REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

15/03/2023 15:30

The information contained in this release was correct as at 28 February 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 28 February 2023 and unaudited.
 

 Performance at month end with net income reinvested                                           
                                                                                               
                                                             One   Three   One   Three    Five 
                                                           Month  Months  Year   Years   Years 
 Net asset value                                           -7.6%   -0.1%  2.9%  123.4%  103.3% 
 Share price                                               -7.3%    0.7%  2.1%  160.7%  133.7% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*   -8.1%   -0.6%  0.1%   82.9%   60.7% 
                                                                                               
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                               

At month end

 Net asset value (including income) (1):       699.12p 
 Net asset value (capital only):               673.24p 
 (1)Includes net revenue of 25.88p                     
 Share price:                                  698.00p 
 Discount to NAV (2):                             0.2% 
 Total assets:                               £1,478.4m 
 Net yield (3):                                   5.7% 
 Net gearing:                                    12.6% 
 Ordinary shares in issue:                 188,903,036 
 Ordinary shares held in Treasury:           4,108,806 
 Ongoing charges (4):                             1.0% 
 Ongoing charges (5):                             0.8% 

(2) Discount to NAV including income.
(3) Based on 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, and
a final dividend of 23.50p per share declared on 2 March 2023 with ex-date 9
March 2023 and pay date of 26 April 2023 in respect of the 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 2022.
(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 2022.

                          
 Country Analysis               Total  
                            Assets (%) 
                                       
 Global                           67.4 
 Australasia                      10.5 
 Latin America                     7.6 
 United States                     6.6 
 Canada                            4.4 
 Other Africa                      2.4 
 Indonesia                         0.9 
 South Africa                      0.5 
 United Kingdom                    0.2 
 Net Current Liabilities          -0.5 
                                 ----- 
                                 100.0 
                                 ===== 
                                         
 Sector Analysis                Total  
                            Assets (%) 
                                       
 Diversified                      37.4 
 Copper                           22.3 
 Gold                             12.1 
 Steel                             8.5 
 Industrial Minerals               7.5 
 Aluminium                         4.1 
 Iron Ore                          3.0 
 Platinum Group Metals             2.0 
 Mining Services                   1.5 
 Nickel                            1.5 
 Uranium                           0.4 
 Zinc                              0.2 
 Net Current Liabilities          -0.5 
                                 ----- 
                                 100.0 
                                 ===== 

   

 Ten largest investments                  
                                          
 Company                   Total Assets % 
                                          
 BHP                                  8.9 
 Vale:                                    
 Equity                               6.4 
 Debenture                            2.5 
 Glencore                             6.6 
 Teck Resources                       4.7 
 Rio Tinto                            4.7 
 ArcelorMittal                        4.4 
 Freeport-McMoRan                     4.1 
 First Quantum Minerals:                  
 Equity                               2.4 
 Bond                                 1.7 
 Anglo American                       3.1 
 Ivanhoe                                  
 Equity                               1.9 
 Bond                                 0.9 

   

 Asset Analysis            Total Assets (%) 
 Equity                                93.1 
 Bonds                                  4.0 
 Preferred Stock                        3.4 
 Net Current Liabilities               -0.5 
                                      ----- 
                                      100.0 
                                      ===== 

   

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 The Company’s NAV declined by 7.6% in February, outperforming its reference index, the MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (net return), which fell by 8.1% (performance figures in GBP).                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 After several months of strong performance, the mining sector pulled back in February as improvements in Chinese economic data were slower than had been hoped. It is worth noting, however, that after the month-end, China’s Manufacturing PMI came in at 51.6, up from 49.2 in January, which has supported the sector’s performance so far in March. Broader equity markets were also down in February but less so, with the MSCI ACWI TR Index falling -2.5%. The month saw mined commodity prices give up some of their   
 recent gains, with copper, iron ore (62% fe) and gold prices declining -2.7%, -2.3% and -5.3% respectively.                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Many of the miners reported full year 2022 results during the month. Cost inflation remained an issue, but this is expected to ease with lower energy prices and consumables. Meanwhile, in most cases, production results were in line with expectations, with downgrades and guidance restatements having been well flagged last year.                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 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 March 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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