BlackRock World Mining Trust Plc - Final Results
LEI: LNFFPBEUZJBOSR6PW155
Annual Report and Financial Statements
Key highlights
• Very strong year driven by positive demand trends from AI infrastructure build out and energy transition, supply side disruption, and exceptional demand for precious metals.
• Net asset value per share (NAV) total return for the year was +74.2%, compared to a total return of the reference index of +64.2% and the FTSE All-Share Index total return of 24.0%. The share price total return for the same period was +74.1%. (All performance returns in sterling terms with dividends reinvested).
• Proposed final dividend of 7.50p per share. This, together with three quarterly interim dividends, makes a total of 24.00p per share (2024: 23.00p per share) representing a 4.3% increase on dividend payments in 2024.
“The Company’s performance through 2025 is a clear illustration of our value as a nimble “virtual mining company”, without the constraints that come with the development of fixed mining assets, and the excellent use of the investment trust structure. Our portfolio manager’s ability to flex exposure to the appropriate commodities and precious metals, their effective use of gearing to enhance returns, options strategy to boost income, and our exposure to unquoted assets all offers a unique investment opportunity for investors.”
Performance record
As at As at
31 December 31 December
2024
2025
Net assets 1,598,428 975,199
(£’000)¹
Net asset value
per ordinary 856.23 510.53
share (NAV)
(pence)
Ordinary share 804.00 481.00
price (pence)
Reference
index2 – net 8,885.32 5,411.07
total return
Discount to net 6.1% 5.8%
asset value3
========= =========
For the For the
Performance year ended year ended
(with dividends
reinvested) 31 December 31 December
2025 2024
Net asset value +74.2% -10.7%
per share2,3
Ordinary share +74.1% -12.7%
price2,3
Reference +64.2% -9.9%
index2
========= =========
For the five For the five Since inception Since inception
Performance years ended years ended
(with dividends to 31 December to 31 December
reinvested) 31 December 31 December 2024
2025 2025 2024
Net asset value +107.2% +56.7% +2,107.8% +1,167.4%
per share2,3
Ordinary share +101.8% +69.9% +2,129.4% +1,180.2%
price2,3
Reference +94.6% +42.9% +1,536.0% +896.3%
index2
========= ========= ========= =========
For the For the
year ended year ended
Change
31 December 31 December %
2025 2024
Revenue
Net revenue profit after 45,867 44,127 +3.9
taxation (£’000)
Revenue return per ordinary 24.37 23.09 +5.5
share (pence)4
--------------- --------------- ---------------
Dividends per ordinary share
(pence)
– 1st interim 5.50 5.50 –
– 2nd interim 5.50 5.50 –
– 3rd interim 5.50 5.50 –
– Final 7.50 6.50 +15.4
--------------- --------------- ---------------
Total dividends paid and payable 24.00 23.00 +4.3
========= ========= =========
1 The change in net assets reflects portfolio movements, dividends paid and the repurchase of ordinary shares into treasury during the year.
2
MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (net total return). With effect from
3
Alternative Performance Measures, see Glossary in the Company’s Annual Report for the year ended
4
Further details are given in the Glossary in the Company’s Annual Report for the year ended
Chairman’s Statement
Highlights
• NAV per share 74.2% 1 (with dividends reinvested)
• Share price 74.1% 1 (with dividends reinvested)
• Total dividends of 24.00p per share
Overview
The financial year to
For the mining industry, 2025 was similarly constructive. Performance was supported by consumer demand anticipated as a result of enduring structural themes: rapid digitalisation, the acceleration of the energy transition, increased investment in Artificial Intelligence (AI) related infrastructure, and strong demand for critical minerals essential to new technologies. Precious metals were a standout. Gold and silver experienced exceptional demand-driven in part by continued central bank accumulation of gold reserves-which helped propel the sector to market leading returns in the second half of the year. It is against this favourable backdrop that we are pleased to report a very strong year for the Company.
Performance
Over the twelve months to
Our portfolio managers provide a more detailed explanation of the Company’s performance during the year in their report below. They also provide additional insight into the positioning of the portfolio and their views on the outlook for the coming year.
Revenue return and dividends
The Company’s revenue per share for the year to
During the year, three quarterly interim dividends of 5.50p per share were paid. The Board is proposing a final dividend payment of 7.50p per share for the year ended
As in past years, all dividends are fully covered by income. In accordance with the Board’s stated policy, the total dividends represent substantially all of the year’s available income.
Subject to approval at the Annual General Meeting, the final dividend will be paid on
Gearing
The Company operates a flexible gearing policy which depends on prevailing market conditions. It may borrow up to 25% of the Group’s net assets. The maximum level of gearing used during the year was 13.6% and the level of gearing at
Management of premium/discount
The Directors recognise the importance to investors of the market price of the Company’s shares relative to the underlying NAV. Accordingly, in normal market conditions, the Company may repurchase shares (at a discount to NAV) or reissue shares from treasury or issue new shares (at a premium to NAV) to manage the premium or discount at which the Company’s shares trade, where it is deemed to be in shareholders’ interests.
Over the Company’s financial year ending in December, the Company’s shares have traded at an average discount of 6.6%. During the year, the Company purchased 4,335,000 shares at an average price of 509.83p per share at an average discount of 8.7% for a total cost of £22,101,000. Since the year end and up to
Resolutions to renew the authorities to issue and buy back shares will be put to shareholders at the forthcoming Annual General Meeting.
Board composition
We are pleased to welcome
The Board has initiated a search process to identify a new Director with the skills the Board has identified it requires. We will announce the appointment of a new Director later in the year.
Shareholder communication and engagement
We appreciate how important access to regular information is to our shareholders. To supplement our Company website, we offer shareholders the ability to sign up to the Trust Matters newsletter which includes information on the Company as well as news, views and insights on the investment trust market. Information on how to sign up is included on the inside front cover of the Annual Report.
The Board encourages all shareholders to either attend the AGM or exercise your right to vote by proxy. The Board has sought to engage with shareholders who hold their shares through an intermediary or platform via the provisions of Section 793 of the Companies Act 2006. In addition, the Board is aware that certain execution only investment platforms are now providing shareholders with the ability to vote electronically. The Board encourages shareholders to take advantage of this functionality where it is available to you. For those of you who hold shares via platforms, information on how to vote can be found here: www.theaic.co.uk/availability-on-platforms .
At our AGM in 2025, we provided a short presentation on the
Annual General Meeting arrangements
The Company’s AGM will be held at the offices of BlackRock at
The Board very much looks forward to meeting shareholders and we encourage you to attend this year’s AGM. In the meantime, if shareholders would like to contact me, please write to
Outlook
The start of 2026 has been marked by volatility, with gold and silver prices touching new highs before pulling back. Persistent inflation, elevated government debt, ongoing geopolitical tensions and increased volatility are keeping demand strong for safe haven assets. The escalation of conflicts in the
Mined materials continue to play a crucial role in modern society, underpinning economic growth and enabling advances in living standards and technology.
Chairman
Investment Manager’s Report
Market overview
We are delighted to report a stellar year of performance for the Company. At the half year point this outcome was not expected given the mixed returns earlier in the year despite foundations in place to achieve this strong result. A combination of renewed focus on the sector, positive demand trends, supply side disruption, critical minerals agenda and ongoing macro tailwinds drove the subsequent NAV total return outcome. 2025 produced the largest one-year gain in Company’s assets since inception and the fourth largest gain in the NAV per share. It was also pleasing to see the share price keep up with the move in the underlying portfolio despite the
Performance in 2025 was further enhanced by the use of options, while commodity prices improved royalty income and allowed us to unlock value from selling our unquoted royalty investment in the BHP Brazil contract for a large gain. All of these added together helped deliver returns in excess of the broader mining sector.
2025 proved to be a tale of two halves. The portfolio reached a low point in
Several supportive trends boosted commodity markets. In the US,
For the year as a whole, the NAV total return of the Company was 74.2% and the share price total return was 74.1%. This compares to the return on
Commodity price trends
Key commodity performers included the precious metals, led by silver (up 149.1%) and gold (up 64.7% - all commodity price performance is in US Dollar terms). The Platinum Group Metals (PGM) suite, despite not performing for most of the year, surged in the latter months to gain 121.8%. The base metals were led by copper and tin, up 43.9% and 40.9% respectively. Most of these gains happened during the second half of the year and some of the prices only moved in the final quarter. This has meant that the gains in average year-on-year prices are a fraction of the average 12-month moves. For example, the 43.9% gain in copper compares to an 8.8% gain in the year-on-year average price. This means that earnings and cash-flow growth will accrue in 2026. Should commodity price strength be sustained, growth in dividends/capital returns should occur in the second half of 2026.
31 December 2025 % Change in 2025 % Change average prices
2025 vs 2024
Commodity
Gold US$/ounce (oz) 4,325.0 64.7% 44.2%
Silver US$/oz 72.0 149.1% 42.0%
Platinum US$/oz 2,027.0 121.8% 34.2%
Palladium US$/oz 1,567.0 72.4% 17.1%
Copper US$/pound (lb) 5.65 43.9% 8.8%
Nickel US$/lb 7.48 9.2% -9.8%
Aluminium US$/lb 1.35 17.5% 8.7%
Zinc US$/lb 1.40 4.3% 3.2%
Lead US$/lb 0.89 2.2% -5.2%
Tin US$/lb 18.43 40.9% 13.3%
WTI Cushing US$/barrel 57.26 -21.0% -14.5%
Iron Ore (China 62% 105.70 6.2% -8.8%
fines) US$/tonne (t)
========= ========= =========
Source: LSEG Datastream and Bloomberg,
Bulk commodity prices were generally resilient versus consensus estimates at the start of the year. Iron ore prices once again defied predictions of a significant decline. Prices failed to retreat sustainably below
The oil price fell to under
Top contributors and detractors
In 2025, many commodity prices and equities moved up together. The decision to increase exposure to gold equities in early 2024 paid off as the gold price rallied throughout the year. In addition, the multi-year overweight position in copper miners saw the Company benefit from a breakout in copper prices to levels not seen before. The Company could be seen as a “virtual mining company” – with the ability to move commodity exposure around more rapidly and at a lower cost than a listed mining company. This is evident comparing the performance of the Company against the large diversified miners during 2025.
Key contributors to performance in 2025 were positions in Hycroft Mining (1.7% of the portfolio), Kinross Gold (4.1% of the portfolio), Discovery Silver (0.8% of the portfolio) and the sale of the BHP Brazil Royalty. Offsetting these were detractors including Jetti Resources (0.7% of the portfolio) and Ivanhoe Mines (1.2% of the portfolio) and not owning enough of Gold Fields.
