our overweight to the copper
and diversified sub-sectors.  At the stock-level, our position in Vale was
the top performer as the stock benefited from investor rotation into
Brazilian-listed stocks and iron ore price strength.

Strategy and Outlook

The rebound in global economic activity remains robust, whilst COVID-19
vaccine developments provide greater certainty around growth.  Mined
commodity prices have performed well and we expect them to be well supported
at these levels.  Overall, mined commodity supply has been impacted by
COVID-19 related disruptions and inventories are low relative to history for
most commodities.

Longer term, we expect commodity supply to be constrained by the
underinvestment of recent years and continued capital discipline.  Meanwhile,
commodity demand should continue to be buoyed by increased global
infrastructure spend as governments seek to kick-start their economies. 
Longer term, we also expect the transition to a lower carbon global economy to
also support demand for certain mined commodities.

Turning to the miners, balance sheets are in strong shape, whilst earnings and
dividends are rising.  Meanwhile, we see strong arguments for inflation
exceeding current expectations and, historically, the mining sector has
performed well on an absolute basis and relative to broader equity markets
during periods of rising inflation. We maintain a quality bias in the
portfolio, with a focus on companies with stronger balance sheets and lower
costs.

All data points are in USD terms unless stated otherwise.

21 December 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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