REG-BlackRock World Mining Trust Plc: Correction: Half-year Report
Today 17:15
Please note this announcement has been amended. The payment date of the
dividend stated within the announcement has been corrected to 3 October 2025
instead of 26 September 2025. All other information remains unchanged.
BlackRock World Mining Trust plc
LEI: LNFFPBEUZJBOSR6PW155
Condensed Half Yearly Financial Report for the six months ended 30 June 2025
Performance record
As at As at
30 June 31 December
2025 2024
Net assets (£’000) 1 1,012,777 975,199
Net asset value per ordinary share (NAV) (pence) 540.48 510.53
Ordinary share price (mid-market) (pence) 528.00 481.00
Reference index 2 – net total return 5,922.91 5,411.07
Discount to net asset value 3 2.3% 5.8%
========= =========
For the For the
six months year
ended ended
30 June 31 December
2025 2024
Performance (with dividends reinvested)
Net asset value per share 2,3 +8.2% -10.7%
Ordinary share price 2,3 +12.5% -12.7%
Reference index 2 +9.5% -9.9%
========= =========
Since inception Since inception
to 30 June 2025 to 31 December
2024
Performance since inception (with dividends reinvested)
Net asset value per share 2,3 +1,271.9% +1,167.4%
Ordinary share price 2,3 +1,339.6% +1,180.2%
Reference index 2 +990.6% +896.3%
========= =========
For the For the Change
six months six months %
ended ended
30 June 2025 30 June 2024
Revenue
Net revenue profit after taxation (£’000) 21,325 22,848 -6.7
Revenue return per ordinary share (pence) 4 11.26 11.95 -5.8
--------------- --------------- ---------------
Dividend per ordinary share (pence)
– 1st interim 5.50 5.50 –
– 2nd interim 5.50 5.50 -
--------------- --------------- ---------------
Total dividends paid and payable 11.00 11.00 -
========= ========= =========
1 The change in net assets reflects portfolio movements, dividends paid and
the repurchase of ordinary shares into treasury during the period.
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 contained within the Half
Yearly Financial Report.
4 Further details are given in the Glossary contained within the Half Yearly
Financial Report.
Chairman’s Statement
Market overview
The first half of 2025 continued to be shaped by significant volatility across
global markets. Persistent geopolitical tensions, including ongoing conflicts
in Eastern Europe and the Middle East, remained a key source of uncertainty.
Inflationary pressures, while easing in some developed economies, continued to
influence central bank policy, with interest rate paths diverging between the
US, Europe and Asia.
For the mining sector, performance was mixed. Copper and gold prices reached
new highs during the period, underpinned by robust demand from the energy
transition, infrastructure investment and continued central bank gold
purchases. However, bulk commodities such as iron ore and coal faced renewed
headwinds, largely due to ongoing weakness in China’s property sector and
broader concerns about the sustainability of China’s economic recovery. This
divergence was reflected in company results and sector returns, with precious
and energy transition metals outperforming bulk commodities.
Merger and acquisition (M&A) activity remained elevated, as mining companies
sought to reposition portfolios towards future-facing assets, particularly in
copper, lithium and rare earths. Despite these positive drivers, overall
sector sentiment was dampened by uncertainty over China’s growth outlook,
the impact of global election cycles and the potential for further trade
restrictions. As a result, commodity prices softened towards the end of the
period and sector momentum faltered.
Performance
Against this backdrop, for the six month period ending 30 June 2025, the
Company’s net asset value per share (NAV) returned +8.2% and the share price
returned +12.5%. The Company’s reference index, the MSCI ACWI Metals &
Mining 30% Buffer 10/40 Index, returned +9.5% (all percentages calculated in
Sterling terms with dividends reinvested).
Since the period end and up to the close of business on 1 September 2025, the
Company’s NAV has increased by 13.7% compared to a rise of 14.4% (on a net
return basis) for the reference index (in Sterling terms with dividends
reinvested). Further information on the Company’s performance and the
factors that contributed to, or detracted from, performance during the six
months is set out in the Investment Manager’s Report.
Revenue return and dividends
Over the six month period to 30 June 2025, the Company’s revenue return
amounted to 11.26p per share, compared to 11.95p per share for the
corresponding period in 2024. This represents a decrease of 5.8% and reflects
reductions in dividends from many mining companies due to higher costs, rising
investment in a capital-intensive industry and a weaker US Dollar dampening
the dividends expressed in Sterling.
As noted in the Investment Manager’s outlook statement, the main
contributors to the Company’s revenue return in the portfolio are seeing
less distributable cash. In this scenario, the Company may use distributable
reserves to bridge the shortfall over the short term, but only if there is
visibility to a recovery in revenue in the next financial year.
The first quarterly dividend of 5.50p per share was paid on 27 June 2025.
Today, the Board has announced a second quarterly dividend of 5.50p per share
which will be paid on 3 October 2025 to shareholders on the register on 12
September 2025 with the ex-dividend date being 11 September 2025. It remains
the Board’s intention to distribute substantially all of the Company’s
available income.
Management of share rating
For the period under review, the Company’s ordinary shares traded at an
average discount to NAV of 7.9% and were trading at a discount of 7.1% on a
cum income basis as at 1 September 2025, the latest practicable date prior to
the issue of this report. Over the period ended 30 June 2025, the Company
repurchased 3,635,000 shares (representing 1.9% of the issued share capital)
at an average price of 479.28p per share for a total consideration of
£17,422,000. All shares were bought back at a discount to the prevailing NAV
and the buy backs were therefore accretive to existing shareholders. The
shares bought back have been placed in treasury for future reissue.
The Company did not reissue any shares during the six month period ended 30
June 2025. Since the period end and up to the date of this report, no ordinary
shares have been reissued or bought back.
The Directors recognise the importance to investors that the Company’s share
price does not trade at a significant premium or discount to NAV. Accordingly,
the Directors monitor the share price closely and, in the context of wider
market conditions, will consider the issuance of shares at a premium or the
repurchase at a discount to help balance demand and supply in the market.
Gearing
One of the advantages of the investment trust structure is that the Company
can use gearing with the objective of increasing portfolio returns over the
longer term. The Company operates a flexible gearing policy which depends on
prevailing market conditions. It is not intended that gearing will exceed 25%
of the net assets of the Company and its subsidiary. Gearing at 30 June 2025
was 6.9% compared with 12.0% at the beginning of the year due to the more
cautious outlook given concerns over the potential impact of US tariffs and
China’s economic growth rate. The maximum gearing during the period was
13.6%.
Board composition
As announced on 14 July 2025, Marion Sears was appointed as a non-executive
Director of the Company with effect from 27 August 2025. Marion brings
expertise from her career in the City in investment banking, which included
international mergers and acquisitions. Since then, she has served on a number
of boards as a non-executive director, including corporates and investment
trusts. We welcome Marion and further information on her background and
experience can be found within the Half Yearly Financial Report.
As previously advised in last year’s Annual Report, Jane Lewis, having
completed nine years on the Board, retired following the 2025 Annual General
Meeting. On behalf of the Board, I want to thank Jane for her many years of
excellent service to the Company and its shareholders and we wish her the best
for the future.
Market outlook
Looking ahead, we expect market volatility to persist through the second half
of 2025, underpinned by a complex interplay of geopolitical developments and
monetary policy shifts. China’s economic trajectory continues to be a
critical variable for commodity demand and any signs of sustained recovery or
further stimulus could materially influence sector performance.
Despite these near-term uncertainties, the long-term structural case for the
mining sector remains compelling. The global transition to a low-carbon
economy is expected to drive sustained demand for critical minerals and
metals, particularly those essential to renewable energy infrastructure,
electric vehicles and battery technologies. The rapid expansion of artificial
intelligence and associated data infrastructure is also anticipated to further
support demand for key industrial metals such as copper and aluminium. This
positions the sector well to navigate near-term challenges and capitalise on
future growth opportunities.
CHARLES GOODYEAR
Chairman
3 September 2025
Investment Manager’s Report
The first half of 2025 witnessed significant movements in industrial commodity
markets, driven by a combination of tariffs, geopolitical tensions and
financial market volatility related to a range of specific triggers. The
largest beneficiary over the entire period was gold, with the price repeatedly
moving to new all-time highs. The scale of the move is covered in more detail
later in the report, but we believe this breakout could trigger a series of
long overdue gains for gold producers.
In the industrial metals space, the introduction of tariffs triggered a rush
by traders to lock in an arbitrage between anticipated US domestic pricing and
that of the international market. On the back of this, premiums for US based
materials have existed for much of the year, allowing domestic producers to
harvest better returns than their international peers.
Corporate activity has remained at healthy levels. The most significant event
for the Company was the bid for Metals Acquisition, a copper producer in
Australia, by Harmony, a gold producer in South Africa. On the face of it, the
move looks like a conversion of gold earnings into copper, but Harmony is yet
to set out its whole strategy until the deal concludes. Elsewhere, there have
been other deals in gold and other commodities. Of note has been the recent
move by the US Government to provide finance for critical minerals which
triggered a sudden rush of interest in this part of the resources sector.
Over the period ended 30 June 2025, the NAV total return of the Company was
+8.2% and the share price returned +12.5%. This compares to the FTSE 100 Index
returning +9.5%, Consumer Price Index up by +4.1% and the reference index
(MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (net total return))
returning +9.5% (all performance returns in Sterling terms with dividends
reinvested).