Portfolio Reference Contribution
Description Sector average Index average Portfolio to relative
weight weight active weight return-total
effect
Top
Contributors
Cash and cash N/A -8.57% +0.00% -8.57% +8.42%
equivalents
Hycroft Gold +0.32% +0.00% +0.32% +2.60%
Mining
BHP Brazil Gold/Copper +1.75% +0.00% +1.75% +2.40%
Royalty
Kinross Gold Gold +4.09% +1.90% +2.19% +1.82%
Discovery Silver +0.62% +0.00% +0.62% +1.51%
Silver
Nippon Steel Steel +0.00% +1.70% -1.70% +1.42%
Agnico Eagle Gold +7.35% +5.10% +2.25% +1.26%
Mines
Saudi Arabian
Mining Diversified +0.00% +1.70% -1.70% +1.00%
Company
Bravo Mining PGM +1.13% +0.00% +1.13% +0.84%
Reliance Inc. Diversified +0.16% +1.40% -1.24% +0.82%
Lundin Mining Copper +1.75% +0.70% +1.05% +0.81%
Titan Mining Zinc +0.32% +0.00% +0.32% +0.81%
Endeavour Gold +1.05% +0.10% +0.95% +0.75%
Mining
Valterra PGM +1.37% +0.80% +0.57% +0.65%
Platinum
Minerals 260 Gold +0.33% +0.30% +0.03% +0.65%
========= ========= ========= ========= =========
Portfolio Reference Contribution
Description Sector average Index average Portfolio to relative
weight weight active weight return-total
effect
Top
Detractors
Jetti Copper +1.47% +0.00% +1.47% -2.52%
Resources
Gold Fields Gold +0.05% +2.20% -2.15% -2.17%
Ivanhoe Mines Copper +1.48% +0.60% +0.88% -1.75%
Zijin Mining Gold +0.09% +1.80% -1.71% -1.11%
Group
Vale Diversified +7.49% +3.20% +4.29% -1.08%
Sociedad
Minera Cerro Copper +1.87% +0.00% +1.87% -1.07%
Verde
Anglo Diversified +4.86% +2.90% +1.96% -1.06%
American
MCC Mining Copper +1.51% +0.00% +1.51% -0.76%
Glencore Diversified +4.22% +3.50% +0.72% -0.71%
Labrador Iron
Ore Royalty Iron Ore +0.93% +0.00% +0.93% -0.67%
Corp
CMOC Group Copper +0.00% +0.50% -0.50% -0.66%
Pan American Silver +0.00% +1.00% -1.00% -0.66%
Silver
Newmont Gold +4.59% +5.50% -0.91% -0.64%
Mining
Industrias Silver +0.00% +0.50% -0.50% -0.62%
Penoles Sab
Sigma Lithium Lithium +0.26% +0.00% +0.26% -0.60%
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As can be seen in the graphs on page 13 in the Company’s Annual Report for the year ended
A number of mergers and acquisitions (M&A) were either attempted or completed in 2025. In copper, BHP (3.6% of the portfolio) tried to buy Anglo American (4.1% of the portfolio) after their failed move in 2024. The bid was deemed inadequate and rejected by the Anglo American Board. Anglo American itself made a move to merge with Teck Resources which shareholders voted through as the year drew to a close. In the precious metals sector, Gold Fields completed a deal to buy
Income
The Company had another good year for income despite the year-on-year cuts in dividend payments by many companies. Importantly, the diversification of income sources meant receipts were sufficient, and more than met our expectations of a flat income level versus last year.
Shareholders should note that the disposal of the BHP Brazil Royalty to Gold Royalty Corp at year end will reduce income in 2026. However, we remain confident of being able to recycle funds raised from the sale of this royalty into new investments.
Source of dividends and other income for last ten years
Shareholders should note that the disposal of the BHP Brazil royalty to Gold Royalty Corp at year end will reduce income in 2026. However, we remain confident of being able to recycle funds raised from the sale of this royalty into new investments.
Base metals
The base metals suite, led by copper, finished the year higher due to a culmination of macro factors (US growth,
Copper, our preferred base metal, rallied as the investment narrative shifted toward energy transition, AI build - out, and defence - led reshoring demand. With AI data centre capital expenditure accelerating, the market has become aware of the supply chain bottlenecks such as power, water and the electricity grid. During the year, the US classified copper as a critical metal and in a world that is increasingly electrified, we agree. Roughly two-thirds of copper demand is linked to the distribution of electricity which continues to increase with power intensive AI data centre growth, rising electric vehicle (EV) demand, solar and wind infrastructure, investment into the electricity grid and defence spending.
The supply challenges facing the copper industry intensified, with three of the world’s major copper projects offline – driving prices higher. Mine supply disruptions are estimated to have exceeded 6% of global supply in 2025, meaningfully above historical levels. The challenges to bring on additional future supplies – such as permitting and low availability of higher grade ore – remain, motivating companies to “buy versus build.” This drove a series of copper related M&A events during the year, including Anglo American’s bid for Teck Resources.
The Company’s holding in Lundin Mining (2.1% of the portfolio) gained 135% as it delivered strong operational performance and increased production guidance. In addition, a range of smaller copper companies including Ivanhoe Electric (1.1% of the portfolio), Solaris Resources (0.5% of the portfolio) and NGEx Minerals (0.8% of the portfolio) performed well as the market bid-up these pre-production companies amid higher copper prices.
The aluminium market continued to tighten with
The nickel price was stable until a year-end price rally triggered by the potential for
Bulks and steel
It was a more challenging period for the bulk commodities with iron ore prices in range-bound trading and coal prices soft. The metallurgical and thermal coal market was over supplied in
China’s steel production declined by around two percent in 2025, with weak domestic demand offset by increased steel exports.
The iron ore market has benefited from limited growth capital expenditure, supply shocks and resilient Chinese steel demand over the last five years resulting in a “stronger for longer” pricing environment. Investors have been focused on whether the iron ore market moves into oversupply with the arrival of the Simandou project in
An interesting debate is whether production from Simandou will only offset the ongoing depletion of existing deposits. We have seen an increase in spending by major producers as they look to maintain their existing production levels. Although the iron ore price has remained stable, margins and free cash flow generation have declined.
The Company’s largest exposure to iron ore is through Vale (7.1% of the portfolio), the best performing diversified mining group in 2025 with a total return of 54.9% in Sterling terms. The company hit the upper end of production guidance in 2025 and also beat market expectations for dividends and share buybacks.
Following a 10% decline in the first half of the year, coking coal prices moved above
For most of 2025, thermal coal prices were pressured by strong Chinese production. With lower margins for thermal coal producers and the market well balanced, we see reduced free cash flow generation for these companies. The Company’s thermal coal exposure is also via Glencore, which trades on an attractive free cash flow yield despite depressed coal prices. At their Capital Markets Day in
Precious metals
Gold, silver, platinum and palladium all set records in 2025. The Company has made meaningful increases to its precious metals exposure over the last few years, and it was at nearly 45% of the portfolio at year end.
Many factors drove the precious metals rally including elevated geopolitical risks, tariff uncertainty, expected interest rate cuts, central bank buying and exchange traded fund (ETF) inflows. The worsening fiscal deficit in the US and rising government debts across the world bring into question the purchasing power of paper currencies, with investors looking to alternatives such as gold (and real assets more broadly) for protection.
Central banks remained strong buyers of gold, and additional demand came from new players such as Tether, a stablecoin company, who held 116 tonnes of gold as at
Gold versus gold ETF
Gold equities performed strongly, with the FTSE Gold Mines Index up 163%. The gold mining companies have done a good job capturing higher gold prices and converting it into improved cash flows. This has supported debt reduction as well as increased dividends and buybacks. Lower oil prices and moderate cost inflation has resulted in record margins, albeit reduced by higher government royalty and taxes, and it has been encouraging to see the companies maintain capital cost discipline.
Platinum Group Metals
Kinross Gold was a key contributor to performance, as the company bolstered its organic growth pipeline and maintained a disciplined approach to capital allocation. The Company increased its exposure to Barrick Mining during the second half as momentum built around the potential break-up of the business. Spectacular performance came from some of our smaller holdings, including
After a multi-year period of destocking, PGM prices bottomed and markets tightened which saw platinum and palladium prices leap higher. The PGM industry has been cautious in investing in new supply, so producers are unable to increase production as demand rises. We have previously talked about how the growth of EVs that don’t use PGMs might be bad for demand. However, over the past two years we have seen greater demand for hybrid EVs that do contain these metals.
The Company increased its exposure to Valterra Platinum (2.0% of the portfolio) and to Northam Platinum (0.9% of the portfolio), which also provides exposure to rhodium. Our other key PGM exposure is held through Bravo Mining (1.1% of the portfolio), which provided positive updates on its Luanga project in
Energy transition metals
Global battery EV and hybrid sales continued to increase in 2025, with volumes expected to reach 22 million units, up from 17 million units in 2024. Growth was supported by improvements in battery performance, declining production costs and a broader model range, particularly in
Improved economics for ESS, combined with growing renewable energy generation to power the growth of AI, has seen ESS demand accelerate, and today it accounts for around one-third of lithium demand. Despite weak pricing, supply growth remains strong from projects committed to during a period of higher lithium prices. The Company has limited exposure to lithium through a convertible bond in Albemarle (0.7% of the portfolio), the world’s largest lithium producer. The Company also has exposure to lithium via
The role of nuclear energy in delivering net-zero objectives gained further momentum through 2025, supported by governments and technology companies seeking reliable, low-carbon power for data centres. The Company’s holding in Cameco (1.0% of the portfolio) rose 78% in 2025, benefitting from its 49% ownership stake in Westinghouse – which announced a partnership with the US government to invest at least
Rare earth elements (REEs) remain strategically important, particularly for EV motors that use neodymium-praseodymium (NdPr) magnets. With supply chains heavily concentrated in
Royalty and unquoted investments
As at year end, the unquoted investments were 4.0% of the portfolio and consist of the Vale Debentures, Jetti Resources and
BHP Brazil Royalty Contract
In 2014 the Company invested
Since our investment, the operator of the asset has evolved with Avanco acquired by OZ Minerals and BHP acquiring OZ Minerals in 2023. In 2025, BHP announced that it had signed an agreement to sell the asset to
The Company sold the BHP Brazil Royalty to Gold Royalty Corp, a listed precious metals royalty company for
The portfolio managers continue to evaluate new royalty and unquoted opportunities following a series of successful exits in recent years.
Vale Debentures (2.1% of the portfolio)
At the beginning of 2019, the Company increased its holding in Vale Debentures, which consist of a 1.8% net revenue royalty over Vale’s Northern System and Southeastern System iron ore assets in
Since we acquired the debentures for
Distribution on Vale Shareholders’ debenture payments.
Whilst the Vale Debentures are a royalty and are a listed security on the Brazilian National Debentures System. Historically there has been a low level of liquidity in these debentures and price volatility is to be expected.
Jetti Resources (0.7% of the portfolio)
In 2022, the Company made an investment in 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 improve recoveries at a low capital cost. The technology is being used at Capstone’s
During the year, the Company reduced the fair value of Jetti by 39% to reflect the longer contract negotiation process and subsequent delays to revenue expectations. This resulted in a 0.7% impact on performance of the Company. Jetti is now valued modestly higher than our initial cost when the investment was made in the company in 2022.
MCC continues to deliver encouraging exploration results as it advances its Pantanos and Comita projects, successfully raising
Derivatives activity
As usual, the company from time to time enters into derivatives contracts, mostly involving the sale of “puts” and “calls” for income generation. These are taken to revenue and are subject to strict Board guidelines that limit their magnitude to an aggregate of 10% of the portfolio. In 2025 income generated from options was £8.3 million which is slightly below prior year but above average relative to the prior decade. In 2024 there were a number of stock specific events that allowed unique gains to be locked in which drove the higher number. This year there were fewer events but none of the scale or opportunity to repeat the 2024 income. In addition, volatility was lower for most of the year making writing options less attractive. At the end of the year, the Company had 0.02% of the net assets exposed to derivatives and the average exposure to derivatives during the year was less than 5%.
Gearing
At year end, the Company had £96.7 million of net debt, with a gearing level of 4.7%. The debt is held principally in US Dollar rolling short term loans and managed against the value of the debt securities and the high yielding royalty positions in the Company. The debt was generally held against the breadth of the portfolio and for use in derivative transactions. Sale proceeds during the year were used to fund new investments but also to reduce overall debt levels to maintain capacity for future opportunities.
Outlook
In 2024 we wrote about the frustrations of seeing strong fundamentals but falling share prices. It is a delight to write that in 2025 share prices rose significantly to reflect the strong fundamentals. It is important to understand why markets did so well in 2025 to estimate what will happen in 2026. We don’t expect the drivers of last year’s gains to change unless we see a global economic shock. In fact, commodity markets look set to be even stronger as demand continues to outgrow supply. It will be up to investors to decide what price to put on this, and that will determine total return for 2026, but the year has started well.
