REG-BlackRock World Mining Trust Plc: Final Results
04/03/2025 18:15
BlackRock World Mining Trust plc
LEI: LNFFPBEUZJBOSR6PW155
Annual Report and Financial Statements 31 December 2024
Performance record
As at As at
31 December 31 December
2024 2023
Net assets (£’000) 1 975,199 1,160,051
Net asset value per ordinary share (NAV) (pence) 510.53 606.78
Ordinary share price (mid-market) (pence) 481.00 587.00
Reference index 2 – net total return 5,411.07 6,002.54
Discount to net asset value 3 5.8% 3.3%
========= =========
For the For the
year ended year ended
31 December 31 December
2024 2023
Performance (with dividends reinvested)
Net asset value per share 2,3 -10.7% -6.2%
Ordinary share price 2,3 -12.7% -10.4%
Reference index 2 -9.9% +2.4%
========= =========
Since inception Since inception
to 31 December to 31 December
2024 2023
Performance since inception (with dividends reinvested)
Net asset value per share 2,3 +1,167.4% +1,319.4%
Ordinary share price 2,3 +1,180.2% +1,365.9%
Reference index 2 +896.3% +1,005.2%
========= =========
For the For the Change
year ended year ended %
31 December 31 December
2024 2023
Revenue
Net revenue profit after taxation (£’000) 44,127 64,691 -31.8
Revenue return per ordinary share (pence) 4 23.09 33.95 -32.0
--------------- --------------- ---------------
Dividends per ordinary share (pence)
– 1st interim 5.50 5.50 –
– 2nd interim 5.50 5.50 –
– 3rd interim 5.50 5.50 –
– Final 6.50 17.00 -61.8
--------------- --------------- ---------------
Total dividends paid and payable 23.00 33.50 -31.3
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1 The change in net assets reflects portfolio movements, dividends paid and
the buyback of ordinary shares into treasury during the year.
2 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (net total return). With
effect from 31 December 2019, the reference index changed to the MSCI ACWI
Metals & Mining 30% Buffer 10/40 Index (net total return). Prior to 31
December 2019, the reference index was the EMIX Global Mining Index (net total
return). The performance returns of the reference index since inception have
been blended to reflect this change.
3 Alternative Performance Measures, see Glossary in the Company’s Annual
Report for the year ended 31 December 2024.
4 Further details are given in the Glossary in the Company’s Annual Report
for the year ended 31 December 2024.
Chairman’s Statement
Highlights
- NAV per share -10.7%1 (with dividends reinvested)
- Share price -12.7%1 (with dividends reinvested)
- Total dividends of 23.00p per share
Overview
2024 proved to be a challenging year for the commodity market. Negative
sentiment regarding China, particularly in the country’s domestic property
market, and geopolitical turmoil across the globe, including the war between
Russia and Ukraine, and the conflict in the Middle East, continued to
destabilise markets.
Approximately half of the world’s population went to the polls in 2024,
fostering a volatile economic climate. The results of the US election
increased uncertainty around global trade and stimulus measures announced by
China had an underwhelming effect on domestic demand expectations. All of
these items generated continued concern for global growth causing commodity
prices to come under pressure.
Performance
Over the twelve months to 31 December 2024, the Company’s net asset value
per share (NAV) returned -10.7%1 and the share price returned -12.7%1. Over
the same period, the Company’s reference index, the MSCI ACWI Metals &
Mining 30% Buffer 10/40 Index (net total return), returned -9.9%, the FTSE
All-Share Index returned +9.5% and the UK Consumer Price Index (CPI) increased
by 3.5%.
Our portfolio managers provide a more detailed explanation of the Company’s
performance during the year in their report below. They also provide more
insight into the positioning of the portfolio and their views on the outlook
for the coming year.
Revenue return and dividends
The Company’s revenue per share for the year to 31 December 2024 was 23.09p,
a 32.0% decrease compared to the prior year revenue per share of 33.95p. The
decrease was driven by lower dividend payments from a number of key mining
companies as they chose to invest in future growth opportunities.
During the year, three quarterly interim dividends of 5.50p per share were
paid. The Board is proposing a final dividend payment of 6.50p per share for
the year ended 31 December 2024. This, together with the quarterly interim
dividends, makes a total of 23.00p per share (2023: 33.50p per share)
representing a decrease of 31.3% on payments in 2023.
As in past years, all dividends are fully covered by income. In accordance
with the Board’s stated policy, the total dividends represent substantially
all of the year’s available income.
Subject to approval at the Annual General Meeting, the final dividend will be
paid on 27 May 2025 to shareholders on the Company’s register on 21 March
2025, the ex-dividend date being 20 March 2025.
Gearing
The Company operates a flexible gearing policy which depends on prevailing
market conditions. It may borrow up to 25% of the Group’s net assets. The
maximum level of gearing used during the year was 14.7% and the level of
gearing at 31 December 2024 was 12.0%. Average gearing over the year to 31
December 2024 was 11.6%.
Management of premium/discount
The Directors recognise the importance to investors of the market price of the
Company’s shares relative to the underlying NAV. Accordingly, in normal
market conditions, the Company may repurchase shares or reissue shares from
treasury or issue new shares (at a premium to NAV) to manage the premium or
discount at which the Company’s shares trade, where it is deemed to be in
shareholders’ interests.
Over the Company’s financial year ending in December, the Company’s shares
have traded at an average discount of 5.2%. During the year, the Company
purchased 165,000 shares at an average price of 529.70p per share at an
average discount of 10.0% for a total cost of £874,000. Since the year end
and up to 28 February 2025, a further 150,000 shares have been bought back at
an average price of 490.00p per share for a total cost of £735,000. All
shares have been placed in treasury. No shares were issued in 2024 or in 2025
up to the date of this report.
Resolutions to renew the authorities to issue and buy back shares will be put
to shareholders at the forthcoming Annual General Meeting.
Board composition
Having served nearly nine years, Jane Lewis will not be seeking re-election at
the forthcoming Annual General Meeting (AGM) and will retire from the Board
with effect from the conclusion of the meeting. The Board wishes to thank Ms
Lewis for her wise counsel and valuable contribution to the Company over her
tenure as a Director.
The Board has appointed an external recruitment firm, Cornforth Consulting, to
undertake a search process to identify a new Director with the skills the
Board has identified it requires. We will announce the appointment of a new
Director following the AGM.
In order to manage succession planning for the remainder of the Board and to
ensure an element of continuity, Judith Mosely, the Company’s Senior
Independent Director, will retire following the AGM to be held in 2026.
Agreement with Saba
On 22 January 2025, the Board entered into an agreement with Saba Capital
Management L.P. (Saba) pursuant to which Saba has provided a number of
undertakings which has the effect of limiting certain actions by Saba. The
press release can be found at the following link:
www.londonstockexchange.com/news-article/BRWM/agreement-with-saba/16863479.
The agreement lasts until the earlier of the day following the completion of
the Company’s 2027 AGM or 31 August 2027. The agreement does not limit
Saba’s ability to acquire or dispose of shares in the Company.
Shareholder communication and engagement
We appreciate how important access to regular information is to our
shareholders. To supplement our Company website, we offer shareholders the
ability to sign up to the Trust Matters newsletter which includes information
on the Company as well as news, views and insights on the investment trust
market. Information on how to sign up is included on the inside front cover of
the Company's Annual Report for the year ended 31 December 2024.
The Board encourages all shareholders to either attend the AGM or exercise
your right to vote by proxy. The Board has sought to engage with shareholders
who hold their shares through an intermediary or platform via the provisions
of Section 793 of the Companies Act 2006. In addition, the Board is aware that
certain execution only investment platforms are now providing shareholders
with the ability to vote electronically. The Board encourages shareholders to
take advantage of this functionality where it is available to you. For those
of you who hold shares via platforms, information on how to vote can be found
here: https://www.theaic.co.uk/availability-on-platforms.
Annual General Meeting arrangements
The Company’s AGM will be held at the offices of BlackRock at 12 Throgmorton
Avenue, London EC2N 2DL on Wednesday, 21 May 2025 at 11.30 a.m. Details of the
business of the meeting are set out in the Notice of Meeting in the
Company’s Annual Report for the year ended 31 December 2024.
The Board very much looks forward to meeting shareholders and we encourage you
to attend this year’s AGM. In the meantime, if shareholders would like to
contact me, please write to BlackRock World Mining Trust plc, 12 Throgmorton
Avenue, London EC2N 2DL, marked for the attention of the Chairman.
Outlook
As we enter 2025, we continue to be excited by the continued enthusiasm for
the energy transition minerals, the emerging demand for the minerals and
energy resources necessary to support the emerging artificial intelligence
space, the continued efforts by China to find the right economic support to
foster domestic demand and the positive outlook in the United States. All of
these opportunities will require significant natural resources against a
backdrop of continued declining grades and increasing project development
timelines. We continue to identify companies with dedicated management teams
that are focused on cost management, innovative project opportunities and
solid financial structures. While the generalist investors are focused on
other areas of the market, we are finding the opportunity to put your funds to
work in attractive long-term opportunities.
Of course, the geopolitical challenges we have seen in 2024 will continue to
impact the near-term economic environment but the fundamental need for
commodities to support our modern economy will remain. It is in these
environments that the foundations for long-term outperformance are
established.
CHARLES GOODYEAR
Chairman
4 March 2025
1 Alternative Performance Measures. All percentages calculated in Sterling
terms with dividends reinvested. Further details of the calculation of
performance with dividends reinvested are given in the Glossary in the
Company’s Annual Report for the year ended 31 December 2024.
Investment Manager’s Report
Market overview
2024 was disappointing with the Company’s net asset value (NAV) total return
being negative despite several themes playing out as expected during the year.
The NAV total return in the first half was lacklustre with the relative
performance of the NAV behind that of the reference index (MSCI ACWI Metals
and Mining 30% Buffer 10/40 Index (net total return)) due to factors which
were covered in the 2024 Half Yearly Financial Report. During the second half
of the year, relative performance was much improved despite economic weakness
in China, Europe and other parts of the world adding downward pressure on
commodity prices. The overall move lower was significant and, despite a brief
China induced rally in September 2024, the year finished in negative
territory. The final quarter of the year was particularly poor with share
prices of many companies declining.
In addition to the economic headwinds, demand for exposure to the mining
sector declined as investor focus remained on the influential US large cap
technology stocks, known as “the Magnificent 7”, and the artificial
intelligence (AI) theme. This led to share prices failing to capture the
performance of the underlying commodity price moves which were generally
positive. Despite the disappointing year, and probably to the surprise of many
people, the sector has done well versus the performance of world markets over
the last five years apart from when it underperformed in Q4 of 2024.
Within the commodity space, the key performers during the year were the gold
and silver prices which enjoyed strong returns, up by 27.2% and 21.5%,
respectively. Yet the gold mining companies were unable to convert this into
meaningful returns. The FT Gold Mines Index was only up by 7% in 2024.
However, there was significant dispersion in returns between the companies, as
we discuss below. The industrial metals suite was generally positive but
volatile. Copper, a key exposure within the Company, was up approximately 8%
when looking at year-on-year average price levels. The battle for control of
future production resulted in a number of merger & acquisitions (M&A) events
which delivered solid gains for the portfolio.
For the year ended 31 December 2024, the NAV total return of the Company was
-10.7% and the share price total return was -12.7% as the discount widened
over the year. This compares to the FTSE 100 Index returning +9.7%, Consumer
Price Index (CPI) up by 3.5% and the reference index returning -9.9% (all
numbers in Sterling terms with dividends reinvested).
Dispersion frustrations
As highlighted above, the huge frustration during the year has been a
breakdown in the relationship between commodity prices and the share prices of
the companies that produce them. Historically, mining equities have been a
very efficient way to capture returns from commodity markets. The combination
of option like leverage at the earnings level, combined with exploration,
volume growth, dividends and M&A has delivered superior share price returns to
the underlying commodity price moves. In the last few years this relationship
has been tested.
The key areas where this was felt in the portfolio were in large mining
companies that simply did not perform as they have historically. In the copper
sector the “go to” company, Freeport-McMoRan, generated a -9.4% total
return during the year whilst the average price of copper was up by
approximately 8%. Across the gold sector, the two largest producers, Newmont
Corporation and Barrick Gold, generated -7.9% and -12.3% returns respectively,
compared to the average gold price which was up by 23.0%. Examples like this
can be found across the mining sector.
There are, of course, numerous exceptions but these seem to have been driven
by specific events. In copper, M&A delivered returns of 38% in USD terms for
investors in Filo Mining, a holding of the Company, when this was bought by
BHP and Lundin Mining. In gold, Centamin was acquired by AngloGold Ashanti
resulting in a 44% return for investors.
The reduced correlation between mining company share prices and underlying
commodity prices remains prevalent and it is the result of the mining
companies’ inability to convert the higher commodity prices into increased
free cash flow, earnings and dividends. Much of the beta has been consumed by
cost inflation, rising maintenance expenditure and a recent pick-up in growth
capital. Management teams that can unlock the conversion of higher revenues
into free cash flow, earnings and dividends are likely to be the winners in
the years to come.
ESG (Environmental, Social and Governance) and the social license to operate
ESG issues are highly relevant to the mining sector and we seek to understand
the ESG risks and possible opportunities facing holdings in the portfolio. As
an extractive industry, the mining sector naturally faces a number of ESG
challenges given its dependence on water, carbon emissions and the
geographical location of assets. However, the sector provides critical
infrastructure, taxes and employment to local communities, as well as
materials essential for the energy transition.
As part of our investment process, we consider ESG insights and data,
including ESG risks. ESG insights are not the sole consideration when making
investment decisions but, in most cases, the Company will not invest in
companies which have high ESG risks (risks that affect a company’s financial
position or operating performance) unless there are plans to address the
deficiencies.
- We take a long-term approach, focused on engaging with company boards and
executive leadership to understand the drivers of risk and financial value
creation in business models, including material ESG-related risks and
opportunities.
- Where a serious event has occurred we will assess whether the relevant
portfolio company is taking appropriate action to resolve matters before
deciding whether or not to retain our investment.
- There will be companies which have derated (the downward adjustment of
multiples) as a result of an adverse ESG event or due to poor ESG practices.
This may present opportunities to invest at a discounted price. However, the
Company will only invest in these value-based opportunities if we are
satisfied that there is real evidence that the company’s culture has changed
and that better operating practices have been implemented.
Once again, an important focus of engagement this year related to how
companies are reducing carbon emissions. By and large, most companies are
making reasonable progress. For example, BHP announced that emissions
reduction versus the 2020 baseline was already 32% lower, ahead of the stated
2030 goal.
Governance is also an area of focus. There have been examples where companies
have acted contrary to best practices. Examples include CEOs moving to the
position of Chairman, CEO option awards having exercise prices reset to lower
levels and compensation awards not matching company performance. The worst
example related to a gold mining company where a poorly executed equity raise
resulted in a substantial share price fall. Shareholders were then invited to
vote on the award of options to the CEO at exercise prices set at much lower
levels than the price during the disastrous equity raise. Despite huge
opposition, the proposal narrowly passed and the CEO accepted the award. This
is a governance issue that we raised, although the Company did not own shares
in the gold mining company.
Site visits in 2024 focused on seeing growth projects, receiving updates on
existing assets, evaluating country risk, reviewing ESG work and meeting with
new leadership teams.
Positive commodity returns
The year was generally positive for the main commodities within the
Company’s portfolio. Average prices for the year, which are key to corporate
profitability, were materially better than 2023. This is in contrast to the
past two years where prices were weaker across the board.
In 2024 nickel, lithium and palladium suffered from oversupply at a time of
weakness in the automobile industry (palladium for exhaust systems and
nickel/lithium for batteries). These lower prices are now well below the cost
curve which has triggered a supply side response, but not yet sufficient to
move the market back into balance.
Iron ore prices have been resilient with average pricing for the past three
years remaining around US$100/tonne, a level at which the industry enjoys
significant profitability. New supply is coming online between now and the end
of the decade and steel demand growth will be needed to absorb these
additional supplies.
Commodity price moves
31 December 2024 % Change in 2024 % Change average
prices 2024 vs 2023
Commodity
Gold US$/ounce (oz) 2,624.5 +27.2 +22.9
Silver US$/oz 28.9 +21.5 +20.7
Platinum US$/oz 907.6 -8.5 -1.2
Palladium US$/oz 912.6 -17.1 -26.6
Aluminium US$/pound (lb) 2,516.0 +7.8 +7.4
Copper US$/lb 8,706.0 +2.7 +7.8
Lead US$/lb 1,921.0 -5.4 -3.1
Nickel US$/lb 15,100.0 -7.4 -21.9
Tin US$/lb 28,900.0 +14.8 +16.1
Zinc US$/lb 2,974.0 +12.6 +4.8
WTI Cushing US$/barrel 71.7 +0.1 -1.2
Iron Ore (China 62% fines) US$/tonne (t) 99.5 -29.9 -8.8
Thermal Coal US$/t 125.3 -14.5 -22.7
Coking Coal US$/t 196.5 -39.3 -18.5
Lithium carbonate US$/lb 10,343.0 -23.4 -63.2
========= ========= =========
Sources: LSEG Datastream and Bloomberg, December 2024.
Look through commodity exposure
With a large proportion of the Company’s NAV invested in the diversified
mining companies, we have provided a more detailed understanding of the
portfolio’s underlying commodity exposure at 31 December 2024 looking
through the commodity exposure of the underlying holdings in the Annual Report
for the year ended 31 December 2024. Our methodology takes our existing
sub-sector breakdowns but breaks out the diversified miners sub-sector based
on their H1 2024 percentage contribution to EBITDA by commodity and then
multiplied them by the respective position size as at end of December 2024 and
added these on to the existing sub-sector exposures. Please note, for BHP, we
have used 12 months to the end of June 2024, given its specific reporting
period. We have also made an adjustment for Glencore acquiring Teck
Resources’ coking coal assets.
Income
The Company was again able to generate a competitive income return from the
portfolio. Although the absolute level of income was down, the yield remains
comparable to alternatives available to investors from other sectors.
Revenue from ordinary dividends fell once again as companies were unable to
match payments in the prior year due to lower levels of profitability and
higher reinvestment to build their assets base. Yet historic dividend policies
mostly remain in place with companies maintaining the commitment to
shareholder returns.
