REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

28/06/2022 10:30

The information contained in this release was correct as at 31 May 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 31 May 2022 and unaudited.
 

 Performance at month end with net income reinvested                                            
                                                                                                
                                                             One   Three    One   Three    Five 
                                                           Month  Months   Year   Years   Years 
 Net asset value                                           -0.7%    2.2%  17.0%  113.3%  141.5% 
 Share price                                                0.6%    3.8%  18.9%  159.3%  185.1% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*   -1.7%    1.2%   8.0%   75.9%   96.1% 
                                                                                                
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                                

At month end

 Net asset value (including income) (1):       706.44p 
 Net asset value (capital only):               693.55p 
 (1)Includes net revenue of 12.89p                     
 Share price:                                  722.00p 
 Premium to NAV (2):                              2.2% 
 Total assets:                               £1,498.7m 
 Net yield (3):                                   6.0% 
 Net gearing:                                    10.0% 
 Ordinary shares in issue:                 187,868,036 
 Ordinary shares held in Treasury:           5,143,806 
 Ongoing charges (4):                             0.9% 

(2) Discount to NAV including income.
(3) Based on 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, and a first interim dividend of 5.50p per share declared on 6
May 2022 in respect of year ending 31 December 2022.
(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                         69.2 
 Latin America                   8.4 
 Australasia                     7.4 
 United States                   4.8 
 Canada                          3.2 
 Other Africa                    2.2 
 South Africa                    1.0 
 Indonesia                       1.0 
 United Kingdom                  0.2 
 Net Current Assets              2.6 
                               ----- 
                               100.0 
                               ===== 
                                       
 Sector Analysis              Total  
                          Assets (%) 
                                     
 Diversified                    41.8 
 Copper                         18.8 
 Gold                           14.6 
 Steel                           7.4 
 Industrial Minerals             4.9 
 Aluminium                       2.9 
 Iron Ore                        2.6 
 Platinum Group Metals           1.9 
 Nickel                          1.0 
 Energy                          0.9 
 Mining Services                 0.4 
 Zinc                            0.2 
 Net Current Assets              2.6 
                               ----- 
                               100.0 
                               ===== 
                                     

   

 Ten largest investments                  
                                          
 Company                   Total Assets % 
                                          
 Vale:                                    
 Equity                               5.8 
 Debenture                            3.0 
 Glencore                             8.7 
 Anglo American                       8.2 
 BHP                                  7.2 
 Teck Resources                       4.2 
 Freeport-McMoRan                     4.0 
 Rio Tinto                            3.9 
 ArcelorMittal                        3.5 
 First Quantum Minerals:                  
 Equity                               2.7 
 Bond                                 0.8 
 Newmont Mining                       3.3 
                                          

   

 Asset Analysis       Total Assets (%) 
 Equity                           90.7 
 Preferred Stock                   3.5 
 Bonds                             3.2 
 Net Current Assets                2.6 
                                 ----- 
                                 100.0 
                                 ===== 
                                       

   

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 The Company’s NAV returned -0.7% in May, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which returned -1.7% (Performance figures in GBP).                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Prices for most mined commodities were down in May, as lockdowns in China and high energy costs in Europe dampened demand expectations. For reference, copper, nickel and iron ore (62% fe.) prices were down -3.3%, -10.7% and -4.2% respectively over the month.                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Mining equities were resilient given these moves, reflecting market expectations around longer term commodity prices and supply and demand tightness being relatively unchanged. The lockdowns in China translated into weaker economic data, with property data and PMI statistics particularly challenged. However, it is worth highlighting that we have since started to see evidence of the situation improving. Beijing and Shanghai are beginning to reopen and there have been supportive announcements from the Chinese 
 government in terms of infrastructure spending commitments and help for first-time property buyers.                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Strategy and Outlook                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Supply and demand in mined commodity markets is generally very tight today and prices look well-supported in our view. On the demand side, increased global infrastructure spending is supporting demand, whilst we expect the mining sector to play a critical role in the coming years in supplying materials required for lower-carbon technologies, like wind turbines, solar panels and electric vehicles. The Russia/Ukraine crisis puts greater focus on energy independence, particularly for Europe, and will further  
 accelerate investment into renewable energy capacity build out in our view. On the supply side, 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.                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Mining companies are generally in robust financial shape today with strong balance sheets and high levels of free cash flow being generated. Finally, we view mining equities as an effective way to hedge portfolios against persistent inflationary pressures, whilst, despite recent outperformance, valuations continue to look attractive in our view.                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 All data points are in USD terms unless stated otherwise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 28 June 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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