Key risks remain, including geopolitical fluctuations, slow growth in the Chinese economy and the concentration of capital spending related to technology and AI. Should there be a wobble on the latter, both the sector as well as broader markets would be challenged.
In summary, 2025 was a tremendous year for shareholder share price total return with a gain of 74.1%. Within this, income remained healthy and looks set to stabilise around current levels – or higher if companies decide to share more with their investors. Management teams look set to remain disciplined on capital spending, but there is a risk that M&A could accelerate given listed producers remain cheaper than the cost of building new capacity. The Company continues to look for interesting new opportunities, especially in the unquoted space to replace the BHP Brazil Royalty. We look forward to completing additional unquoted transactions this year.
Ten largest investments
Together, the Company’s ten largest investments represented 49.4% of the Company’s portfolio as at
1 Vale 1,2,3 (2024: 6th)
Diversified mining group
Market value: £119,363,000
Share of investments: 7.1% comprising equity of 5.0% and debentures of 2.1% (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 Barrick Mining (2024: 10th)
Gold producer
Market value: £102,307,000
Share of investments: 6.1% (2024: 3.1%)
A senior gold producer and the third-largest in the world by market capitalisation. The company has operations and projects in
3 Agnico Eagle Mines (2024: 5th)
Gold producer
Market value: £94,256,000
Share of investments: 5.6% (2024: 5.2%)
A senior gold producer and one of the largest in the world by market capitalisation. The company has operations and projects in
4
Diversified mining group
Market value: £89,648,000
Share of investments: 5.4% (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 Newmont Corporation (2024: 12th)
Gold producer
Market value: £86,632,000
Share of investments: 5.2% (2024: 2.8%)
The world’s largest gold producer by market capitalisation. The group has gold and copper operations on five continents, with active gold mines in
6
Gold producer
Market value: £71,615,000
Share of investments: 4.3% (2024: 0.6)
A major global gold mining company, formed in 2004 by the merger of
7 Anglo American (2024: 4th)
Diversified mining group
Market value: £69,307,000
Share of investments: 4.1% (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 and has announced a business combination with Teck Resources.
8 Kinross Gold (2024: 27th)
Gold producer
Market value: £68,170,000
Share of investments: 4.1% (2024: 1.2%)
A mining company conducting extraction and processing of gold and silver ore. It operates a portfolio of gold mines in
9 Wheaton Precious Metals (2024: 8th)
Precious metals royalty
Market value: £65,063,000
Share of investments: 3.9% (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.
10 BHP 3 (2024: 1st)
Diversified mining group
Market value: £59,583,000
Share of investments: 3.6% (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, metallurgical coal and potash.
1 Includes investments held at Directors’ valuation.
2 Includes fixed income securities.
3 Includes options.
All percentages reflect the value of the holding as a percentage of total investments. For this purpose, where more than one class of securities is held, these have been aggregated.
Percentages in brackets represent the value of the holding as at
Investments
as at
Main Market
% of
geographical value
investments
exposure £’000
Gold
Barrick Mining Global 102,307 6.1
Agnico Eagle Mines Canada 94,256 5.6
Newmont Corporation Global 86,632 5.2
AngloGold Ashanti South Africa 71,615 4.3
Kinross Gold Global 68,170 4.1
Wheaton Precious Metals Global 65,063 3.9
Hycroft Mining United States 29,201 1.7
Franco-Nevada Global 20,975 1.3
Northern Star Resources Australasia 18,980 1.1
Endeavour Mining Other Africa 18,803 1.1
Gold Royalty Global 15,018 0.9
Capricorn Metals Australasia 14,821 0.9
Firefly Metals Canada 11,340 0.7
Allied Gold1 Other Africa 10,798 0.6
Rio2 Latin America 10,546 0.6
Minerals 260 Australasia 10,456 0.6
Bellevue Gold Australasia 7,673 0.5
Zijin Mining Group China 7,217 0.4
Polyus2 Russia – –
--------------- ---------------
663,871 39.6
========= =========
Diversified
Vale Global 83,963
Vale Debentures1,3,4 Global 35,749 } 7.1
Vale Put Option 16/01/2026 Global (349)
US$13.00
Rio Tinto Global 89,648 5.4
Anglo American Global 69,307 4.1
BHP Global 59,593
} 3.6
BHP Put Option 15/01/2026 Global (10)
AUD$41.261
Glencore Global 56,115 3.4
Vox Royalty Canada 10,691 0.6
Teck Resources Global 9,052 0.5
--------------- ---------------
413,759 24.7
========= =========
Copper
Lundin Mining Global 34,929 2.1
Freeport-McMoran Global 34,605 2.1
Southern Copper Corporation Latin America 30,090 1.8
Sociedad Minera Cerro Verde Latin America 25,620 1.5
Foran Mining Canada 24,043 1.4
Develop Global Australasia 20,443 1.2
MCC Mining4 Latin America 20,355 1.2
Ivanhoe Mines Other Africa 19,690 1.2
Ivanhoe Electric United States 18,879 1.1
First Quantum Minerals Global 18,545 1.1
NGEx Minerals Latin America 12,859 0.8
Jetti Resources4 Global 12,436 0.7
Solaris Resources Latin America 8,121 0.5
Ero Copper Latin America 4,146 0.2
LunR Royalties Latin America 2,946 0.2
--------------- ---------------
287,707 17.1
========= =========
Steel
Steel Dynamics United States 32,018 1.9
Nucor United States 31,826 1.9
ArcelorMittal Global 28,165 1.7
--------------- ---------------
92,009 5.5
========= =========
Platinum Group Metals
Valterra Platinum South Africa 33,659 2.0
Bravo Mining Latin America 18,991 1.1
Northam Platinum Global 14,527 0.9
Impala Platinum South Africa 4,649 0.3
--------------- ---------------
71,826 4.3
========= =========
Industrial Minerals
Lynas Rare Earths Australasia 13,547 0.8
Martin Marietta Materials United States 13,141 0.8
Albemarle Global 11,376 0.7
Iluka Resources Australasia 5,179 0.3
Chalice Mining Australasia 2,053 0.1
Sheffield Resource Australasia 704 –
--------------- ---------------
46,000 2.7
========= =========
Aluminium
Alcoa Global 19,743 1.2
Hydro Global 14,791 0.9
--------------- ---------------
34,534 2.1
========= =========
Iron Ore
Labrador Iron Canada 10,874 0.6
Fortescue Australasia 4,341 0.3
Champion Iron Canada 4,153 0.3
Equatorial Resources Other Africa 253 –
--------------- ---------------
19,621 1.2
========= =========
Uranium
Cameco Canada 15,918 1.0
--------------- ---------------
15,918 1.0
========= =========
Silver
Discovery Silver Latin America 13,013 0.8
--------------- ---------------
13,013 0.8
========= =========
Nickel
Nickel Industries Indonesia 6,300 0.4
Lifezone Metals Global 2,959 0.2
--------------- ---------------
9,259 0.6
========= =========
Zinc
Titan Mining United States 7,181 0.4
--------------- ---------------
7,181 0.4
========= =========
Energy Minerals
Gippsland Energy Australasia – –
Latrobe Fertilisers Australasia – –
--------------- ---------------
1,674,698 100.0
========= =========
Comprising:
– Investments 1,675,057 100.0
– Options (359) –
--------------- ---------------
1,674,698 100.0
========= =========
1 Includes fixed income securities.
2
This position is fair valued to nil due to sanctions on
3
The investment in the Vale debentures is illiquid and has been valued using secondary market pricing information provided by the
4 Includes investments held at Directors' valuation.
All investments are in equity shares unless otherwise stated.
The total number of investments as at
As at
Portfolio analysis
as at
Commodity Exposure 1
2025 2024 2025 reference index3
portfolio portfolio2
Gold 39.6% 22.0% 36.3%
Diversified 24.7% 33.9% 26.8%
Copper 17.1% 24.8% 11.8%
Steel 5.5% 4.7% 11.3%
Platinum Group Metals 4.3% 1.7% 3.2%
Industrial Minerals 2.7% 2.8% 1.0%
Aluminium 2.1% 2.3% 3.0%
Iron Ore 1.2% 3.2% 2.2%
Uranium 1.0% 3.4% 0.0%
Silver 0.8% 0.0% 2.5%
Nickel 0.6% 1.1% 0.0%
Zinc 0.4% 0.1% 1.1%
Other4 0.0% 0.0% 0.8%
1 Based on index classifications.
2
Represents exposure at
3 MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (net total return).
4 Represents a very small exposure.
Geographic Exposure 1
2025 Global 57.2%Canada 10.2%Latin America 8.7% Other2 8.6%South Africa 6.6%Australasia 5.8% OtherAfrica (exSouth Africa ) 2.9%
2024 Global 61.3%Canada 12.5%Latin America 8.9%Australasia 6.5% Other3 6.2% OtherAfrica (exSouth Africa ) 3.9%South Africa 0.7%
1 Based on the principal commodity exposure and place of operation of each investment.
2
Consists of
3
Consists of
Strategic Report
The Directors present the Strategic Report of
The Chairman’s Statement together with the Investment Manager’s Report form part of this Strategic Report. The Strategic Report was approved by the Board at its meeting on
Principal activities
The Company carries on business as an investment trust with a listing on the
Investment trusts are pooled investment vehicles which allow exposure to a diversified range of assets through a single investment, thus spreading investment risk.
Objective
The Company’s objective is to maximise total returns to shareholders through the cycle using a worldwide portfolio of mining and metal investments.
The Board recognises the importance of dividends to shareholders in achieving that objective, in addition to capital returns.
Strategy, business model and investment policy
Strategy
The Company invests in accordance with the objective given above. The Board is collectively responsible to shareholders for the long-term success of the Company and is its governing body. There is a clear division of responsibility between the
Business model
The Company’s business model follows that of an externally managed investment trust. Therefore, the Company does not have any employees and outsources its activities to third-party service providers including the Manager who is the principal service provider. In accordance with the Alternative Investment Fund Managers’ Directive (AIFMD), as implemented, retained and onshored in the
The management of the investment portfolio and the administration of the Company have been contractually delegated to the Manager who in turn (with the permission of the Company) has delegated certain investment management and other ancillary services to
The Company delegates fund accounting services to the Manager, which in turn sub-delegates these services to
Investment policy
The Company’s investment policy is to provide a diversified investment in mining and metal securities worldwide actively managed with the objective of maximising total returns. While the policy is to invest principally in quoted securities, the Company’s investment policy includes investing in royalties derived from the production of metals and minerals as well as physical metals. Up to 10% of gross assets may be held in physical metals.
In order to achieve its objective, it is intended that the Group will normally be fully invested, which means at least 90% of the gross assets of the Company and its subsidiary will be invested in stocks, shares, debt securities, royalties and physical metals. However, if such investments are deemed to be overvalued, or if the Manager finds it difficult to identify attractively priced opportunities for investment, then up to 25% of the Group’s assets may be held in cash or cash equivalents. Risk is spread by investing in a number of holdings, many of which themselves are diversified businesses.
The Group may occasionally utilise derivative instruments such as options, futures and contracts for difference, if it is deemed that these will, at a particular time or for a particular period, enhance the performance of the Group in the pursuit of its objectives. The Company is also permitted to enter into stock lending arrangements.