ESG and the social license to operate
The main areas of engagement during the period have been on mergers and
acquisitions (M&A), ongoing decarbonisation plans, capital allocation and
ensuring that companies continue to respect the social license to operate. The
area of greatest focus has been on capital allocation as industry numbers
suggest that the sector is moving into a period of heavy spending, despite
commodity prices not yet justifying the investment. More worrying is where
spending is ramping up without cash generation to cover it, leading to balance
sheets needing to fund this shortfall. It is essential for the Company, in our
view, that we avoid companies that put equity at risk against questionable
returns.
In relation to funding for projects, it is clear that alternatives to normal
sources of funding are more readily available than in the past and offer
attractive cost of funds. It is our expectation that some companies will look
to partner with infrastructure investors to share the burden of planned
spending given the natural arbitrage that exists between the cost of capital
for a resource company versus that of infrastructure investors. Time will tell
if management teams are keen for this new source of capital.
Coiled spring
During the first half of the year (1H 25), there has been a significant
dispersion of returns within the commodity sector. As can be seen in the table
below, the prices of precious metals did extremely well whereas bulk
commodities, such as iron ore and coal, moved in the opposite direction. Base
metal prices were generally positive, but this masks the low margins that many
producers now face. For example, the nickel price is now deeply into the cost
curve and is forcing production capacity to close.
Commodity 30 June 2025 % Change % Change average price
in YTD 1H25 1H25 vs 1H24
Gold US$/ounce (oz) 3,284.5 +25.1 +39.3
Silver US$/oz 36.0 +24.5 +25.5
Platinum US$/oz 1,350.0 +47.7 +7.6
Palladium US$/oz 1,134.0 +24.8 -0.3
Copper US$/tonne (t) 10,050.7 +16.2 +3.6
Nickel US$/t 15,019.6 -0.6 -12.3
Aluminium US$/t 2,596.6 +2.8 +7.2
Zinc US$/t 2,741.3 -7.2 +3.7
Lead US$/t 2,017.4 +4.8 -7.7
Tin US$/pound (lb) 15.4 +17.3 +9.7
Uranium US$/lb 74.3 +2.0 -25.4
Iron Ore (China 62% fines) U$/t 92.0 -7.5 -16.9
Thermal Coal (Newcastle) U$/t 110.0 -12.3 -20.9
Coking Coal U$/t 173.5 -11.7 -32.8
Lithium carbonate US$/kg 7.9 -21.9 -29.6
WTI 1 (Cushing) US$/barrel 66.3 -8.5 -14.1
========= ========= =========
Within the portfolio, the key commodity exposure is to copper on the base
metals side and gold within precious metals. Prices for both commodities have
been strong and the key for ongoing performance will be how these translate
into earnings for the companies. Too often higher prices end up being lost to
the pressures of poor operating performance, inflation, taxation, or consumed
in reinvestment by the companies. It is our hope that this does not prove to
be the case and improved profitability from higher prices acts like a coiled
spring and is translated into further share price gains.
Performance drivers
During the period, the portfolio had its usual mix of contributors. The most
disappointing drag on returns during the period was the impact of production
losses suffered by Ivanhoe Mines (0.5% of the portfolio) at its Democratic
Republic of the Congo (DRC) copper mine. Geotechnical issues led to a
cessation of underground operations and a subsequent ingress of water into one
of the mines.
This caused the company to downgrade operating numbers for this year but, more
importantly, it added uncertainty to the outlook for 2026. The combined impact
cost the portfolio 1.1% in returns relative to the reference index, as the
shares were down 42% over the period. To put this in context, up until this
point the company had been one of the best returning of all the copper
equities, delivering a return of over 600% in the prior five years to end
2024. Another disappointment in the copper space was Foran Mining (1.3% of the
portfolio) which needed to raise cash due to a funding shortfall during
construction of its new mine. This was particularly frustrating as it was
largely caused by a delay to payments due from the Canadian Government as a
result of the leadership election. The mine remains on track for first
production next year and, with a strong copper price, it is expected that it
will not take long for the company to recover these short-term losses.
On the positive side, having greater exposure than the reference index to a
range of gold holdings drove much of the positive gains across the portfolio
as share prices rallied over 50% in many cases and more than 200% in some
cases. It is also worth mentioning the impact from Develop Global (2.0% of the
portfolio), a mid-cap company developing a new copper mine in Australia. The
share price rerated over 100% during the first half of the year as the company
moved from construction towards first production. With a supportive commodity
price backdrop, we hope the company will be able to convert this into rapid
debt repayment and unlock the next growth project in its pipeline.
Base metals
It was a volatile first half of the year for base metals with prices driven by
a range of factors including tariffs, the weakening US Dollar, front-end
loading of demand and supply side disruptions. This resulted in mixed prices
with copper and aluminium prices rising by +16.2% and +2.8% respectively,
while nickel and zinc declined by -0.6% and -7.2%, respectively.
Our favoured based metal, copper, benefited from robust Chinese demand with
refined copper demand up by +13% in the five month period to May 2025. Key end
markets – solar, wind and electric vehicles - saw very strong demand in 1H
25, albeit this is expected to ease in the second half of the year (2H 25).
Tariffs have had a significant impact on the flow of material with tonnes
pulled into the US ahead of the tariff deadline subsequently tightening ex-US
markets. This drove a record price and premium for the US (Comex) copper price
above the LME copper price. Freeport-McMoRan (5.4% of the portfolio) has been
the main beneficiary of record Comex prices via its US asset base. Subsequent
to the reporting date, the US Government provided more detail on copper
tariffs where they intend to bring in tariffs progressively over a 2-3 year
period and only apply the full 50% tariff on semi-finished products. This
resulted in a collapse in the US copper price and highlights a number of
challenges producers and consumers are facing in an uncertain tariff
environment.
We remain optimistic on the long-term demand outlook for copper driven by
infrastructure spending, electrification, materials-intensive renewable energy
and the clean energy power requirements of artificial intelligence (AI)
datacentres. We continue to believe that prices will need to move higher in
the longer term to support the development of new greenfield projects and
offset ongoing inflation.
Aluminium
The aluminium price finished the period relatively flat. China’s apparent
demand is +6% year-to-date, benefiting from strong solar and wind demand. In
April 2025 the US announced 50% tariffs on imported aluminium which has seen
US premiums reach an all-time high of US$1,470/t during July.
In 2017 China put in place an aluminium production cap of 45 million tonnes
per annum (mtpa) in an effort to address overcapacity. China’s aluminium
output has remained at the 45mtpa cap which has led to China importing
aluminium this year. The Company’s largest exposure to aluminium is via
Hydro (1.0% of the portfolio) which is one of the lowest-carbon producers of
aluminium by virtue of its access to hydro power in Norway.
Nickel
While the nickel price has stabilised, it remains a challenging environment
for non-Indonesian nickel producers to generate competitive margins. Indonesia
has structurally changed the market, with nickel pig iron producers rapidly
growing production and adapting their facilities to allow the production of
nickel matte and other intermediary products. This material is typically more
carbon intensive and should carbon pricing be incorporated, we would expect
Indonesian supply to decline over time. The Company has minimal exposure to
nickel which represents 0.8% of the portfolio on a combined basis.
Bulks and steel
The first half of 2025 was a challenging period for bulk commodities. Iron ore
prices declined by 7.5%, while both metallurgical and thermal coal prices fell
by 12.0%. Chinese steel production is tracking at a similar level to last year
of circa 1 billion tonnes. Ongoing softness in the property sector has
pressured China’s domestic steel demand, where they continue to rely on the
export market which has placed significant pressure on global steel markets.
In response to oversupply and to support domestic industry, China has outlined
a plan to cut 50 million metric tons (mt) of steel capacity in 2025. To date
there is very little evidence that this has occurred, but we would expect it
to begin to be enacted by the end of the year which should reduce steel
production and exports into 2026.
In the US we have seen steel prices rally year to date with the introduction
of tariffs which were increased from 25% to 50% during 1H 25. The introduction
of new tariffs and anti-dumping measures has added a layer of protection for
domestic producers including Nucor (2.8% of the portfolio) and Steel Dynamics
(1.7% of the portfolio). Nippon Steel’s offer for US Steel was approved
during 1H 25, which benefited the portfolio given our holding in the latter
which we subsequently exited following the offer.
Iron ore has been an area of strength in recent years, supporting free cash
flow and dividends for the large producers. A distinct feature of the iron ore
market over the last three years has been the resilience of the price around
US$100/t due to cost curve support of US$80-90/t. As we look forward, we see
increasing pressure on the outlook for iron ore prices with the
much-anticipated Simandou project coming into production at the end of the
year.
The Company’s exposure to iron ore is primarily via the diversified majors
BHP (6.1% of the portfolio), Vale (7.6% of the portfolio) and Rio Tinto (6.0%
of the portfolio). We reduced our exposure to iron ore over the first half of
the year as we saw mounting pressure on its price and we believe the free cash
flow profile of BHP and Rio Tinto is deteriorating as they look to reinvest
into large scale growth projects in copper and lithium.
It has been a tough market for coking coal (-12% during 1H 25) with moderating
Chinese steel production and domestic supply growth in China. While the
near-term outlook for coking coal looks muted, we remain positive on the
longer-term outlook given limited new supply of high-quality coking coal,
which will remain in demand particularly for structural growth markets like
India.
The thermal coal market has been pressured by strong Chinese production and an
increased share for renewables in global power generation. The low pricing
environment has seen some supply curtailed which appears to have put a floor
in prices which have rallied from US$97/t to US$110/t as at the end of the 1H
25.
The Company’s thermal coal exposure is via its position in Glencore (4.0% of
the portfolio) which announced last year it will retain both its thermal and
metallurgical coal businesses, where it remains committed to the responsible
rundown of the thermal coal operations over time. Despite depressed coal
prices, Glencore trades attractively on a free cash flow yield basis and has
taken advantage of its depressed share price to buy back shares in the market
during 1H 25.