In aggregate, other sources of income for the Company were comparable to prior
years, highlighting the benefits of diversification. Royalty income was 10%,
option income increased to 20%, while income from fixed income securities
declined to 1% given the compression in yields we have seen across the sector.
Income levels in 2025 are expected to be similar to those in 2024 given
current commodity prices. We believe there is room for an upside in some areas
such as gold.
Base metals
Copper, aluminium and zinc all finished the year higher. Copper benefited from
improved demand, declining interest rates and stimulus measures in China. This
resulted in a new all-time high for the copper price and the strong
copper-producer performance during the first half the year. However, the
second half of the year was more challenging as demand conditions in China,
particularly linked to property, worsened and the Federal Reserve dampened
expectations for the pace of interest rate cuts. While prices softened, we
have seen good downside cost support given supply tightness in copper and zinc
and rising costs for aluminium.
Copper is supported by China’s focus on green spending, with spending on the
electric grid up 21% year-on-year and investments in the renewable energy
sector remaining strong. In 2024, China’s overall copper demand was up 6%.
When we look at the growth in new demand from the energy transition sector, it
matches the amount of new supply expected to reach the market. If we see
traditional demand stabilise and even improve, we expect to see the copper
market tighten quickly.
In November we visited Chile to see a series of copper assets, including
Escondida, the world’s largest copper mine. BHP has outlined a plan to spend
up to US$15 billion across its Chilean copper assets as it looks to offset 400
kilotons of production decline. This is a significant investment, yet it adds
limited new copper tonnes to the market and highlights the difficulty in
growing supply. We believe we need higher copper prices to generate an
appropriate return on new investments and to offset operating cost inflation.
At 31 December 2024 the Company had 24.8% of the portfolio exposed to copper
producers, boosting performance. Pure play copper producers Ivanhoe Mines,
Sociedad Minera Cerro Verde and Capstone Mining were the standout names, up
between 20-30% for the year. Ivanhoe Mines has done an excellent job
increasing production at its Democratic Republic of the Congo based asset,
Kamoa-Kakula. As we look into 2025, the focus for Ivanhoe Mines is to
commission the smelter, gaining greater access to the Lobito rail corridor and
improving power availability, which should see costs decline by more than 20%.
Ivanhoe Mines has exciting exploration potential via its Western Forelands
deposit which is adjacent to Kamoa-Kakula. Among our other copper positions,
Filo Mining was acquired at a premium by BHP and Lundin Mining. We expect it
to become a tier-1 copper asset in the next decade. Given our expectation for
copper demand growth and increasing M&A appetite for quality copper assets, we
continue to add to our copper exploration and development exposure via names
such as Foran Mining, MCC Mining and NGEx Minerals.
In the aluminium market, alumina prices more than doubled due to bauxite
issues in the Republic of Guinea and tightness in refinery capacity. We expect
the tightness in alumina prices to moderate as more refining capacity is built
in China and Indonesia over the next 12 months. The Company took advantage of
this tightness by increasing its investment in Alcoa. Aluminium demand has
been supported by strong solar and grid investment in China where it is likely
to reach its peak production cap of 45 million tonnes per annum in 2025 and,
given the lack of new aluminium capacity being added ex-China, we see the
potential for this to put upwards pressure on aluminium premiums.
Zinc was the best performing base metal during the year, up 13%. While the
demand outlook for zinc has been muted, action taken from the industry to
curtail higher cost production a few years back has tightened the market
balance and in turn supported prices. This tightness has been most acute for
the smelters where we saw negative spot treatment charges for zinc as they
aggressively bid to access material. Zinc exposed holdings in the portfolio
include Glencore, Teck Resources and Develop Global. Nickel was the
underperformer among the base metals. Indonesia continues to increase supply,
resulting in an oversupply in the nickel market. A key question for 2025 is
how this evolves given the Indonesian government is reducing available
production quotas by 9% year-on-year.
Bulks and steel
Iron ore prices fell 30% year-on-year and the average price dropped 9% versus
2023. Supply growth from the major producers during 2023 and the first half of
2024 has seen greater port inventories in China, which combined with a
contraction in steel demand, put downward pressure on the iron ore price.
A key feature of the iron ore market in recent years has been its resilience
to lower prices. High-cost supply from India and China is price sensitive and
acts to balance the market quickly. This has maintained the price above its
cost curve price support of US$80-90/tonne. We expect this relationship to be
maintained near term. However, there are risks as new supply from Guinea
emerges over the next couple of years.
Given the importance of the iron ore price to the free cash flow of the
diversified miners, an important question is how the major producers manage
volumes with extra supply expected to come online. Iron ore assets face
depletion and there is a constant need to replace reserves. Vale estimates
annual depletion rates of 3% across the major seaborne iron ore producers.
This requires the iron ore producers to constantly reinvest to maintain
current production levels.
The Company’s exposure to iron ore is primarily in Rio Tinto, BHP and Vale,
which have all had a challenging year with share prices declining by 19%, 27%
and 44%, respectively. The Company has reduced its exposure to these companies
over the year, in particular to Vale. The Company also has exposure to two
pure-play high-grade iron ore producers, Champion Iron and Labrador Iron whose
share prices declined by 31% and 17%, respectively. We have also taken a
position in Fortescue following the 31% fall in its share price.
In the metallurgical coal market, prices for top quality hard coking coal
dropped by 39.3%. China has reduced its imports of Australian and Canadian
metallurgical coal, instead increasing its imports of Russian and Mongolian
coal, and India’s steel production softened in the second half of 2024
decreasing the demand for metallurgical coal. We have seen increased M&A
activity, with Glencore acquiring a 77% interest in Teck Resources’ Canadian
Elk Valley Resource (EVR) coking coal business for US$6.9 billion. Anglo
American announced the sale of its Australian coking coal assets for up to
US$4.9 billion.
The thermal coal market has returned to a more balanced position this year.
China remains a significant importer of thermal coal and, as we have seen in
recent years, many western world thermal coal producers have committed to
reduce production over time. This has left the market tight and vulnerable to
price spikes. The Company’s thermal coal exposure is primarily via our 6.7%
position in Glencore which has used elevated prices in recent years to
deleverage. Glencore announced in August that they will retain both their
thermal and metallurgical coal businesses and remain committed to the
responsible rundown of the thermal coal operations. We expect higher cash
generation from Glencore with the inclusion of EVR and the proceeds from the
Viterra asset sale.
Precious metals
Gold surged 27.2% in US Dollar terms to US$2,625/oz, supported by central bank
demand, physical demand in Asia and, in the final quarter, inflows into
physically backed gold exchange traded funds. Geopolitical tensions remained
elevated through 2024, which contributed to demand.
The increase in the gold price has occurred in the face of what would
historically have been major headwinds: rising real interest rates and a
stronger US Dollar. We believe these relationships remain important but prices
have reset at new levels.
It was disappointing to see gold mining shares fail to turn improved prices
into profits. Production costs rose significantly from 2021 to 2024 and we
have also seen a number of production downgrades. We believe we are past peak
cost inflation and are positive about the direction for margins at these
prices.
Gold equities still look attractively valued versus their history. M&A
activity has increased and we expect further consolidation given the issues
the sector faces around declining reserve lives. We think gold producers
delivering on free cash flow and capital discipline could be a catalyst to
re-rate the space over the next 12 months. The Company finished the year with
circa 21% of its portfolio exposed to gold miners, with its largest holding
Agnico Eagle Mines (5.2% of the portfolio) delivering a total return of 48% in
Sterling terms, versus a 27.2% move in spot gold prices in US Dollar terms.
Demand for the Platinum Group Metals (PGMs) continues to be impacted by the
weakness in global automobile production and the continued growth in electric
vehicles (EV) which do not use PGMs. Research from Morgan Stanley estimates a
1 million oz negative impact on PGM demand over the past four years from
increasing EV market share and a reduction in PGM loadings for internal
combustion engines/hybrid vehicles. A key question going forward is PGM use in
hybrid EVs. We see this as providing some upside to PGM demand relative to
current expectations.
The Company’s exposure to PGM producers was 1.7% for the portfolio at the
year end. Bravo Mining (0.8% of the portfolio) is a PGM and nickel exploration
company in Brazil. During the year the company announced some exciting
exploration results with the discovery of copper-gold mineralisation east of
its Luanga deposit and we look forward to receiving additional drill results
in 2025. The Company invested in Bravo Mining pre-initial public offering
(IPO) in April 2022 at US$0.50/share based on our belief in the assets and the
strong management team. At 31 December 2024, Bravo Mining was trading at circa
CAD 1.76/share, even after a share price fall in 2024.
The energy transition
In 2024 global battery electric vehicle (BEV) sales were expected to reach
around 17 million units, up from approximately 14 million in 2023. This growth
is driven by several factors, including rapidly falling battery prices,
advancements in next-generation battery technology and improving economics of
BEVs. However, an oversupply of raw materials for batteries, such as lithium
and cobalt, continued to weigh on pricing. The lithium carbonate price fell by
23% in 2024, ending the year at US$10,050 per tonne, far from the record
prices above US$70,000 per tonne in 2022.
Despite this, the strategic importance of lithium in the global transition to
renewable energy was underscored by Rio Tinto’s bid for Arcadium Lithium in
October 2024, which had a ripple effect on the entire lithium market. The
Company’s position in Sigma Lithium had a negative impact on performance in
2024 after Sigma’s review process failed to result in a sale. The company is
now focusing on its near-term expansion plans which include doubling
production in 2025. Sigma Lithium’s stock price fell 64% in 2024.
A critical component of EVs is the e-motor, which most commonly uses a
Praseodymium-Neodymium (NdPr) magnet, an alloy of two rare earth elements
(REE). The supply of REE is majority controlled by China but has been deemed
of strategic importance by both Europe and the US. The Company has exposure to
REEs through Lynas Rare Earths (Lynas), a REE miner and processor based in
Malaysia and Australia. Lynas’ stock price fell 10.0% in 2024 after a period
of weaker REE pricing. Lynas is in the process of completing several
initiatives to benefit from the demand for non-Chinese supply of REE,
including heavy rare earth separation and expanding its mining and processing
throughput in Australia.
In 2024 there was increased recognition of the key role of nuclear energy in
the energy transition. The strategic importance of uranium was highlighted by
Microsoft’s agreement with Constellation Energy to restart the Three Mile
Island nuclear plant in Pennsylvania. This is part of Microsoft’s efforts to
secure carbon-free electricity for its AI data centres. The Company’s
holding in uranium producer Cameco rose 21.8% in 2024, as the market continued
to reward its position as a western supplier of nuclear fuel and engineering.
Royalty and unquoted investments
As at the end of 2024, the unquoted investments in the portfolio amounted to
8.4% of the portfolio and consist of the BHP Brazil Royalty, the Vale
Debentures, Jetti Resources and MCC Mining. These, and any future investments,
will be managed in line with the guidelines set by the Board as outlined to
the shareholders in the Strategic Report.
BHP Brazil Royalty Contract
In 2014 the Company invested US$12 million in return for a royalty (net
revenue after deductions for freight, smelter and refining charges) comprising
2% on copper, 25% on gold and 2% on all other metals produced from mines built
on Avanco’s Antas North and Pedra Branca licences. In addition, there is a
flat 2% royalty over all metals produced from any other discoveries within
Avanco’s licence area.
Since our investment, Avanco was acquired by OZ Minerals, with BHP acquiring
OZ Minerals. BHP is currently the operator of the mine. The Company has
received US$32 million in royalty payments with the royalty achieving full
payback on the initial investment in 3½ years. At the end of December 2024,
the royalty was valued at £22.2 million (2.0% of the portfolio) which equates
to a 419.4% return on the initial US$12 million invested.
We are pleased to report that production at Pedra Branca has normalised
following a geotechnical event in the second half of 2023. Recent results show
an improvement in production during 2024. During the year the valuation of the
royalty was increased, primarily driven by an increase in the long-term price
assumption for gold.
Vale Debentures
At the beginning of 2019 the Company completed a significant transaction to
increase its holding in Vale debentures. The debentures consist of a 1.8% net
revenue royalty over Vale’s Northern System and Southeastern System iron ore
assets in Brazil, as well as a 1.25% royalty over the Sossego copper mine. The
iron ore assets are world class given their grade, cost position,
infrastructure and resource life.
Distribution payments are expected to grow once royalty payments commence on
the Southeastern system which Vale currently expects to occur in 2025. During
2024 we have seen an improvement in Vale’s iron ore volumes and we expect to
see further volume improvement over the medium term.
Since our investment in 2019 when we acquired the debentures for R$23 million,
we have received R$22 million in distributions which represents a payback on
the initial investment in six years versus the underlying asset resource life
in excess of 50 years. As at the end of December 2024, the Company’s
exposure to the Vale Debentures was 2.7%.
Whilst the Vale Debentures are a royalty, they are also a listed security on
the Brazilian National Debentures System. As we have highlighted in previous
reports, shareholders should be aware that historically there has been a low
level of liquidity in the debentures and price volatility is to be expected.
Jetti Resources (2.0% of the portfolio)
In early 2022 the Company made an investment into a mining technology company,
Jetti Resources (Jetti), which has developed a new catalyst that improves
copper recovery from primary copper sulphides (specifically copper contained
in chalcopyrite) which is often uneconomic under conventional leach
conditions. Jetti is currently trialling its technology across a number of
mines where it will look to integrate their catalyst into existing heap leach
SX-EW mines to improve recoveries at a low capital cost. The technology is
currently being used at Capstone Mining’s Pinto Valley copper mine and
trialled at a series of other copper operations, most notable Escondida the
world’s largest copper mine, where we expect an investment decision to be
made during 2025 to approve its use at scale.
During the year the Company has chosen to reduce the holding value in Jetti by
19.2% from 2023 to reflect the longer contract negotiation process and slower
roll-out of its leaching technology across targeted assets which has delayed
revenue projections for the company. This remains 75% above the valuation
where the Company initially acquired its holding in 2022.
MCC Mining (1.3% of the portfolio)
MCC Mining is a private company exploring for copper in Colombia. It is
undertaking early-stage greenfield exploration and its asset base has strong
geological potential to host multiple world class porphyry deposits.
Shareholders include other mid- to large-cap copper miners, which is an
indication of the strategic value of the company. Following new regulations in
Colombia which allowed for the exploration drilling in the forestry reserve,
the company commenced drilling at its Comita and Pantanos deposits in 2023.
Drilling to date has been very encouraging with two porphyry deposits
confirmed at Comita and Pantanos. The company successfully completed a US$50
million funding round at a 50% premium to our initial investment and in the
second half of the year the Company modestly increased its exposure to MCC
Mining.
Derivatives activity
The Company from time to time enters into derivatives contracts, mostly
involving the sale of “puts” and “calls”. These are taken to revenue
and are subject to strict Board guidelines which limit their magnitude to an
aggregate 10% of the portfolio. All derivatives are appropriately covered at
all times. In 2024 income generated from options was £10.2 million which was
considerably above prior years. The increase was driven by a range of specific
opportunities such as M&A, short-term spikes in volatility and greater breadth
in the opportunity set. At the end of the year the Company had 0.1% of the net
assets exposed to derivatives and the average exposure to derivatives during
the year was less than 5% of net assets.
Gearing
At 31 December 2024 the Company had £135.7 million of net debt, with a
gearing level of 12.0%. The debt is held principally in US Dollar rolling
short-term loans and managed against the value of the debt securities and the
high yielding royalty positions in the Company. This year debt was generally
held against the breadth of the portfolio and for use in derivative
transactions. In addition, a small number of new holdings were made in debt
like securities that have higher yields than both the cost of the debt and the
underlying equities. In summary, debt came with a higher cost and this meant
absolute gearing was kept below that of prior years to minimise the interest
cost.
Outlook
We remain confident that supportive demand trends, strong balance sheets,
limited supply growth and low valuations are likely to underpin a recovery to
positive returns, especially after such a negative final quarter to the year.
Yet we are also realistic that this upside requires a catalyst.
In the near term there are several factors that are likely to hold back the
sector, including uncertainty around China. It is clear that the Chinese
government has recognised the issues needed to support the economy and drive
change, but has not delivered the significant stimulus program the markets
have been looking for to catalyse material improvement in economic activity.
Uncertainty is also high regarding the scope, scale and timing of tariffs that
President Trump is willing to use, which could lead to a slowdown in global
trade.
The sector remains highly exposed to key trends driving global markets such as
the energy transition and AI. On AI, the staggering scale of investment in
data centres requires enormous amounts of materials to build the
infrastructure: copper for the energy intensive connections and the metals
needed for nuclear rejuvenation.
In summary, 2024 failed to meet expectations in terms of share price
performance. But with fundamentals intact, low valuations, competitive
shareholder returns and a positive outlook currently ignored by the broader
market, it feels as though we are well positioned to capture returns when
near-term issues fade.
EVY HAMBRO AND OLIVIA MARKHAM
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
4 March 2025
Ten largest investments
Together, the Company’s ten largest investments represented 52.7% of the
Company’s portfolio as at 31 December 2024 (2023: 54.8%)
1 ► BHP1,2 (2023: 1st)
Diversified mining group
Market value: £99,586,000
Share of investments: 9.1% comprising equity of 7.1% and mining royalty of
2.0% (2023: 10.1%)
The world’s largest diversified mining group by market capitalisation. The
group is an important global player in a number of commodities including iron
ore, copper, nickel, metallurgical coal and potash.
2 ▲ Rio Tinto (2023: 4th)
Diversified mining group
Market value: £78,643,000
Share of investments: 7.2% (2023: 7.3%)
One of the world’s leading mining groups. The British-Australian group’s
primary product is iron ore, but it also produces aluminium, copper, diamonds
and industrial minerals.
3 ► Glencore (2023: 3rd)
Diversified mining group
Market value: £65,792,000
Share of investments: 6.0% (2023: 8.3%)
One of the world’s largest globally diversified natural resources groups.
The group produces copper, nickel, alumina/aluminium, zinc and thermal and
metallurgical coal and also has a commodity marketing/distribution business.
4 ▲ Anglo American (2023: 17th)
Diversified mining group
Market value: £64,013,000
Share of investments: 5.9% (2023: 1.9%)
A globally diversified group with exposure to copper, premium iron ore, crop
nutrients and other commodities. The company is currently undertaking a
restructuring to simplify the business.
5 ▲ Agnico Eagle Mines (2023: 19th)
Gold producer
Market value: £56,737,000
Share of investments: 5.2% (2023: 1.6%)
A senior gold producer and the second-largest in the world by market
capitalisation. The company has operations in Canada, Finland, Australia and
Mexico.