The Group may invest in any single holding of quoted or unquoted investments that would represent up to 20% of gross assets at the time of acquisition. Although investments are principally in companies listed on recognised stock exchanges, the Company may invest up to 20% of the Group’s gross assets in investments other than quoted securities. Such investments include unquoted royalties, equities or bonds. In order to afford the Company the flexibility of obtaining exposure to metal and mining-related royalties, it is possible that, in order to diversify risk, all or part of such exposure may be obtained directly or indirectly through a holding company, a fund or another investment or special purpose vehicle, which may be quoted or unquoted. The Board will seek the prior approval of shareholders for any unquoted investment in a single company, fund or special purpose vehicle or any single royalty which represents more than 10% of the Group’s assets at the time of acquisition.
The Company’s royalty strategy permits a 20% maximum exposure to royalties but the royalty/unquoted portfolio should itself deliver diversification across operator, country and commodity. To this end, new investments into individual royalties/unquoted investments will not exceed circa 3% of gross assets at the time of investment. Total exposure to any single operator, including other issued securities such as debt and/or equity, where greater than 30% of that operator’s revenues come from the mine over which the royalty lies, must also not be greater than 3% at the time of investment. In addition, the guidelines require that the Investment Manager must, at the time of investment, manage total exposure to a single operator, via reducing exposure to listed securities if they are also held in the portfolio, in a timely manner where royalties/unquoted investments are revalued upwards. In the jurisdictions where statutory royalties are possible (in countries where mineral rights are privately owned) these will be preferred and in respect of contractual royalties (a contractual obligation entered into by the operator and typically unsecured) the valuation must take into account the higher credit risk involved. Board approval will continue to be required for all royalty/unquoted investments.
While the Company may hold shares in other listed investment companies (including investment trusts), the Board has agreed that the Company will not invest more than 15% of the Group’s gross assets in other
The Group’s financial statements are maintained in Sterling. Although many investments are denominated and quoted in currencies other than Sterling, the Board does not intend to employ a hedging strategy against fluctuations in exchange rates.
No material change will be made to the investment policy without shareholder approval.
Gearing
The Company may borrow up to 25% of the Group’s net assets. The Board believes that tactical use of gearing can add value from time to time. This gearing is typically in the form of an overdraft or short-term loan facility, which can be repaid at any time or matched by cash. The level and benefit of gearing is discussed and agreed with the Board regularly. The maximum level of gearing used during the year was 13.6% and, at the financial reporting date, net gearing (calculated as borrowings less cash and cash equivalents as a percentage of net assets) stood at 4.7% of shareholders’ funds (2024: 12.0%). For further details on borrowings refer to note 14 in the Financial Statements and the Alternative Performance Measure in the Glossary.
Portfolio analysis
Information regarding the Company’s investment exposures is contained within Section 2 (Portfolio), with information on the ten largest investments below, the investments listed and portfolio analysis below. Further information regarding investment risk and activity throughout the year can be found in the Investment Manager’s Report.
At
Continuation vote
As agreed by shareholders in 1998, an ordinary resolution for the continuation of the Company is proposed at each Annual General Meeting. The Directors remain confident in the value available in the mining sector and therefore recommend that shareholders vote in support of the Company’s continuation.
Performance
Details of the Company’s performance for the year are given in the Chairman’s Statement. The Investment Manager’s Report includes a review of the main developments during the year, together with information on investment activity within the Company’s portfolio.
Results and dividends
The results for the Company are set out in the Consolidated Statement of Comprehensive Income. The total profit for the year, after taxation, was £688,590,000 (2024: loss of £119,941,000) of which £45,867,000 (2024: £44,127,000) is revenue profit.
It is the Board’s intention to distribute substantially all of the Company’s available income. The Directors recommend the payment of a final dividend as set out in the Chairman’s Statement. Dividend payments/payable for the year ended 31
Future prospects
The Board’s main focus is to maximise total returns over the longer term through investment in mining and metal assets. The future of the Company is dependent upon the success of the investment strategy. The outlook for the Company is discussed in both the Chairman’s Statement and the Investment Manager’s Report.
Social, community and human rights issues
As an investment trust, the Company has no direct social or community responsibilities or impact on the environment and the Company has not adopted an ESG investment strategy or exclusionary screens. However, the Directors believe that it is important and in shareholders’ interests to consider human rights issues and environmental, social and governance factors when selecting and retaining investments. Details of the Company’s approach to ESG are set out in the Company’s Annual Report for the year ended
Modern Slavery Act
As an investment vehicle, the Company does not provide goods or services in the normal course of business and does not have customers. The Investment Manager considers modern slavery as part of supply chains and labour management within the investment process. Accordingly, the Directors consider that the Company is not required to make any slavery or human trafficking statement under the Modern Slavery Act 2015. In any event, the Board considers the Company’s supply chains, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter.
Directors, gender representation and employees
The Directors of the Company on
Key performance indicators
At each Board meeting, the Directors consider a number of performance measures to assess the Company’s success in achieving its objectives. The key performance indicators (KPIs) used to measure the progress and performance of the Company over time and which are comparable to other investment trusts, are set out overleaf. As indicated in the footnote to the table, some of these KPIs fall within the definition of ‘Alternative Performance Measures’ under guidance issued by the
Year ended Year ended
31 December 31 December
2025 2024
Net asset value total return1,2 74.2% -10.7%
Share price total return1,2 74.1% -12.7%
Discount to net asset value2 6.1% 5.8%
Revenue earnings per share 24.37p 23.09p
Total dividends per share 24.00p 23.00p
Ongoing charges on net assets2, 3 1.05% 0.95%
Ongoing charges on gross assets2, 4 0.95% 0.84%
========= =========
1 This measures the Company’s net asset value (NAV) and share price total return, which assumes dividends paid by the Company have been reinvested.
2
Alternative Performance Measures, see Glossary in the Company’s Annual Report for the year ended
3 Ongoing charges based on net assets represent the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items, as a percentage of average daily net assets.
4 Ongoing charges based on gross assets represent the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items, as a percentage of average daily gross assets. Gross assets are calculated based on net assets during the year before the deduction of the bank overdraft and loans. Ongoing charges based on gross assets are considered to be an appropriate performance measure as management fees are payable on gross assets (subject to certain adjustments and deductions).
Principal risks
The Company is exposed to a variety of risks and uncertainties. As required by the 2024 UK Corporate Governance Code (the
The risk register, its method of preparation and the operation of key controls in BlackRock’s and third-party service providers’ systems of internal control, are reviewed on a regular basis by the
The Board has undertaken a robust assessment of both the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, solvency or liquidity. For instance, the risk that unforeseen or unprecedented events including (but not limited to) heightened geopolitical tensions such as those in
Emerging risks
Emerging risks are considered by the Board as they come into view and are incorporated into the existing review of the Company’s risk register. They were also considered as part of the annual evaluation process. Additionally, the Manager considers emerging risks in numerous forums and the BlackRock Risk and Quantitative Analysis team produces an annual risk survey. Any material risks of relevance to the Company through the annual risk survey will be communicated to the Board.
Emerging risks that have been considered by the Board over the year include the impact of climate change, escalating geopolitical conflict and technological advances. The key emerging risks identified are as follows:
Climate change: Investors can no longer ignore the impact that the world’s changing climate will have on their portfolios, with the impact of climate change on returns, including climate-related natural disasters, now potentially significant and with the potential to escalate more swiftly than one is able to predict. The Board receives ESG reports from the Manager on the portfolio and the way ESG considerations are integrated into the investment decision making, so as to mitigate risk at the level of stock selection and portfolio construction.
Geopolitical risk: Escalating geopolitical tensions, including but not limited to those relating to
Artificial Intelligence (AI): Advances in computing power means that AI has become a powerful tool that will impact a huge range of areas and with a wide range of applications that have the potential to dislocate established business models and disrupt labour markets, creating uncertainty in corporate valuations. The significant energy required to power this technological revolution will create further pressure on environmental resources and carbon emissions.
The Board will continue to assess these risks on an ongoing basis. In relation to the
The principal risks and uncertainties faced by the Company during the financial year, together with the potential effects, controls and mitigating factors, are set out in the following table.
Arrows indicate movements in the relative risk assessment compared with the position reported in the previous financial year.
Operational
In common with most other investment trust companies, the Company has no employees. The Company therefore relies on the services provided by third parties and is dependent on the control systems of the Manager, the Depositary, Custodian and Fund Accountant and other key service providers which maintain the Company’s assets, dealing procedures and accounting records.
The security of the Company’s assets, dealing procedures, accounting records and adherence to regulatory and legal requirements depend on the effective operation of the systems of these third-party service providers. There is a risk that a major disaster, such as floods, fire, a global pandemic, or terrorist activity, renders the Company’s service providers unable to conduct business at normal operating effectiveness.
Failure by any service provider to carry out its obligations to the Company could have a material adverse effect on the Company’s performance. Disruption to the accounting, payment systems or custody records (including cyber security risk) could prevent the accurate reporting and monitoring of the Company’s financial position.
Mitigation/Control
Due diligence is undertaken before contracts are entered into with third-party service providers. Thereafter, the performance of the provider is subject to regular review and reported to the Board. This includes consideration of the financial resilience, operational capability and ownership structure of key providers.
The Board reviews on a regular basis an assessment of the fraud risks that the Company could potentially be exposed to and also a summary of the controls put in place by the Manager, Depositary, Custodian, Fund Accountant and Registrar specifically to mitigate these risks.
Most third-party service providers produce Service Organisation Control (SOC 1) reports to provide assurance regarding the effective operation of internal controls as reported on by their reporting accountants. These reports are provided to the
The Company’s financial instruments held in custody are subject to a strict liability regime and, in the event of a loss of such financial instruments, the Depositary must return financial assets of an identical type or the corresponding amount, unless able to demonstrate the loss was a result of an event beyond its reasonable control.
The Board reviews the overall performance of the Manager, Investment Manager and all other third-party service providers on a regular basis and compliance with the Investment Management Agreement annually.
The Board also considers the business continuity arrangements of the Company’s key service providers on an ongoing basis and reviews these as part of its review of the Company’s risk register.
Investment performance
The returns achieved are reliant primarily upon the performance of the portfolio.
The Board is responsible for:
- deciding the investment strategy to fulfil the Company’s objective; and
- monitoring the performance of the Investment Manager and the implementation of the investment strategy.
An inappropriate investment strategy may lead to:
- underperformance compared to the reference index;
- a reduction or permanent loss of capital; and
- dissatisfied shareholders and reputational damage.
The Board is also cognisant of the long-term risk to performance from inadequate attention to ESG issues and in particular the impact of climate change.
Mitigation/Control
To manage this risk the Board:
- regularly reviews the Company’s investment mandate and long-term strategy;
- has set investment restrictions and guidelines which the Investment Manager monitors and regularly reports on;
- receives from the Investment Manager a regular explanation of stock selection decisions, portfolio exposure, gearing and any changes in gearing, and the rationale for the composition of the investment portfolio;
- oversees the maintenance of an adequate spread of investments in order to minimise the risks associated with particular countries or factors specific to particular sectors, based on the diversification requirements inherent in the investment policy; and
- receives and reviews regular reports showing an analysis of the Company’s performance against other indices, including the performance of major companies in the sector.
ESG analysis is integrated into the Investment Manager’s investment process and is monitored by the Board. As the world works toward a transition to a low-carbon economy, the Investment Manager is interested in hearing from companies about their strategies and plans for responding to the challenges and capturing the opportunities that this transition creates. When companies consider climate-related risks, it is likely they will also assess their impact and dependence on natural capital.
Legal and regulatory compliance
The Company has been approved by
Any breach of the relevant eligibility conditions could lead to the Company losing investment trust status and being subject to corporation tax on capital gains realised within the Company’s portfolio. In such event, the investment returns of the Company may be adversely affected.
A serious breach could result in the Company and/or the Directors being fined or the subject of criminal proceedings or the suspension of the Company’s shares which would in turn lead to a breach of the Corporation Tax Act 2010.