Precious metals
It has been an exciting time for precious metals, with gold up by +25.1%,
silver up by +25.5%, platinum up by +47.7% and palladium up by +24.7% during
1H 25. A new all-time high price was set for gold in April 2025 at over
US$3,500/oz. The Company has meaningfully increased its exposure to precious
metals producers over the last year, which was 34.7% of the portfolio as of 30
June 2025.
Tariff induced uncertainty and elevated geopolitical risk saw investors flock
to safe haven assets such as gold. Typically, investors would also look
towards other traditional safe haven investments like US Government bonds and
the US Dollar. However, the worsening fiscal deficit in the US has had the
opposite effect with the US Dollar falling by -11% during 1H 25, a tailwind
for the commodities asset class more broadly.
Gold continues to be supported by robust central bank demand which is on track
for a fourth consecutive year of >1,000 tonnes of gold purchases. We are
seeing new buyers emerge such as Chinese insurance companies and gold has seen
strong physical demand in Asia. Last year we began to see physically backed
gold ETFs record inflows once again and 1H 25 saw the strongest inflows in
five years.
Encouragingly, gold equities exhibited positive beta of circa 2:1 to the gold
price move with the FTSE Gold Mines Index up by +57% versus the gold price
+25% during 1H 25. With oil prices subdued and cost inflation moderating, it
has been an ideal environment for gold producer margins with gold companies
generating more free cash flow, increasing dividends and announcing buybacks.
Key gold exposures for the Company include Agnico Eagle Mines (6.6% of the
portfolio) which leads the sector in terms of its free cash flow generation
per share, along with Kinross Gold (4.0% of the portfolio) which maintains a
disciplined approach to costs and a return focused financial strategy.
The Company participated in an equity raising for Discovery Silver (0.6% of
the portfolio) earlier in the year to acquire the Porcupine assets from
Newmont Corporation for CAD$555 million. Since we made the investment, the
shares are up >200%, making it the highest returning investment in the Company
during the half year.
After a significant period of underperformance, the platinum group metals
(PGMs) appeared to bottom with markets beginning to tighten. The platinum
price was up by +47.7% and palladium was up by +25.5% during the 1H 25. We
have previously discussed the structural headwinds facing the PGMs, including
the growth in electric vehicles which do not use PGMs. A key question going
forward is the use of PGMs in hybrid electric and range extenders for electric
vehicles. We see this as providing some upside to PGM demand relative to
current expectations. For now, we see a tighter market with prices trading
into the cost curve for the best part of two years which have worked
inventories down.
The Company’s exposure to PGM producers was 3.0% of the portfolio as at the
end of June 2025. As part of Anglo American’s (4.0% of the portfolio)
simplification plan it sold down part of its holding in Anglo American
Platinum last year, before spinning out the majority of its exposure to Anglo
American shareholders during the half. The Company acquired shares in November
2024 as part of the sell-down which has generated a 38% return (in Sterling
terms) including dividends through to 30 June 2025. Our other key PGM exposure
is Bravo Mining (1.2% the portfolio) which performed strongly during the
period (+37% in Sterling terms), benefiting from the renewed interest in PGMs
as well as from releasing the economic study for its Luanga Project in Brazil.
The energy transition
In 1H 25 global battery electric vehicle (including Plug in Hybrid Electric
Vehicles) sales continued to grow strongly, with full-year projections
reaching approximately 22 million units, up from around 17 million in 2024.
This sustained growth has been driven by improving battery performance,
falling production costs and an expanding model range - particularly in China.
However, an oversupply of battery raw materials, especially lithium and
cobalt, continues to weigh on pricing. Lithium carbonate prices declined
further in 1H 25 to US$8,570 per tonne, down 17.1% for the half, and remain
well below their 2022 peak of over US$70,000.
Despite weak pricing, lithium’s strategic importance in the energy
transition remains clear. This was underscored by Rio Tinto’s acquisition of
Arcadium Lithium (Arcadium) in late 2024. In 1H 25, Rio Tinto confirmed it
will invest billions of dollars to upgrade Arcadium’s assets and expand
production. The ripple effects of this deal continued to impact companies like
Sigma Lithium (0.2% of the portfolio) where the Company holds a position.
Sigma Lithium is pursuing a near-term expansion plan aimed at doubling
production in 2025/26 to reduce costs.
The importance of nuclear energy in achieving Net Zero goals also gained
momentum through 2024 and 1H 25. We have seen increased support for nuclear
energy, particularly among the tech hyperscalers (large cloud service
providers with the IT architecture to scale up to meet significant increases
in demand) which are increasingly looking at nuclear energy to power their AI
datacentres. The Company’s holding in Cameco (1.7% of the portfolio) rose
32% in 1H 25, supported by its position as a fully integrated uranium producer
from mine to nuclear fuel via its ownership stake in Westinghouse. During the
first half, Cameco announced its first reactor deal from Westinghouse since
acquiring the business which is a key development we have been anticipating.
For Cameco, this translated into an expected financial upside of ~US$170
million in its share of Westinghouse’s 2025 adjusted cash earnings before
interest, tax and depreciation and amortisation.
Rare earth elements (REEs) remain another critical material - particularly for
electric vehicle motors that use Praseodymium-Neodymium (NdPr) magnets. With
supply heavily concentrated in China, western nations have continued to
classify REEs as strategic assets. A notable development came in July 2025
when MP Materials, a US-based REE player, received an investment from the US
Department of Defence and signed a 10-year offtake agreement with a favourable
price floor. This move underscored rising geopolitical support for non-Chinese
rare earths, a theme that continues to benefit aligned holdings like Lynas
Rare Earths. The Company holds Lynas Rare Earths (0.8% of the portfolio) which
operates REE processing facilities in Malaysia and Australia and benefited
from renewed strategic interest in REEs with the share price rising 29.9%
during the period.
Royalty and unquoted investments
As of 30 June 2025, the unquoted investments amounted to 7.4% of the portfolio
and consist of the BHP Brazil Royalty, 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 shareholders in the Strategic
Report in the Annual Report for the year ended 31 December 2024.
BHP Brazil Royalty Contract (1.8% of the portfolio)
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 and BHP is the current operator of
the mine. The Company has received US$37 million in royalty payments with the
royalty achieving full payback on the initial investment in 3½ years. As of
30 June 2025 the royalty was valued at £19.3 million which equates to a >500%
cash return on the initial US$12 million invested.
We are encouraged by the improved performance at Pedra Branca with BHP
investing more into development and executing a solid maintenance schedule at
the plant. With gold prices up by +25% during 1H 25, we have received higher
income given the royalty receives 25% of gold revenue from the mine. As
publicly reported, BHP is exploring the sale of its Brazilian copper and gold
assets. We continue to monitor this situation, as the royalty will remain
attached to the asset upon any sale.
Vale Debentures (2.7% of the portfolio)
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 on Vale’s Northern System and Southeastern System iron ore
assets in Brazil, as well as a 1.25% royalty over the Sossego copper mine.
Dividend payments are expected to grow once royalty payments commence on the
Southeastern System, which Vale currently expects to occur in 2025. The iron
ore assets are world class given their grade, cost position, infrastructure
and resource life which is well in excess of 50 years.
Since our investment in 2019, where we acquired the debentures for R$23
million, we have received R$24 million in payments which represents payback of
the initial investment in six years. Vale has indicated that the Southeastern
System is expected to start making payments under the debentures in 1H 25
which will add to proceeds during the year.
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 (1.1% 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 their technology across a number of
mines where they 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’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 1H 25 the Company further reduced the holding value of Jetti by 39% to
reflect the longer contracting negotiation process and subsequent delays to
revenue expectations. This resulted in a 0.7% impact to performance of the
Company. Jetti is now valued modestly higher than our initial investment made
into the company back in 2022.
MCC Mining (1.8% of the portfolio)
MCC Mining (MCC) is a private company exploring for copper in Columbia. It is
undertaking early-stage greenfield exploration and has strong geological
potential to host multiple world class porphyry deposits. Shareholders include
mid to large-cap copper miners, which is an indication of the strategic value
of the company. Drilling to date has been very encouraging with two porphyry
deposits confirmed at Comita and Pantanos.
During the 1H 25, MCC published an initial resource at Pantanos of 800mt at
0.4% Cu, which management expects to grow over time. MCC also completed an
oversubscribed funding round raising US$75 million during the first half at a
higher valuation compared to earlier funding rounds. The company is well
financed to complete its exploration drilling program for the next 12 months
and progress studies on the projects. Incorporating the new valuation of MCC
following the recent financing added circa 40 basis points to the portfolio.
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 the first half of 2025 income generated from options was £3.9
million. The absence of any specific events limited the opportunity set
compared to last year, but income generation remained at healthy levels. At
the end of the period, the Company had 0.1% of the net assets exposed to
derivatives and the average exposure to derivatives during the period was less
than 5% of net assets.
Gearing
At 30 June 2025, the Company had £92.9 million of net debt, with a gearing
level of 6.9%. The debt is held principally in US Dollar rolling short term
loans and managed against the value of the portfolio as a whole. During the
period the average level of debt drawn down was lower than in prior years due
to the ongoing uncertainty hanging over the Chinese economy and the volatility
associated with US tariff negotiations. In addition, the cost of debt at
current levels means the opportunity set to deploy it for the purposes of
arbitrage against other listed securities was less attractive.