6 ▼ Vale2,3 (2023: 2nd)
Diversified mining group
Market value: £49,055,000
Share of investments: 4.5% comprising equity of 1.8% and debentures of 2.7%
(2023: 9.6%)
Vale is the world’s largest producer of iron ore and iron ore pellets and
the world’s largest producer of nickel. The group also produces nickel,
copper and cobalt as part of its base metals division.
7 ▼ Freeport-McMoRan4 (2023: 5th)
Copper producer
Market value: £47,842,000
Share of investments: 4.4% (2023: 5.0%)
A global mining group producing copper, gold and molybdenum. The company has
operations in Indonesia, North America and South America.
8 ► Wheaton Precious Metals (2023: 8th)
Gold producer
Market value: £42,312,000
Share of investments: 3.9% (2023: 3.0%)
One of the world’s largest precious metals streaming companies. The company
provides financing to traditional mining companies in exchange for a
percentage of the metals produced by one or more of the companies’ mines.
9 ▲ Cameco (2023: 11th)
Uranium producer
Market value: £36,909,000
Share of investments: 3.4% (2023: 2.3%)
One of the largest global providers of uranium fuel for nuclear power. The
company has uranium assets in Canada, the US and Kazakhstan.
10 ▼ Barrick Gold (2023: 7th)
Gold producer
Market value: £33,626,000
Share of investments: 3.1% (2023: 3.2%)
A senior gold producer and the third-largest in the world by market
capitalisation. The company has operations and projects in North America,
South America and Africa.
1 Includes mining royalty contract.
2 Includes investments held at Directors’ valuation.
3 Includes fixed income securities.
4 Includes options.
All percentages reflect the value of the holding as a percentage of total
investments. For this purpose, where more than one class of securities is
held, these have been aggregated.
Arrows indicate the change in relative ranking of the position in the
portfolio compared to its ranking as at 31 December 2023.
Percentages in brackets represent the value of the holding as at 31 December
2023.
Investments as at 31 December 2024
Main Market % of
geographical value investments
exposure £’000
Diversified
Rio Tinto Global 78,643 7.2
BHP Global 77,389 7.1
Glencore Global 65,792 6.0
Anglo American Global 64,013 5.9
Vale Debentures 1,2,3 Global 29,308 } 4.5
Vale Global 19,747
Teck Resources Global 33,014 3.0
Vox Royalty Canada 2,511 0.2
--------------- ---------------
370,417 33.9
========= =========
Copper
Freeport-McMoRan Global 48,268 } 4.4
Freeport-McMoRan Put Option 17/01/25 US$39.00 Global (426)
Ivanhoe Mines Other Africa 27,205 2.5
Sociedad Minera Cerro Verde Latin America 22,458 2.0
BHP Brazil Royalty 2,4 Latin America 22,197 2.0
Jetti Resources 2 Global 21,973 2.0
Ivanhoe Electric United States 16,107 1.5
Lundin Mining Global 15,915 1.5
Foran Mining Canada 14,791 1.4
Southern Copper Corporation Latin America 14,121 1.3
MCC Mining 2 Latin America 14,097 1.3
Metals Acquisition Australasia 11,778 1.1
Capstone Mining United States 11,357 1.0
Develop Global Australasia 10,571 1.0
First Quantum Minerals Global 10,003 0.9
NGEx Minerals Latin America 5,245 0.4
Solaris Resources Latin America 3,489 0.3
Ero Copper Latin America 2,207 0.2
--------------- ---------------
271,356 24.8
========= =========
Gold
Agnico Eagle Mines Canada 56,737 5.2
Wheaton Precious Metals Global 42,312 3.9
Barrick Gold Global 33,626 3.1
Newmont Corporation Global 30,495 2.8
Franco-Nevada Global 18,946 1.7
Northern Star Resources Australasia 14,336 1.3
Kinross Gold Global 13,554 1.2
Endeavour Mining Other Africa 7,401 0.7
Allied Gold 1 Other Africa 7,345 0.7
AngloGold Ashanti Global 6,422 0.6
Firefly Metals Canada 4,853 0.4
Capricorn Metals Australasia 4,604 0.4
Polyus Russia – –
--------------- ---------------
240,631 22.0
========= =========
Steel
Nucor United States 20,909 1.9
ArcelorMittal Global 18,199 1.7
Steel Dynamics United States 12,060 1.1
Cleveland-Cliffs United States 462 –
--------------- ---------------
51,630 4.7
========= =========
Uranium
Cameco Canada 36,943 } 3.4
Cameco Call Option 17/01/25 US$60.00 Canada (34)
--------------- ---------------
36,909 3.4
========= =========
Iron Ore
Fortescue Australasia 14,336 1.3
Labrador Iron Canada 11,281 1.1
Champion Iron Canada 8,872 0.8
Equatorial Resources Other Africa 163 –
--------------- ---------------
34,652 3.2
========= =========
Industrial Minerals
Albemarle Global 8,441 0.8
Lynas Rare Earths Australasia 7,297 0.7
Sigma Lithium Latin America 6,100 0.6
Iluka Resources Australasia 5,268 0.5
Sheffield Resources Australasia 1,701 0.1
Chalice Mining Australasia 1,371 0.1
Australian Carbon Australasia – –
Victorian Hydrogen & Ammonia Industry Australasia – –
--------------- ---------------
30,178 2.8
========= =========
Aluminium
Hydro Global 14,562 1.3
Alcoa Global 11,104 } 1.0
Alcoa Call Option 17/01/25 US$40.00 Global (162)
--------------- ---------------
25,504 2.3
========= =========
Platinum Group Metals
Bravo Mining Latin America 8,812 0.8
Anglo American Platinum South Africa 6,207 0.6
Northam Platinum Global 1,778 0.2
Impala Platinum South Africa 1,544 0.1
--------------- ---------------
18,341 1.7
========= =========
Nickel
Nickel Industries Indonesia 6,501 0.6
Lifezone Metals Global 5,310 0.5
Bindura Nickel Global – –
--------------- ---------------
11,811 1.1
========= =========
Zinc
Titan Mining United States 1,147 0.1
--------------- ---------------
1,147 0.1
========= =========
Energy Minerals
Gippsland Energy Australasia – –
Latrobe Fertilisers Australasia – –
--------------- ---------------
– –
--------------- ---------------
1,092,576 100.0
========= =========
Comprising:
– Investments 1,093,198 100.1
– Options (622) (0.1)
--------------- ---------------
1,092,576 100.0
========= =========
1 Includes fixed income securities.
2 Includes investments held at Directors’ valuation.
3 The investment in the Vale debentures is illiquid and has been valued using
secondary market pricing information provided by the Brazilian Financial and
Capital Markets Association (ANBIMA).
4 Mining royalty contract.
All investments are in equity shares unless otherwise stated.
The total number of investments as at 31 December 2024 (including options
classified as liabilities on the balance sheet) was 70 (2023: 69).
As at 31 December 2024 the Company did not hold any equity interests in
companies comprising more than 3% of a company’s share capital.
Portfolio analysis as at 31 December 2024
Commodity Exposure1
2024 2023 2024 reference index 3
portfolio portfolio 2
Diversified 33.9% 38.4% 33.5%
Copper 24.8% 21.8% 13.8%
Gold 22.0% 15.2% 24.3%
Steel 4.7% 7.3% 17.9%
Uranium 3.4% 2.3% 0.0%
Iron Ore 3.2% 2.5% 3.4%
Industrial Minerals 2.8% 5.5% 0.6%
Aluminium 2.3% 3.3% 3.4%
Platinum Group Metals 1.7% 1.6% 1.0%
Nickel 1.1% 1.0% 0.0%
Zinc 0.1% 0.1% 0.4%
Mining Services 0.0% 1.0% 0.0%
Other 4 0.0% 0.0% 1.7%
1 Based on index classifications.
2 Represents exposure at 31 December 2023.
3 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (net total return).
4 Represents a very small exposure.
Geographic Exposure1
2024
Global 61.3%
Canada 12.5%
Latin America 8.9%
Australasia 6.5%
Other 2 6.2%
Other Africa (ex South Africa) 3.9%
South Africa 0.7%
2023
Global 67.4%
Canada 7.5%
Latin America 7.4%
Australasia 7.3%
Other 2 7.0%
Other Africa (ex South Africa) 3.2%
South Africa 0.2%
1 Based on the principal commodity exposure and place of operation of each
investment.
2 Consists of Indonesia and United States.
Strategic Report
The Directors present the Strategic Report of BlackRock World Mining Trust plc
for the year ended 31 December 2024. The aim of the Strategic Report is to
provide shareholders with the information to assess how the Directors have
performed their duty to promote the success of the Company for the collective
benefit of shareholders.
The Chairman’s Statement together with the Investment Manager’s Report
form part of this Strategic Report. The Strategic Report was approved by the
Board at its meeting on 4 March 2025.
Principal activities
The Company carries on business as an investment trust with a listing on the
London Stock Exchange. Its principal activity is portfolio investment and that
of its subsidiary, BlackRock World Mining Investment Company Limited (together
the Group), is investment dealing. The Company was incorporated in England on
28 October 1993 and this is the thirty-first Annual Report.
Investment trusts are pooled investment vehicles which allow exposure to a
diversified range of assets through a single investment, thus spreading
investment risk.
Objective
The Company’s objective is to maximise total returns to shareholders through
the cycle using a worldwide portfolio of mining and metal investments.
The Board recognises the importance of dividends to shareholders in achieving
that objective, in addition to capital returns.
Strategy, business model and investment policy
Strategy
The Company invests in accordance with the objective given above. The Board is
collectively responsible to shareholders for the long-term success of the
Company and is its governing body. There is a clear division of responsibility
between the Board and BlackRock Fund Managers Limited (the Manager). Matters
reserved for the Board include setting the Company’s strategy, including its
investment objective and policy, setting limits on gearing (both bank
borrowings and the effect of derivatives), capital structure, governance and
appointing and monitoring of the performance of service providers, including
the Manager.
Business model
The Company’s business model follows that of an externally managed
investment trust. Therefore, the Company does not have any employees and
outsources its activities to third-party service providers including the
Manager who is the principal service provider. In accordance with the
Alternative Investment Fund Managers’ Directive (AIFMD), as implemented,
retained and onshored in the UK, the Company is an Alternative Investment Fund
(AIF). BlackRock Fund Managers Limited is the Company’s Alternative
Investment Fund Manager.
The management of the investment portfolio and the administration of the
Company have been contractually delegated to the Manager who in turn (with the
permission of the Company) has delegated certain investment management and
other ancillary services to BlackRock Investment Management (UK) Limited (the
Investment Manager). The Manager, operating under guidelines determined by the
Board, has direct responsibility for the decisions relating to the day-to-day
running of the Company and is accountable to the Board for the investment,
financial and operating performance of the Company.
The Company delegates fund accounting services to the Manager, which in turn
sub-delegates these services to The Bank of New York Mellon (International)
Limited (BNY). Other service providers include the Depositary (also BNY) and
the Registrar, Computershare Investor Services PLC. Details of the contractual
terms with the Manager and the Depositary and more details of the arrangements
in place governing custody services are set out in the Directors’ Report.
Investment policy
The Company’s investment policy is to provide a diversified investment in
mining and metal securities worldwide actively managed with the objective of
maximising total returns. While the policy is to invest principally in quoted
securities, the Company’s investment policy includes investing in royalties
derived from the production of metals and minerals as well as physical metals.
Up to 10% of gross assets may be held in physical metals.
In order to achieve its objective, it is intended that the Group will normally
be fully invested, which means at least 90% of the gross assets of the Company
and its subsidiary will be invested in stocks, shares, debt securities,
royalties and physical metals. However, if such investments are deemed to be
overvalued, or if the Manager finds it difficult to identify attractively
priced opportunities for investment, then up to 25% of the Group’s assets
may be held in cash or cash equivalents. Risk is spread by investing in a
number of holdings, many of which themselves are diversified businesses.
The Group may occasionally utilise derivative instruments such as options,
futures and contracts for difference, if it is deemed that these will, at a
particular time or for a particular period, enhance the performance of the
Group in the pursuit of its objectives. The Company is also permitted to enter
into stock lending arrangements.
The Group may invest in any single holding of quoted or unquoted investments
that would represent up to 20% of gross assets at the time of acquisition.
Although investments are principally in companies listed on recognised stock
exchanges, the Company may invest up to 20% of the Group’s gross assets in
investments other than quoted securities. Such investments include unquoted
royalties, equities or bonds. In order to afford the Company the flexibility
of obtaining exposure to metal and mining related royalties, it is possible
that, in order to diversify risk, all or part of such exposure may be obtained
directly or indirectly through a holding company, a fund or another investment
or special purpose vehicle, which may be quoted or unquoted. The Board will
seek the prior approval of shareholders to any unquoted investment in a single
company, fund or special purpose vehicle or any single royalty which
represents more than 10% of the Group’s assets at the time of acquisition.
The Company’s royalty strategy permits a 20% maximum exposure to royalties
but the royalty/unquoted portfolio should itself deliver diversification
across operator, country and commodity. To this end, new investments into
individual royalties/ unquoted investments will not exceed circa 3% of gross
assets at the time of investment. Total exposure to any single operator,
including other issued securities such as debt and/or equity, where greater
than 30% of that operator’s revenues come from the mine over which the
royalty lies, must also not be greater than 3% at the time of investment. In
addition, the guidelines require that the Investment Manager must, at the time
of investment, manage total exposure to a single operator, via reducing
exposure to listed securities if they are also held in the portfolio, in a
timely manner where royalties/unquoted investments are revalued upwards. In
the jurisdictions where statutory royalties are possible (in countries where
mineral rights are privately owned) these will be preferred and in respect of
contractual royalties (a contractual obligation entered into by the operator
and typically unsecured) the valuation must take into account the higher
credit risk involved. Board approval will continue to be required for all
royalty/unquoted investments.
While the Company may hold shares in other listed investment companies
(including investment trusts), the Board has agreed that the Company will not
invest more than 15% of the Group’s gross assets in other UK listed
investment companies. In order to comply with the current Listing Rules, the
Company will also not invest more than 10% of its gross asset value in other
listed closed-ended investment funds which themselves may invest more than 15%
of their gross assets in other listed closed-ended investment funds. This
restriction does not form part of the Company’s investment policy.
The Group’s financial statements are maintained in Sterling. Although many
investments are denominated and quoted in currencies other than Sterling, the
Board does not intend to employ a hedging strategy against fluctuations in
exchange rates.
No material change will be made to the investment policy without shareholder
approval.
Gearing
The Investment Manager believes that tactical use of gearing can add value
from time to time. This gearing is typically in the form of an overdraft or
short-term loan facility, which can be repaid at any time or matched by cash.
The level and benefit of gearing is discussed and agreed with the Board
regularly. The Company may borrow up to 25% of the Group’s net assets. The
maximum level of gearing used during the year was 14.7% and, at the financial
reporting date, net gearing (calculated as borrowings less cash and cash
equivalents as a percentage of net assets) stood at 12.0% of shareholders’
funds (2023: 11.9%). For further details on borrowings refer to note 14 in the
Financial Statements and the Alternative Performance Measure in the Glossary
in the Company's Annual Report for the year ended 31 December 2024.
Portfolio analysis
Information regarding the Company’s investment exposures is contained within
Section 2 (Portfolio) in the Company's Annual Report for the year ended 31
December 2024, with information on the ten largest investments, the
investments listed and portfolio analysis above. Further information regarding
investment risk and activity throughout the year can be found in the
Investment Manager’s Report.
At 31 December 2024, the Level 3 unquoted investments (see note 11 below) in
the BHP Brazil Royalty Contract and preferred shares and equity shares of
Jetti Resources and MCC Mining were held at Directors’ valuation,
representing a total of £58,267,000 (2023: £51,011,000). Unquoted
investments can prove to be more risky than listed investments.
Continuation vote
As agreed by shareholders in 1998, an ordinary resolution for the continuation
of the Company is proposed at each Annual General Meeting. The Directors
remain confident on the value available in the mining sector and therefore
recommend that shareholders vote in support of the Company’s continuation.
Performance
Details of the Company’s performance for the year are given in the
Chairman’s Statement. The Investment Manager’s Report includes a review of
the main developments during the year, together with information on investment
activity within the Company’s portfolio.
Results and dividends
The results for the Company are set out in the Consolidated Statement of
Comprehensive Income. The total loss for the year, after taxation, was
£119,941,000 (2023: £78,985,000) of which £44,127,000 (2023: £64,691,000)
is revenue profit.
It is the Board’s intention to distribute substantially all of the
Company’s available income. The Directors recommend the payment of a final
dividend as set out in the Chairman’s Statement. Dividend payments/payable
for the year ended 31 December 2024 amounted to £43,942,000 (2023:
£64,016,000).
Future prospects
The Board’s main focus is to maximise total returns over the longer term
through investment in mining and metal assets. The outlook for the Company is
discussed in both the Chairman’s Statement and the Investment Manager’s
Report.
Social, community and human rights issues
As an investment trust, the Company has no direct social or community
responsibilities or impact on the environment and the Company has not adopted
an ESG investment strategy or exclusionary screens. However, the Directors
believe that it is important and in shareholders’ interests to consider
human rights issues and environmental, social and governance factors when
selecting and retaining investments. Details of the Company’s approach to
ESG are set out in the Company’s Annual Report for the year ended 31
December 2024 and details of the Manager’s approach to ESG integration are
also set out in the Company’s Annual Report for the year ended 31 December
2024.
Modern Slavery Act
As an investment vehicle, the Company does not provide goods or services in
the normal course of business and does not have customers. The Investment
Manager considers modern slavery as part of supply chains and labour
management within the investment process. Accordingly, the Directors consider
that the Company is not required to make any slavery or human trafficking
statement under the Modern Slavery Act 2015. In any event, the Board considers
the Company’s supply chains, dealing predominantly with professional
advisers and service providers in the financial services industry, to be low
risk in relation to this matter.
Directors, gender representation and employees
The Directors of the Company on 31 December 2024 are set out in the
Directors’ Biographies in the Company’s Annual Report for the year ended
31 December 2024. The Board consists of two male Directors and three female
Directors. The Company’s policy on diversity is set out in the Company’s
Annual Report for the year ended 31 December 2024. The Company does not have
any executive employees.
