REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

15/02/2023 15:15

The information contained in this release was correct as at 31 January 2023.
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 January 2023 and unaudited.
 

 Performance at month end with net income reinvested                                            
                                                                                                
                                                             One   Three    One   Three    Five 
                                                           Month  Months   Year   Years   Years 
 Net asset value                                           10.0%   25.7%  28.4%  117.8%  117.2% 
 Share price                                                8.0%   24.6%  27.3%  151.7%  150.2% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*    9.8%   26.2%  22.5%   80.8%   72.0% 
                                                                                                
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                                

At month end

 Net asset value (including income) (1):       756.74p 
 Net asset value (capital only):               731.96p 
 (1)Includes net revenue of 24.78p                     
 Share price:                                  753.00p 
 Discount to NAV (2):                             0.5% 
 Total assets:                               £1,584.6m 
 Net yield (3):                                   5.8% 
 Net gearing:                                     9.9% 
 Ordinary shares in issue:                 188,903,036 
 Ordinary shares held in Treasury:           4,108,806 
 Ongoing charges (4):                             0.9% 
 Ongoing charges (5):                             0.8% 

(2) Discount to NAV including income.
(3) Based on a final dividend of 27.00p per share declared on 8 March 2022 in
respect of the year ended 31 December 2021, and a first, second and third
interim dividend of 5.50p per share declared on 6 May 2022, 23 August 2022 and
16 November 2022 respectively, in respect of year ended 31 December 2022.
(4) The Company’s ongoing charges are calculated as a percentage of average
daily net assets and using the management fee and all other operating
expenses, excluding finance costs, direct transaction costs, custody
transaction charges, VAT recovered, taxation and certain other non-recurring
items for the year ended 31 December 2021.
(5) The Company’s ongoing charges are calculated as a percentage of average
daily gross assets and using the management fee and all other operating
expenses, excluding finance costs, direct transaction costs, custody
transaction charges, VAT recovered, taxation and certain other non-recurring
items for the year ended 31 December 2021.

                        
 Country Analysis             Total  
                          Assets (%) 
                                     
 Global                         68.0 
 Australasia                    10.1 
 Latin America                   7.2 
 United States                   5.7 
 Canada                          4.2 
 Other Africa                    2.4 
 Indonesia                       1.0 
 South Africa                    0.5 
 United Kingdom                  0.1 
 Net Current Assets              0.8 
                               ----- 
                               100.0 
                               ===== 
                                       
 Sector Analysis              Total  
                          Assets (%) 
                                     
 Diversified                    38.8 
 Copper                         21.5 
 Gold                           12.8 
 Steel                           7.8 
 Industrial Minerals             7.4 
 Aluminium                       3.5 
 Iron Ore                        3.0 
 Platinum Group Metals           1.8 
 Nickel                          1.5 
 Mining Services                 0.6 
 Uranium                         0.4 
 Zinc                            0.1 
 Net Current Assets              0.8 
                               ----- 
                               100.0 
                               ===== 
                                     
                                     

   

 Ten largest investments                  
                                          
 Company                   Total Assets % 
                                          
 BHP                                  9.4 
 Vale:                                    
 Equity                               6.8 
 Debenture                            2.4 
 Glencore                             6.8 
 Rio Tinto                            5.3 
 Anglo American                       4.2 
 ArcelorMittal                        4.1 
 Freeport-McMoRan                     4.1 
 First Quantum Minerals:                  
 Equity                               2.3 
 Bond                                 1.6 
 Teck Resources                       3.6 
 Franco-Nevada                        2.5 
                                          

   

 Asset Analysis       Total Assets (%) 
 Equity                           92.4 
 Bonds                             3.6 
 Preferred Stock                   3.2 
 Net Current Assets                0.8 
                                 ----- 
                                 100.0 
                                 ===== 
                                       
                                       

   

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 The Company’s NAV rose by 10.0% in January, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which returned +9.8% (performance figures in GBP).  The mining sector performed strongly during the month, with the Company’s reference index recording its best start to a year since 2017 as China continued to re-open its economy. The sector also outperformed broader equity markets, with the MSCI ACWI TR Index returning +7.2%. Mined commodity prices were up     
 almost across the board, supported by the impressive pace of China’s reopening and expectations for a pickup in demand.  We saw downgrades to supply in the release of quarterly production results during the month, which with inventories at record lows, highlights continued supply constraints. Civil unrest in Peru created further risks to commodity supply, significantly impacting the tin and copper markets. Iron ore (62% fe.) and copper prices were up +9.8% and +10.0% respectively over the month. Meanwhile, 
 the gold price was up +6.2%, aided by a weakening US dollar. There was also record central bank purchases of gold during the month. Warmer-than-expected weather caused weakness in natural gas prices, which put pressure on thermal coal prices, particularly in Europe.                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Strategy and Outlook                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 We do not expect the mining sector to be immune to deteriorating global economic growth. However, whilst recession looms for developed markets, the most important economy for mining, China, is moving in the opposite direction, re-opening following a year of lockdowns and a strict zero-Covid policy.  Meanwhile, mined commodity markets are generally tight, with inventories for many commodities at historic lows. At the same time, mined supply is being constrained by the underinvestment of recent years and     
 continued capital discipline. Mining companies are in an excellent financial position, in our view, with high levels of free cash flow, rock-solid balance sheets and a continued focus on returning capital to shareholders.  Last year, we saw greater appreciation of the role mining companies will need to play in supplying the materials required for lower carbon technologies like wind turbines, solar panels and electric vehicles. In 2023, we expect Brown to Green to emerge as a key theme, where mining         
 companies focus on reducing the greenhouse gas emissions intensity associated with their production. We expect to see a re-rating for the mining companies able to best navigate this and are playing this in the portfolio.  All data points are in USD terms unless stated otherwise.                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 15 February 2023  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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