REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

20/01/2021 17:20

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

 Performance at month end with net income reinvested                                           
                                                                                               
                                                             One   Three    One  Three    Five 
                                                           Month  Months   Year  Years   Years 
 Net asset value                                           10.8%   18.0%  31.0%  36.2%  225.4% 
 Share price                                               15.2%   31.2%  46.7%  56.3%  289.5% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*    9.3%   15.0%  20.6%  22.8%  186.2% 
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 

At month end

 Net asset value (including income) (1):       533.61p 
 Net asset value (capital only):               525.20p 
 (1)Includes net revenue of 8.41p                      
 Share price:                                  522.00p 
 Discount to NAV (2):                             2.2% 
 Total assets:                                1,028.5m 
 Net yield (3):                                   4.2% 
 Net gearing:                                    12.6% 
 Ordinary shares in issue:                 173,550,814 
 Ordinary shares held in Treasury:          19,461,028 
 Ongoing charges (4):                             1.0% 

(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 ended 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                                 64.9   Diversified                            37.3 
 Australasia                             9.5   Gold                                   25.8 
 Latin America                           7.2   Copper                                 19.1 
 South Africa                            5.3   Iron                                    3.3 
 Canada                                  5.2   Platinum Group Metals                   3.3 
 United Kingdom                          2.4   Iron Ore                                2.8 
 Other Africa                            1.6   Nickel                                  2.6 
 Indonesia                               1.5   Steel                                   2.5 
 United States                           1.4   Industrial Minerals                     1.9 
 Russia                                  1.1   Materials                               0.9 
 Net Current Liabilities                -0.1   Silver & Diamonds                       0.3 
                                       -----   Zinc                                    0.3 
                                       100.0   Net Current Liabilities                -0.1 
                                       =====                                         ----- 
                                                                                     100.0 
                                                                                     ===== 

   

 Ten largest investments                         
                                                 
 Company                          Total Assets % 
                                                 
 Vale:                                           
 Equity                                      6.8 
 Debenture                                   4.2 
 BHP                                         7.7 
 Rio Tinto                                   7.5 
 Anglo American                              7.2 
 Freeport-McMoRan Copper & Gold              5.2 
 Newmont Mining                              4.5 
 Barrick Gold                                4.2 
 Wheaton Precious Metals                     3.3 
 OZ Minerals:                                    
 Royalty                                     1.7 
 Equity                                      1.3 
 First Quantum Minerals:                         
 Equity                                      1.2 
 Debt                                        1.6 

   

 Asset Analysis            Total Assets (%) 
                                            
 Equity                                94.3 
 Bonds                                  3.4 
 Preferred Stock                        2.5 
 Option                                -0.1 
 Net Current Liabilities               -0.1 
                                      ----- 
                                      100.0 
                                      ===== 

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

Performance

The Company’s NAV returned +10.8% in December, outperforming its reference
index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return),
which returned +9.3% (Figures in GBP).

Despite renewed lockdowns across Europe and in parts of Asia, global equity
markets continued to ride a wave of optimism following the announcement of
progress in a COVID-19 vaccine, albeit at a slower rate than in November. For
reference, the MSCI AC World Index increased by 4.5%. Cyclical stocks were
buoyed by the news that the US government signed into law a $900 billion
pandemic relief bill that included enhanced unemployment benefits and direct
cash payments. A long-awaited post-Brexit trade deal between the UK and the EU
was finally struck on Christmas Eve but investors’ spirits were dampened by
the emergence of a new, highly transmissible coronavirus variant that is
spreading across Europe and the rest of the world. Global economic activity
data also remained strong, with global manufacturing PMIs coming in at 53.8.

Against this macroeconomic backdrop, the mined commodities performed well
almost across the board, supporting the mining sector’s outperformance of
broader equity markets.  Iron ore was the standout performer, with the iron
ore 62% fe. price rising by 22.4% to an 8-year high of $161/tonne.  Early in
the month, Vale downgraded its 2021 iron ore production guidance to 315-335
million tonnes versus consensus of circa 350 million tonnes, indicating
continued tightness in that market. Gold also performed well, its price rising
by 7.0% over the month, supported by declines in real interest rates and US
dollar weakness.

Within the Company, gearing contributed positively during a rising market.
This was partly offset by negative stock selection within the copper
sub-sector.

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
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.

20 January 2021

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) 2021 PR Newswire Association,LLC. All Rights Reserved