Outlook
Despite a solid start to the year that has continued through to the point of
writing this report, the impact of tariffs on physical markets cannot be
ignored. There remains a significant risk that US demand for industrial metals
has been brought forward into the first half and this has tightened up markets
in the short term as traders shipped material into the US ahead of the tariffs
being imposed. If either general economic activity slows or demand softens
then these metal prices would be at risk, potentially leading to lower prices
versus those seen in the first half. As such, the portfolio is positioned for
a more cautious outlook with debt at lower levels than in the past. In
addition, the portfolio is more orientated to companies best positioned to
capture the windfalls from tariffs.
In the precious metals space there is excellent potential for companies to
harvest tremendous levels of cashflow from the buoyant prices. The summer
earnings season will be a real test to identify the haves and have nots in
terms of capturing the margins. Additionally, it is essential to monitor what
managements do with the cash generated. To date, a number have gone down the
path of M&A or bought back shares. It is our hope that they stick to the more
traditional approach of returning the cash to investors via dividends given
the large year to date rally in share prices.
In relation to income, it is clear that the biggest historical contributors to
the Company’s revenue line are seeing lower levels of distributable cash due
to margin pressure (iron ore and coal in particular), and higher levels of
capital spending. Should this trend continue, it will require increased levels
of payments from others, such as the precious metal companies, to make up the
shortfall. Whilst this might easily happen over a 12 month period, in the
short term there could be a gap in revenue received versus future payments.
EVY HAMBRO AND OLIVIA MARKHAM
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
3 September 2025
1 West Texas Intermediate.
Sources: LSEG DataStream and Bloomberg, June 2025.
Ten largest investments
Together, the Company’s ten largest investments represented 52.6% of the
Company’s portfolio as at 30 June 2025 (31 December 2024: 52.7%).
1 ▲ Vale1,2,3 (2024: 6th)
Diversified mining group
Market value: £82,634,000
Share of investments: 7.6% comprising equity of 4.9% and debentures of 2.7%
(2024: 4.5%)
Vale is the world’s largest producer of iron ore, iron ore pellets and
nickel. The group also produces copper and cobalt as part of its base metals
division.
2 ▲ Agnico Eagle Mines2 (2024: 5th)
Gold producer
Market value: £71,325,000
Share of investments: 6.6% (2024: 5.2%)
A senior gold producer and the second largest in the world by market
capitalisation. The company has operations in Canada, Finland, Australia and
Mexico.
3 ▼ BHP1,4 (2024: 1st)
Diversified mining group
Market value: £66,119,000
Share of investments: 6.1% comprising equity of 4.3% and mining royalty
contract of 1.8% (2024: 9.1%)
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.
4 ▼ Rio Tinto (2024: 2nd)
Diversified mining group
Market value: £65,356,000
Share of investments: 6.0% (2024: 7.2%)
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.
5 ▲ Wheaton Precious Metals (2024: 8th)
Gold producer
Market value: £59,410,000
Share of investments: 5.5% (2024: 3.9%)
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 those companies’ mines.
6 ▲Freeport-McMoRan (2024: 7th)
Copper producer
Market value: £58,595,000
Share of investments: 5.4% (2024: 4.4%)
A global mining group producing copper, gold and molybdenum. The company has
operations in Indonesia, North America and South America.
7 ▲ Kinross Gold (2024: 27th)
Gold producer
Market value: £43,550,000
Share of investments: 4.0% (2024: 1.2%)
A mining company conducting extraction and processing of gold and silver ore.
It operates a portfolio of gold mines in Canada, the US, Brazil, Chile and
Mauritania.
8 ▼ Anglo American (2024: 4th)
Diversified mining group
Market value: £42,936,000
Share of investments: 4.0% (2024: 5.9%)
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.
9 ▼ Glencore (2024: 3rd)
Diversified mining group
Market value: £42,792,000
Share of investments: 4.0% (2024: 6.0%)
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.
10 ▲ Newmont Corporation (2024: 12th)
Gold producer
Market value: £40,338,000
Share of investments: 3.7% (2024: 2.8%)
One of the world’s largest gold producers by market capitalisation. The
group has gold and copper operations on five continents, with active gold
mines in Nevada, Australia, Ghana, Peru and Suriname.
1 Includes investments held at Directors’ valuation.
2 Includes options.
3 Includes fixed income securities.
4 Includes mining royalty contract.
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 2024.
Percentages in brackets represent the value of the holding as at 31 December
2024.
Investments as at 30 June 2025
Main Market % of
geographical value investments
exposure £’000
Gold
Agnico Eagle Mines Canada 71,606 } 6.6
Agnico Eagle Mines Call Option 18/07/2025 CAD$164.00 Canada (281)
Wheaton Precious Metals Global 59,410 5.5
Kinross Gold Global 43,550 4.0
Newmont Corporation Global 40,338 3.7
Barrick Mining Global 30,557 2.8
AngloGold Ashanti South Africa 19,262 1.8
Northern Star Resources Australasia 16,171 1.5
Franco-Nevada Global 15,847 1.4
Endeavour Mining Other Africa 10,974 1.0
Capricorn Metals Australasia 9,501 0.9
Allied Gold 1 Other Africa 7,662 0.7
Firefly Metals Canada 5,699 0.5
Bellevue Gold Australasia 3,918 0.4
Minerals 260 Australasia 2,761 0.3
Polyus* Russia – –
--------------- ---------------
336,975 31.1
========= =========
Diversified
Vale Global 53,816 } 7.6
Vale Debentures 1,2,3 Global 29,358
Vale Call Option 18/07/2025 US$9.50 Global (540)
Rio Tinto Global 65,356 6.0
BHP Global 46,781 4.3
Anglo American Global 42,936 4.0
Glencore Global 42,792 4.0
Teck Resources Global 10,854 1.0
Vox Royalty Canada 3,103 0.3
--------------- ---------------
294,456 27.2
========= =========
Copper
Freeport-McMoRan Global 58,595 5.4
Develop Global Australasia 21,837 2.0
MCC Mining 2 Latin America 19,980 1.8
BHP Brazil Royalty 2,4 Latin America 19,338 1.8
Sociedad Minera Cerro Verde Latin America 19,088 1.8
Ivanhoe Electric United States 16,900 1.6
Lundin Mining Global 15,834 1.5
Southern Copper Corporation Latin America 13,913 1.3
Foran Mining Canada 13,831 1.3
Jetti Resources 2 Global 12,230 1.1
First Quantum Minerals Global 11,982 1.1
Metals Acquisition Australasia 11,603 1.0
Ivanhoe Mines Other Africa 5,782 0.5
NGEx Minerals Latin America 5,753 0.5
Solaris Resources Latin America 4,449 0.4
Capstone Mining United States 3,110 0.3
Ero Copper Latin America 2,387 0.2
--------------- ---------------
256,612 23.6
Steel ========= =========
Nucor United States 30,267 2.8
ArcelorMittal Global 18,987 1.8
Steel Dynamics United States 18,343 1.7
Reliance United States 2,811 0.3
--------------- ---------------
70,408 6.6
========= =========
Platinum Group Metals
Valterra Platinum South Africa 13,852 1.3
Bravo Mining Latin America 12,680 1.2
Northam Platinum Global 3,262 0.3
Impala Platinum South Africa 2,591 0.2
--------------- ---------------
32,385 3.0
========= =========
Industrial Minerals
Lynas Rare Earths Australasia 9,051 0.8
Albemarle Global 6,020 0.6
Iluka Resources Australasia 3,270 0.3
Sigma Lithium Latin America 2,158 0.2
Chalice Mining Australasia 1,948 0.2
Sheffield Resources Australasia 1,621 0.1
Australian Carbon Australasia – –
Victorian Hydrogen & Ammonia Industry Australasia – –
--------------- ---------------
24,068 2.2
========= =========
Iron Ore
Labrador Iron Canada 10,183 0.9
Champion Iron Canada 6,015 0.6
Fortescue Australasia 5,677 0.5
Equatorial Resources Other Africa 194 –
--------------- ---------------
22,069 2.0
========= =========
Uranium
Cameco Canada 18,086 } 1.7
Cameco Call Option 18/07/2025 US$75.00 Canada (111)
--------------- ---------------
17,975 1.7
========= =========
Aluminium
Hydro Global 10,636 1.0
--------------- ---------------
10,636 1.0
========= =========
Nickel
Nickel Industries Indonesia 5,052 0.5
Lifezone Metals Global 2,870 0.3
Bindura Nickel Global – –
--------------- ---------------
7,922 0.8
========= =========
Silver
Discovery Silver Latin America 6,891 0.6
--------------- ---------------
6,891 0.6
========= =========
Zinc
Titan Mining United States 2,397 0.2
--------------- ---------------
2,397 0.2
========= =========
Energy Minerals
Gippsland Energy Australasia – –
Latrobe Fertilisers Australasia – –
--------------- ---------------
– –
--------------- ---------------
Portfolio 1,082,794 100.0
========= =========
Comprising:
- Investments 1,083,726 100.1
- Options (932) (0.1)
--------------- ---------------
1,082,794 100.0
========= =========
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.
* This position is fair valued to nil due to sanctions on Russia. The
underlying local value of the position on the Moscow Stock Exchange at 30 June
2025 is £19.0 million.
All investments are in equity shares unless otherwise stated.
The total number of investments as at 30 June 2025 (including options
classified as liabilities on the balance sheet) was 72 (31 December 2024: 70).
As at 30 June 2025 the Company did not hold any equity interests in companies
comprising more than 3% of a company’s share capital.
