REG-BlackRock World Mng: Portfolio Update

BlackRock World Mining TrustAnnouncement

16/05/2023 14:30

The information contained in this release was correct as at 30 April 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 30 April 2023 and unaudited.
 

 Performance at month end with net income reinvested                                            
                                                                                                
                                                             One   Three    One   Three    Five 
                                                           Month  Months   Year   Years   Years 
 Net asset value                                           -3.7%  -12.5%  -5.3%  107.4%   93.3% 
 Share price                                               -2.2%  -10.3%  -4.2%  144.3%  130.7% 
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*   -2.8%   -9.5%  -4.2%   75.8%   61.9% 
                                                                                                
 * (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                                

At month end

 Net asset value (including income) (1):       639.67p 
 Net asset value (capital only):               628.27p 
 Share price:                                  653.00p 
 Premium to NAV (2):                              2.1% 
 Total assets:                               £1,370.3m 
 Net yield (3):                                   6.0% 
 Net gearing:                                    14.6% 
 Ordinary shares in issue:                 190,458,036 
 Ordinary shares held in Treasury:           2,553,806 
 Ongoing charges (4):                             1.0% 
 Ongoing charges (5):                             0.8% 
                                                       

(1) Includes net revenue of 11.40p.
(2) Premium to NAV including income.
(3) Based on a second and third interim dividend of 5.50p per share declared
on 23 August 2022 and 16 November 2022 respectively, 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, and a
first interim dividend of 5.50p per share declared on 18 April 2023 with
ex-date 4 May 2023 and pay date of 31 May 2023 in respect of the year ending
31 December 2023.
(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                           67.2 
 Australasia                      12.0 
 Latin America                     8.0 
 United States                     5.3 
 Canada                            4.1 
 Other Africa                      2.7 
 Indonesia                         0.9 
 South Africa                      0.3 
 United Kingdom                    0.2 
 Net Current Liabilities          -0.7 
                                 ----- 
                                 100.0 
                                 ===== 
                                         
 Sector Analysis                Total  
                            Assets (%) 
                                       
 Diversified                      35.2 
 Copper                           23.0 
 Gold                             16.3 
 Steel                             7.8 
 Industrial Minerals               6.9 
 Aluminium                         3.9 
 Iron Ore                          2.4 
 Platinum Group Metals             1.9 
 Nickel                            1.5 
 Mining Services                   1.0 
 Uranium                           0.6 
 Zinc                              0.2 
 Net Current Liabilities          -0.7 
                                 ----- 
                                 100.0 
                                 ===== 
                                       

   

 Ten largest investments                  
                                          
 Company                   Total Assets % 
                                          
 Vale:                                    
 Equity                               6.7 
 Debenture                            2.2 
 BHP                                  8.1 
 Glencore                             6.7 
 Teck Resources                       5.6 
 ArcelorMittal                        4.2 
 Freeport-McMoRan                     3.9 
 OZ Minerals:                             
 Equity                               2.3 
 Royalty                              1.5 
 First Quantum Minerals:                  
 Equity                               2.7 
 Bond                                 0.9 
 Newmont Mining                       3.3 
 Wheaton Precious Metals              3.3 

   

 Asset Analysis            Total Assets (%) 
 Equity                                94.3 
 Preferred Stock                        3.3 
 Bonds                                  3.1 
 Net Current Liabilities               -0.7 
                                      ----- 
                                      100.0 
                                      ===== 

   

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 The Company’s NAV declined by 3.7% in April, underperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which declined by 2.8% (performance figures in GBP).  April was a challenging month for the mining sector as economic data from China was softer than expected. China’s manufacturing PMI, for example, fell to 49.5, down from 50.0 in March. Industrial mined commodity prices were weak, with the copper price falling -4.7% and the iron ore (62%fe) price sliding   
 down -17.3%. China also announced plans to cap 2023 domestic steel production (for which iron ore is a key input) at around 2022 levels to limit potential oversupply and contain carbon emissions.  Battery minerals prices also continued to fall sharply, with lithium prices in China falling -21.7%, on faltering sentiment surrounding electric vehicle demand. Further weakness in the US dollar helped precious metals perform strongly, however, with gold, silver and platinum prices rising +0.5%, +3.8% and +9.5%   
 respectively. Lastly, Q1 production results were reported during the month and were generally soft, with the first quarter suffering from typical seasonal weather impacts, as well as ongoing Covid impacted operational issues.                                                                                                                                                                                                                                                                                               
 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.                                                                                                                                                                                                                                                   
 16 May 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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