Amongst other relevant laws, the Company is required to comply with the provisions of the Companies Act 2006, the Alternative Investment Fund Managers’ Directive as implemented, retained and onshored in the
Mitigation/Control
The Investment Manager monitors investment movements, the level and type of forecast income and expenditure and the amount of proposed dividends to ensure that the provisions of Chapter 4 of Part 24 of the Corporation Tax Act 2010 are not breached. The results are reported to the Board at each meeting.
Compliance with the accounting rules affecting investment trusts is also carefully and regularly monitored.
The Company Secretary, Manager and the Company’s professional advisers provide regular reports to the Board in respect of compliance with all applicable rules and regulations. The Board and the Manager also monitor changes in government policy and legislation which may have an impact on the Company.
The Company’s Investment Manager at all times complies with the sanctions administered by the
Market
Market risk arises from volatility in the prices of the Company’s investments. The price of shares in the mining sector can be volatile and this may be reflected in the NAV and market price of the Company’s shares.
Changes in general economic and market conditions, such as currency exchange rates, interest rates, rates of inflation, industry conditions, tax laws, political events, liquidity conditions, legal and regulatory developments and trends, can also substantially and adversely affect the securities and, as a consequence, the Company’s prospects and share price.
Market risk includes the potential impact of events which are outside the Company’s control, including (but not limited to) heightened geopolitical tensions and military conflict, a global pandemic and high inflation.
Companies operating in the sectors in which the Company invests may be impacted by new legislation governing climate change and environmental issues, which may have a negative impact on their valuation and share price.
Mitigation/Control
The Board considers the diversification of the portfolio, asset allocation, stock selection and levels of gearing on a regular basis and has set investment restrictions and guidelines which are monitored and reported on by the Investment Manager.
The Board monitors the implementation and results of the investment process with the Investment Manager.
The Board also recognises the benefits of a closed-end fund structure in extremely volatile markets such as those affected by the current environment of heightened geopolitical tensions and uncertainty. Unlike open-ended counterparts, closed-end funds are not obliged to sell-down portfolio holdings at low valuations to meet liquidity requirements for redemptions. During times of elevated volatility and market stress, the ability of a closed-end fund structure to remain invested for the long term enables the Investment Manager to adhere to disciplined fundamental analysis from a bottom-up perspective and be ready to respond to dislocations in the market as opportunities present themselves.
The Investment Manager seeks to understand the ESG risks and opportunities facing companies and industries in the portfolio. The Company has not adopted an ESG focused investment strategy and does not exclude investment in stocks based on ESG criteria, but the Investment Manager considers ESG information when conducting research and due diligence on new investments and again when monitoring investments in the portfolio.
Financial
The Company’s investment activities expose it to a variety of financial risks which include market risk, counterparty credit risk, liquidity risk and the valuation of financial instruments.
Mitigation/Control
Details of these risks are disclosed in note 17 to the Financial Statements, together with a summary of the policies for managing these risks.
In the view of the Board, there have not been any changes to the fundamental nature of these risks and these principal risks and uncertainties are equally applicable for the current financial year.
Viability statement
In accordance with provision 30 of the 2024 UK Corporate Governance Code, the Directors have assessed the prospects of the Company over a longer period than the twelve months referred to in the going concern assessment. The Company is an investment trust with the objective of providing an attractive level of income return together with capital appreciation over the long term.
The Directors expect the Company to continue for the foreseeable future and have therefore conducted this review for a period up to the Annual General Meeting in 2029. The Directors assess viability over a rolling three-year period as they believe it best balances the Company’s long-term objective, its financial flexibility and scope, with the difficulty in forecasting economic conditions which could affect both the Company and its shareholders. The Company also undertakes a continuation vote every year with the next one taking place at the forthcoming Annual General Meeting.
In making an assessment on the viability of the Company, the Board has considered the following:
- the impact of a significant fall in commodity markets on the value of the Company’s investment portfolio;
- the ongoing relevance of the Company’s investment objective, business model and investment policy in the prevailing market;
- the principal and emerging risks and uncertainties, as set out above, and their potential impact;
- the level of ongoing demand for the Company’s shares;
- the Company’s share price discount/premium to NAV;
- the liquidity of the Company’s portfolio; and
- the level of income generated by the Company and future income and expenditure forecasts.
The Directors have concluded that there is a reasonable expectation that the Company will continue in operation and meet its liabilities as they fall due over the period of their assessment based on the following considerations:
- the Investment Manager’s compliance with the investment objective and policy, its investment strategy and asset allocation;
- the portfolio is liquid and mainly comprises readily realisable assets which continue to offer a range of investment opportunities for shareholders as part of a balanced investment portfolio;
- the operational resilience of the Company and its key service providers and their ability to continue to provide a good level of service for the foreseeable future;
- the effectiveness of business continuity plans in place for the Company and its key service providers;
- the ongoing processes for monitoring operating costs and income which are considered to be reasonable in comparison to the Company’s total assets;
- the Board’s discount management policy; and
- the Company is a closed-end investment company and therefore does not suffer from the liquidity issues arising from unexpected redemptions.
In addition, the Board’s assessment of the Company’s ability to operate in the foreseeable future is included in the Going Concern Statement which can be found in the Directors’ Report in the Company’s Annual Report for the year ended
Section 172 statement: Promoting the success of the Company
The Companies (Miscellaneous Reporting) Regulations 2018 require directors of large companies to explain more fully how they have discharged their duties under Section 172(1) of the Companies Act 2006 in promoting the success of their companies for the benefit of members as a whole. This includes the likely consequences of their decisions in the longer term and how they have taken wider stakeholders’ needs into account.
The disclosure that follows covers how the Board has engaged with and understands the views of stakeholders and how stakeholders’ needs have been taken into account, the outcome of this engagement and the impact that it has had on the Board’s decisions. The Board considers the main stakeholders in the Company to be the Manager, Investment Manager and the shareholders. In addition to this, the Board considers investee companies and key service providers of the Company to be stakeholders; the latter comprise the Company’s Depositary, Registrar, Fund Accountants and Brokers.
Stakeholders
Shareholders
Continued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy. The Board is focused on fostering good working relationships with shareholders and on understanding the views of shareholders in order to incorporate them into the Board’s strategy and objective in maximising total returns to shareholders through a worldwide portfolio of mining and metal securities.
Manager and Investment Manager
The Board’s main working relationship is with the Manager, who is responsible for the Company’s portfolio management (including asset allocation, stock and sector selection) and risk management, as well as ancillary functions such as administration, secretarial, accounting and marketing services. The Manager has sub-delegated portfolio management to the Investment Manager. Successful management of shareholders’ assets by the Investment Manager is critical for the Company to deliver successfully its investment strategy and meet its objective. The Company is also reliant on the Manager as AIFM to provide support in meeting relevant regulatory obligations under the AIFMD and other relevant legislation.
Other key service providers
In order for the Company to function as an investment trust on the London Stock Exchange’s (LSE) main market for listed securities and generally function as an investment trust with a listing on the official list of the
Investee companies
Portfolio holdings are ultimately shareholders’ assets and the Board recognises the importance of good stewardship and communication with investee companies in meeting the Company’s investment objective and strategy. The Board monitors the Manager’s stewardship activities and receives regular feedback from the Manager in respect of meetings with the management of investee companies.
A summary of the key areas of engagement undertaken by the Board with its key stakeholders in the year under review and how Directors have acted upon this to promote the long-term success of the Company are set out in the table below.
Area of Engagement
Investment mandate and objective
Issue
The Board is committed to promoting the role and success of the Company in delivering on its investment mandate to shareholders over the long term.
The Board also has responsibility to shareholders to ensure that the Company’s portfolio of assets is invested in line with the stated investment objective and in a way that ensures an appropriate balance between spread of risk and portfolio returns.
Engagement
The Board worked closely with the Investment Manager throughout the year in further developing investment strategy and underlying policies, not simply for the purpose of achieving the Company’s investment objective but in the interests of shareholders and future investors. In addition, the Company continues to seek out new unquoted investments which could add long-term value.
Impact
The portfolio activities undertaken by the Investment Manager can be found in their Report. The Investment Manager continues to actively look for opportunities to grow royalty exposure given it is a key differentiator of the Company and an effective mechanism to lock-in long-term income which further diversifies the Company’s revenues.
Details regarding the Company’s NAV and share price performance can be found in the Chairman’s Statement and in this Strategic Report.
Responsible investing
Issue
The governance and consideration of ESG risks are key factors in making investment decisions. The mining industries in which the Company’s investment universe operate are facing ethical and ESG issues that cannot be ignored by asset managers and investment companies alike.
Engagement
The Board works closely with the Investment Manager to review regularly and challenge the Company’s performance, investment policy and strategy to seek to ensure that the Company’s investment objective continues to be met in an effective and responsible way in the interests of shareholders and future investors. The Company has not adopted an ESG focused investment strategy and does not exclude investment in stocks based on ESG criteria, but the Board believes that responsible investment is integral to the longer-term delivery of the Company’s success.
The Investment Manager’s approach to the consideration of ESG factors in respect of the Company’s portfolio, as well as the Investment Manager’s engagement with investee companies to encourage sound corporate governance practices, are kept under review by the Board. The Board also expects to be informed by the Investment Manager of any sensitive voting issues involving the Company’s investments.
The Investment Manager reports to the Board in respect of its approach to ESG integration; a summary of BlackRock’s approach to ESG integration is set out in the Company’s Annual Report for the year ended
Impact
The Board and the Investment Manager believe there is likely to be a positive correlation between strong ESG practices and investment performance over time. This is especially important in mining given the long investment cycle and the impact of ESG practices on the ability of a mining company to maintain its social license to operate. ESG is one of the many factors that we look at and site visits to companies’ operations provide valuable insights into their ESG practices. The Investment Manager has continued to engage with investee companies.
Within the parameters of the Company’s existing investment policy, the Investment Manager is continuing to look for opportunities to deploy capital in growth investments that should benefit from the energy transition. It is likely that this area will become a more significant part of the portfolio.
Shareholders
Issue
Continued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy.
Engagement
The Board is committed to maintaining open channels of communication and to engage with shareholders. The Company welcomes and encourages attendance and participation from shareholders at its Annual General Meetings. Shareholders have the opportunity to meet the Directors and Investment Manager and to address questions to them directly. The Investment Manager also provides a presentation on the Company’s performance and the outlook for the mining sector. The Chairman and Senior Independent Director offer meetings to all major shareholders and also meet directly with shareholders providing a forum for canvassing their views and enabling the Board to be aware of any issues of concern.
The Annual Report and Half Yearly Financial Report are available on the BlackRock website and are also circulated to shareholders either in printed copy or via electronic communications. In addition, regular updates on performance, monthly factsheets, the daily NAV and other information are also published on the website at www.blackrock.com/uk/brwm. The Company’s website and marketing initiatives are geared to providing a breadth and depth of informative and engaging content.
The Board also works closely with the Manager to develop the Company’s marketing strategy with the aim of ensuring effective communication with shareholders.
Unlike trading companies, one-to-one shareholder meetings normally take the form of a meeting with the Investment Manager as opposed to members of the Board. The Company’s willingness to enter into discussions with institutional shareholders is also demonstrated by the programmes of institutional presentations by the Investment Manager. Additionally, the Investment Manager regularly presents at professional and private investor events to help explain and promote the Company’s strategy.
If shareholders wish to raise issues or concerns with the Board, they are welcome to do so at any time. The Chairman is available to meet directly with shareholders periodically to understand their views on governance and the Company’s performance where they wish to do so. He may be contacted via the Company Secretary whose details are given in the Company’s Annual Report for the year ended
Impact
The Board values any feedback and questions from shareholders ahead of and during Annual General Meetings in order to gain an understanding of their views and will take action when and as appropriate. Feedback and questions will also help the Company evolve its reporting, aiming to make reports more transparent and understandable.
