BlackRock World Mining Trust Plc - Portfolio Update
All information is at
Performance at month end with net income reinvested
One Three One Three Five
Month Months Year Years Years
Net asset value 5.1% 9.5% -1.1% 15.7% 94.4%
Share price 13.0% 11.1% -5.0% 11.0% 119.3%
MSCI ACWI Metals & Mining 30% Buffer 10/40 Index 4.8% 11.5% 7.4% 18.2% 78.1%
(Net)*
* (Total return)
Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream
At month end
Net asset value (including income)1: 596.86p Net asset value (capital only): 588.60p Share price: 584.00p Discount to NAV2: 2.2% Total assets: £1,276.9m Net yield3: 5.7% Net gearing: 14.7% Ordinary shares in issue: 191,183,036 Ordinary shares held inTreasury : 1,828,806 Ongoing charges4: 0.91% Ongoing charges5: 0.81%
1 Includes net revenue of 8.26p.
2 Discount to NAV including income.
3
Based on a first interim dividend of 5.50p per share declared on
4
The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended
5
The Company’s ongoing charges are calculated as a percentage of average daily gross assets and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended
Country Analysis Total
Assets (%)
Global 64.8
United States 8.5
Canada 8.3
Latin America 8.3
Australasia 7.7
Other Africa 4.0
Indonesia 0.6
South Africa 0.1
Net Current Liabilities -2.3
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100.0
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Sector Analysis Total
Assets (%)
Diversified 35.9
Copper 25.9
Gold 17.7
Steel 7.9
Industrial Minerals 5.1
Aluminium 3.2
Iron Ore 2.3
Uranium 1.5
Platinum Group Metals 1.1
Nickel 1.1
Mining Services 0.5
Zinc 0.1
Net Current Liabilities -2.3
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100.0
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Ten largest investments Company Total Assets % Glencore 8.2 BHP: Equity 6.0 Royalty 1.5 Vale: Equity 3.8 Debenture 2.5 Freeport-McMoRan 5.6 Anglo American 5.6 Rio Tinto 5.5 Newmont 4.5 Teck Resources 4.0 Agnico Eagle Mines 3.4 Nucor 3.2
Asset Analysis Total Assets (%)
Equity 99.4
Bonds 1.5
Preferred Stock 0.9
Convertible Bonds 0.6
Option -0.1
Net Current Liabilities -2.3
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100.0
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Commenting on the markets,Evy Hambro andOlivia Markham , representing the Investment Manager noted: Performance The Company’s NAV rose by 5.1% in April, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return) which returned +4.8% (performance figures in GBP). April was a positive month for the mining sector, outperforming broader equity markets which fell by 3.3% (in USD terms) as measured by the MSCI All Country World Index. Inflation proving stickier than expected and rising US interest rate expectations supported the outperformance of value sectors over growth ones. Meanwhile, we saw strength almost across the board in mined commodity prices as Chinese economic data improved. For reference, the country’s manufacturing PMI came in above 50 for the second consecutive month. Iron ore had a particularly strong month, with the 62% fe. price rising by 15.8%. Elsewhere, base metals were buoyant with copper, nickel and zinc prices rising by 12.8%, 15.1% and 21.7% respectively. Gold and silver prices rose by 3.7% and 6.5% respectively, appearing to benefit from ‘safe-haven’ demand. Turning to the companies, we saw high profile M&A activity with BHP proposing a$39bn takeover of fellow diversified miner Anglo American. Anglo American rejected the offer, but the market expectation is that BHP may improve its offer or that other buyers may emerge. This proposal supports our view that existing copper assets are currently trading significantly below replacement costs in the listed market, making them attractive to peers and strategic buyers. Strategy and OutlookChina has re-opened but with less impact than had been expected. Uncertainty persists around China’s commodity demand, but we are seeing the Chinese administration announce financial support incrementally. Longer term, we are excited by the structural demand growth for a range of mined commodities that will result from the low carbon transition. Meanwhile, commodity supply is likely to be constrained by the capital discipline of recent years, whilst inventories for many mined commodities are at historic lows. Mining companies have low levels of debt, continue to return capital to shareholders, but appear to be entering a higher capital expenditure phase. We are seeing Brown to Green emerge as a key theme, where mining companies are focusing on reducing the greenhouse gas emissions intensity associated with their production. We expect to see a re-rating for the mining companies able to best navigate this and are playing this in the portfolio.22 May 2024 Latest information is available by typing www.blackrock.com/uk/brwm on the internet. Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.
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