Key performance indicators
At each Board meeting, the Directors consider a number of performance measures
to assess the Company’s success in achieving its objectives. The key
performance indicators (KPIs) used to measure the progress and performance of
the Company over time and which are comparable to other investment trusts are
set out overleaf. As indicated in the footnote to the table, some of these
KPIs fall within the definition of ‘Alternative Performance Measures’
under guidance issued by the European Securities and Markets Authority (ESMA)
and additional information explaining how these are calculated is set out in
the Glossary in the Company’s Annual Report for the year ended 31 December
2024. Additionally, the Board regularly reviews the performance of the
portfolio, as well as the net asset value and share price of the Company and
compares this against various companies and indices. Information on the
Company’s performance is given in the Chairman’s Statement.
Year ended Year ended
31 December 31 December
2024 2023
Net asset value total return 1,2 -10.7% -6.2%
Share price total return 1,2 -12.7% -10.4%
Discount to net asset value 2 5.8% 3.3%
Revenue earnings per share 23.09p 33.95p
Total dividends per share 23.00p 33.50p
Ongoing charges 2, 3 0.95% 0.91%
Ongoing charges on gross assets 2, 4 0.84% 0.81%
========= =========
1 This measures the Company’s NAV and share price total return, which
assumes dividends paid by the Company have been reinvested.
2 Alternative Performance Measures, see Glossary in the Company’s Annual
Report for the year ended 31 December 2024.
3 Ongoing charges represent the management fee and all other operating
expenses, excluding finance costs, direct transaction costs, custody
transaction charges, VAT recovered, taxation, prior year expenses written back
and certain non-recurring items, as a % of average daily net assets.
4 Ongoing charges based on gross assets represent the management fee and all
other operating expenses, excluding finance costs, direct transaction costs,
custody transaction charges, VAT recovered, taxation, prior year expenses
written back and certain non-recurring items, as a % of average daily gross
assets. Gross assets are calculated based on net assets during the year before
the deduction of the bank overdraft and loans. Ongoing charges based on gross
assets are considered to be an appropriate performance measure as management
fees are payable on gross assets (subject to certain adjustments and
deductions).
Principal risks
The Company is exposed to a variety of risks and uncertainties. As required by
the 2018 UK Corporate Governance Code (the UK Code), the Board has put in
place a robust ongoing process to identify, assess and monitor the principal
risks and emerging risks facing the Company including those that would
threaten its business model. A core element of this process is the Company’s
risk register which identifies the risks facing the Company and assesses the
likelihood and potential impact of each risk and the quality of controls
operating to mitigate it. A residual risk rating is then calculated for each
risk based on the outcome of the assessment.
The risk register, its method of preparation and the operation of key controls
in BlackRock’s and third-party service providers’ systems of internal
control, are reviewed on a regular basis by the Audit Committee. In order to
gain a more comprehensive understanding of BlackRock’s and other third-party
service providers’ risk management processes and how these apply to the
Company’s business, BlackRock’s internal audit department provides an
annual presentation to the Audit Committee chairs of the BlackRock investment
trusts setting out the results of testing performed in relation to
BlackRock’s internal control processes. The Audit Committee also
periodically receives and reviews internal control reports from BlackRock and
the Company’s service providers.
The Board has undertaken a robust assessment of both the principal and
emerging risks facing the Company, including those that would threaten its
business model, future performance, solvency or liquidity. For instance, the
risk that unforeseen or unprecedented events including (but not limited to)
heightened geopolitical tensions such as the war in Ukraine and the conflict
in the Middle East, inflation and the current cost of living crisis has had a
significant impact on global markets. The Board has taken into consideration
the risks posed to the Company by these events and incorporated these into the
Company’s risk register. The threat of climate change has also reinforced
the importance of more sustainable practices and environmental responsibility
for investee companies.
Emerging risks are considered by the Board as they come into view and are
incorporated into the existing review of the Company’s risk register. They
were also considered as part of the annual evaluation process. Additionally,
the Manager considers emerging risks in numerous forums and the BlackRock Risk
and Quantitative Analysis team produces an annual risk survey. Any material
risks of relevance to the Company through the annual risk survey will be
communicated to the Board.
Emerging risks that have been considered by the Board over the year include
the impact of climate change, escalating geopolitical conflict and
technological advances. The key emerging risks identified are as follows:
Climate change: Investors can no longer ignore the impact that the world’s
changing climate will have on their portfolios, with the impact of climate
change on returns, including climate related natural disasters, now
potentially significant and with the potential to escalate more swiftly than
one is able to predict. The Board receives ESG reports from the Manager on the
portfolio and the way ESG considerations are integrated into the investment
decision making, so as to mitigate risk at the level of stock selection and
portfolio construction.
Geopolitical risk: Escalating geopolitical tensions (including, but not
limited to tensions in the Middle East and the ongoing war in Ukraine, or
deteriorating relations between China and the US/other countries) have a
significant negative impact on global markets, with an increasing use of
tariffs and domestic regulations making global trade more complex and driving
economic fragmentation. Within this category the continuing rise of resource
nationalism is presented and assessed.
Artificial Intelligence (AI): Advances in computing power means that AI has
become a powerful tool that will impact a huge range of areas and with a wide
range of applications that have the potential to dislocate established
business models and disrupt labour markets, creating uncertainty in corporate
valuations. The significant energy required to power this technological
revolution will create further pressure on environmental resources and carbon
emissions.
The Board will continue to assess these risks on an ongoing basis. In relation
to the UK Code, the Board is confident that the procedures that the Company
has put in place are sufficient to ensure that the necessary monitoring of
risks and controls has been carried out throughout the reporting period.
The principal risks and uncertainties faced by the Company during the
financial year, together with the potential effects, controls and mitigating
factors, are set out in in the Company’s Annual Report for the year ended 31
December 2024.
Market
Principal risk
Market risk arises from volatility in the prices of the Company’s
investments. The price of shares in the mining sector can be volatile and this
may be reflected in the NAV and market price of the Company’s shares.
Changes in general economic and market conditions, such as currency exchange
rates, interest rates, rates of inflation, industry conditions, tax laws,
political events and trends, can also substantially and adversely affect the
securities and, as a consequence, the Company’s prospects and share price.
Market risk includes the potential impact of events which are outside the
Company’s control, including (but not limited to) heightened geopolitical
tensions and military conflict, a global pandemic and high inflation.
Companies operating in the sectors in which the Company invests may be
impacted by new legislation governing climate change and environmental issues,
which may have a negative impact on their valuation and share price.
Mitigation/Control
The Board considers the diversification of the portfolio, asset allocation,
stock selection and levels of gearing on a regular basis and has set
investment restrictions and guidelines which are monitored and reported on by
the Investment Manager.
The Board monitors the implementation and results of the investment process
with the Investment Manager.
The Board also recognises the benefits of a closed-end fund structure in
extremely volatile markets such as those experienced as a consequence of the
COVID-19 pandemic, the war in Ukraine and the conflict in the Middle East.
Unlike open-ended counterparts, closed-end funds are not obliged to sell-down
portfolio holdings at low valuations to meet liquidity requirements for
redemptions. During times of elevated volatility and market stress, the
ability of a closed-end fund structure to remain invested for the long term
enables the Investment Manager to adhere to disciplined fundamental analysis
from a bottom-up perspective and be ready to respond to dislocations in the
market as opportunities present themselves.
The Investment Manager seeks to understand the ESG risks and opportunities
facing companies and industries in the portfolio. The Company has not adopted
an ESG focused investment strategy and does not exclude investment in stocks
based on ESG criteria, but the Investment Manager considers ESG information
when conducting research and due diligence on new investments and again when
monitoring investments in the portfolio. Further information on BlackRock’s
approach to ESG integration can be found below.
Investment performance
Principal risk
The returns achieved are reliant primarily upon the performance of the
portfolio.
The Board is responsible for:
- deciding the investment strategy to fulfil the Company’s objective; and
- monitoring the performance of the Investment Manager and the implementation
of the investment strategy.
An inappropriate investment strategy may lead to:
- underperformance compared to the reference index;
- a reduction or permanent loss of capital; and
- dissatisfied shareholders and reputational damage.
The Board is also cognisant of the long-term risk to performance from
inadequate attention to ESG issues and in particular the impact of climate
change.
Mitigation/Control
To manage this risk the Board:
- regularly reviews the Company’s investment mandate and long-term
strategy;
- has set investment restrictions and guidelines which the Investment Manager
monitors and regularly reports on;
- receives from the Investment Manager a regular explanation of stock
selection decisions, portfolio exposure, gearing and any changes in gearing,
and the rationale for the composition of the investment portfolio;
- oversees the maintenance of an adequate spread of investments in order to
minimise the risks associated with particular countries or factors specific to
particular sectors, based on the diversification requirements inherent in the
investment policy; and
- receives and reviews regular reports showing an analysis of the Company’s
performance against other indices, including the performance of major
companies in the sector.
ESG analysis is integrated into the Investment Manager’s investment process
as set out in the Company’s Annual Report for the year ended 31 December
2024. This is monitored by the Board. As the world works toward a transition
to a low-carbon economy, the Investment Manager is interested in hearing from
companies about their strategies and plans for responding to the challenges
and capturing the opportunities that this transition creates. When companies
consider climate-related risks, it is likely they will also assess their
impact and dependence on natural capital.
Operational
Principal risk
In common with most other investment trust companies, the Company has no
employees. The Company therefore relies on the services provided by third
parties and is dependent on the control systems of the Manager, the Depositary
and Fund Accountant which maintain the Company’s assets, dealing procedures
and accounting records.
The security of the Company’s assets, dealing procedures, accounting records
and adherence to regulatory and legal requirements depend on the effective
operation of the systems of these third-party service providers. There is a
risk that a major disaster, such as floods, fire, a global pandemic, or
terrorist activity, renders the Company’s service providers unable to
conduct business at normal operating effectiveness.
Failure by any service provider to carry out its obligations to the Company
could have a material adverse effect on the Company’s performance.
Disruption to the accounting, payment systems or custody records (including
cyber security risk) could prevent the accurate reporting and monitoring of
the Company’s financial position.
Mitigation/Control
Due diligence is undertaken before contracts are entered into with third-party
service providers. Thereafter, the performance of the provider is subject to
regular review and reported to the Board.
The Board reviews on a regular basis an assessment of the fraud risks that the
Company could potentially be exposed to and also a summary of the controls put
in place by the Manager, Depositary, Custodian, Fund Accountant and Registrar
specifically to mitigate these risks.
Most third-party service providers produce Service Organisation Control (SOC
1) reports to provide assurance regarding the effective operation of internal
controls as reported on by their reporting accountants. These reports are
provided to the Audit Committee for review. The Committee would seek further
representations from service providers if not satisfied with the effectiveness
of their control environment.
The Company’s financial instruments held in custody are subject to a strict
liability regime and, in the event of a loss of such financial instruments,
the Depositary must return financial assets of an identical type or the
corresponding amount, unless able to demonstrate the loss was a result of an
event beyond its reasonable control.
The Board reviews the overall performance of the Manager, Investment Manager
and all other third-party service providers on a regular basis and compliance
with the Investment Management Agreement annually.
The Board also considers the business continuity arrangements of the
Company’s key service providers on an ongoing basis and reviews these as
part of its review of the Company’s risk register.
Legal and regulatory compliance
Principal risk
The Company has been approved by HM Revenue & Customs as an investment trust,
subject to continuing to meet the relevant eligibility conditions, and
operates as an investment trust in accordance with Chapter 4 of Part 24 of the
Corporation Tax Act 2010. As such, the Company is exempt from corporation tax
on capital gains tax on the profits realised from the sale of its investments.
Any breach of the relevant eligibility conditions could lead to the Company
losing investment trust status and being subject to corporation tax on capital
gains realised within the Company’s portfolio. In such event, the investment
returns of the Company may be adversely affected.
A serious breach could result in the Company and/or the Directors being fined
or the subject of criminal proceedings or the suspension of the Company’s
shares which would in turn lead to a breach of the Corporation Tax Act 2010.
Amongst other relevant laws, the Company is required to comply with the
provisions of the Companies Act 2006, the Alternative Investment Fund
Managers’ Directive as implemented, retained and onshored in the UK (AIFMD),
the UK Listing Rules, Disclosure Guidance and Transparency Rules and the
Market Abuse Regulation (as retained and onshored in the UK).
Mitigation/Control
The Investment Manager monitors investment movements, the level and type of
forecast income and expenditure and the amount of proposed dividends to ensure
that the provisions of Chapter 4 of Part 24 of the Corporation Tax Act 2010
are not breached. The results are reported to the Board at each meeting.
Compliance with the accounting rules affecting investment trusts is also
carefully and regularly monitored.
The Company Secretary, Manager and the Company’s professional advisers
provide regular reports to the Board in respect of compliance with all
applicable rules and regulations. The Board and the Manager also monitor
changes in government policy and legislation which may have an impact on the
Company.
The Company’s Investment Manager at all times complies with the sanctions
administered by the UK Office of Financial Sanctions Implementation, the
United States Treasury’s Office of Foreign Assets Control, the United
Nations, European Union member states and any other applicable regimes.
Financial
Principal risk
The Company’s investment activities expose it to a variety of financial
risks which include market risk, counterparty credit risk, liquidity risk and
the valuation of financial instruments.
Mitigation/Control
Details of these risks are disclosed in note 17 to the Financial Statements,
together with a summary of the policies for managing these risks.
In the view of the Board, there have not been any changes to the fundamental
nature of these risks and these principal risks and uncertainties are equally
applicable for the current financial year.
Viability statement
In accordance with provision 31 of the 2018 UK Corporate Governance Code, the
Directors have assessed the prospects of the Company over a longer period than
the twelve months referred to by the ‘Going Concern’ guidelines. The
Company is an investment trust with the objective of providing an attractive
level of income return together with capital appreciation over the long term.
The Directors expect the Company to continue for the foreseeable future and
have therefore conducted this review for a period up to the Annual General
Meeting in 2028. The Directors assess viability over a rolling three-year
period as they believe it best balances the Company’s long-term objective,
its financial flexibility and scope, with the difficulty in forecasting
economic conditions which could affect both the Company and its shareholders.
The Company also undertakes a continuation vote every year with the next one
taking place at the forthcoming Annual General Meeting.
In making an assessment on the viability of the Company, the Board has
considered the following:
- the impact of a significant fall in commodity markets on the value of the
Company’s investment portfolio;
- the ongoing relevance of the Company’s investment objective, business
model and investment policy in the prevailing market;
- the principal and emerging risks and uncertainties, as set out above, and
their potential impact;
- the level of ongoing demand for the Company’s shares;
- the Company’s share price discount/premium to NAV;
- the liquidity of the Company’s portfolio; and
- the level of income generated by the Company and future income and
expenditure forecasts.
The Directors have concluded that there is a reasonable expectation that the
Company will continue in operation and meet its liabilities as they fall due
over the period of their assessment based on the following considerations:
- the Investment Manager’s compliance with the investment objective and
policy, its investment strategy and asset allocation;
- the portfolio is liquid and mainly comprises readily realisable assets
which continue to offer a range of investment opportunities for shareholders
as part of a balanced investment portfolio;
- the operational resilience of the Company and its key service providers and
their ability to continue to provide a good level of service for the
foreseeable future;
- the effectiveness of business continuity plans in place for the Company and
its key service providers;
- the ongoing processes for monitoring operating costs and income which are
considered to be reasonable in comparison to the Company’s total assets;
- the Board’s discount management policy; and
- the Company is a closed-end investment company and therefore does not
suffer from the liquidity issues arising from unexpected redemptions.
In addition, the Board’s assessment of the Company’s ability to operate in
the foreseeable future is included in the Going Concern Statement which can be
found in the Directors’ Report in the Company’s Annual Report for the year
ended 31 December 2024.
Section 172 statement: Promoting the success of the Company
The Companies (Miscellaneous Reporting) Regulations 2018 require directors of
large companies to explain more fully how they have discharged their duties
under Section 172(1) of the Companies Act 2006 in promoting the success of
their companies for the benefit of members as a whole. This includes the
likely consequences of their decisions in the longer term and how they have
taken wider stakeholders’ needs into account.
The disclosure that follows covers how the Board has engaged with and
understands the views of stakeholders and how stakeholders’ needs have been
taken into account, the outcome of this engagement and the impact that it has
had on the Board’s decisions. The Board considers the main stakeholders in
the Company to be the Manager, Investment Manager and the shareholders. In
addition to this, the Board considers investee companies and key service
providers of the Company to be stakeholders; the latter comprise the
Company’s Depositary, Registrar, Fund Accountants and Brokers.
Stakeholders
Shareholders
Continued shareholder support and engagement are critical to the continued
existence of the Company and the successful delivery of its long-term
strategy. The Board is focused on fostering good working relationships with
shareholders and on understanding the views of shareholders in order to
incorporate them into the Board’s strategy and objective in maximising total
returns to shareholders through a worldwide portfolio of mining and metal
securities.
Manager and Investment Manager
The Board’s main working relationship is with the Manager, who is
responsible for the Company’s portfolio management (including asset
allocation, stock and sector selection) and risk management, as well as
ancillary functions such as administration, secretarial, accounting and
marketing services. The Manager has sub-delegated portfolio management to the
Investment Manager. Successful management of shareholders’ assets by the
Investment Manager is critical for the Company to deliver successfully its
investment strategy and meet its objective. The Company is also reliant on the
Manager as AIFM to provide support in meeting relevant regulatory obligations
under the AIFMD and other relevant legislation.
Other key service providers
In order for the Company to function as an investment trust on the London
Stock Exchange’s (LSE) main market for listed securities and generally
function as an investment trust with a listing on the official list of the
FCA, the Board relies on a diverse range of advisers for support in meeting
relevant obligations and safeguarding the Company’s assets. For this reason,
the Board considers the Company’s Depositary, Registrar, Fund Accountant and
Brokers to be stakeholders. The Board maintains regular contact with its key
external service providers and receives regular reporting from them through
the Board and Committee meetings, as well as outside of the regular meeting
cycle.
Investee companies
Portfolio holdings are ultimately shareholders’ assets and the Board
recognises the importance of good stewardship and communication with investee
companies in meeting the Company’s investment objective and strategy. The
Board monitors the Manager’s stewardship activities and receives regular
feedback from the Manager in respect of meetings with the management of
investee companies.