During the year the Chairman and Senior Independent Director offered meetings to major shareholders and met with some of them, without any members of the management group present. Feedback from all substantive meetings between the Investment Manager and shareholders is also shared with the Board. The Directors also receive updates from the Company’s Brokers and Kepler, marketing consultants, on any feedback from shareholders, as well as share trading activity, share price performance and an update from the Investment Manager.
The portfolio management team attended a number of professional investor meetings (many by video conference) and held discussions with a number of wealth management desks and offices in respect of the Company during the year under review.
Portfolio holdings are ultimately shareholders’ assets and the Board recognises the importance of good stewardship and communication with investee companies in meeting the Company’s investment objective and strategy. The Board monitors the Manager’s stewardship activities and receives regular feedback from the Investment Manager in respect of meetings with the management of portfolio companies.
Management of share rating
Issue
The Board recognises the importance to shareholders that the market price of the Company’s shares should not trade at either a significant discount or premium to their prevailing NAV. The Board believes this may be achieved by the use of share buyback powers and the issuance of shares.
Engagement
The Board monitors the Company’s share rating on an ongoing basis and receives regular updates from the Manager and the Company’s Brokers regarding the level of discount/premium. The Board believes that the best way of maintaining the share rating at an optimal level over the long term is to create demand for the shares in the secondary market. To this end, the Investment Manager is devoting considerable effort to broadening the awareness of the Company, particularly to wealth managers and to the wider retail market.
In addition, the Board has worked closely with the Manager to develop the Company’s marketing strategy, with the aim of ensuring effective communication with existing shareholders and to attract new shareholders to the Company in order to improve liquidity in the Company’s shares and to sustain the share rating of the Company.
Impact
The Board continues to monitor the Company’s premium/discount to NAV and will look to issue or buy back shares if it is deemed to be in the interests of shareholders as a whole. The Company participates in a focused investment trust sales and marketing initiative operated by the Manager on behalf of the investment trusts under its management. Further details are set in the Company’s Annual Report for the year ended
During the financial year and up to the date of this report the Company repurchased 4,491,000 shares which were placed in treasury. The Company did not reissue any shares. As at
Service levels of third-party providers
Issue
The Board acknowledges the importance of ensuring that the Company’s principal suppliers are providing a suitable level of service, including the Investment Manager in respect of investment performance and delivering on the Company’s investment mandate; the Custodian and Depositary in respect of their duties towards safeguarding the Company’s assets; the Registrar in its maintenance of the Company’s share register and dealing with investor queries; and the Company’s Brokers in respect of the provision of advice and acting as a market maker for the Company’s shares.
Engagement
The Manager reports to the Board on the Company’s performance on a regular basis. The Board carries out a robust annual evaluation of the Manager’s performance, their commitment and available resources.
The Board performs an annual review of the service levels of all third-party service providers and concludes on their suitability to continue in their role. The Board receives regular updates from the AIFM, Depositary, Registrar and Brokers on an ongoing basis.
The Board has also worked closely with the Manager to gain comfort that relevant business continuity plans are operating effectively for all of the Company’s key service providers.
Impact
All performance evaluations were performed on a timely basis and the Board concluded that all third-party service providers, including the Manager and Investment Manager, were operating effectively and providing a good level of service.
The Board has received updates in respect of business continuity planning from the Company’s Manager, Custodian, Depositary, Fund Accountant, Registrar and Printer and is confident that arrangements are in place to ensure a good level of service will continue to be provided.
Board composition
Issue
The Board is committed to ensuring that its own composition brings an appropriate balance of knowledge, experience and skills, and that it is compliant with best corporate governance practice under the
Engagement
During the year, the Nomination Committee appointed a new Director. The Board agreed the selection criteria and the method of selection, recruitment and appointment. The services of an external search consultant,
All Directors are subject to a formal evaluation process on an annual basis (more details and the conclusions of the 2025 evaluation process are given in the Company’s Annual Report for the year ended
Shareholders may attend the Annual General Meeting and raise any queries in respect of Board composition or individual Directors in person or may contact the Company Secretary or the Chairman using the details provided in the Company’s Annual Report for the year ended
Impact
As a result of the recruitment process, Ms
Details of each Director’s contribution to the success and promotion of the Company are set out in the Directors’ Report in the Company’s Annual Report for the year ended
The Directors are not aware of any issues that have been raised directly by shareholders in respect of Board composition in the year under review. Details of the proxy voting results in favour and against individual Directors’ election/re-election at the 2026 Annual General Meeting are given on the Manager’s website at www.blackrock.com/uk/brwm.
By order of the Board
For and on behalf of
Company Secretary
Related Party Transactions
At the date of this report, the Board consists of five non-executive Directors, all of whom are considered to be independent of the Manager by the Board. Following the conclusion of the Annual General Meeting on
Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements
The Directors are responsible for preparing the Annual Report and Financial Statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors are required to prepare the financial statements in accordance with
Under Company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the Group for that period. In preparing those financial statements, the Directors are required to:
• present fairly the financial position, financial performance and cash flows of the Group and Company;
• select suitable accounting policies in accordance with IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors and then apply them consistently;
• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
• make judgements and estimates that are reasonable and prudent;
•
state whether the financial statements have been prepared in accordance with
•
provide additional disclosures when compliance with the specific requirements in accordance with
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s and Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company and enable them to ensure that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are also responsible for preparing the Strategic Report, Directors’ Report, the Directors’ Remuneration Report, the Corporate Governance Statement and the Report of the
Each of the Directors, whose names are listed
in the Company’s Annual Report for the year ended
•
the financial statements, which have been prepared in accordance with
• the Strategic Report contained in the Annual Report and Financial Statements includes a fair review of the development and performance of the business and the position of the Group and Company, together with a description of the principal risks and uncertainties that it faces.
The 2024 UK Corporate Governance Code also requires Directors to ensure that the Annual Report and Financial Statements are fair, balanced and understandable. In order to reach a conclusion on this matter, the Board has requested that the
For and on behalf of the Board
Chairman
Consolidated Statement of Comprehensive Income
for the year ended
2025 2024
Notes Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Income from
investments
held at fair 3 48,248 – 48,248 43,879 – 43,879
value through
profit or loss
Other income 3 9,121 – 9,121 11,255 – 11,255
Total revenue 57,369 – 57,369 55,134 – 55,134
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit/
(loss) on
investments and
options held at – 639,784 639,784 – (151,792) (151,792)
fair value
through profit
or loss
Net gains/
(losses) on – 13,299 13,299 – (672) (672)
foreign
exchange
Total 57,369 653,083 710,452 55,134 (152,464) (97,330)
--------------- --------------- --------------- --------------- --------------- ---------------
Expenses
Investment 4 (2,590) (7,963) (10,553) (2,188) (6,764) (8,952)
management fee
Other operating 5 (1,401) (8) (1,409) (1,269) (12) (1,281)
expenses
Total operating (3,991) (7,971) (11,962) (3,457) (6,776) (10,233)
expenses
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit/
(loss) before 53,378 645,112 698,490 51,677 (159,240) (107,563)
finance costs
and taxation
Finance costs 6 (1,525) (4,573) (6,098) (2,212) (6,630) (8,842)
Net profit/
(loss) before 51,853 640,539 692,392 49,465 (165,870) (116,405)
taxation
--------------- --------------- --------------- --------------- --------------- ---------------
Taxation (5,986) 2,184 (3,802) (5,338) 1,802 (3,536)
(charge)/credit
Net profit/
(loss) after 45,867 642,723 688,590 44,127 (164,068) (119,941)
taxation
--------------- --------------- --------------- --------------- --------------- ---------------
Earnings/(loss)
per ordinary
share (pence) - 8 24.37 341.49 365.86 23.09 (85.84) (62.75)
basic and
diluted
========= ========= ========= ========= ========= =========
The total columns of this statement represent the Group’s Statement of Comprehensive Income, prepared in accordance with
The Group does not have any other comprehensive income/(loss) (2024: £nil). The net profit/(loss) for the year disclosed above represents the Group’s total comprehensive income/(loss).
Consolidated Statement of Changes in Equity
for the year ended
Called up share Share premium Capital Capital
Group Notes capital account redemption Special reserve reserves Revenue reserve Total
reserve
For the year
ended 31 £’000 £’000 £’000 £’000 £’000 £’000 £’000
December 2025
At 31 December 9,651 151,493 22,779 192,134 561,093 38,049 975,199
2024
Total
comprehensive
income:
Net profit – – – – 642,723 45,867 688,590
after taxation
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares 9,10 – – – (21,947) – – (21,947)
repurchased
into treasury
Share
repurchase 9,10 – – – (154) – – (154)
costs
Dividends 7 – – – – – (43,260) (43,260)
paid1
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 9,651 151,493 22,779 170,033 1,203,816 40,656 1,598,428
2025
========= ========= ========= ========= ========= ========= =========
For the year
ended 31
December 2024
At 31 December 9,651 151,493 22,779 193,008 725,161 57,959 1,160,051
2023
Total
comprehensive
(loss)/income:
Net – – – – (164,068) 44,127 (119,941)
(loss)/profit
after taxation
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares 9,10 – – – (868) – – (868)
repurchased
into treasury
Share
repurchase 9,10 – – – (6) – – (6)
costs
Dividends 7 – – – – – (64,037) (64,037)
paid2
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 9,651 151,493 22,779 192,134 561,093 38,049 975,199
2024
========= ========= ========= ========= ========= ========= =========
1
The final dividend of 6.50p per share for the year ended
2
The final dividend of 17.00p per share for the year ended
Parent Company Statement of Changes in Equity
for the year ended
Called up share Share premium Capital Capital
Company Notes capital account redemption Special reserve reserves Revenue reserve Total
reserve
For the year
ended 31 £’000 £’000 £’000 £’000 £’000 £’000 £’000
December 2025
At 31 December 9,651 151,493 22,779 192,134 567,116 32,026 975,199
2024
Total
comprehensive
income:
Net profit – – – – 642,820 45,770 688,590
after taxation
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares 9,10 – – – (21,947) – – (21,947)
repurchased
into treasury
Share
repurchase 9,10 – – – (154) – – (154)
costs
Dividends 7 – – – – – (43,260) (43,260)
paid1
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 9,651 151,493 22,779 170,033 1,209,936 34,536 1,598,428
2025
========= ========= ========= ========= ========= ========= =========
For the year
ended 31
December 2024
At 31 December 9,651 151,493 22,779 193,008 731,067 52,053 1,160,051
2023
Total
comprehensive
(loss)/income:
Net – – – – (163,951) 44,010 (119,941)
(loss)/profit
after taxation
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares 9,10 – – – (868) – – (868)
repurchased
into treasury
Share
repurchase 9,10 – – – (6) – – (6)
costs
Dividends 7 – – – – – (64,037) (64,037)
paid2
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 9,651 151,493 22,779 192,134 567,116 32,026 975,199
2024
========= ========= ========= ========= ========= ========= =========
1
The final dividend of 6.50p per share for the year ended
2
The final dividend of 17.00p per share for the year ended
For information on the Company’s distributable reserves please refer to note 16 in the Company’s Annual Report for the year ended
Consolidated and Parent Company Statements of Financial Position
as at
31 December 2025 31 December 2024
Notes Group Company Group Company
£’000 £’000 £’000 £’000
Non current
assets
Investments
held at fair
value 1,675,057 1,682,678 1,093,198 1,100,722
through
profit or
loss
Current
assets
Current
taxation 2,418 2,418 1,317 1,317
asset
Other 9,092 9,092 2,861 2,861
receivables
Cash
collateral 4,415 4,415 4,882 4,882
held with
brokers
Cash and
cash
equivalents 13,800 7,161 21,396 14,834
- cash at
bank
Total
