REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

28/03/2022 18:00

The information contained in this release was correct as at 28 February 2022.
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 2022 and unaudited.
 

 Performance at month end with net income reinvested                                            
                                                                                                
                                                             One   Three    One   Three    Five 
                                                           Month  Months   Year   Years   Years 
 Net asset value                                           15.2%   23.9%  32.2%  101.9%  116.6% 
 Share price                                               15.6%   36.3%  29.1%  140.4%  160.1% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*   12.4%   17.6%  25.7%   70.4%   75.0% 
                                                                                                
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                                

At month end

 Net asset value (including income) (1):       722.93p 
 Net asset value (capital only):               690.73p 
 (1)Includes net revenue of 32.20p                     
 Share price:                                  728.00p 
 Premium to NAV (2):                              0.7% 
 Total assets:                               £1,493.8m 
 Net yield (3):                                   5.8% 
 Net gearing:                                    11.5% 
 Ordinary shares in issue:                 184,181,116 
 Ordinary shares held in Treasury:           8,830,726 
 Ongoing charges (4):                             0.9% 

(2) Discount to NAV including income.

(3) Based on a first interim dividend of 4.50p per share declared on 29 April
2021, a second and third interim dividend of 5.50p per share declared on 19
August 2021 and 18 November 2021 respectively, and a final dividend of 27.00p
per share declared on 8 March 2022, all in respect of the year ended 31
December 2021.

(4) Calculated as a percentage of average net assets and using expenses,
excluding finance costs, for the year ended 31 December 2021.

                        
 Country Analysis             Total  
                          Assets (%) 
                                     
 Global                         72.5 
 Latin America                   6.9 
 Australasia                     5.1 
 United States                   4.5 
 Canada                          3.3 
 Other Africa                    3.2 
 South Africa                    1.7 
 Indonesia                       1.4 
 Russia                          0.6 
 United Kingdom                  0.2 
 Net Current Assets              0.6 
                               ----- 
                               100.0 
                               ===== 
                                       
 Sector Analysis              Total  
                          Assets (%) 
                                     
 Diversified                    40.5 
 Copper                         21.6 
 Gold                           13.9 
 Steel                           8.3 
 Industrial Minerals             4.0 
 Aluminium                       3.4 
 Iron Ore                        3.2 
 Platinum Group Metals           2.9 
 Nickel                          1.4 
 Zinc                            0.2 
 Net Current Assets              0.6 
                               ----- 
                               100.0 
                               ===== 
                                     

   

 Ten largest investments                    
                                            
 Company                   Total Assets (%) 
                                            
 Vale:                                      
 Equity                                 5.9 
 Debenture                              3.1 
 Anglo American                         7.9 
 Glencore                               7.6 
 BHP                                    7.6 
 Freeport-McMoRan                       5.9 
 ArcelorMittal                          5.1 
 Rio Tinto                              4.1 
 Teck Resources                         3.8 
 First Quantum Minerals:                    
 Equity                                 2.8 
 Bond                                   0.8 
 Newmont Mining                         3.1 
                                            

   

 Asset Analysis       Total Assets (%) 
 Equity                           93.3 
 Preferred Stock                   3.1 
 Bonds                             2.9 
 Warrants                          0.1 
 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 +15.2% in February, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which returned +12.4% (Performance figures in GBP).  February was a difficult month for equity markets, as concerns around Russia’s invasion of Ukraine dominated headlines. At the beginning of the month, investors were focused on central bank interest rate hikes and the potential impact this may have on growth. However, in the second half of the month,       
 attention was refocused on the conflict in Ukraine. Russia is a significant exporter of commodities, particularly oil and gas, leading to Brent oil and European natural gas prices rising during the month. These higher energy prices could fuel higher or more persistent inflation.  Against this backdrop, the iron ore (62% fe.) price came under pressure, returning -5.7% as the physical market remains relatively weak. Performance across the other mined commodities was positive with aluminium, copper, nickel and 
 palladium prices rising by +11.1%, +3.6%, +8.0% and +2.6% respectively. Against an uncertain macroeconomic backdrop, gold bullion also rose, with the precious metal returning +6.0% in February.  On 4 March 2022 the Company’s Board announced that on 28 February 2022 BlackRock had suspended the purchase of all Russian securities in its active and index portfolios and that as at the close of 3 March, 0.12% of the Company’s net assets (with a value of £1.74m) was in securities of companies whose principal      
 activities were in Russia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 Strategy and Outlook                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 We believe the outlook for mined commodity prices remains robust, whilst mining shares offer attractive value. Recovering global economic growth, accommodative monetary policy, rising government spending and increased focused on green capital investment all point towards strong demand. Meanwhile, supply is constrained following years of capital discipline from the producers and we are seeing no signs that this is set to change.  We are encouraged by what we are hearing from management teams in terms of     
 maintaining their focus on capital discipline. Longer term, ill-discipline remains a risk but, regardless, increases in capital expenditure would take some time to feed through into new supply given the time-lags associated with mining projects. We are also seeing inflationary data increase and commodities have traditionally been a core way for investors to both protect themselves from this but also benefit from such trends.  We believe the best risk-adjusted opportunity within the Company today is in the  
 shares of mining companies that are in robust financial positions with strong balance sheets and high levels of free cash flow. Mining companies are continuing to return capital to shareholders through dividends and buybacks.  All data points are in USD terms unless stated otherwise.                                                                                                                                                                                                                                    
 28 March 2022  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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