Portfolio analysis as at 30 June 2025
Commodity Exposure1
2025 2024 2025
portfolio portfolio 2 reference index 3
Gold 31.1% 22.0% 33.4%
Diversified 27.2% 33.9% 28.4%
Copper 23.6% 24.8% 11.9%
Steel 6.6% 4.7% 16.4%
Platinum Group Metals 3.0% 1.7% 1.5%
Industrial Minerals 2.2% 2.8% 0.1%
Iron Ore 2.0% 3.2% 2.6%
Uranium 1.7% 3.4% 0.0%
Aluminium 1.0% 2.3% 3.3%
Nickel 0.8% 1.1% 0.0%
Silver 0.6% 0.0% 1.5%
Zinc 0.2% 0.1% 0.3%
Other 4 0.0% 0.0% 0.6%
1 Based on index classifications
2 Represents exposure at 31 December 2024.
3 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (net total return).
4 Represents a very small exposure.
Geographic Exposure1
2025
Global 57.4%
Canada 11.9%
Latin America 9.8%
Australasia 8.0%
Other 2 7.4%
South Africa 3.3%
Other Africa (ex South Africa) 2.2%
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%
1 Based on the principal commodity exposure and place of operation of each
investment.
2 Consists of Indonesia and United States.
Interim Management Report and Responsibility Statement
The Chairman’s Statement and the Investment Manager’s Report above give
details of the important events which have occurred during the period and
their impact on the financial statements.
Principal risks and uncertainties
The principal risks faced by the Group can be divided into various areas as
follows:
- Market;
- Investment performance;
- Operational;
- Legal and regulatory compliance; and
- Financial.
The Board reported on the principal risks and uncertainties faced by the Group
in the Annual Report and Financial Statements for the year ended 31 December
2024. A detailed explanation can be found in the Strategic Report on pages 42
to 46 and note 17 on pages 116 to 133 of the Annual Report and Financial
Statements which is available on the website maintained by BlackRock at
www.blackrock.com/uk/brwm.
In the view of the Board, there have not been any changes to the fundamental
nature of the principal risks and uncertainties since the previous report and
these are equally applicable to the remaining six months of the financial year
as they were to the six months under review.
Going concern
The Directors, having considered the nature and liquidity of the portfolio,
the Group’s investment objective and the Group’s projected income and
expenditure, are satisfied that the Group has adequate resources to continue
in operational existence for the foreseeable future and is financially sound.
The Board is mindful of the continuing uncertainty surrounding the current
environment of heightened geopolitical risk given the war in Ukraine and
conflict in the Middle East. The Board believes that the Group and its key
third-party service providers have in place appropriate business continuity
plans and these services have continued to be supplied without interruption.
The Group has a portfolio of investments which are predominantly readily
realisable and is able to meet all of its liabilities from its assets and
income generated from these assets. Accounting revenue and expense forecasts
are maintained and reported to the Board regularly and it is expected that the
Group will be able to meet all its obligations. Borrowings under the overdraft
and revolving credit facilities shall at no time exceed £230 million or 25%
of the Group’s net asset value (whichever is the lower) and this covenant
was complied with during the period.
Ongoing charges for the year ended 31 December 2024 were approximately 0.95%
of average daily net assets and this is unlikely to change significantly going
forward. Based on the above, the Board is satisfied that it is appropriate to
continue to adopt the going concern basis in preparing the financial
statements.
Related party disclosure and transactions with the Manager
BlackRock Fund Managers Limited (BFM) was appointed as the Company’s
Alternative Investment Fund Manager (AIFM) with effect from 2 July 2014. BFM
has (with the Company’s consent) delegated certain portfolio and risk
management services, and other ancillary services, to BlackRock Investment
Management (UK) Limited (BIM (UK)). Both BFM and BIM (UK) are regarded as
related parties under the Listing Rules. Details of the management and
marketing fees payable are set out in notes 4 and 5 respectively and note 13
below.
The related party transactions with the Directors are set out in note 14
below.
Directors’ responsibility statement
The Disclosure Guidance and Transparency Rules (DTR) of the UK Listing
Authority require the Directors to confirm their responsibilities in relation
to the preparation and publication of the Interim Management Report and
Financial Statements.
The Directors confirm to the best of their knowledge that:
- the condensed set of financial statements contained within the Condensed
Half Yearly Financial Report has been prepared in accordance with UK-adopted
International Accounting Standard 34 Interim Financial Reporting; and
- the Interim Management Report, together with the Chairman’s Statement and
Investment Manager’s Report, include a fair review of the information
required by 4.2.7R and 4.2.8R of the Financial Conduct Authority Disclosure
Guidance and Transparency Rules.
The Condensed Half Yearly Financial Report was approved by the Board on 3
September 2025 and the above responsibility statement was signed on its behalf
by the Chairman.
CHARLES GOODYEAR
FOR AND ON BEHALF OF THE BOARD
3 September 2025
Consolidated Statement of Comprehensive Income for the six months ended 30
June 2025
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income from investments held at fair value through profit or loss 3 22,353 – 22,353 23,198 – 23,198 43,879 – 43,879
Other income 3 4,530 – 4,530 4,821 – 4,821 11,255 – 11,255
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total revenue 26,883 – 26,883 28,019 – 28,019 55,134 – 55,134
========= ========= ========= ========= ========= ========= ========= ========= =========
Net profit/(loss) on investments and options held at fair value through profit or loss – 47,965 47,965 – (40,360) (40,360) – (151,792) (151,792)
Net gains/(losses) on foreign exchange – 12,952 12,952 – 424 424 – (672) (672)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 26,883 60,917 87,800 28,019 (39,936) (11,917) 55,134 (152,464) (97,330)
========= ========= ========= ========= ========= ========= ========= ========= =========
Expenses
Investment management fee 4 (1,054) (3,263) (4,317) (1,116) (3,446) (4,562) (2,188) (6,764) (8,952)
Other operating expenses 5 (627) (2) (629) (611) (6) (617) (1,269) (12) (1,281)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total operating expenses (1,681) (3,265) (4,946) (1,727) (3,452) (5,179) (3,457) (6,776) (10,233)
========= ========= ========= ========= ========= ========= ========= ========= =========
Net profit/(loss) on ordinary activities before finance costs and taxation 25,202 57,652 82,854 26,292 (43,388) (17,096) 51,677 (159,240) (107,563)
Finance costs (789) (2,447) (3,236) (1,148) (3,446) (4,594) (2,212) (6,630) (8,842)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net profit/(loss) on ordinary activities before taxation 24,413 55,205 79,618 25,144 (46,834) (21,690) 49,465 (165,870) (116,405)
Taxation (charge)/credit (3,088) 1,157 (1,931) (2,296) 923 (1,373) (5,338) 1,802 (3,536)
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Net profit/(loss) on ordinary activities after taxation 21,325 56,362 77,687 22,848 (45,911) (23,063) 44,127 (164,068) (119,941)
========= ========= ========= ========= ========= ========= ========= ========= =========
Earnings/(loss) per ordinary share (pence) – basic and diluted 7 11.26 29.77 41.03 11.95 (24.01) (12.06) 23.09 (85.84) (62.75)
========= ========= ========= ========= ========= ========= ========= ========= =========
The total columns of this statement represent the Group’s Statement of
Comprehensive Income, prepared in accordance with UK-adopted International
Accounting Standards (IASs). 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 period. All
income is attributable to the equity holders of the Group.
The Group does not have any other comprehensive income/(loss) (six months
ended 30 June 2024: £nil; year ended 31 December 2024: £nil). The net
profit/(loss) for the period disclosed above represents the Group’s total
comprehensive income/(loss).
Consolidated Statement of Changes in Equity for the six months ended 30 June
2025
Note Called Share Capital Special Capital Revenue Total
up share premium redemption reserve reserves reserve £’000
capital account reserve £’000 £’000 £’000
£’000 £’000 £’000
For the six months ended 30 June 2025 (unaudited)
At 31 December 2024 9,651 151,493 22,779 192,134 561,093 38,049 975,199
Total comprehensive income:
Net profit on ordinary activities after taxation – – – – 56,362 21,325 77,687
Transaction with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 9 – – – (17,301) – – (17,301)
Share repurchase costs 9 – – – (121) – – (121)
Dividends paid 1 7 – – – – – (22,687) (22,687)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 30 June 2025 9,651 151,493 22,779 174,712 617,455 36,687 1,012,777
========= ========= ========= ========= ========= ========= =========
For the six months ended 30 June 2024 (unaudited)
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 – – – – (45,911) 22,848 (23,063)
Transaction with owners, recorded directly to equity:
Dividends paid 2 7 – – – – – (43,016) (43,016)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 30 June 2024 9,651 151,493 22,779 193,008 679,250 37,791 1,093,972
========= ========= ========= ========= ========= ========= =========
For the year ended 31 December 2024 (audited)
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)
Transaction with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 9 – – – (868) – – (868)
Share repurchase costs 9 – – – (6) – – (6)
Dividends paid 3 7 – – – – – (64,037) (64,037)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 2024 9,651 151,493 22,779 192,134 561,093 38,049 975,199
========= ========= ========= ========= ========= ========= =========
1 The final dividend for the year ended 31 December 2024 of 6.50p per share,
declared on 4 March 2025 and paid on 27 May 2025, and 1st quarterly interim
dividend for the year ended 31 December 2025 of 5.50p per share, declared on
21 May 2025 and paid on 27 June 2025.
2 The final dividend for the year ended 31 December 2023 of 17.00p per share,
declared on 7 March 2024 and paid on 14 May 2024, and 1st quarterly interim
dividend for the year ended 31 December 2024 of 5.50p per share, declared on 9
May 2024 and paid on 28 June 2024.
3 The final dividend for the year ended 31 December 2023 of 17.00p per share,
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 9 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 14 November 2024 and paid on 20 December 2024.
For information on the Company’s distributable reserves, please refer to
note 11 below.