current 29,725 23,086 30,456 23,894
assets
--------------- --------------- --------------- ---------------
Total assets 1,704,782 1,705,764 1,123,654 1,124,616
--------------- --------------- --------------- ---------------
Current
liabilities
Current
taxation (399) (366) (877) (824)
liability
Other (7,531) (8,546) (10,270) (11,285)
payables
Derivative
financial
liabilities
held at fair (359) (359) (622) (622)
value
through
profit or
loss
Bank loans (96,651) (96,651) (135,739) (135,739)
Cash and
cash
equivalents (57) (57) (4) (4)
- bank
overdraft
Total
current (104,997) (105,979) (147,512) (148,474)
liabilities
Total assets
less current 1,599,785 1,599,785 976,142 976,142
liabilities
--------------- --------------- --------------- ---------------
Non current
liabilities
Deferred
taxation (1,357) (1,357) (943) (943)
liability
Net assets 1,598,428 1,598,428 975,199 975,199
--------------- --------------- --------------- ---------------
Equity
attributable
to equity
holders
Called up
share 9 9,651 9,651 9,651 9,651
capital
Share
premium 10 151,493 151,493 151,493 151,493
account
Capital
redemption 10 22,779 22,779 22,779 22,779
reserve
Special 10 170,033 170,033 192,134 192,134
reserve
Capital
reserves:
At 1 561,093 567,116 725,161 731,067
January
Net profit/ 642,723 642,820 (164,068) (163,951)
(loss) after
taxation
--------------- --------------- --------------- ---------------
At 31 10 1,203,816 1,209,936 561,093 567,116
December
Revenue
reserve:
At 1 38,049 32,026 57,959 52,053
January
Net profit 45,867 45,770 44,127 44,010
after
taxation
Dividends (43,260) (43,260) (64,037) (64,037)
paid
At 31 10 40,656 34,536 38,049 32,026
December
Total equity 1,598,428 1,598,428 975,199 975,199
--------------- --------------- --------------- ---------------
Net asset
value per
ordinary 8 856.23 856.23 510.53 510.53
share
(pence)
========= ========= ========= =========
Consolidated and Parent Company Cash Flow Statements
for the year ended
31 December 2025 31 December 2024
Group Company Group Company
£’000 £’000 £’000 £’000
Operating
activities
Net profit/(loss) 692,392 692,392 (116,405) (116,405)
before taxation1
Changes in working
capital items:
(Increase)/decrease
in other (6,052) (6,052) 321 321
receivables
(Decrease)/increase (2,241) (2,241) 2,554 2,501
in other payables
(Increase)/decrease
in amounts due from (179) (179) 410 410
brokers
Increase in amounts 67 67 – –
due to brokers
Other adjustments:
Finance costs 6,098 6,098 8,842 8,842
Net (profit)/loss
on investments and
options held at (639,784) (639,881) 151,792 151,675
fair value through
profit or loss
Net (gains)/losses (13,299) (13,299) 672 672
on foreign exchange
Sale of investments
held at fair value 773,242 773,242 637,750 637,750
through profit
or loss
Purchase of
investments held at (716,063) (716,063) (585,496) (585,496)
fair value through
profit or loss
Contractual rights 483 483 397 397
– return of capital
Net movement in
cash collateral 467 467 1,387 1,387
held with brokers
--------------- --------------- --------------- ---------------
Net cash inflow
from operating 95,131 95,034 102,224 102,054
activities before
taxation
--------------- --------------- --------------- ---------------
Taxation paid (5,381) (5,361) (3,052) (3,093)
--------------- --------------- --------------- ---------------
Net cash inflow
from operating 89,750 89,673 99,172 98,961
activities
--------------- --------------- --------------- ---------------
Financing
activities
Repayment of loan (25,362) (25,362) (14,599) (14,599)
Interest paid (6,249) (6,249) (8,721) (8,721)
Ordinary shares
repurchased into (22,101) (22,101) (874) (874)
treasury
Dividends paid (43,260) (43,260) (64,037) (64,037)
--------------- --------------- --------------- ---------------
Net cash outflow
from financing (96,972) (96,972) (88,231) (88,231)
activities
--------------- --------------- --------------- ---------------
(Decrease)/increase
in cash and cash (7,222) (7,299) 10,941 10,730
equivalents
Effect of foreign
exchange rate (427) (427) (161) (161)
changes
--------------- --------------- --------------- ---------------
Change in cash and (7,649) (7,726) 10,780 10,569
cash equivalents
Cash and cash
equivalents at 21,392 14,830 10,612 4,261
start of year
--------------- --------------- --------------- ---------------
Cash and cash
equivalents at end 13,743 7,104 21,392 14,830
of year
--------------- --------------- --------------- ---------------
Comprised of:
Cash at bank 13,800 7,161 21,396 14,834
Bank overdraft (57) (57) (4) (4)
--------------- --------------- --------------- ---------------
13,743 7,104 21,392 14,830
========= ========= ========= =========
1 Dividends and interest received in cash during the year amounted to £30,122,000 and £3,898,000 (2024: £36,895,000 and £4,584,000).
Notes to the financial statements
for the year ended
1. Principal activity
The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010. The Company was incorporated in
The principal activity of the subsidiary,
2. Material accounting policies
The material accounting policies adopted by the Group and Company have been applied consistently, other than where new policies have been adopted and are set out below.
(a) Basis of preparation
Insofar as the Statement of Recommended Practice (SORP) for investment trust companies and venture capital trusts, issued by the
Substantially all of the assets of the Group consist of securities that are readily realisable and, accordingly, the Directors believe that the Group has adequate resources to continue in operational existence for the foreseeable future for the period to
The Directors have considered the impact of climate change on the value of the investments included in the financial statements and have concluded that there was no further impact of climate change to be considered as the investments are valued based on market pricing as required by IFRS 13.
None of the Group’s other assets and liabilities were considered to be potentially impacted by climate change.
The Group’s financial statements are presented in Sterling, which is the currency of the primary economic environment in which the Group operates. All values are rounded to the nearest thousand pounds (£’000) except where otherwise indicated.
Adoption of new and amended International Accounting Standards and interpretations:
IAS 21 – Lack of exchangeability (effective
The amendment of this standard did not have a significant impact on the Group’s operations as IAS 21 better reflects the practical considerations of establishing fair values for the Group’s foreign currency assets.
Relevant International Accounting Standards that have yet to be adopted:
IFRS 18 – Presentation and disclosure in financial statements (effective
The amendment of this standard is expected to have an impact on the disclosure and presentation of the Statement of Comprehensive Income but will not have any impact on the accounting or financial results.
(b) Basis of consolidation
The Group’s financial statements are made up to 31 December each year and consolidate the financial statements of the Company and its wholly owned subsidiary, which is registered and operates in
Subsidiaries are consolidated from the date of their acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of subsidiaries used in the preparation of the consolidated financial statements are based on consistent accounting policies. All intra-group balances and transactions, including unrealised profits arising therefrom, are eliminated.
(c) Presentation of the Statement of Comprehensive Income
In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Consolidated Statement of Comprehensive Income between items of a revenue and a capital nature has been presented alongside the Consolidated Statement of Comprehensive Income.
(d) Segmental reporting
The Directors are of the opinion that the Group is engaged in a single segment of business being investment business.
(e) Income
Dividends receivable on equity shares are recognised as revenue for the year on an ex-dividend basis. Where no ex-dividend date is available, dividends receivable on or before the year end are treated as revenue for the year. Provision is made for any dividends and interest income not expected to be received. Special dividends, if any, are treated as a capital or a revenue receipt depending on the facts or circumstances of each particular case. The return on a debt security is recognised on a time apportionment basis so as to reflect the effective yield on the debt security. Interest income and deposit interest is accounted for on an accruals basis.
Options may be purchased or written over securities held in the portfolio for generating or protecting capital returns, or for generating or maintaining revenue returns. Where the purpose of the option is the generation of income, the premium is treated as a revenue item. Where the purpose of the option is the maintenance of capital, the premium is treated as a capital item.
Option premium income is recognised as revenue evenly over the life of the option contract and included in the revenue account of the Consolidated Statement of Comprehensive Income unless the option has been written for the maintenance and enhancement of the Group’s investment portfolio and represents an incidental part of a larger capital transaction, in which case any premia arising are allocated to the capital account of the Consolidated Statement of Comprehensive Income.
Royalty income from contractual rights is measured at the fair value of the consideration received or receivable where the Investment Manager can reliably estimate the amount, pursuant to the terms of the agreement. Royalty income from contractual rights received comprises of a return of income and a return of capital based on the underlying cost of the contract and, accordingly, the return of income element is taken to the revenue account and the return of capital element is taken to the capital account. These amounts are disclosed in the Consolidated Statement of Comprehensive Income within income from investments and net profit on investments held at fair value through profit or loss, respectively.
The useful life of the contractual rights will be determined by reference to the contractual arrangements, the planned mine life on commencement of mining and the underlying cost of the contractual rights will be revalued on a systematic basis using the units of production method over the life of the contractual rights which is estimated using available estimated proved and probable reserves specifically associated with the mine. The Investment Manager relies on public disclosures for information on proven and probable reserves from the operators of the mine. Amortisation rates are adjusted on a prospective basis for all changes to estimates of the life of contractual rights and iron ore reserves. These are disclosed in the Consolidated Statement of Comprehensive Income within net profit on investments held at fair value through profit or loss.
Where the Group has elected to receive its dividends in the form of additional shares rather than in cash, the cash equivalent of the dividend is recognised as income. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital.
Underwriting commission receivable is taken into account on an accruals basis.
(f) Expenses
All expenses, including finance costs, are accounted for on an accruals basis. Expenses have been charged wholly to the revenue account of the Consolidated Statement of Comprehensive Income, except as follows:
-
expenses which are incidental to the acquisition or sale of an investment are charged to the capital account of the Consolidated Statement of Comprehensive Income. Details of transaction costs on the purchases and sales of investments are disclosed within note 10 to the financial statements
in the Company’s Annual Report for the year ended
- expenses are treated as capital where a connection with the maintenance or enhancement of the value of the investments can be demonstrated; and
- the investment management fee and finance costs have been allocated 75% to the capital account and 25% to the revenue account of the Consolidated Statement of Comprehensive Income in line with the Board’s expectations of the long-term split of returns, in the form of capital gains and income, respectively, from the investment portfolio.
(g) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Consolidated Statement of Comprehensive Income because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that were applicable at the balance sheet date.
Where expenses are allocated between capital and revenue accounts, any tax relief in respect of the expenses is allocated between capital and revenue returns on the marginal basis using the Company’s effective rate of corporation tax for the accounting period.
Deferred taxation is recognised in respect of all temporary differences that have originated but not reversed at the financial reporting date, where transactions or events that result in an obligation to pay more taxation in the future or right to pay less taxation in the future have occurred at the financial reporting date. This is subject to deferred taxation assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the temporary differences can be deducted. Deferred taxation assets and liabilities are measured at the rates applicable to the legal jurisdictions in which they arise.
(h) Investments held at fair value through profit or loss
In accordance with IFRS 9, the Group classifies its investments at initial recognition as held at fair value through profit or loss and are managed and evaluated on a fair value basis in accordance with its investment strategy and business model.
A ll investments, including contractual rights, are measured initially and subsequently at fair value through profit or loss. Purchases of investments are recognised on a trade date basis. Contractual rights are recognised on the completion date, where a purchase of the rights is under a contract, and are initially measured at fair value excluding transaction costs. Sales of investments are recognised at the trade date of the disposal.
The fair value of the financial investments is based on their quoted bid price at the financial reporting date, without deduction for the estimated future selling costs. This policy applies to all current and non-current asset investments held by the Group.
