REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

23/03/2021 16:05

The information contained in this release was correct as at 28 February 2021.
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 28 February 2021 and unaudited.
 

 Performance at month end with net income reinvested                                           
                                                                                               
                                                             One   Three    One  Three    Five 
                                                           Month  Months   Year  Years   Years 
 Net asset value                                            6.7%   18.2%  64.3%  49.5%  202.2% 
 Share price                                               10.8%   29.6%  97.7%  77.2%  294.5% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*    5.6%   12.6%  45.4%  27.8%  154.6% 
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 

At month end

 Net asset value (including income) (1):       569.14p 
 Net asset value (capital only):               559.65p 
 (1)Includes net revenue of 9.49p                      
 Share price:                                  587.00p 
 Premium to NAV (2):                              3.1% 
 Total assets:                               £1,136.1m 
 Net yield (3):                                   3.7% 
 Net gearing:                                    14.2% 
 Ordinary shares in issue:                 175,870,814 
 Ordinary shares held in Treasury:          17,141,028 
 Ongoing charges (4):                             0.9% 

(2) Premium 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 2020.

 Country Analysis          Total  Assets (%)   Sector Analysis           Total  Assets (%) 
                                                                                           
 Global                                 64.6   Diversified                            40.3 
 Australasia                            10.5   Copper                                 20.9 
 Latin America                           7.1   Gold                                   19.4 
 South Africa                            5.6   Iron                                    4.8 
 Canada                                  3.8   Platinum Group Metals                   3.2 
 Other Africa                            2.2   Iron Ore                                2.8 
 United Kingdom                          2.0   Nickel                                  2.7 
 Indonesia                               1.7   Steel                                   2.2 
 United States                           1.5   Industrial Minerals                     2.1 
 Russia                                  0.9   Materials                               1.6 
 Monaco                                  0.7   Zinc                                    0.3 
 Net Current Liabilities                -0.6   Silver & Diamonds                       0.2 
                                       -----   Aluminium                               0.1 
                                       100.0   Net Current Liabilities                -0.6 
                                       =====                                         ----- 
                                                                                     100.0 
                                                                                     ===== 

   

 Ten largest investments                  
                                          
 Company                   Total Assets % 
                                          
 Vale:                                    
 Equity                               6.1 
 Debenture                            4.4 
 BHP                                  8.7 
 Anglo American                       7.5 
 Rio Tinto                            6.9 
 Freeport-McMoRan                     6.1 
 Fortescue Metals Group               4.3 
 Glencore                             4.3 
 Newmont Mining                       3.7 
 OZ Minerals:                             
 Royalty                              1.9 
 Equity                               1.4 
 First Quantum Minerals                   
 Equity                               1.8 
 Royalty                              1.5 

   

 Asset Analysis            Total Assets (%) 
                                            
 Equity                                94.9 
 Bonds                                  3.5 
 Preferred Stock                        2.2 
 Net Current Liabilities               -0.6 
                                      ----- 
                                      100.0 
                                      ===== 

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

Performance

The Company’s NAV returned +6.7% in February, outperforming its reference
index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return),
which returned +5.6% (Figures in GBP).

February was a strong month for the mining sector in absolute terms and
relative to broader equity markets, with the MSCI ACWI TR Index up just 2.3%.
Industrial metals performed particularly well, with copper and iron ore (62%
fe.) prices up by 16.2% and 10.0% respectively (for reference, this took the
copper price to the highest level since August 2011). Industrial metal prices
were supported by robust demand from China, as the country came out of its New
Year holiday period, and by demand from Europe and the US exceeding
expectations.

On the precious metals side, gold underperformed the other mined commodities,
falling by 7.0% as rising interest rate expectations and redemptions from
physically-backed gold ETFs put pressure on its price.

Turning to the companies, the mining sector entered its full year 2020
financial reporting season and, in general, earnings met or exceeded
expectations and signs of cost inflation were limited. Meanwhile, we also saw
a number of dividend increases and given the run up in commodity prices, 2021
looks set to be a record year for mining dividends.

Strategy and Outlook

We are optimistic on COVID-19 vaccine rollouts supporting global economic
growth and, in turn, commodity demand. Meanwhile, our analysis shows that the
mining sector has performed particularly strongly during periods with
significant increases in inflation expectations, which we believe we could see
this year.

Increased fiscal stimulus globally aimed at kick-starting economies in the
COVID-19 crisis is being geared towards infrastructure spending which should
support mined commodity demand. Meanwhile, we see the mining sector playing a
crucial role in supplying the materials required for low carbon technologies
e.g. wind turbines and solar panels.

Capital expenditure has been slashed by the miners since the peak in 2013,
which is constraining new commodity supply and supporting prices. Whilst
capital expenditure has risen since 2016, it is still a long way below the
peak and we are encouraged by rhetoric from management teams around continued
capital discipline.

Mining companies have focused on paying down debt in recent years and balance
sheets are exceptionally strong today as a result. Given ongoing discipline,
capital is being returned to shareholders in the form of dividends and
buybacks. Meanwhile, we see potential for dividend upside given that prices
for mined commodities have surprised to the upside e.g. iron ore.

All data points are in USD terms unless stated otherwise.

23 March 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.



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