Consolidated Statement of Financial Position as at 30 June 2025
Notes As at As at As at
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Non current assets
Investments held at fair value through profit or loss 12 1,083,726 1,209,233 1,093,198
Current assets
Current tax asset 2,084 1,515 1,317
Other receivables 8,699 6,827 2,861
Cash collateral held with brokers 4,366 9,492 4,882
Cash and cash equivalents – cash at bank 21,378 16,032 21,396
--------------- --------------- ---------------
Total current assets 36,527 33,866 30,456
========= ========= =========
Total assets 1,120,253 1,243,099 1,123,654
========= ========= =========
Current liabilities
Current taxation liability (360) (367) (877)
Other payables (12,240) (12,322) (10,270)
Derivative financial liabilities held at fair value through profit or loss 12 (932) (1,396) (622)
Bank loans 10 (91,218) (134,483) (135,739)
Cash and cash equivalents – bank overdraft 10 (1,706) – (4)
--------------- --------------- ---------------
Total current liabilities (106,456) (148,568) (147,512)
========= ========= =========
Total assets less current liabilities 1,013,797 1,094,531 976,142
========= ========= =========
Non current liabilities
Deferred taxation liability (1,020) (559) (943)
--------------- --------------- ---------------
Net assets 1,012,777 1,093,972 975,199
========= ========= =========
Equity attributable to equity holders
Called up share capital 9 9,651 9,651 9,651
Share premium account 11 151,493 151,493 151,493
Capital redemption reserve 11 22,779 22,779 22,779
Special reserve 11 174,712 193,008 192,134
Capital reserves 11 617,455 679,250 561,093
Revenue reserve 11 36,687 37,791 38,049
--------------- --------------- ---------------
Total equity 1,012,777 1,093,972 975,199
========= ========= =========
Net asset value per ordinary share (pence) 8 540.48 572.21 510.53
========= ========= =========
Consolidated Cash Flow Statement for the six months ended 30 June 2025
Six months Six months Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Operating activities
Net profit/(loss) on ordinary activities before taxation 1 79,618 (21,690) (116,405)
Add back finance costs 3,236 4,594 8,842
Net (profit)/loss on investments and options held at fair value through profit or loss (including transaction costs) (47,965) 40,360 151,792
Net (gains)/losses on foreign exchange (12,952) (424) 672
Sale of investments held at fair value through profit or loss 335,563 360,366 637,750
Purchase of investments held at fair value through profit or loss (278,098) (309,667) (585,496)
Contractual rights – return of capital 283 203 397
(Increase)/decrease in other receivables (809) (719) 321
(Decrease)/increase in other payables (2,880) 66 2,554
(Increase)/decrease in amounts due from brokers (5,029) (2,755) 410
Increase in amounts due to brokers 5,004 4,216 –
Net movement in cash collateral held with brokers 516 (3,223) 1,387
--------------- --------------- ---------------
Net cash inflow from operating activities before taxation 76,487 71,327 102,224
Taxation on investment income included within gross income (3,215) (1,373) (3,052)
--------------- --------------- ---------------
Net cash inflow from operating activities 73,272 69,954 99,172
========= ========= =========
Financing activities
Repayment of loan (31,283) (14,599) (14,599)
Interest paid (3,314) (4,532) (8,721)
Net cost for repurchase of ordinary shares (17,422) – (874)
Dividends paid (22,687) (43,016) (64,037)
--------------- --------------- ---------------
Net cash outflow from financing activities (74,706) (62,147) (88,231)
========= ========= =========
(Decrease)/increase in cash and cash equivalents (1,434) 7,807 10,941
Effect of foreign exchange rate changes (286) (2,387) (161)
--------------- --------------- ---------------
Change in cash and cash equivalents (1,720) 5,420 10,780
Cash and cash equivalents at start of period/year 21,392 10,612 10,612
--------------- --------------- ---------------
Cash and cash equivalents at end of period/year 19,672 16,032 21,392
========= ========= =========
Comprised of:
Cash at bank 21,378 16,032 21,396
Bank overdraft (1,706) – (4)
--------------- --------------- ---------------
19,672 16,032 21,392
========= ========= =========
1 Dividends and interest received in cash during the period amounted to
£14,897,000 and £2,342,000 (six months ended 30 June 2024: £19,507,000 and
£2,746,000; year ended 31 December 2024: £36,895,000 and £4,584,000).
Notes to the financial statements for the six months ended 30 June 2025
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 principal activity of the subsidiary, BlackRock World Mining Investment
Company Limited, is investment dealing.
2. Basis of preparation
The half yearly financial statements for the period ended 30 June 2025 have
been prepared in accordance with the Disclosure Guidance and Transparency
Rules sourcebook of the Financial Conduct Authority and with the UK-adopted
International Accounting Standard 34 (IAS 34), Interim Financial Reporting.
The half yearly financial statements should be read in conjunction with the
Group’s Annual Report and Financial Statements for the year ended 31
December 2024, which have been prepared in accordance with UK-adopted
International Accounting Standards (IASs).
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 IASs, the financial statements have been prepared in accordance
with guidance set out in the SORP.
Adoption of new and amended International Accounting Standards and
interpretations:
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.
The amendment of this standard did not have any significant impact on the
Company.
Relevant International Accounting Standards that have yet to be adopted:
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 Company.
3. Income
Six months Six months Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Investment income:
UK dividends 4,797 5,469 10,223
Overseas dividends 9,738 12,616 24,602
Overseas special dividends 1,221 1,480 2,558
Overseas stock dividends 230 – 440
Income from contractual rights (BHP Brazil Royalty) 3,752 756 2,431
Income from Vale debentures 2,291 2,399 2,815
Income from fixed income investments 324 478 810
--------------- --------------- ---------------
Total investment income 22,353 23,198 43,879
========= ========= =========
Other income:
Option premium income 3,857 4,336 10,227
Deposit interest 542 323 719
Interest received on cash collateral with brokers 64 79 189
Stock lending income 67 83 120
--------------- --------------- ---------------
Total other income 4,530 4,821 11,255
========= ========= =========
Total 26,883 28,019 55,134
========= ========= =========
During the period, the Group received option premium income in cash totalling
£3,834,000 (six months ended 30 June 2024: £5,184,000; year ended 31
December 2024: £10,909,000) 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 period, option premiums of £3,857,000 (six
months ended 30 June 2024: £4,336,000; year ended 31 December 2024:
£10,227,000) were amortised to revenue.
At 30 June 2025, there were three open positions (30 June 2024: four; 31
December 2024: three) with an associated liability of £932,000 (30 June 2024:
£1,396,000; 31 December 2024: £622,000).
Dividends and interest received in cash in the six months ended 30 June 2025
amounted to £14,897,000 and £2,342,000 (six months ended 30 June 2024:
£19,507,000 and £2,746,000; year ended 31 December 2024: £36,895,000 and
£4,584,000).
No special dividends have been recognised in capital during the six months
ended 30 June 2025 (six months ended 30 June 2024: none; year ended 31
December 2024: none).
4. Investment management fee
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investment management fee 1,054 3,263 4,317 1,116 3,446 4,562 2,188 6,764 8,952
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 1,054 3,263 4,317 1,116 3,446 4,562 2,188 6,764 8,952
========= ========= ========= ========= ========= ========= ========= ========= =========
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 period, £3,961,000 (six months ended 30 June 2024:
£4,303,000; year ended 31 December 2024: £8,471,000) of the investment
management fee was generated from net assets and £356,000 (six months ended
30 June 2024: £259,000; year ended 31 December 2024: £481,000) from the
gearing effect on gross assets due to the quarter-on-quarter increase in the
NAV per share for the period as set out below:
Quarter end Cum income Quarterly Gearing effect
NAV per share increase/ on management
(pence) (decrease) % fees (£’000)
31 December 2023 606.78 – –
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 –
31 March 2025 533.32 +4.5 235
30 June 2025 540.48 +1.3 121
========= ========= =========
The daily average of the net assets under management during the period ended
30 June 2025 was £1,006,704,000 (six months ended 30 June 2024:
£1,100,397,000; year ended 31 December 2024: £1,082,468,000).
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
Six months Six months Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Allocated to revenue:
Custody fee 46 53 98
Auditors’ remuneration – audit services 1 33 33 65
Registrar’s fee 43 42 88
Directors’ emoluments 84 81 166
AIC fees 11 10 21
Broker fees 17 12 30
Depositary fees 47 52 104
FCA fee 25 21 49
Directors’ insurance 10 10 21
Marketing fees 61 61 169
Stock exchange fees 33 25 52
Legal and professional fees 39 67 126
Bank facility fees 2 46 45 92
Printing and postage fees 24 22 46
Directors' search fees 14 – –
Write back of prior year expenses 3 (5) (7) (19)
Other administrative costs 99 84 161
--------------- --------------- ---------------
Total revenue expenses 627 611 1,269
========= ========= =========
Allocated to capital:
Transaction charges 4 2 6 12
--------------- --------------- ---------------
Total 629 617 1,281
========= ========= =========
1 No non-audit services were provided by the auditors for the six months
ended 30 June 2025 (six months ended 30 June 2024: none; year ended 31
December 2024: none).
2 There is a 4 basis point facility fee chargeable on the full loan facility
whether drawn or undrawn.
3 Relates to legal and professional fees and other administrative costs
written back during the six months ended 30 June 2025 (six months ended 30
June 2024: legal and professional fees; year ended 31 December 2024: legal and
professional fees and Directors’ expenses).
4 For the six months ended 30 June 2025, expenses of £2,000 (six months
ended 30 June 2024: £6,000; year ended 31 December 2024: £12,000) were
charged to the capital account of the Statement of Comprehensive Income. These
relate to transaction costs charged by the custodian on sale and purchase
trades.