A summary of the key areas of engagement undertaken by the Board with its key
stakeholders in the year under review and how Directors have acted upon this
to promote the long-term success of the Company are set out below.
Area of Engagement
Investment mandate and objective
Issue
The Board is committed to promoting the role and success of the Company in
delivering on its investment mandate to shareholders over the long term.
The Board also has responsibility to shareholders to ensure that the
Company’s portfolio of assets is invested in line with the stated investment
objective and in a way that ensures an appropriate balance between spread of
risk and portfolio returns.
Engagement
The Board worked closely with the Investment Manager throughout the year in
further developing investment strategy and underlying policies, not simply for
the purpose of achieving the Company’s investment objective but in the
interests of shareholders and future investors. In addition, the Company
continues to seek out new unquoted investments which could add long-term
value.
Impact
The portfolio activities undertaken by the Investment Manager can be found in
their Report. The Investment Manager continues to actively look for
opportunities to grow royalty exposure given it is a key differentiator of the
Company and an effective mechanism to lock-in long-term income which further
diversifies the Company’s revenues.
Details regarding the Company’s NAV and share price performance can be found
in the Chairman’s Statement and in this Strategic Report.
Responsible investing
Issue
The governance and consideration of ESG risks are key factors in making
investment decisions. Climate change is becoming a defining factor in
companies’ long-term prospects across the investment spectrum with
significant and lasting implications for economic growth and prosperity. The
mining industries in which the Company’s investment universe operate are
facing ethical and ESG issues that cannot be ignored by asset managers and
investment companies alike.
Engagement
The Board works closely with the Investment Manager to review regularly and
challenge the Company’s performance, investment policy and strategy to seek
to ensure that the Company’s investment objective continues to be met in an
effective and responsible way in the interests of shareholders and future
investors. The Company has not adopted an ESG focused investment strategy and
does not exclude investment in stocks based on ESG criteria, but the Board
believes that responsible investment is integral to the longer-term delivery
of the Company’s success.
The Investment Manager’s approach to the consideration of ESG factors in
respect of the Company’s portfolio, as well as the Investment Manager’s
engagement with investee companies to encourage sound corporate governance
practices, are kept under review by the Board. The Board also expects to be
informed by the Investment Manager of any sensitive voting issues involving
the Company’s investments.
The Investment Manager reports to the Board in respect of its approach to ESG
integration; a summary of BlackRock’s approach to ESG integration is set out
below. The Investment Manager’s approach to engagement with investee
companies and voting guidelines is summarised below and further detail is
available on the BlackRock website.
Impact
The Board and the Investment Manager believe there is likely to be a positive
correlation between strong ESG practices and investment performance over time.
This is especially important in mining given the long investment cycle and the
impact of ESG practices on the ability of a mining company to maintain its
social license to operate. ESG is one of the many factors that we look at and
site visits to companies’ operations provide valuable insights into their
ESG practices. The Investment Manager has continued to engage with investee
companies.
Within the parameters of the Company’s existing investment policy, the
Investment Manager is continuing to look for opportunities to deploy capital
in growth investments that should benefit from the energy transition. It is
likely that this area will become a more significant part of the portfolio.
Shareholders
Issue
Continued shareholder support and engagement are critical to the continued
existence of the Company and the successful delivery of its long-term
strategy.
Engagement
The Board is committed to maintaining open channels of communication and to
engage with shareholders. The Company welcomes and encourages attendance and
participation from shareholders at its Annual General Meetings. Shareholders
will have the opportunity to meet the Directors and Investment Manager and to
address questions to them directly. The Investment Manager will also provide a
presentation on the Company’s performance and the outlook for the mining
sector. The Chairman and Senior Independent Director offer meetings to all
major shareholders and also meet directly with shareholders providing a forum
for canvassing their views and enabling the Board to be aware of any issues of
concern.
The Annual Report and Half Yearly Financial Report are available on the
BlackRock website and are also circulated to shareholders either in printed
copy or via electronic communications. In addition, regular updates on
performance, monthly factsheets, the daily NAV and other information are also
published on the website at www.blackrock.com/uk/brwm. The Company’s website
and marketing initiatives are geared to providing a breadth and depth of
informative and engaging content.
The Board also works closely with the Manager to develop the Company’s
marketing strategy with the aim of ensuring effective communication with
shareholders.
Unlike trading companies, one-to-one shareholder meetings normally take the
form of a meeting with the Investment Manager as opposed to members of the
Board. The Company’s willingness to enter into discussions with
institutional shareholders is also demonstrated by the programmes of
institutional presentations by the Investment Manager. Additionally, the
Investment Manager regularly presents at professional and private investor
events to help explain and promote the Company’s strategy.
If shareholders wish to raise issues or concerns with the Board, they are
welcome to do so at any time. The Chairman is available to meet directly with
shareholders periodically to understand their views on governance and the
Company’s performance where they wish to do so. He may be contacted via the
Company Secretary whose details are given in the Company’s Annual Report for
the year ended 31 December 2024.
Impact
The Board values any feedback and questions from shareholders ahead of and
during Annual General Meetings in order to gain an understanding of their
views and will take action when and as appropriate. Feedback and questions
will also help the Company evolve its reporting, aiming to make reports more
transparent and understandable.
During the year the Chairman and Senior Independent Director offered meetings
to major shareholders and met with some of them, without any members of the
management group present. Feedback from all substantive meetings between the
Investment Manager and shareholders is also shared with the Board. The
Directors also receive updates from the Company’s Brokers and Kepler,
marketing consultants, on any feedback from shareholders, as well as share
trading activity, share price performance and an update from the Investment
Manager.
The portfolio management team attended a number of professional investor
meetings (many by video conference) and held discussions with a number of
wealth management desks and offices in respect of the Company during the year
under review.
Portfolio holdings are ultimately shareholders’ assets and the Board
recognises the importance of good stewardship and communication with investee
companies in meeting the Company’s investment objective and strategy. The
Board monitors the Manager’s stewardship activities and receives regular
feedback from the Investment Manager in respect of meetings with the
management of portfolio companies.
Management of share rating
Issue
The Board recognises the importance to shareholders that the market price of
the Company’s shares should not trade at either a significant discount or
premium to their prevailing NAV. The Board believes this may be achieved by
the use of share buyback powers and the issuance of shares.
Engagement
The Board monitors the Company’s share rating on an ongoing basis and
receives regular updates from the Manager and the Company’s Brokers
regarding the level of discount/premium. The Board believes that the best way
of maintaining the share rating at an optimal level over the long term is to
create demand for the shares in the secondary market. To this end, the
Investment Manager is devoting considerable effort to broadening the awareness
of the Company, particularly to wealth managers and to the wider retail
market.
In addition, the Board has worked closely with the Manager to develop the
Company’s marketing strategy, with the aim of ensuring effective
communication with existing shareholders and to attract new shareholders to
the Company in order to improve liquidity in the Company’s shares and to
sustain the share rating of the Company.
Impact
The Board continues to monitor the Company’s premium/discount to NAV and
will look to issue or buy back shares if it is deemed to be in the interests
of shareholders as a whole. The Company participates in a focused investment
trust sales and marketing initiative operated by the Manager on behalf of the
investment trusts under its management. Further details are set out in the
Company’s Annual Report for the year ended 31 December 2024.
During the financial year and up to the date of this report the Company
repurchased 315,000 shares which were placed in treasury. The Company did not
reissue any shares. As at 28 February 2025, the Company’s shares were
trading at a discount of 8.9% to the cum income NAV.
Service levels of third-party providers
Issue
The Board acknowledges the importance of ensuring that the Company’s
principal suppliers are providing a suitable level of service, including the
Investment Manager in respect of investment performance and delivering on the
Company’s investment mandate; the Custodian and Depositary in respect of
their duties towards safeguarding the Company’s assets; the Registrar in its
maintenance of the Company’s share register and dealing with investor
queries; and the Company’s Brokers in respect of the provision of advice and
acting as a market maker for the Company’s shares.
Engagement
The Manager reports to the Board on the Company’s performance on a regular
basis. The Board carries out a robust annual evaluation of the Manager’s
performance, their commitment and available resources.
The Board performs an annual review of the service levels of all third-party
service providers and concludes on their suitability to continue in their
role. The Board receives regular updates from the AIFM, Depositary, Registrar
and Brokers on an ongoing basis.
The Board has also worked closely with the Manager to gain comfort that
relevant business continuity plans are operating effectively for all of the
Company’s key service providers.
Impact
All performance evaluations were performed on a timely basis and the Board
concluded that all third-party service providers, including the Manager and
Investment Manager, were operating effectively and providing a good level of
service.
The Board has received updates in respect of business continuity planning from
the Company’s Manager, Custodian, Depositary, Fund Accountant, Registrar and
Printer and is confident that arrangements are in place to ensure a good level
of service will continue to be provided.
Board composition
Issue
The Board is committed to ensuring that its own composition brings an
appropriate balance of knowledge, experience and skills, and that it is
compliant with best corporate governance practice under the UK Code, including
guidance on tenure and the composition of the Board’s committees.
Engagement
The Board has engaged the services of Cornforth Consulting Ltd to identify
potential candidates to replace Ms Lewis who retires as a Director following
the forthcoming Annual General Meeting. The Nomination Committee has agreed
the selection criteria and the method of selection, recruitment and
appointment.
All Directors are subject to a formal evaluation process on an annual basis
(more details and the conclusions of the 2024 evaluation process are given in
the Company’s Annual Report for the year ended 31 December 2024). All
Directors stand for re-election by shareholders annually.
Shareholders may attend the Annual General Meeting and raise any queries in
respect of Board composition or individual Directors in person or may contact
the Company Secretary or the Chairman using the details provided in the
Company’s Annual Report for the year ended 31 December 2024 with any issues.
Impact
As at the date of this report, the Board was comprised of two men and three
women. As mentioned in the Half Yearly Financial Report, Mr Cheyne retired as
Chairman and Mrs Scott was appointed as a Director on 9 May 2024. Following
the current recruitment process, the successful candidate will be appointed as
a Director following the Annual General Meeting being held on 21 May 2025.
Details of each Director’s contribution to the success and promotion of the
Company are set out in the Directors’ Report and details of the Directors’
biographies can be found in the Company’s Annual Report for the year ended
31 December 2024.
The Directors are not aware of any issues that have been raised directly by
shareholders in respect of Board composition in the year under review. Details
of the proxy voting results in favour and against individual Directors’
election/re-election at the 2024 Annual General Meeting are given on the
Manager’s website at www.blackrock.com/uk/brwm.
BY ORDER OF THE BOARD
CAROLINE DRISCOLL
FOR AND ON BEHALF OF
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
Company Secretary
4 March 2025
Related Party Transactions
At the date of this report, the Board consists of five non-executive
Directors, all of whom are considered to be independent of the Manager by the
Board. Following the conclusion of the Annual General Meeting on 21 May 2025,
the Board will consist of four non-executive Directors. The Chairman receives
an annual fee of £54,000, the Chairman of the Audit Committee receives an
annual fee of £45,000, and each other Director receives an annual fee of
£36,000. The Senior Independent Director receives an additional fee of
£3,500. All five members of the Board hold shares in the Company. Mr Goodyear
holds 60,000 ordinary shares, Ms Lewis holds 7,000 ordinary shares, Ms Mosely
holds 7,400 ordinary shares, Mr Venkatakrishnan holds 2,000 ordinary shares
and Mrs Scott holds 2,200 ordinary shares. As at 31 December 2025, £18,000
(2023: £17,000) was outstanding in respect of Directors’ fees.
Statement of Directors’ Responsibilities in respect of the Annual Report and
Financial Statements
The Directors are responsible for preparing the Annual Report and Financial
Statements in accordance with applicable law and regulations. Company law
requires the Directors to prepare financial statements for each financial
year. Under that law, the Directors are required to prepare the financial
statements in accordance with UK-adopted International Accounting Standards
(IAS).
Under Company law, the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Group and Company and of the profit or loss of the Group for
that period. In preparing those financial statements, the Directors are
required to:
- present fairly the financial position, financial performance and cash flows
of the Group and Company;
- select suitable accounting policies in accordance with IAS 8: Accounting
Policies, Changes in Accounting Estimates and Errors and then apply them
consistently;
- present information, including accounting policies, in a manner that
provides relevant, reliable, comparable and understandable information;
- make judgements and estimates that are reasonable and prudent;
- state whether the financial statements have been prepared in accordance
with UK-adopted IAS, subject to any material departures disclosed and
explained in the financial statements;
- provide additional disclosures when compliance with the specific
requirements in accordance with UK-adopted IAS is insufficient to enable users
to understand the impact of particular transactions, other events and
conditions on the Group’s and Company’s financial position and financial
performance; and
- prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group and Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Group’s and Company’s transactions and
disclose with reasonable accuracy at any time the financial position of the
Group and Company and enable them to ensure that the financial statements
comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Company and hence
for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
The Directors are also responsible for preparing the Strategic Report,
Directors’ Report, the Directors’ Remuneration Report, the Corporate
Governance Statement and the Report of the Audit Committee in accordance with
the Companies Act 2006 and applicable regulations, including the requirements
of the Listing Rules and the Disclosure Guidance and Transparency Rules. The
Directors have delegated responsibility to the Manager for the maintenance and
integrity of the Company’s corporate and financial information included on
the BlackRock website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
Each of the Directors, whose names are listed in the Company’s Annual Report
for the year ended 31 December 2024, confirm to the best of their knowledge
that:
- the financial statements, which have been prepared in accordance with
UK-adopted IAS, give a true and fair view of the assets, liabilities,
financial position and net return of the Group and Company; and
- the Strategic Report contained in the Annual Report and Financial
Statements includes a fair review of the development and performance of the
business and the position of the Group and Company, together with a
description of the principal risks and uncertainties that it faces.
The 2018 UK Corporate Governance Code also requires Directors to ensure that
the Annual Report and Financial Statements are fair, balanced and
understandable. In order to reach a conclusion on this matter, the Board has
requested that the Audit Committee advise on whether it considers that the
Annual Report and Financial Statements fulfil these requirements. The process
by which the Committee has reached these conclusions is set out in the Audit
Committee’s Report in the Company’s Annual Report for the year ended 31
December 2024.
As a result, the Board has concluded that the Annual Report and Financial
Statements for the year ended 31 December 2024, taken as a whole, are fair,
balanced and understandable and provide the information necessary for
shareholders to assess the Group’s and Company’s position, performance,
business model and strategy.
FOR AND ON BEHALF OF THE BOARD
CHARLES GOODYEAR
Chairman
4 March 2025
Consolidated Statement of Comprehensive Income for the year ended 31 December
2024
2024 2023
Notes Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Income from investments held at fair value through profit or loss 3 43,879 – 43,879 68,317 630 68,947
Other income 3 11,255 – 11,255 6,827 – 6,827
--------------- --------------- --------------- --------------- --------------- ---------------
Total revenue 55,134 – 55,134 75,144 630 75,774
========= ========= ========= ========= ========= =========
Net loss on investments and options held at fair value through profit or loss – (151,792) (151,792) – (140,576) (140,576)
Net (losses)/gains on foreign exchange – (672) (672) – 9,018 9,018
--------------- --------------- --------------- --------------- --------------- ---------------
Total 55,134 (152,464) (97,330) 75,144 (130,928) (55,784)
========= ========= ========= ========= ========= =========
Expenses
Investment management fee 4 (2,188) (6,764) (8,952) (2,374) (7,317) (9,691)
Other operating expenses 5 (1,269) (12) (1,281) (1,278) (15) (1,293)
--------------- --------------- --------------- --------------- --------------- ---------------
Total operating expenses (3,457) (6,776) (10,233) (3,652) (7,332) (10,984)
========= ========= ========= ========= ========= =========
Net profit/(loss) on ordinary activities before finance costs and taxation 51,677 (159,240) (107,563) 71,492 (138,260) (66,768)
Finance costs 6 (2,212) (6,630) (8,842) (2,375) (7,166) (9,541)
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit/(loss) on ordinary activities before taxation 49,465 (165,870) (116,405) 69,117 (145,426) (76,309)
Taxation (charge)/credit (5,338) 1,802 (3,536) (4,426) 1,750 (2,676)
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit/(loss) on ordinary activities after taxation 44,127 (164,068) (119,941) 64,691 (143,676) (78,985)
========= ========= ========= ========= ========= =========
Earnings/(loss) per ordinary share (pence) – basic and diluted 8 23.09 (85.84) (62.75) 33.95 (75.40) (41.45)
========= ========= ========= ========= ========= =========
The total columns of this statement represent the Group’s Statement of
Comprehensive Income, prepared in accordance with UK-adopted International
Accounting Standards (IAS). The supplementary revenue and capital accounts are
both prepared under guidance published by the Association of Investment
Companies (AIC). All items in the above statement derive from continuing
operations. No operations were acquired or discontinued during the year. All
income is attributable to the equity holders of the Group.
The Group does not have any other comprehensive income/(loss) (2023: £nil).
The net loss for the year disclosed above represents the Group’s total
comprehensive income/(loss).
Consolidated Statement of Changes in Equity for the year ended 31 December
2024
Group Notes Called Share Capital Special Capital Revenue Total
For the year ended 31 December 2024 up share premium redemption reserve reserves reserve £’000
capital account reserve £’000 £’000 £’000
£’000 £’000 £’000
At 31 December 2023 9,651 151,493 22,779 193,008 725,161 57,959 1,160,051
Total comprehensive (loss)/income:
Net (loss)/profit on ordinary activities after taxation – – – – (164,068) 44,127 (119,941)
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 9,10 – – – (868) – – (868)
Share repurchase costs 9,10 – – – (6) – – (6)
Dividends paid 1 7 – – – – – (64,037) (64,037)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 2024 9,651 151,493 22,779 192,134 561,093 38,049 975,199
========= ========= ========= ========= ========= ========= =========
For the year ended 31 December 2023
At 31 December 2022 9,651 148,107 22,779 180,736 868,837 69,175 1,299,285
Total comprehensive (loss)/income:
Net (loss)/profit on ordinary activities after taxation – – – – (143,676) 64,691 (78,985)
Transactions with owners, recorded directly to equity:
Ordinary shares reissued from treasury 9,10 – 3,386 – 12,305 – – 15,691
Share reissue costs 9,10 – – – (33) – – (33)
Dividends paid 2 7 – – – – – (75,907) (75,907)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 2023 9,651 151,493 22,779 193,008 725,161 57,959 1,160,051
========= ========= ========= ========= ========= ========= =========
1 The final dividend of 17.00p per share for the year ended 31 December 2023,
declared on 7 March 2024 and paid on 14 May 2024; 1st interim dividend of
5.50p per share for the year ended 31 December 2024, declared on 10 May 2024
and paid on 28 June 2024; 2nd interim dividend of 5.50p per share for the year
ended 31 December 2024, declared on 23 August 2024 and paid on 30 September
2024 and 3rd interim dividend of 5.50p per share for the year ended 31
December 2024, declared on 15 November 2024 and paid on 20 December 2024.
