REG-BlackRock World Mining Trust Plc: Portfolio Update

BlackRock World Mining TrustAnnouncement

24/04/2025 13:15

BLACKROCK WORLD MINING TRUST PLC (LEI) – LNFFPBEUZJBOSR6PW155

All information is at 31 March 2025 and unaudited.
 

 Performance at month end with net income reinvested                                            
                                                                                                
                                                          One    Three   One    Three   Five    
                                                          Month  Months  Year   Years   Years   
 Net asset value                                          1.2%   3.9%    -3.7%  -20.1%  121.8%  
 Share price                                              0.6%   -0.1%   -4.1%  -25.0%  130.7%  
 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*  2.2%   7.4%    -2.7%  -9.4%   107.7%  
                                                                                                
 * (Total return)  Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream 
                                                                                                

At month end

 Net asset value (including income) 1 :  524.77p      
 Net asset value (capital only):         517.86p      
 Share price:                            474.50p      
 Discount to NAV 2 :                     9.6%         
 Total assets:                           £1,125.3m    
 Net yield 3 :                           4.8%         
 Net gearing:                            10.3%        
 Ordinary shares in issue:               189,348,036  
 Ordinary shares held in Treasury:       3,663,806    
 Ongoing charges 4 :                     0.95%        
 Ongoing charges 5 :                     0.84%        
                                                      

 

1 Includes net revenue of 6.91p.

2 Discount to NAV including income.

3 Based on the first interim dividend of 5.50p per share declared on 10 May
2024, second interim dividend of 5.50p per share declared on 23 August 2024,
third interim dividend of 5.50p per share declared on 15 November 2024 and the
final dividend of 6.50p per share declared on 6 March 2025 with ex date 20
March 2025 and pay date 27 May 2025 in respect of the year ended 31 December
2024.

4 The Company’s ongoing charges are calculated as a percentage of average
daily net assets and using the management fee and all other operating
expenses, excluding finance costs, direct transaction costs, custody
transaction charges, VAT recovered, taxation and certain other non-recurring
items for the year ended 31 December 2024.

5 The Company’s ongoing charges are calculated as a percentage of average
daily gross assets and using the management fee and all other operating
expenses, excluding finance costs, direct transaction costs, custody
transaction charges, VAT recovered, taxation and certain other non-recurring
items for the year ended 31 December 2024.


 

 Country Analysis    Total         
                      Assets (%)   
                                   
 Global              56.8          
 Canada              12.0          
 Latin America       9.4           
 Australasia         7.0           
 United States       5.9           
 Other Africa        3.1           
 South Africa        2.8           
 Indonesia           0.4           
 Net Current Assets  2.6           
                     -----         
                     100.0         
                     =====         
                                   

 

 

 Sector Analysis        Total         
                         Assets (%)   
                                      
 Gold                   30.7          
 Diversified            28.7          
 Copper                 22.1          
 Steel                  6.2           
 Industrial Minerals    2.4           
 Platinum Group Metals  2.3           
 Iron Ore               2.1           
 Aluminium              1.0           
 Uranium                0.7           
 Nickel                 0.7           
 Silver                 0.4           
 Zinc                   0.1           
 Net Current Assets     2.6           
                        -----         
                        100.0         
                        =====         
                                      

 

 

 

 

 

 

 

 Ten largest investments                    
                                            
 Company                  Total Assets %    
                                            
 Agnico Eagle Mines       7.9               
 Rio Tinto                7.3               
 Vale:                                      
 Equity                   4.4               
 Debenture                2.7               
 BHP:                                       
 Equity                   4.4               
 Royalty                  1.9               
 Anglo American           4.9               
 Wheaton Precious Metals  4.8               
 Freeport-McMoRan         4.4               
 Kinross Gold             3.3               
 Glencore                 3.1               
 Newmont                  2.8               
                                            
                                            

 

 Asset Analysis      Total Assets (%)  
 Equity              94.3              
 Bonds               1.9               
 Convertible Bond    0.7               
 Preferred Stock     0.6               
 Option              -0.1              
 Net Current Assets  2.6               
                     -----             
                     100.0             
                                       
                                       

 

 Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Performance  March was a positive month for the mining sector, outperforming broader equity markets which fell by 4.0% (USD terms) as measured by the MSCI All Country World Index. However, the sector experienced volatility due to uncertainty surrounding tariffs and trade. Fears of a cyclical economic slowdown also contributed to investor caution. Despite supportive long-term demand trends, such as Germany’s defence and infrastructure spending plans, short-term economic concerns hindered investment          
 decisions.  Performance in the commodities sector was mixed: iron ore (62% Fe) prices fell by 1.5%, while nickel and copper prices rose by 2.8% and 3.4% respectively. In the precious metals space, gold and silver prices increased by 9.6% and 8.9% respectively.  China’s manufacturing PMI rose to 50.5 in March from 50.2 in February, indicating increased activity.  Strategy and Outlook  Near term, we expect performance to be driven by the China stimulus situation, which is evolving, and we are watching closely 
 to see if it translates into a pickup in demand. Longer term, we expect mined commodity demand growth to be driven by increased global infrastructure build out, particularly related to the low carbon transition and increased power demand.  Meanwhile, the supply side of the equation is constrained. Mining companies have focused on capital discipline in recent years, meaning they have opted to pay down debt, reduce costs and return capital to shareholders, rather than investing in production growth. This is  
 limiting new supply coming online and there is unlikely to be a quick fix, given the time lags involved in investing in new mining projects. The cost of new projects has also risen significantly and recent M&A activity in the sector suggests that, like us, strategic buyers see an opportunity in existing assets in the listed market, currently trading well below replacement costs. Other issues restricting supply include cases of governments closing mines, permitting issues and a general lack of shovel-ready  
 projects. Turning to the companies, balance sheets in the sector are very strong relative to history. Despite this, valuations are low relative to historic averages and relative to broader equity markets.                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 24 April 2025  Latest information is available by typing www.blackrock.com/uk/brwm on the internet. Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.                                                                                                                                                                                                         

 

 Release (https://mb.cision.com/Main/22397/4139918/3408310.pdf)  



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