The transaction costs incurred on the acquisition of investments amounted to
£339,000 for the six months ended 30 June 2025 (six months ended 30 June
2024: £586,000; year ended 31 December 2024: £1,128,000). Costs relating to
the disposal of investments amounted to £165,000 for the six months ended 30
June 2025 (six months ended 30 June 2024: £137,000; year ended 31 December
2024: £255,000). All transaction costs have been included within net
profit/(loss) on investments and options held at fair value through profit or
loss in the capital reserves.
6. Finance costs
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Interest paid on bank loans 788 2,444 3,232 1,134 3,404 4,538 2,196 6,581 8,777
Interest paid on bank overdraft 1 3 4 14 42 56 16 49 65
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------
Total 789 2,447 3,236 1,148 3,446 4,594 2,212 6,630 8,842
========= ========= ========= ========= ========= ========= ========= ========= =========
Finance costs are charged 25% to the revenue account and 75% to the capital
account of the Consolidated Statement of Comprehensive Income.
7. Dividends
The final dividend of 6.50p per share for the year ended 31 December 2024 was
paid on 27 May 2025. The Board has declared a first quarterly interim dividend
of 5.50p per share for the quarter ended 31 March 2025, paid on 27 June 2025
to shareholders on the register on 30 May 2025.
The Board has declared a second quarterly interim dividend of 5.50p per share
for the quarter ended 30 June 2025 which will be paid on 3 October 2025 to
shareholders on the register on 12 September 2025. This dividend has not been
accrued in the financial statements for the six months ended 30 June 2025 as,
under IASs, interim dividends are not recognised until paid. Dividends are
debited directly to reserves.
Dividends paid on equity shares during the period: Six months Six months Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Final dividend for the year ended 31 December 2024 of 6.50p per share (2023: 17.00p) 12,381 32,501 32,501
1st quarterly interim dividend for the year ending 31 December 2025 of 5.50p per share (2024: 5.50p) 10,306 10,515 10,515
2nd quarterly interim dividend for the year ended 31 December 2024 of 5.50p per share (2023: 5.50p) – – 10,515
3rd quarterly interim dividend for the year ended 31 December 2024 of 5.50p per share (2023: 5.50p) – – 10,506
--------------- --------------- ---------------
Accounted for in the financial statements 22,687 43,016 64,037
========= ========= =========
8. Consolidated earnings and net asset value per ordinary share
Total revenue, capital earnings/(loss) and net asset value per ordinary share
are shown below and have been calculated using the following:
Six months Six months Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
(unaudited) (unaudited) (audited)
Net revenue profit attributable to ordinary shareholders (£’000) 21,325 22,848 44,127
Net capital profit/(loss) attributable to ordinary shareholders (£’000) 56,362 (45,911) (164,068)
----------------- ----------------- -----------------
Total profit/(loss) attributable to ordinary shareholders (£’000) 77,687 (23,063) (119,941)
========== ========== ==========
Equity shareholders’ funds (£’000) 1,012,777 1,093,972 975,199
The weighted average number of ordinary shares in issue during the period on which the earnings per ordinary share was calculated was: 189,331,680 191,183,036 191,149,163
The actual number of ordinary shares in issue at the end of the period on which the net asset value per ordinary share was calculated was: 187,383,036 191,183,036 191,018,036
Earnings per ordinary share
Revenue earnings per share (pence) - basic and diluted 11.26 11.95 23.09
Capital earnings/(loss) per share (pence) - basic and diluted 29.77 (24.01) (85.84)
--------------- --------------- ---------------
Total earnings/(loss) per share (pence) - basic and diluted 41.03 (12.06) (62.75)
========= ========= =========
As at As at As at
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
Net asset value per ordinary share (pence) 540.48 572.21 510.53
Ordinary share price (pence) 528.00 569.00 481.00
========= ========= =========
There were no dilutive securities at the period end (30 June 2024: none; 31
December 2024: none).
9. Share capital
Ordinary Treasury Total Nominal
shares shares shares value
in issue number number £’000
number
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 5 pence each:
At 31 December 2023 (audited) 191,183,036 1,828,806 193,011,842 9,651
----------------- ----------------- ----------------- -----------------
At 30 June 2024 (unaudited) 191,183,036 1,828,806 193,011,842 9,651
Ordinary shares repurchased into treasury (165,000) 165,000 – –
----------------- ----------------- ----------------- -----------------
At 31 December 2024 (audited) 191,018,036 1,993,806 193,011,842 9,651
Ordinary shares repurchased into treasury (3,635,000) 3,635,000 – –
----------------- ----------------- ----------------- -----------------
At 30 June 2025 (unaudited) 187,383,036 5,628,806 193,011,842 9,651
========== ========== ========== ==========
During the six months ended 30 June 2025, the Company:
– repurchased 3,635,000 shares into treasury (six months ended 30 June
2024: none; year ended 31 December 2024: 165,000) for a total consideration
including costs of £17,422,000 (six months ended 30 June 2024: £nil; year
ended 31 December 2024: £874,000); and
– did not issue any new shares or re-issue any shares from treasury.
Since the period end and up to 3 September 2025, the Company has not
repurchased any shares into treasury.
10. Reconciliation of liabilities arising from financing activities
Six months Six months Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Debt arising from financing activities at beginning of period/year
Bank loan 135,739 149,828 149,828
Cash at bank – bank overdraft 4 – –
----------------- ----------------- -----------------
Total 135,743 149,828 149,828
========== ========== ==========
Cash flows:
Net repayment of loan (31,283) (14,599) (14,599)
Movement in bank overdraft 1,702 – 4
Non cash flows:
Effects of foreign exchange (gains)/losses (13,238) (746) 510
Debt arising from financing activities at end of period/year
Bank loan 91,218 134,483 135,739
Cash at bank – bank overdraft 1,706 – 4
----------------- ----------------- -----------------
Total 92,924 134,483 135,743
========== ========== ==========
For details of the overdraft and multi-currency loan facility, see the
Liquidity Risk section in note 12 below.
11. Reserves
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, 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, respectively (30 June 2024: £151,493,000 and £22,779,000; 31
December 2024: £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 reserve 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 reserve and revenue reserve may be distributed by way
of dividend. The Parent Company’s capital reserves of £623,590,000 (30 June
2024: £685,258,000; 31 December 2024: £567,116,000) comprise a gain on
capital reserve arising on investments sold of £519,349,000 (30 June 2024:
£512,782,000; 31 December 2024: £495,474,000), a gain on capital reserve
arising on revaluation of listed investments of £91,786,000 (30 June 2024:
£149,772,000; 31 December 2024: £49,733,000), revaluation gains on unquoted
investments of £4,819,000 (30 June 2024: £15,195,000; 31 December 2024:
£14,385,000) and a revaluation gain on the investment in the subsidiary of
£7,636,000 (30 June 2024: £7,509,000; 31 December 2024: £7,524,000). The
capital reserve arising on the revaluation of listed investments of
£91,786,000 (30 June 2024: £149,772,000; 31 December 2024: £49,733,000) is
subject to fair value movements and may not be readily realisable at short
notice, as such it may not be entirely distributable. The reserves of the
subsidiary company are not distributable until distributed as a dividend to
the Parent Company. 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.
As at 30 June 2025, the Parent Company’s distributable reserves (excluding
capital reserves on the revaluation of investments) amounted to £724,613,000
(30 June 2024: £737,573,000; 31 December 2024: £719,634,000).
12. Financial risks and valuation of financial instruments
The Company’s investment activities expose it to the various types of risk
which are associated with the financial instruments and markets in which it
invests. The risks are substantially consistent with those disclosed in the
previous annual financial statements with the exception of those outlined
below.
Market risk arising from price risk
Price risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices (other than
those arising from interest rate risk or currency risk), whether those changes
are caused by factors specific to the individual financial instrument or its
issuer, or factors affecting similar financial instruments traded in the
market. Local, regional or global events such as war, acts of terrorism, the
spread of infectious illness or other public health issues, recessions,
climate change or other events could have a significant impact on the Group
and the market price of its investments and could result in increased premiums
or discounts to the Company’s net asset value.
Liquidity risk
The Group has an overdraft facility of £30 million (30 June 2024: £30
million; 31 December 2024: £30 million) and a multi-currency loan facility of
£200 million (30 June 2024: £200 million; 31 December 2024: £200 million)
which are updated and renewed on a biennial basis. Under the loan facility,
the individual loan drawdowns are taken with a three month maturity period.
At 30 June 2025, the Group had a US Dollar loan outstanding of US$125,000,000
which matures on 11 September 2025 (30 June 2024: US Dollar loan of
US$170,000,000 which matured on 12 September 2024; 31 December 2024: US Dollar
loan of US$170,000,000 which matured on 12 March 2025).
As per the borrowing agreements, borrowings under the overdraft and loan
facilities shall at no time exceed £230 million or 25% of the Group’s net
asset value (whichever is the lower) (30 June 2024 and 31 December 2024: £230
million or 25% of the Group’s net asset value (whichever is the lower)) and
this covenant was complied with during the respective periods.
Valuation of financial instruments
Financial assets and financial liabilities are either carried in the
Consolidated Statement of Financial Position at their fair value (investments
and derivatives) or at an amount which is considered to be the fair value (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), as set out in
the Group's Annual Report and Financial Statements for the year ended 31
December 2024. All investments are held at fair value through profit or loss.
The amortised cost amounts of due from brokers, dividends and interest
receivable, due to brokers, accruals, cash at bank, bank loans and bank
overdrafts approximate their fair value.
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, 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 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 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.
Assessing the significance of a particular input to the fair value measurement
in its entirety 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
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 in this instance
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 period.