2 The final dividend of 23.50p per share for the year ended 31 December 2022,
declared on 3 March 2023 and paid on 26 April 2023; 1st interim dividend of
5.50p per share for the year ended 31 December 2023, declared on 18 April 2023
and paid on 31 May 2023; 2nd interim dividend of 5.50p per share for the year
ended 31 December 2023, declared on 24 August 2023 and paid on 6 October 2023
and 3rd interim dividend of 5.50p per share for the year ended 31 December
2023, declared on 11 October 2023 and paid on 22 December 2023.
Parent Company Statement of Changes in Equity for the year ended 31 December
2024
Company Notes Called Share Capital Special Capital Revenue Total
For the year ended 31 December 2024 up share premium redemption reserve reserves reserve £’000
capital account reserve £’000 £’000 £’000
£’000 £’000 £’000
At 31 December 2023 9,651 151,493 22,779 193,008 731,067 52,053 1,160,051
Total comprehensive (loss)/income:
Net (loss)/profit on ordinary activities after taxation – – – – (163,951) 44,010 (119,941)
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 9,10 – – – (868) – – (868)
Share repurchase costs 9,10 – – – (6) – – (6)
Dividends paid 1 7 – – – – – (64,037) (64,037)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 2024 9,651 151,493 22,779 192,134 567,116 32,026 975,199
========= ========= ========= ========= ========= ========= =========
For the year ended 31 December 2023
At 31 December 2022 9,651 148,107 22,779 180,736 874,567 63,445 1,299,285
Total comprehensive (loss)/income:
Net (loss)/profit on ordinary activities after taxation – – – – (143,500) 64,515 (78,985)
Transactions with owners, recorded directly to equity:
Ordinary shares reissued from treasury 9,10 – 3,386 – 12,305 – – 15,691
Share reissue costs 9,10 – – – (33) – – (33)
Dividends paid 2 7 – – – – – (75,907) (75,907)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 2023 9,651 151,493 22,779 193,008 731,067 52,053 1,160,051
========= ========= ========= ========= ========= ========= =========
1 The final dividend of 17.00p per share for the year ended 31 December 2023,
declared on 7 March 2024 and paid on 14 May 2024; 1st interim dividend of
5.50p per share for the year ended 31 December 2024, declared on 10 May 2024
and paid on 28 June 2024; 2nd interim dividend of 5.50p per share for the year
ended 31 December 2024, declared on 23 August 2024 and paid on 30 September
2024 and 3rd interim dividend of 5.50p per share for the year ended 31
December 2024, declared on 15 November 2024 and paid on 20 December 2024.
2 The final dividend of 23.50p per share for the year ended 31 December 2022,
declared on 3 March 2023 and paid on 26 April 2023; 1st interim dividend of
5.50p per share for the year ended 31 December 2023, declared on 18 April 2023
and paid on 31 May 2023; 2nd interim dividend of 5.50p per share for the year
ended 31 December 2023, declared on 24 August 2023 and paid on 6 October 2023
and 3rd interim dividend of 5.50p per share for the year ended 31 December
2023, declared on 11 October 2023 and paid on 22 December 2023.
For information on the Company’s distributable reserves please refer to note
10 below.
Consolidated and Parent Company Statements of Financial Position as at 31
December 2024
31 December 2024 31 December 2023
Notes Group Company Group Company
£’000 £’000 £’000 £’000
Non current assets
Investments held at fair value through profit or loss 1,093,198 1,100,722 1,298,420 1,305,827
Current assets
Current tax asset 1,317 1,317 1,276 1,276
Other receivables 2,861 2,861 3,592 3,592
Cash collateral held with brokers 4,882 4,882 6,269 6,269
Cash and cash equivalents – cash at bank 21,396 14,834 10,612 4,261
--------------- --------------- --------------- ---------------
Total current assets 30,456 23,894 21,749 15,398
========= ========= ========= =========
Total assets 1,123,654 1,124,616 1,320,169 1,321,225
========= ========= ========= =========
Current liabilities
Current taxation liability (877) (824) (352) (352)
Other payables (10,270) (11,285) (8,052) (9,108)
Derivative financial liabilities held at fair value through profit or loss (622) (622) (1,401) (1,401)
Bank loans (135,739) (135,739) (149,828) (149,828)
Cash and cash equivalents – bank overdraft (4) (4) – –
--------------- --------------- --------------- ---------------
Total current liabilities (147,512) (148,474) (159,633) (160,689)
========= ========= ========= =========
Total assets less current liabilities 976,142 976,142 1,160,536 1,160,536
========= ========= ========= =========
Non current liabilities
Deferred taxation liability (943) (943) (485) (485)
--------------- --------------- --------------- ---------------
Net assets 975,199 975,199 1,160,051 1,160,051
========= ========= ========= =========
Equity attributable to equity holders
Called up share capital 9 9,651 9,651 9,651 9,651
Share premium account 10 151,493 151,493 151,493 151,493
Capital redemption reserve 10 22,779 22,779 22,779 22,779
Special reserve 10 192,134 192,134 193,008 193,008
Capital reserves:
At 1 January 725,161 731,067 868,837 874,567
Net profit/(loss) on ordinary activities after taxation (164,068) (163,951) (143,676) (143,500)
--------------- --------------- --------------- ---------------
At 31 December 10 561,093 567,116 725,161 731,067
Revenue reserve:
At 1 January 57,959 52,053 69,175 63,445
Net profit/(loss) on ordinary activities after taxation 44,127 44,010 64,691 64,515
Dividends paid (64,037) (64,037) (75,907) (75,907)
--------------- --------------- --------------- ---------------
At 31 December 10 38,049 32,026 57,959 52,053
Total equity 975,199 975,199 1,160,051 1,160,051
--------------- --------------- --------------- ---------------
Net asset value per ordinary share (pence) 8 510.53 510.53 606.78 606.78
========= ========= ========= =========
Consolidated and Parent Company Cash Flow Statements for the year ended 31
December 2024
31 December 2024 31 December 2023
Group Company Group Company
£’000 £’000 £’000 £’000
Operating activities
Net profit/(loss) on ordinary activities before taxation 1 (116,405) (116,405) (76,309) (76,309)
Add back finance costs 8,842 8,842 9,541 9,541
Net loss on investments and options held at fair value through profit or loss 151,792 151,675 140,576 140,400
Net losses/(gains) on foreign exchange 672 672 (9,018) (9,018)
Sale of investments held at fair value through profit or loss 637,750 637,750 647,775 647,775
Purchase of investments held at fair value through profit or loss (585,496) (585,496) (662,250) (662,250)
Contractual rights – return of capital 397 397 497 497
Decrease in other receivables 321 321 1,069 1,069
Increase in other payables 2,554 2,501 1,556 1,556
Decrease/(increase) in amounts due from brokers 410 410 (409) (409)
Net movement in cash collateral held with brokers 1,387 1,387 526 526
--------------- --------------- --------------- ---------------
Net cash inflow from operating activities before taxation 102,224 102,054 53,554 53,378
========= ========= ========= =========
Taxation paid – – (12) (12)
Taxation on investment income included within gross income (3,052) (3,093) (2,664) (2,664)
--------------- --------------- --------------- ---------------
Net cash inflow from operating activities 99,172 98,961 50,878 50,702
========= ========= ========= =========
Financing activities
Repayment of loan (14,599) (14,599) – –
Interest paid (8,721) (8,721) (9,571) (9,571)
Net proceeds from ordinary shares reissued – – 15,658 15,658
Net cost for repurchase of ordinary shares (874) (874) – –
Dividends paid (64,037) (64,037) (75,907) (75,907)
--------------- --------------- --------------- ---------------
Net cash outflow from financing activities (88,231) (88,231) (69,820) (69,820)
========= ========= ========= =========
Increase/(decrease) in cash and cash equivalents 10,941 10,730 (18,942) (19,118)
Effect of foreign exchange rate changes (161) (161) 62 62
--------------- --------------- --------------- ---------------
Change in cash and cash equivalents 10,780 10,569 (18,880) (19,056)
Cash and cash equivalents at start of year 10,612 4,261 29,492 23,317
--------------- --------------- --------------- ---------------
Cash and cash equivalents at end of year 21,392 14,830 10,612 4,261
========= ========= ========= =========
Comprised of:
Cash at bank 21,396 14,834 10,612 4,261
Bank overdraft (4) (4) – –
--------------- --------------- --------------- ---------------
21,392 14,830 10,612 4,261
========= ========= ========= =========
1 Dividends and interest received in cash during the year amounted to
£36,895,000 and £4,584,000 (2023: £59,542,000 and £5,159,000).
Notes to the financial statements for the year ended 31 December 2024
1. Principal activity
The principal activity of the Company is that of an investment trust company
within the meaning of Section 1158 of the Corporation Tax Act 2010. The
Company was incorporated in England on 28 October 1993 and this is the 31st
Annual Report.
The principal activity of the subsidiary, BlackRock World Mining Investment
Company Limited, is investment dealing.
2. Material accounting policies
The material accounting policies adopted by the Group and Company have been
applied consistently, other than where new policies have been adopted and are
set out below.
(a) Basis of preparation
The Group and Company financial statements have been prepared under the
historic cost convention modified by the revaluation of certain financial
assets and financial liabilities held at fair value through profit or loss and
in accordance with UK-adopted International Accounting Standards (IAS), with
future changes being subject to endorsement by the UK Endorsement Board and
with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards. The Company has taken advantage of the
exemption provided under Section 408 of the Companies Act 2006 not to publish
its individual Statement of Comprehensive Income and related notes. All of the
Group’s operations are of a continuing nature.
Insofar as the Statement of Recommended Practice (SORP) for investment trust
companies and venture capital trusts, issued by the Association of Investment
Companies (AIC) in October 2019 and updated in July 2022, is compatible with
UK-adopted IAS, the financial statements have been prepared in accordance with
guidance set out in the SORP.
Substantially all of the assets of the Group consist of securities that are
readily realisable and, accordingly, the Directors believe that the Group has
adequate resources to continue in operational existence for the foreseeable
future for the period to 31 March 2026, being a period of at least twelve
months from the date of approval of the financial statements and therefore
consider the going concern assumption to be appropriate. The Directors have
reviewed compliance with the covenants associated with the bank overdraft
facility, loan facility, income and expense projections and the liquidity of
the investment portfolio in making their assessment.
The Directors have considered the impact of climate change on the value of the
investments included in the financial statements and have concluded that there
was no further impact of climate change to be considered as the investments
are valued based on market pricing as required by IFRS 13.
None of the Group’s other assets and liabilities were considered to be
potentially impacted by climate change.
The Group’s financial statements are presented in Sterling, which is the
currency of the primary economic environment in which the Group operates. All
values are rounded to the nearest thousand pounds (£’000) except where
otherwise indicated.
Adoption of new and amended International Accounting Standards and
interpretations:
IAS 1 – Classification of liabilities as current or non current (effective 1
January 2024). The IASB has amended IAS 1 Presentation of Financial Statements
to clarify its requirement for the presentation of liabilities depending on
the rights that exist at the end of the reporting period. The amendment
requires liabilities to be classified as non current if the entity has a
substantive right to defer settlement for at least 12 months at the end of the
reporting period. The amendment no longer refers to unconditional rights.
IAS 1 – Non current liabilities with covenants (effective 1 January 2024).
The IASB has amended IAS 1 Presentation of Financial Statements to introduce
additional disclosures for liabilities with covenants within 12 months of the
reporting period. The additional disclosures include the nature of covenants,
when the entity is required to comply with covenants, the carrying amount of
related liabilities and circumstances that may indicate that the entity will
have difficulty complying with the covenants.
Relevant International Accounting Standards that have yet to be adopted:
IAS 21 – Lack of exchangeability (effective 1 January 2025). The IASB issued
amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates to
specify how an entity should assess whether a currency is exchangeable and how
it should determine a spot exchange rate when exchangeability is lacking. The
amendments also require disclosure of information that enables users of its
financial statements to understand how the currency not being exchangeable
into the other currency affects, or is expected to affect, the entity’s
financial performance, financial position and cash flows.
IFRS 18 – Presentation and disclosure in financial statements (effective 1
January 2027). The IASB issued IFRS 18, which replaces IAS 1 Presentation of
Financial Statements. IFRS 18 introduces new requirements for presentation
within the statement of profit or loss, including specified totals and
subtotals. Furthermore, entities are required to classify all income and
expenses within the statement of profit or loss into one of five categories:
operating, investing, financing, income taxes and discontinued operations,
whereof the first three are new. It also requires disclosure of newly defined
management defined performance measures, subtotals of income and expenses, and
includes new requirements for aggregation and disaggregation of financial
information based on the identified ‘roles’ of the primary financial
statements and the notes.
None of the standards that have been issued, but are not yet effective, are
expected to have a material impact on the Group.
(b) Basis of consolidation
The Group’s financial statements are made up to 31 December each year and
consolidate the financial statements of the Company and its wholly owned
subsidiary, which is registered and operates in England and Wales, BlackRock
World Mining Investment Company Limited (together ‘the Group’). The
subsidiary company is not considered an investment entity. In the financial
statements of the Parent Company, the investment in the subsidiary company is
held at fair value.
Subsidiaries are consolidated from the date of their acquisition, being the
date on which the Company obtains control, and continue to be consolidated
until the date that such control ceases. The financial statements of
subsidiaries used in the preparation of the consolidated financial statements
are based on consistent accounting policies. All intra-group balances and
transactions, including unrealised profits arising therefrom, are eliminated.
(c) Presentation of the Statement of Comprehensive Income
In order to better reflect the activities of an investment trust company and
in accordance with guidance issued by the AIC, supplementary information which
analyses the Consolidated Statement of Comprehensive Income between items of a
revenue and a capital nature has been presented alongside the Consolidated
Statement of Comprehensive Income.
(d) Segmental reporting
The Directors are of the opinion that the Group is engaged in a single segment
of business being investment business.
(e) Income
Dividends receivable on equity shares are recognised as revenue for the year
on an ex-dividend basis. Where no ex-dividend date is available, dividends
receivable on or before the year end are treated as revenue for the year.
Provision is made for any dividends and interest income not expected to be
received. Special dividends, if any, are treated as a capital or a revenue
receipt depending on the facts or circumstances of each particular case. The
return on a debt security is recognised on a time apportionment basis so as to
reflect the effective yield on the debt security. Interest income and deposit
interest is accounted for on an accruals basis.
Options may be purchased or written over securities held in the portfolio for
generating or protecting capital returns, or for generating or maintaining
revenue returns. Where the purpose of the option is the generation of income,
the premium is treated as a revenue item. Where the purpose of the option is
the maintenance of capital, the premium is treated as a capital item.
Option premium income is recognised as revenue evenly over the life of the
option contract and included in the revenue account of the Consolidated
Statement of Comprehensive Income unless the option has been written for the
maintenance and enhancement of the Group’s investment portfolio and
represents an incidental part of a larger capital transaction, in which case
any premia arising are allocated to the capital account of the Consolidated
Statement of Comprehensive Income.
Royalty income from contractual rights is measured at the fair value of the
consideration received or receivable where the Investment Manager can reliably
estimate the amount, pursuant to the terms of the agreement. Royalty income
from contractual rights received comprises of a return of income and a return
of capital based on the underlying cost of the contract and, accordingly, the
return of income element is taken to the revenue account and the return of
capital element is taken to the capital account. These amounts are disclosed
in the Consolidated Statement of Comprehensive Income within income from
investments and net profit on investments held at fair value through profit or
loss, respectively.
The useful life of the contractual rights will be determined by reference to
the contractual arrangements, the planned mine life on commencement of mining
and the underlying cost of the contractual rights will be revalued on a
systematic basis using the units of production method over the life of the
contractual rights which is estimated using available estimated proved and
probable reserves specifically associated with the mine. The Investment
Manager relies on public disclosures for information on proven and probable
reserves from the operators of the mine. Amortisation rates are adjusted on a
prospective basis for all changes to estimates of the life of contractual
rights and iron ore reserves. These are disclosed in the Consolidated
Statement of Comprehensive Income within net profit on investments held at
fair value through profit or loss.
Where the Group has elected to receive its dividends in the form of additional
shares rather than in cash, the cash equivalent of the dividend is recognised
as income. Any excess in the value of the shares received over the amount of
the cash dividend is recognised in capital.
Underwriting commission receivable is taken into account on an accruals basis.
(f) Expenses
All expenses, including finance costs, are accounted for on an accruals basis.
Expenses have been charged wholly to the revenue account of the Consolidated
Statement of Comprehensive Income, except as follows:
- expenses which are incidental to the acquisition or sale of an investment
are charged to the capital account of the Consolidated Statement of
Comprehensive Income. Details of transaction costs on the purchases and sales
of investments are disclosed within note 10 to the financial statements in the
Company’s Annual Report for the year ended 31 December 2024;
- expenses are treated as capital where a connection with the maintenance or
enhancement of the value of the investments can be demonstrated; and
- the investment management fee and finance costs have been allocated 75% to
the capital account and 25% to the revenue account of the Consolidated
Statement of Comprehensive Income in line with the Board’s expectations of
the long-term split of returns, in the form of capital gains and income,
respectively, from the investment portfolio.
(g) Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax. The tax currently payable is based on the taxable profit for the year.
Taxable profit differs from net profit as reported in the Consolidated
Statement of Comprehensive Income because it excludes items of income or
expenses that are taxable or deductible in other years and it further excludes
items that are never taxable or deductible. The Group’s liability for
current tax is calculated using tax rates that were applicable at the balance
sheet date.
Where expenses are allocated between capital and revenue accounts, any tax
relief in respect of the expenses is allocated between capital and revenue
returns on the marginal basis using the Company’s effective rate of
corporation tax for the accounting period.