Jetti Resources and MCC Mining
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 Statement 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 as at 30 June 2025 (unaudited) Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Assets:
Equity investments 992,287 2,870 32,210 1,027,367
Fixed income securities – 37,021 – 37,021
Investment in contractual rights – – 19,338 19,338
--------------- --------------- --------------- ---------------
Total assets 992,287 39,891 51,548 1,083,726
========= ========= ========= =========
Liabilities:
Derivative financial instruments – written options – (932) – (932)
--------------- --------------- --------------- ---------------
Total 992,287 38,959 51,548 1,082,794
========= ========= ========= =========
Financial assets/(liabilities) at fair value through profit or loss as at 30 June 2024 (unaudited) Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Assets:
Equity investments 1,114,885 – 35,218 1,150,103
Fixed income securities 7,900 31,295 – 39,195
Investment in contractual rights – – 19,935 19,935
--------------- --------------- --------------- ---------------
Total assets 1,122,785 31,295 55,153 1,209,233
========= ========= ========= =========
Liabilities:
Derivative financial instruments – written options – (1,396) – (1,396)
--------------- --------------- --------------- ---------------
Total 1,122,785 29,899 55,153 1,207,837
========= ========= ========= =========
Financial assets/(liabilities) at fair value through profit or loss as at 31 December 2024 (audited) Level 1 Level 2 Level 3 Total
£’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
========= ========= ========= =========
A reconciliation of fair value measurement in Level 3 is set out below.
Level 3 Financial assets at fair value through profit or loss Six months Six months Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
(unaudited) (unaudited) (audited)
£’000 £’000 £’000
Opening fair value 58,267 51,011 51,011
Return of capital – royalty (283) (203) (397)
Additions at cost 2,847 – 5,626
Total profit or loss included in net profit/(loss) on investments in the Consolidated Statement of Comprehensive Income – assets held at the end of the period/year (9,283) 4,345 2,027
--------------- --------------- ---------------
Closing balance 51,548 55,153 58,267
========= ========= =========
The Level 3 valuation process and techniques used are explained in the
accounting policies in note 2(h) on page 102 of the Group’s Annual Report
and Financial Statements for the year ended 31 December 2024. A more detailed
description of the techniques is found above under ‘Valuation process and
techniques’ for Level 3 valuations.
The Level 3 investments as at 30 June 2025 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 below.
Quantitative information of significant unobservable inputs – Level 3 –
Group
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 30 June 2025, 30 June 2024
and 31 December 2024 are as shown below.
Description As at Valuation Unobservable Range of weighted Reasonable Impact on fair
30 June technique input average inputs possible shift 1 value
2025 +/ -
£’000
MCC Mining 19,980 Market Price of recent 10.0% £2.0m
approach transaction
BHP Brazil Royalty 19,338 Discounted Discount rate – 8.0% – 10.0% 1.0% £1.0m
cash flows weighted average
cost of capital
Average US$2,075 – US$3,333 10.0% £2.0m
gold prices per ounce
Average US$8,500 – US$10,000 10.0% £1.0m
copper prices per tonne
Jetti Resources 12,230 Market Earnings multiple 17.5x 10.0% £1.0m
approach
---------------
Total 51,548
=========
Description As at Valuation Unobservable Range of weighted Reasonable Impact on fair
30 June technique input average inputs possible shift 1 value
2024 +/ -
£’000
Jetti Resources 25,207 Market Earnings multiple 5.50x 10.0% £2.5m
approach
BHP Brazil Royalty 19,935 Discounted Discount rate – 8.0% – 10.0% 1.0% £1.0m
cash flows weighted average
cost
of capital
Average US$1,650 – 10.0% £1.5m
gold prices US$2,314
per ounce
Average US$7,700 – 10.0% £1.0m
copper prices US$10,000
per tonne
MCC Mining 10,011 Market Price of recent 10.0% £1.0m
approach transaction
---------------
Total 55,153
=========
Description As at Valuation Unobservable Range of weighted Reasonable Impact on
31 December technique input average inputs possible shift¹ fair value
2024 +/-
£’000
BHP Brazil Royalty 22,197 Discounted Discount rate – 5.0% – 8.0% 1.0% £1.2m
cash flows weighted average
cost
of capital
Average US$2,270 – 10.0% £2.1m
gold prices US$2,376
per ounce
Average US$9,025 – 10.0% £1.0m
copper prices US$9,325
per tonne
Jetti Resources 21,973 Market Earnings multiple 4.75x 10.0% £2.3m
approach
MCC Mining 14,097 Market Price of recent 10.0% £1.4m
approach transaction
---------------
Total 58,267
=========
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.
13. Transactions with the Investment Manager and AIFM
BlackRock Fund Managers Limited (BFM) provides management and administration
services to the Group under a contract which is terminable on six months’
notice. BFM has (with the Company’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 on
page 56 of the Annual Report and Financial Statements for the year ended 31
December 2024.
The investment management fee due for the six months ended 30 June 2025
amounted to £4,351,000 (six months ended 30 June 2024: £4,562,000; year
ended 31 December 2024: £8,952,000). At the period end, £6,314,000 was
outstanding in respect of the management fee (30 June 2024: £7,169,000; 31
December 2024: £9,018,000).
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
period ended 30 June 2025 amounted to £61,000 excluding VAT (six months ended
30 June 2024: £61,000; year ended 31 December 2024: £169,000). Marketing
fees of £64,000 were outstanding as at 30 June 2025 (30 June 2024: £115,000;
31 December 2024: £64,000).
The ultimate holding company of the Manager and the Investment Manager is
BlackRock, Inc., a company incorporated in Delaware, USA.
14. Related party disclosure
During the period ended 30 June 2025, there have been no transactions with
related parties which have materially affected the financial position or the
performance of the Group.
Directors’ emoluments
The Board consists of five non-executive Directors, all of whom are considered
to be independent of the Manager by the Board. None of the Directors has a
service contract with the Company. With effect from 1 October 2024, the
Chairman receives an annual fee of £54,000, the Audit and Risk Committee
Chairman receives an annual fee of £45,000, the Senior Independent Director
receives an annual fee of £39,500 and each of the other Directors receives an
annual fee of £36,000. Mr Goodyear has waived his Directors’ fees.
As at 30 June 2025, an amount of £15,000 was outstanding in respect of
Directors’ fees (30 June 2024: £14,000; 31 December 2024: £18,000).
Directors’ shareholdings
At the period end members of the Board held ordinary shares in the Company as
set out below:
Directors 30 June 30 June 31 December
2025 2024 2024
Ordinary shares Ordinary shares Ordinary shares
Charles Goodyear (Chairman) 60,000 60,000 60,000
Srinivasan Venkatakrishnan 2,000 2,000 2,000
Judith Mosely 7,400 7,400 7,400
Elisabeth Scott 2,200 – 2,200
Jane Lewis 1 n/a 7,000 7,000
========= ========= =========
1 Jane Lewis retired as a Director following the AGM on 21 May 2025.
Marion Sears was appointed as a Director on 27 August 2025, which was after
the period end and she has therefore not been included in the table above. Ms
Sears holds 7,000 ordinary shares in the Company.
Since the period end and up to the date of this report there have been no
other changes in Directors’ holdings.
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
not affiliates of BlackRock affiliates of BlackRock
Group or BlackRock, Inc. Group or BlackRock, Inc.
As at 30 June 2025 1.26 n/a n/a
As at 30 June 2024 1.32 n/a n/a
As at 31 December 2024 1.19 n/a n/a
========= ========= =========
15. Capital commitments and contingent liabilities
There was no capital commitment as at 30 June 2025 (30 June 2024: none; 31
December 2024: none).
There were no contingent liabilities as at 30 June 2025 (30 June 2024: none;
31 December 2024: none).
16. Publication of non-statutory accounts
The financial information contained in this Half Yearly Financial Report does
not constitute statutory accounts as defined in Section 435 of the Companies
Act 2006. The financial information for the six months ended 30 June 2025 and
30 June 2024 has not been audited or reviewed by the Company’s auditors.
The information for the year ended 31 December 2024 has been extracted from
the latest published audited financial statements, which have been filed with
the Registrar of Companies, unless otherwise stated. The report of the
auditors on those accounts contained no qualification or statement under
Sections 498(2) or (3) of the Companies Act 2006.
17. Annual results
The Board expects to announce the annual results for the year ending 31
December 2025 in February 2026.
Copies of the results announcement can be obtained from the Secretary on 020
7743 3000 or at cosec@blackrock.com. The Annual Report should be available by
the beginning of March 2026, with the Annual General Meeting being held in May
2026.
ENDS
The Condensed Half Yearly Financial Report will also be available on the
BlackRock website at www.blackrock.com/uk/brwm. 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.
For further information, please contact:
Charles Kilner, Director - Closed End Funds, BlackRock Investment Management
(UK) Limited -
Tel: 020 7743 1869
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 3620
E-mail: BlackRockInvestmentTrusts@lansons.com or EdH@lansons.com
12 Throgmorton Avenue
London EC2N 2DL
3 September 2025
Release (https://mb.cision.com/Main/22397/4229348/3647995.pdf)
Copyright (c) 2025 PR Newswire Association,LLC. All Rights ReservedRecent news on BlackRock World Mining Trust
See all newsREG-BlackRock World Mining Trust Plc: Correction: Half-year Report
AnnouncementREG-BlackRock World Mining Trust Plc: Half-year Report
AnnouncementREG-BlackRock World Mining Trust Plc: Net Asset Value(s)
AnnouncementREG-BlackRock World Mining Trust Plc: Net Asset Value(s)
AnnouncementREG-BlackRock World Mining Trust Plc: Net Asset Value(s)
Announcement