Deferred taxation is recognised in respect of all temporary differences that
have originated but not reversed at the financial reporting date, where
transactions or events that result in an obligation to pay more taxation in
the future or right to pay less taxation in the future have occurred at the
financial reporting date. This is subject to deferred taxation assets only
being recognised if it is considered more likely than not that there will be
suitable profits from which the future reversal of the temporary differences
can be deducted. Deferred taxation assets and liabilities are measured at the
rates applicable to the legal jurisdictions in which they arise.
(h) Investments held at fair value through profit or loss
In accordance with IFRS 9, the Group classifies its investments at initial
recognition as held at fair value through profit or loss and are managed and
evaluated on a fair value basis in accordance with its investment strategy and
business model.
All investments, including contractual rights, are measured initially and
subsequently at fair value through profit or loss. Purchases of investments
are recognised on a trade date basis. Contractual rights are recognised on the
completion date, where a purchase of the rights is under a contract, and are
initially measured at fair value excluding transaction costs. Sales of
investments are recognised at the trade date of the disposal.
The fair value of the financial investments is based on their quoted bid price
at the financial reporting date, without deduction for the estimated future
selling costs. This policy applies to all current and non-current asset
investments held by the Group.
The gains and losses from changes in fair value of contractual rights are
taken to the Consolidated Statement of Comprehensive Income and arise as a
result of the revaluation of the underlying cost of the contractual rights,
changes in commodity prices and changes in estimates of proven and probable
reserves specifically associated with the mine.
Under IAS, the investment in the subsidiary in the Company’s Statement of
Financial Position is fair valued which is deemed to be the net asset value of
the subsidiary.
Changes in the value of investments held at fair value through profit or loss
and gains and losses on disposal are recognised in the Consolidated Statement
of Comprehensive Income as ‘Net profit on investments held at fair value
through profit or loss’. Also included within the heading are transaction
costs in relation to the purchase or sale of investments.
For all financial instruments not traded in an active market, the fair value
is determined by using various valuation techniques. Valuation techniques
include market approach (i.e., using recent arm’s length market transactions
adjusted as necessary and reference to the current market value of another
instrument that is substantially the same) and the income approach (i.e.,
discounted cash flow analysis and option pricing models making as much use of
available and supportable market data where possible). See note 2(q) below.
(i) Options
Options are held at fair value through profit or loss based on the bid/offer
prices of the options written to which the Group is exposed. The value of the
option is subsequently marked-to-market to reflect the fair value through
profit or loss of the option based on traded prices. Where the premium is
taken to the revenue account, an appropriate amount is shown as capital return
such that the total return reflects the overall change in the fair value of
the option. When an option is exercised, the gain or loss is accounted for as
a capital gain or loss. Any cost on closing out an option is transferred to
the revenue account along with any remaining unamortised premium.
(j) Other receivables and other payables
Other receivables and other payables do not carry any interest and are
short-term in nature and are accordingly stated on an amortised cost basis.
(k) Dividends payable
Under IAS, final dividends should not be accrued in the financial statements
unless they have been approved by shareholders before the financial reporting
date. Interim dividends should not be recognised in the financial statements
unless they have been paid.
Dividends payable to equity shareholders are recognised in the Consolidated
and Parent Company Statements of Changes in Equity.
(l) Foreign currency translation
Transactions involving foreign currencies are converted at the rate ruling at
the date of the transaction. Foreign currency monetary assets and liabilities
and non-monetary assets held at fair value are translated into Sterling at the
rate ruling on the financial reporting date. Foreign exchange differences
arising on translation are recognised in the Consolidated Statement of
Comprehensive Income as a revenue or capital item depending on the income or
expense to which they relate. For investment transactions and investments held
at the year end, denominated in a foreign currency, the resulting gains or
losses are included in the profit/(loss) on investments held at fair value
through profit or loss in the Consolidated Statement of Comprehensive Income.
(m) Cash and cash equivalents
Cash comprises cash in hand, bank overdrafts and on demand deposits. Cash
equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash and that are subject to an insignificant
risk of changes in value. Bank overdrafts are shown separately on the
Consolidated and Parent Company Statements of Financial Position.
(n) Bank borrowings
Bank overdrafts and loans are recorded at the net proceeds received. Finance
charges, including any premium payable on settlement or redemption and direct
issue costs, are accounted for on an accruals basis in the Consolidated
Statement of Comprehensive Income using the effective interest rate method and
are added to the carrying amount of the instrument to the extent that they are
not settled in the period in which they arise.
(o) Offsetting
Financial assets and financial liabilities are offset and the net amount
reported in the Consolidated and Parent Company Statements of Financial
Position if there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle on a net basis, or to
realise the asset and settle the liability simultaneously.
(p) Share repurchases and share reissues
Shares repurchased and subsequently cancelled – share capital is reduced by
the nominal value of the shares repurchased and the capital redemption reserve
is correspondingly increased in accordance with Section 733 of the Companies
Act 2006. The full cost of the repurchase is charged to the special reserve.
Shares repurchased and held in treasury – the full cost of the repurchase is
charged to the special reserve.
Where treasury shares are subsequently reissued:
- amounts received to the extent of the repurchase price are credited to the
special reserve and capital reserves based on a weighted average basis of
amounts utilised from these reserves on repurchases; and
- any surplus received in excess of the repurchase price is taken to the
share premium account.
Costs on share reissues are charged to the special reserve and capital
reserves.
(q) Critical accounting estimates and judgements
The Group makes estimates and assumptions concerning the future. The resulting
accounting estimates and assumptions will, by definition, seldom equal the
related actual results. Estimates and judgements are regularly evaluated and
are based on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances.
The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within
the next financial year are addressed below.
Fair value of unquoted financial instruments
When the fair values of financial assets and financial liabilities recorded in
the Consolidated and Parent Company Statements of Financial Position cannot be
derived from active markets, their fair value is determined using a variety of
valuation techniques that include the use of valuation models.
(a) The fair value of the BHP Brazil contractual rights was assessed by an
independent valuer with a recognised and relevant professional qualification.
The inputs to these models are taken from observable markets where possible,
but where this is not feasible, estimation is required in establishing fair
values. The estimates include considerations of production profiles, commodity
prices, cash flows and discount rates. Changes in assumptions about these
factors could affect the reported fair value of financial instruments in the
Consolidated and Parent Company Statements of Financial Position and the level
where the instruments are disclosed in the fair value hierarchy. To assess the
significance of a particular input to the entire measurement, the external
valuer performs sensitivity analysis.
(b) The fair value of the investment in equity shares of Jetti Resources and
MCC Mining were assessed by an independent valuer with a recognised and
relevant professional qualification.
The valuation is carried out based on market approach using earnings multiple
and price of recent transactions. Changes in assumptions about these factors
could affect the reported fair value of financial instruments in the
Consolidated and Parent Company Statements of Financial Position and the level
where the instruments are disclosed in the fair value hierarchy. To assess the
significance of a particular input to the entire measurement, the external
valuer performs sensitivity analysis.
(c) The investment in the subsidiary company was valued based on the net
assets of the subsidiary company, which is considered appropriate based on the
nature and volume of transactions in the subsidiary company.
The key assumptions used to determine the fair value of the unquoted financial
instruments and sensitivity analyses are provided in note 17(d).
3. Income
2024 2023
£’000 £’000
Investment income:
UK dividends 10,223 8,647
Overseas dividends 24,602 33,457
Overseas special dividends 2,558 17,736
Overseas stock dividends 440 –
Income from contractual rights (BHP Brazil Royalty) 2,431 4,186
Income from Vale debentures 2,815 2,608
Income from fixed income investments 810 1,683
--------------- ---------------
Total investment income 43,879 68,317
========= =========
Other income:
Option premium income 10,227 5,964
Deposit interest 719 678
Broker interest received 189 104
Stock lending income 120 81
--------------- ---------------
Total other income 11,255 6,827
========= =========
Total income 55,134 75,144
========= =========
During the year, the Group received option premium income in cash totalling
£10,909,000 (2023: £6,724,000) for writing put and covered call options for
the purposes of revenue generation.
Option premium income is amortised evenly over the life of the option contract
and, accordingly, during the year, option premiums of £10,227,000 (2023:
£5,964,000) were amortised to revenue.
At 31 December 2024, there were three open positions (2023: three) with an
associated liability of £622,000 (2023: £1,401,000).
Dividends and interest received in cash during the year amounted to
£36,895,000 and £4,584,000 (2023: £59,542,000 and £5,159,000).
No special dividends have been recognised in capital during the year (2023:
£630,000).
4. Investment management fee
2024 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment management fee 2,188 6,764 8,952 2,374 7,317 9,691
--------------- --------------- --------------- --------------- --------------- ---------------
Total 2,188 6,764 8,952 2,374 7,317 9,691
========= ========= ========= ========= ========= =========
The investment management fee (which includes all services provided by
BlackRock) is 0.80% of the Company’s gross assets (subject to certain
adjustments). During the year, £8,471,000 (2023: £9,421,000) of the
investment management fee was generated from net assets and £481,000 (2023:
£270,000) from the gearing effect on gross assets due to the quarter–on–
quarter increase in the NAV per share for the year as set out below:
Quarter end Cum income Quarterly Gearing effect
NAV per share increase/ on management
(pence) (decrease) % fees (£’000)
31 December 2022 688.35 – –
31 March 2023 664.51 –3.5 –
30 June 2023 612.72 –7.8 –
30 September 2023 601.47 –1.8 –
31 December 2023 606.78 +0.9 270
31 March 2024 568.07 –6.4 –
30 June 2024 572.21 +0.7 259
30 September 2024 580.66 +1.5 222
31 December 2024 510.53 –12.1 –
========= ========= =========
The daily average of the net assets under management during the year ended 31
December 2024 was £1,082,468,000 (2023: £1,203,977,000).
The fee is allocated 25% to the revenue account and 75% to the capital account
of the Consolidated Statement of Comprehensive Income.
There is no additional fee for company secretarial and administration
services.
5. Other operating expenses
2024 2023
£’000 £’000
Allocated to revenue:
Custody fee 98 109
Auditors’ remuneration:
– audit services 65 55
– non-audit services 1 – 9
Registrar’s fee 88 86
Directors’ emoluments 2 166 179
AIC fees 21 21
Broker fees 30 25
Depositary fees 104 116
FCA fee 49 40
Directors’ insurance 21 22
Marketing fees 169 144
Stock exchange fees 52 52
Legal and professional fees 126 147
Bank facility fees 3 92 85
Printing and postage fees 46 55
Directors’ search fees – 25
Write back of prior year expenses 4 (19) –
Other administrative costs 161 108
--------------- ---------------
Total revenue expenses 1,269 1,278
========= =========
Allocated to capital:
Transaction charges 5 12 15
--------------- ---------------
Total 1,281 1,293
========= =========
2024 2023
The Company’s ongoing charges 6 , 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, transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items were: 0.95% 0.91%
--------------- ---------------
The Company’s ongoing charges 6 , 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, transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items were: 0.84% 0.81%
========= =========
1 Fees paid to the auditors for non-audit services of £nil excluding VAT
(2023: £9,350) relate to the review of the Condensed Half Yearly Financial
Report.
2 Details of the Directors’ emoluments can be found in the Directors’
Remuneration Report in the Company’s Annual Report for the year ended 31
December 2024. The Company has no employees.
3 There is a 4 basis point facility fee chargeable on the full loan facility
whether drawn or undrawn.
4 Relates to legal and professional fees and Directors' expenses written back
during the year (2023: no expenses were written back).
5 Expenses of £12,000 (2023: £15,000) were charged to the capital account
of the Consolidated Statement of Comprehensive Income. These include
transaction costs charged by the custodian on sale and purchase trades.
6 Alternative Performance Measure, see Glossary in the Company’s Annual
Report for the year ended 31 December 2024.
6. Finance costs
2024 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Interest paid on bank loans 2,196 6,581 8,777 2,370 7,151 9,521
Interest paid on bank overdraft 16 49 65 5 15 20
--------------- --------------- --------------- --------------- --------------- ---------------
Total 2,212 6,630 8,842 2,375 7,166 9,541
========= ========= ========= ========= ========= =========
7. Dividends
Dividends paid on equity shares: Record date Payment date 2024 2023
£’000 £’000
Final dividend of 17.00p per share for the year ended 31 December 2023 (2022: 23.50p) 22 March 2024 14 May 2024 32,501 44,392
1st interim dividend of 5.50p per share for the year ended 31 December 2024 (2023: 5.50p) 31 May 2024 28 June 2024 10,515 10,485
2nd interim dividend of 5.50p per share for the year ended 31 December 2024 (2023: 5.50p) 6 September 2024 30 September 2024 10,515 10,515
3rd interim dividend of 5.50p per share for the year ended 31 December 2024 (2023: 5.50p) 29 November 2024 20 December 2024 10,506 10,515
--------------- ---------------
Accounted for in the financial statements 64,037 75,907
========= =========
The total dividends payable in respect of the year ended 31 December 2024
which form the basis of Section 1158 of the Corporation Tax Act 2010 and
Section 833 of the Companies Act 2006, and the amounts declared, meet the
relevant requirements as set out in this legislation.
Dividends paid or declared on equity shares: 2024 2023
£’000 £’000
1st quarterly interim dividend of 5.50p per share for the year ended 31 December 2024 (2023: 5.50p) 10,515 10,485
2nd quarterly interim dividend of 5.50p per share for the year ended 31 December 2024 (2023: 5.50p) 10,515 10,515
3rd quarterly interim dividend of 5.50p per share for the year ended 31 December 2024 (2023: 5.50p) 10,506 10,515
Final dividend of 6.50p per share for the year ended 31 December 2024 (2023: 17.00p) 12,406 32,501
--------------- ---------------
Total 43,942 64,016
========= =========
1 Based on 190,868,036 ordinary shares in issue on 28 February 2025.
8. Consolidated earnings and net asset value per ordinary share
Total revenue, capital loss and net asset value per ordinary share are shown
below and have been calculated using the following:
2024 2023
Net revenue profit attributable to ordinary shareholders (£'000) 44,127 64,691
Net capital loss attributable to ordinary shareholders (£'000) (164,068) (143,676)
--------------- ---------------
Total (loss)/profit attributable to ordinary shareholders (£’000) (119,941) (78,985)
========= =========
Equity shareholders’ funds (£'000) 975,199 1,160,051
========= =========
The weighted average number of ordinary shares in issue during the year on which the earnings per ordinary share was calculated was: 191,149,163 190,564,324
The actual number of ordinary shares in issue at the year end on which the net asset value per ordinary share was calculated was: 191,018,036 191,183,036
Earnings per ordinary share
Revenue earnings per share (pence) – basic and diluted 23.09 33.95
Capital loss per share (pence) – basic and diluted (85.84) (75.40)
--------------- ---------------
Total loss per share (pence) – basic and diluted (62.75) (41.45)
========= =========
As at As at
31 December 31 December
2024 2023
Net asset value per ordinary share (pence) 510.53 606.78
Ordinary share price (pence) 481.00 587.00
========= =========
There were no dilutive securities at the year end.
9. Share capital
Ordinary shares Treasury shares Total shares Nominal
in issue number number value
number £’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 5p each
At 31 December 2022 188,753,036 4,258,806 193,011,842 9,651
Ordinary shares reissued from treasury 2,430,000 (2,430,000) – –
At 31 December 2023 191,183,036 1,828,806 193,011,842 9,651
Ordinary shares repurchased into treasury (165,000) 165,000 – –
----------------- ----------------- ----------------- -----------------
At 31 December 2024 191,018,036 1,993,806 193,011,842 9,651
========== ========== ========== ==========
During the year ended 31 December 2024 the Company:
– repurchased 165,000 shares into treasury (2023: none) for a total
consideration including costs of £874,000 (2023: £nil); and
– reissued no shares (2023: 2,430,000 shares) from treasury for a net
consideration after costs of £nil (2023: £15,658,000).
Since the year end and up to 28 February 2025, the Company has repurchased
150,000 shares into treasury for a total consideration including costs of
£735,000. No shares were reissued.
10. Reserves
Group Share Capital Special Capital Capital Revenue
premium redemption reserve reserve reserve reserve
account reserve £’000 arising on arising on £’000
£’000 £’000 investments revaluation
sold of
£’000 investments
held
£’000
At 31 December 2023 151,493 22,779 193,008 510,400 214,761 57,959
Movement during the year:
Total comprehensive (loss)/income:
Net (loss)/profit for the year – – – (13,425) (150,643) 44,127
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – (868) – – –
Share repurchase costs – – (6) – – –
Dividends paid – – – – – (64,037)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 2024 151,493 22,779 192,134 496,975 64,118 38,049
========= ========= ========= ========= ========= =========
Distributable reserves
Company Share Capital Special Capital Capital Revenue
premium redemption reserve reserve reserve reserve
account reserve £’000 arising on arising on £’000
£’000 £’000 investments revaluation
sold of
£’000 investments
held
£’000
At 31 December 2023 151,493 22,779 193,008 508,899 222,168 52,053
Movement during the year:
Total comprehensive (loss)/income:
Net (loss)/profit for the year – – – (13,425) (150,526) 44,010
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – (868) – – –
Share repurchase costs – – (6) – – –
Dividends paid – – – – – (64,037)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 2024 151,493 22,779 192,134 495,474 71,642 32,026
========= ========= ========= ========= ========= =========
Group Share Capital Special Capital Capital Revenue
premium redemption reserve reserve reserve reserve
account reserve £’000 arising on arising on £’000
£’000 £’000 investments revaluation
sold of
£’000 investments
held
£’000
At 31 December 2022 148,107 22,779 180,736 428,323 440,514 69,175
Movement during the year:
Total comprehensive income/(loss):
Net profit/(loss) for the year – – – 82,077 (225,753) 64,691
Transactions with owners, recorded directly to equity:
Ordinary shares reissued from treasury 3,386 – 12,305 – – –
Share reissue costs – – (33) – – –
Dividends paid – – – – – (75,907)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 2023 151,493 22,779 193,008 510,400 214,761 57,959
========= ========= ========= ========= ========= =========
Distributable reserves
Company Share Capital Special Capital Capital Revenue
premium redemption reserve reserve reserve reserve
account reserve £’000 arising on arising on £’000
£’000 £’000 investments revaluation
sold of
£’000 investments
held
£’000
At 31 December 2022 148,107 22,779 180,736 426,822 447,745 63,445
Movement during the year:
Total comprehensive income/(loss):
Net profit/(loss) for the year – – – 82,077 (225,577) 64,515
Transactions with owners, recorded directly to equity:
Ordinary shares reissued from treasury 3,386 – 12,305 – – –
Share reissue costs – – (33) – – –
Dividends paid – – – – – (75,907)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 2023 151,493 22,779 193,008 508,899 222,168 52,053
========= ========= ========= ========= ========= =========
Pursuant to a resolution of the Company passed at an Extraordinary General
Meeting on 13 January 1998 and following the Company’s application to the
Court for cancellation of its share premium account, the Court approval was
received on 27 January 1999 and £157,633,000 was transferred from the share
premium account to a special reserve which is a distributable reserve.
The share premium account and capital redemption reserve of £151,493,000 and
£22,779,000 (2023: £151,493,000 and £22,779,000) are not distributable
reserves under the Companies Act 2006. In accordance with ICAEW Technical
Release 02/17BL on Guidance on Realised and Distributable Profits under the
Companies Act 2006, the special reserve and capital reserves of the Parent
Company may be used as distributable reserves for all purposes and, in
particular, the repurchase by the Parent Company of its ordinary shares and
for payments such as dividends. In accordance with the Company’s Articles of
Association, the special reserve, capital reserves and the revenue reserve may
be distributed by way of dividend. The Parent Company’s capital gains of
£567,116,000 (2023: £731,067,000) comprise a gain on the capital reserve
arising on investments sold of £495,474,000 (2023: £508,899,000), a gain on
the capital reserve arising on revaluation of listed investments of
£56,862,000 (2023: £189,283,000) revaluation gains on unquoted investments
of £7,256,000 (2023: £25,478,000) and a revaluation gain on the investment
in the subsidiary of £7,524,000 (2023: £7,407,000). The capital reserve
arising on the revaluation of listed investments of £56,980,000 (2023:
£189,165,000) is subject to fair value movements and may not be readily
realisable at short notice; as such it may not be entirely distributable. The
investments are subject to financial risks, as such capital reserves (arising
on investments sold) and the revenue reserve may not be entirely distributable
if a loss occurred during the realisation of these investments. The reserves
of the subsidiary company are not distributable until distributed as a
dividend to the Parent Company.
11. Valuation of financial instruments
Financial assets and financial liabilities are either carried in the
Consolidated and Parent Company Statements of Financial Position at their fair
value (investment and derivatives) or at amortised cost (due from brokers,
dividends and interest receivable, due to brokers, accruals, cash at bank and
bank overdrafts). IFRS 13 requires the Group to classify fair value
measurements using a fair value hierarchy that reflects the significance of
inputs used in making the measurements. The valuation techniques used by the
Group are explained in the accounting policies note 2(h).
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant asset.
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if quoted
prices are readily available from an exchange, dealer, broker, industry group,
pricing service or regulatory agency and those prices represent actual and
regularly occurring market transactions on an arm’s length basis. The Group
does not adjust the quoted price for these instruments.
Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for similar
instruments in markets that are considered less than active, or other
valuation techniques where all significant inputs are directly or indirectly
observable from market data.
Valuation techniques used for non-standardised financial instruments such as
options, currency swaps and other over-the-counter derivatives include the use
of comparable recent arm’s length transactions, reference to other
instruments that are substantially the same, discounted cash flow analysis,
option pricing models and other valuation techniques commonly used by market
participants making the maximum use of market inputs and relying as little as
possible on entity specific inputs.
Over-the-counter derivative option contracts have been classified as Level 2
investments as their valuation has been based on market observable inputs
represented by the underlying quoted securities to which these contracts
expose the Group.
Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique includes
inputs not based on market data and these inputs could have a significant
impact on the instrument’s valuation.
This category also includes instruments that are valued based on quoted prices
for similar instruments where significant entity determined adjustments or
assumptions are required to reflect differences between the instruments and
instruments for which there is no active market. The Investment Manager
considers observable data to be that market data that is readily available,
regularly distributed or updated, reliable and verifiable, not proprietary,
and provided by independent sources that are actively involved in the relevant
market.
The level in the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined on the basis of the lowest level
input that is significant to the fair value measurement. If a fair value
measurement uses observable inputs that require significant adjustment based
on unobservable inputs, that measurement is a Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement
requires judgement, considering factors specific to the asset or liability
including an assessment of the relevant risks including but not limited to
credit risk, market risk, liquidity risk, business risk and sustainability
risk. The determination of what constitutes ‘observable’ inputs requires
significant judgement by the Investment Manager and these risks are adequately
captured in the assumptions and inputs used in measurement of Level 3 assets
or liabilities.
Valuation process and techniques for Level 3 valuations
(a) BHP Brazil Royalty
The Directors engage a mining consultant, an independent valuer with a
recognised and relevant professional qualification, to conduct a periodic
valuation of the contractual rights and the fair value of the contractual
rights is assessed with reference to relevant factors. At the reporting date
the income streams from contractual rights have been valued on the net present
value of the pre-tax cash flows discounted at a rate the external valuer
considers reflects the risk associated with the project. The valuation model
uses discounted cash flow analysis which incorporates both observable and
non-observable data. Observable inputs include assumptions regarding current
rates of interest and commodity prices. Unobservable inputs include
assumptions regarding production profiles, price realisations, cost of capital
and discount rates. In determining the discount rate to be applied, the
external valuer considers the country and sovereign risk associated with the
project, together with the time horizon to the commencement of production and
the success or failure of projects of a similar nature. To assess the
significance of a particular input to the entire measurement, the external
valuer performs a sensitivity analysis. The external valuer has undertaken an
analysis of the impact of using alternative discount rates on the fair value
of contractual rights.
This investment in contractual rights is reviewed regularly to ensure that the
initial classification remains correct given the asset’s characteristics and
the Group’s investment policies. The contractual rights are initially
recognised using the transaction price as it was indicative of the best
evidence of fair value at acquisition and are subsequently measured at fair
value, taking into consideration the relevant IFRS 13 requirements. In
arriving at their estimates of market values, the valuers have used their
market knowledge and professional judgement. The Group classifies the fair
value of this investment as Level 3.
Valuations are the responsibility of the Directors of the Company. In arriving
at a final valuation, the Directors consider the independent valuer’s
report, the significant assumptions used in the fair valuation and the review
process undertaken by BlackRock’s Pricing Committee. The valuation of
unquoted investments is performed on a quarterly basis by the Investment
Manager and reviewed by the Pricing Committee of the Manager. On a quarterly
basis the Investment Manager will review the valuation of the contractual
rights and inputs for significant changes. A valuation of contractual rights
is performed annually by an external valuer, SRK Consulting (UK) Limited, and
reviewed by the Pricing Committee of the Manager. The valuations are also
subject to quality assurance procedures performed within the Pricing
Committee. On a semi-annual basis, after the checks above have been performed,
the Investment Manager presents the valuation results to the Directors. This
includes a discussion of the major assumptions used in the valuations. There
were no changes in valuation techniques during the year.
(b) Jetti Resources and MCC Mining equity shares
The fair value of the investment equity shares of Jetti Resources and MCC
Mining were assessed by an independent valuer with a recognised and relevant
professional qualification. The valuation is carried out based on market
approach using earnings multiple and price of recent transactions. Changes in
assumptions about these factors could affect the reported fair value of
financial instruments in the Consolidated and Parent Company Statements of
Financial Position and the level where the instruments are disclosed in the
fair value hierarchy. To assess the significance of a particular input to the
entire measurement, the external valuer performs a sensitivity analysis.
Fair values of financial assets and financial liabilities
The table below sets out fair value measurements using the IFRS 13 fair value
hierarchy.
Financial assets/(liabilities) at fair value through profit or loss Level 1 Level 2 Level 3 Total
at 31 December 2024 – Group £’000 £’000 £’000 £’000
Assets:
Equity investments 987,723 10,555 36,070 1,034,348
Fixed income securities – 36,653 – 36,653
Investment in contractual rights – – 22,197 22,197
--------------- --------------- --------------- ---------------
Total assets 987,723 47,208 58,267 1,093,198
--------------- --------------- --------------- ---------------
Liabilities:
Derivative financial instruments – written options – (622) – (622)
--------------- --------------- --------------- ---------------
Total 987,723 46,586 58,267 1,092,576
========= ========= ========= =========
Financial assets/(liabilities) at fair value through profit or loss Level 1 Level 2 Level 3 Total
at 31 December 2023 – Group £’000 £’000 £’000 £’000
Assets:
Equity investments 1,193,969 – 32,695 1,226,664
Fixed income securities 16,924 36,516 – 53,440
Investment in contractual rights – – 18,316 18,316
--------------- --------------- --------------- ---------------
Total assets 1,210,893 36,516 51,011 1,298,420
--------------- --------------- --------------- ---------------
Liabilities:
Derivative financial instruments – written options – (1,401) – (1,401)
--------------- --------------- --------------- ---------------
Total 1,210,893 35,115 51,011 1,297,019
========= ========= ========= =========
Financial assets/(liabilities) at fair value through profit or loss Level 1 Level 2 Level 3 Total
at 31 December 2024 – Company £’000 £’000 £’000 £’000
Assets:
Equity investments 987,723 10,555 43,594 1,041,872
Fixed income securities – 36,653 – 36,653
Investment in contractual rights – – 22,197 22,197
--------------- --------------- --------------- ---------------
Total assets 987,723 47,208 65,791 1,100,722
--------------- --------------- --------------- ---------------
Liabilities:
Derivative financial instruments – written options – (622) – (622)
--------------- --------------- --------------- ---------------
Total 987,723 46,586 65,791 1,100,100
========= ========= ========= =========
Financial assets/(liabilities) at fair value through profit or loss Level 1 Level 2 Level 3 Total
at 31 December 2023 – Company £’000 £’000 £’000 £’000
Assets:
Equity investments 1,193,969 – 40,102 1,234,071
Fixed income securities 16,924 36,516 – 53,440
Investment in contractual rights – – 18,316 18,316
--------------- --------------- --------------- ---------------
Total assets 1,210,893 36,516 58,418 1,305,827
--------------- --------------- --------------- ---------------
Liabilities:
Derivative financial instruments – written options – (1,401) – (1,401)
--------------- --------------- --------------- ---------------
Total 1,210,893 35,115 58,418 1,304,426
========= ========= ========= =========
A reconciliation of fair value measurement in Level 3 is set out below.
Group Company
Level 3 Financial assets at fair value through profit or loss 2024 2023 2024 2023
at 31 December £’000 £’000 £’000 £’000
Opening fair value 51,011 56,891 58,418 64,122
Return of capital – royalty (397) (497) (397) (497)
Additions at cost 5,626 – 5,626 –
Total profit or loss included in net profit on investments in the Consolidated Statement of Comprehensive Income:
– assets held at the end of the period 2,027 (5,383) 2,144 (5,207)
--------------- --------------- --------------- ---------------
Closing balance 58,267 51,011 65,791 58,418
========= ========= ========= =========
The Level 3 valuation process and techniques used are explained in the
accounting policies in notes 2(h) and 2(q). A more detailed description of the
techniques is found in the Company's Annual Report for the year ended 31
December 2024 under ‘Valuation process and techniques’ for Level 3
valuations.
The Level 3 investments as at 31 December 2024 in the table that follows
relate to the BHP Brazil Royalty, equity shares of Jetti Resources and MCC
Mining. In accordance with IFRS 13, these investments were categorised as
Level 3.
In arriving at the fair value of the BHP Brazil Royalty, the key inputs are
the underlying commodity prices and illiquidity discount. In arriving at the
fair value of Jetti Resources and MCC Mining, the key inputs are shown in the
Company's Annual Report for the year ended 31 December 2024.
Quantitative information of significant unobservable inputs – Level 3 –
Group and Company
The significant unobservable inputs used in the fair value measurement
categorised within Level 3 of the fair value hierarchy, together with an
estimated quantitative sensitivity analysis, as at 31 December 2024 and 31
December 2023 are as shown below.
Description As at Valuation Unobservable Range of Reasonable Impact on
31 December technique input weighted possible fair value
2024 average shift¹ +/-
£’000 inputs
BHP Brazil Royalty 22,197 Discounted cash flows Discount rate–weighted average cost of capital 5.0% – 8.0% 1.0% £1.2m
Average gold prices US$2,270-US$2,376 per ounce 10.0% £2.1m
Average copper prices US$9,025-US$9,325 per tonne 10.0% £1.0m
Jetti Resources 21,973 Market approach Earnings multiple 4.75x 10.0% £2.3m
MCC Mining 14,097 Market approach Price of recent transaction 10.0% £1.4m
---------------
Total 58,267
=========
Description As at Valuation Unobservable Range of Reasonable Impact on
31 December technique input weighted possible fair value
2023 average shift¹ +/-
£’000 inputs
BHP Brazil Royalty 18,316 Discounted cash flows Discount rate–weighted average cost of capital 5.0% – 8.0% 1.0% £1.0m
Average gold prices US$1,706-US$1,780 per ounce 10.0% £1.8m
Average copper prices US$8,397-US$8,469 per tonne 10.0% £1.2m
Jetti Resources 27,204 Market approach Earnings multiple 6.00x 5.0% £1.4m
MCC Mining 5,491 Market approach Price of recent transaction 5.0% £0.3m
---------------
Total 51,011
=========
1 The sensitivity analysis refers to a percentage amount added or deducted
from the input and the effect this has on the fair value.
The sensitivity impact on fair value is calculated based on the sensitivity
estimates set out by the independent valuer in its report on the valuation of
contractual rights. Significant increases/(decreases) in estimated commodity
prices and discount rates in isolation would result in a significantly
higher/(lower) fair value measurement. Generally, a change in the assumption
made for the estimated value is accompanied by a directionally similar change
in the commodity prices and discount rates.
For exchange listed equity investments, the quoted price is the bid price.
Substantially, all investments are valued based on unadjusted quoted market
prices. Where such quoted prices are readily available in an active market,
such prices are not required to be assessed or adjusted for any price related
risks, including climate risk, in accordance with the fair value related
requirements of the Company’s financial reporting framework.
12. Transactions with the Investment Manager and AIFM
BlackRock Fund Managers Limited (BFM) provides management and administration
services to the Company under a contract which is terminable on six months’
notice. BFM has (with the Group’s consent) delegated certain portfolio and
risk management services, and other ancillary services to BlackRock Investment
Management (UK) Limited (BIM (UK)). Further details of the investment
management contract are disclosed in the Directors’ Report in the
Company’s Annual Report for the year ended 31 December 2024.
The investment management fee due for the year ended 31 December 2024 amounted
to £8,952,000 (2023: £9,691,000). At the year end, £9,018,000 was
outstanding in respect of the management fee (2023: £7,262,000).
In addition to the above services, BIM (UK) has provided the Group with
marketing services. The total fees paid or payable for these services for the
year ended 31 December 2024 amounted to £169,000 excluding VAT (2023:
£144,000). Marketing fees of £64,000 were outstanding as at 31 December 2024
(2023: £55,000).
The ultimate holding company of the Manager and the Investment Manager is
BlackRock, Inc., a company incorporated in Delaware, USA.
13. Related party disclosure
Directors’ emoluments
At the date of this report, the Board consists of five non-executive
Directors, all of whom are considered to be independent of the Manager by the
Board. Following the conclusion of the Annual General Meeting on 21 May 2025,
the Board will consist of four non-executive Directors.
Disclosures of the Directors’ interests in the ordinary shares of the
Company and fees and expenses payable to the Directors are set out in the
Directors’ Remuneration Report in the Company’s Annual Report for the year
ended 31 December 2024. As at 31 December 2024, £18,000 (2023: £17,000) was
outstanding in respect of Directors’ fees.
Significant holdings
The following investors are:
a. funds managed by the BlackRock Group or are affiliates of BlackRock Inc.
(Related BlackRock Funds); or
b. investors (other than those listed in (a) above) who held more than 20% of
the voting shares in issue in the Company and are, as a result, considered to
be related parties to the Company (Significant Investors).
Total % of shares held by Total % of shares held by Number of Significant
Related BlackRock Funds Significant Investors who are Investors who are not affiliates
not affiliates of BlackRock of BlackRock Group or
Group or BlackRock, Inc. BlackRock, Inc.
As at 31 December 2024 1.19 n/a n/a
As at 31 December 2023 1.29 n/a n/a
========= ========= =========
14. Contingent liabilities
There were no contingent liabilities as at 31 December 2024 (2023: none).
15. Publication of non statutory accounts
The financial information contained in this announcement does not constitute
statutory accounts as defined in the Companies Act 2006. The Annual Report and
Financial Statements for the year ended 31 December 2024 will be filed with
the Registrar of Companies after the Annual General Meeting.
The figures set out above have been reported upon by the auditor, whose report
for the year ended 31 December 2024 contains no qualification or statement
under Section 498(2) or (3) of the Companies Act 2006.
The comparative figures are extracts from the audited financial statements of
BlackRock World Mining Trust plc and its subsidiary for the year ended 31
December 2023, which have been filed with the Registrar of Companies. The
report of the auditor on those financial statements contained no qualification
or statement under Section 498 of the Companies Act 2006.
16. Annual Report and Financial Statements
Copies of the Annual Report and Financial Statements will be published shortly
and will be available from the registered office, c/o The Secretary, BlackRock
World Mining Trust plc, 12 Throgmorton Avenue, London EC2N 2DL.
17. Annual General Meeting
The Annual General Meeting of the Company will be held at 12 Throgmorton
Avenue, London EC2N 2DL on Wednesday, 21 May 2025 at 11.30 a.m.
The Annual Report and Financial Statements will also be available on the
BlackRock website at www.blackrock.com/uk/brwm. Neither the contents of the
website nor the contents of any website accessible from hyperlinks on the
website (or any other website) is incorporated into, or forms part of, this
announcement.
For further information, please contact:
Charles Kilner, Director, Closed End Funds, BlackRock Investment Management
(UK) Limited – Tel: 020 7743 3000
Evy Hambro, Fund Manager, BlackRock Investment Management (UK) Limited –
Tel: 020 7743 3000
Emma Phillips, Media & Communications, BlackRock Investment Management (UK)
Limited – Tel: 020 7743 2922
Press enquires:
Ed Hooper, Lansons Communications
Tel: 020 7294 3616
E-mail: BlackRockInvestmentTrusts@lansons.com or EdH@lansons.com
4 March 2025
12 Throgmorton Avenue
London EC2N 2DL
ENDS
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