The gains and losses from changes in fair value of contractual rights are taken to the Consolidated Statement of Comprehensive Income and arise as a result of the revaluation of the underlying cost of the contractual rights, changes in commodity prices and changes in estimates of proven and probable reserves specifically associated with the mine.
Under IAS, the investment in the subsidiary in the Company’s Statement of Financial Position is fair valued which is deemed to be the net asset value of the subsidiary.
Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Consolidated Statement of Comprehensive Income as ‘Net profit on investments held at fair value through profit or loss’. Also included within the heading are transaction costs in relation to the purchase or sale of investments.
For all financial instruments not traded in an active market, the fair value is determined by using various valuation techniques. Valuation techniques include market approach (i.e., using recent arm’s length market transactions adjusted as necessary and reference to the current market value of another instrument that is substantially the same) and the income approach (i.e., discounted cash flow analysis and option pricing models making as much use of available and supportable market data where possible). See note 2(q) below.
(i) Options
Options are held at fair value through profit or loss based on the bid/offer prices of the options written to which the Group is exposed. The value of the option is subsequently marked-to - market to reflect the fair value through profit or loss of the option based on traded prices. Where the premium is taken to the revenue account, an appropriate amount is shown as capital return such that the total return reflects the overall change in the fair value of the option. When an option is exercised, the gain or loss is accounted for as a capital gain or loss. Any cost on closing out an option is transferred to the revenue account along with any remaining unamortised premium.
(j) Other receivables and other payables
Other receivables and other payables do not carry any interest and are short-term in nature and are accordingly stated on an amortised cost basis.
(k) Dividends payable
Under IAS, final dividends should not be accrued in the financial statements unless they have been approved by shareholders before the financial reporting date. Interim dividends should not be recognised in the financial statements unless they have been paid.
Dividends payable to equity shareholders are recognised in the Consolidated and Parent Company Statements of Changes in Equity.
(l) Foreign currency translation
Transactions involving foreign currencies are converted at the rate ruling at the date of the transaction. Foreign currency monetary assets and liabilities and non-monetary assets held at fair value are translated into Sterling at the rate ruling on the financial reporting date. Foreign exchange differences arising on translation are recognised in the Consolidated Statement of Comprehensive Income as a revenue or capital item depending on the income or expense to which they relate. For investment transactions and investments held at the year end, denominated in a foreign currency, the resulting gains or losses are included in the profit/(loss) on investments held at fair value through profit or loss in the Consolidated Statement of Comprehensive Income.
(m) Cash and cash equivalents
Cash comprises cash in hand, bank overdrafts and on demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. Bank overdrafts are shown separately on the Consolidated and Parent Company Statements of Financial Position.
(n) Bank borrowings
Bank overdrafts and loans are recorded at the net proceeds received. Finance charges, including any premium payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in the Consolidated Statement of Comprehensive Income using the effective interest rate method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
(o) Offsetting
Financial assets and financial liabilities are offset and the net amount reported in the Consolidated and Parent Company Statements of Financial Position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously.
(p) Share repurchases and share reissues
Shares repurchased and subsequently cancelled – share capital is reduced by the nominal value of the shares repurchased and the capital redemption reserve is correspondingly increased in accordance with Section 733 of the Companies Act 2006. The full cost of the repurchase is charged to the special reserve.
Shares repurchased and held in treasury – the full cost of the repurchase is charged to the special reserve.
Where treasury shares are subsequently reissued:
- amounts received to the extent of the repurchase price are credited to the special reserve and capital reserves based on a weighted average basis of amounts utilised from these reserves on repurchases; and
- any surplus received in excess of the repurchase price is taken to the share premium account.
Costs on share reissues are charged to the special reserve and capital reserves.
(q) Critical accounting estimates and judgements
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. Estimates and judgements are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Fair value of unquoted financial instruments
When the fair values of financial assets and financial liabilities recorded in the Consolidated and Parent Company Statements of Financial Position cannot be derived from active markets, their fair value is determined using a variety of valuation techniques that include the use of valuation models.
(a)
The fair value of the investment in equity shares of Jetti Resources and
The valuation is carried out based on market approach using earnings multiple and price of recent transactions. Changes in assumptions about these factors could affect the reported fair value of financial instruments in the Consolidated and Parent Company Statements of Financial Position and the level where the instruments are disclosed in the fair value hierarchy. To assess the significance of a particular input to the entire measurement, the external valuer performs sensitivity analysis.
(b) The investment in the subsidiary company was valued based on the net assets of the subsidiary company, which is considered appropriate based on the nature and volume of transactions in the subsidiary company.
The key assumptions used to determine the fair value of the unquoted financial instruments and sensitivity analyses are provided in note 17(d).
3. Income
2025 2024
£’000 £’000
Investment income:
UK dividends 9,007 10,223
Overseas dividends 26,506 24,602
Overseas special dividends 765 2,558
Overseas stock dividends 680 440
Income from contractual rights (BHP Brazil 7,366 2,431
Royalty)
Income from Vale debentures 3,272 2,815
Income from fixed income investments 652 810
--------------- ---------------
Total investment income 48,248 43,879
--------------- ---------------
Other income:
Option premium income 8,317 10,227
Deposit interest 563 719
Interest received on cash collateral with 140 189
brokers
Stock lending income 101 120
--------------- ---------------
Total other income 9,121 11,255
--------------- ---------------
Total 57,369 55,134
========= =========
During the year, the Group received option premium income in cash totalling £8,310,000 (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 year, option premiums of £8,317,000 (2024: £10,227,000) were amortised to revenue.
At
Dividends and interest received in cash during the year amounted to £30,122,000 and £3,898,000 (2024: £36,895,000 and £4,584,000).
No special dividends have been recognised in capital during the year (2024: none).
4. Investment management fee
2025 2024
Revenue Capital Total Total
£’000 £’000 Revenue £’000 Capital £’000
£’000 £’000
Investment
management 2,590 7,963 10,553 2,188 6,764 8,952
fee
Total 2,590 7,963 10,553 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 year, £9,800,000 (2024: £8,471,000) of the investment management fee was generated from net assets and £753,000 (2024: £481,000) from the gearing effect on gross assets due to the quarter–on–quarter increase in the NAV per share for the year as set out below:
Quarterly Gearing effect
Cum income
Quarter end increase/ on management
NAV per share (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 524.77 +2.8 235
30 June 2025 540.48 +3.0 121
30 September 2025 700.52 +29.6 186
31 December 2025 856.23 +22.2 211
========= ========= =========
The daily average of the net assets under management during the year ended
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
2025 2024
£’000 £’000
Allocated to revenue:
Custody fee 108 98
Auditors’ remuneration – audit services1 56 65
Registrar’s fee 89 88
Directors’ emoluments2 161 166
AIC fees 29 21
Broker fees 35 30
Depositary fees 96 104
FCA fee 53 49
Directors’ insurance 19 21
Marketing fees 161 169
Stock exchange listing fees 59 52
Legal and professional fees 76 126
Bank facility fees3 92 92
Printing and postage fees 65 46
Directors’ search fees 27 –
Write back of prior year expenses4 – (19)
Other administrative costs 275 161
--------------- ---------------
Total revenue expenses 1,401 1,269
--------------- ---------------
Allocated to capital:
Transaction charges5 8 12
--------------- ---------------
Total capital expenses 8 12
Total 1,409 1,281
========= =========
2025 2024
Ongoing charges (as a percentage of average daily net 1.05% 0.95%
assets)6
Ongoing charges (as a percentage of average daily gross 0.95% 0.84%
assets)6
========= =========
¹ Fees paid to the auditors for non-audit services were £nil excluding VAT (2024: £nil).
2
Details of the Directors’ emoluments can be found in the Directors’ Remuneration Report in the Company’s Annual Report for the year ended
3 There is a 4 basis point facility fee chargeable on the full loan facility whether drawn or undrawn.
4 No expenses were written back during the year (2024: legal and professional fees and Directors’ expenses).
5 Expenses of £8,000 (2024: £12,000) were charged to the capital account of the Consolidated Statement of Comprehensive Income. These include transaction costs charged by the custodian on sale and purchase trades.
6
The Company’s ongoing charges, calculated as a percentage of average daily net assets and as a percentage of average daily gross assets, and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items. Alternative Performance Measure, see Glossary in the Company’s Annual Report for the year ended
6. Finance costs
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Interest
paid on 1,477 4,430 5,907 2,196 6,581 8,777
bank
loans
Interest
paid on 48 143 191 16 49 65
bank
overdraft
--------------- --------------- --------------- --------------- --------------- ---------------
Total 1,525 4,573 6,098 2,212 6,630 8,842
========= ========= ========= ========= ========= =========
7. Dividends
Dividends paid 2025 2024 on equity Record date Payment date shares: £’000 £’000 Final dividend of 6.50p per share for the 21 March 2025 27 May 2025 12,381 32,501 year ended 31 December 2024 (2023: 17.00p) 1st interim dividend of 5.50p per share for the year 30 May 2025 27 June 2025 10,306 10,515 ended 31 December 2025 (2024: 5.50p) 2nd interim dividend of 5.50p per share12 September 26 September for the year 2025 2025 10,305 10,515 ended 31 December 2025 (2024: 5.50p) 3rd interim dividend of 5.50p per share 28 November for the year 2025 19 December 2025 10,268 10,506 ended 31 December 2025 (2024: 5.50p) --------------- --------------- Accounted for in the 43,260 64,037 financial statements ========= =========
The total dividends payable in respect of the year ended
2025 2024
Dividends paid or declared on equity shares: £’000 £’000
1st quarterly interim dividend of 5.50p per
share for the year ended 31 December 2025 10,306 10,515
(2024: 5.50p)
2nd quarterly interim dividend of 5.50p per
share for the year ended 31 December 2025 10,305 10,515
(2024: 5.50p)
3rd quarterly interim dividend of 5.50p per
share for the year ended 31 December 2025 10,268 10,506
(2024: 5.50p)
Final dividend of 7.50p per share for the year
ended 31 December 2025 13,990 12,406
(2024: 6.50p)
--------------- ---------------
Total for the year 44,869 43,942
========= =========
1
Based on 186,527,036
ordinary shares in issue on
8. Consolidated earnings and net asset value per ordinary share
Total revenue, capital profit/(loss) and net asset value per ordinary share are shown below and have been calculated using the following:
2025 2024
Net revenue profit attributable to ordinary 45,867 44,127
shareholders (£’000)
Net capital profit/(loss) attributable to 642,723 (164,068)
ordinary shareholders (£’000)
--------------- ---------------
Total profit/(loss) attributable to ordinary 688,590 (119,941)
shareholders (£’000)
--------------- ---------------
Equity shareholders’ funds (£’000) 1,598,428 975,199
--------------- ---------------
The weighted average number of ordinary shares
in issue during the year on which the earnings 188,213,496 191,149,163
per ordinary share was calculated was:
The actual number of ordinary shares in issue at
the year end on which the net asset value per 186,683,036 191,018,036
ordinary share was calculated was:
Earnings per ordinary share
Revenue earnings per share (pence) - basic and 24.37 23.09
diluted
Capital earnings/(loss) per share (pence) - 341.49 (85.84)
basic and diluted
--------------- ---------------
Total earnings/(loss) per share (pence) - basic 365.86 (62.75)
and diluted
========= =========
As at As at
31 December 31 December
2025 2024
Net asset value per ordinary share (pence) 856.23 510.53
Ordinary share price (pence) 804.00 481.00
========= =========
There were no dilutive securities at the year end.
9. Share capital
Ordinary shares Treasury shares Total shares Nominal
in issue number number value
number £’000
Allotted, called up and
fully paid share capital
comprised:
Ordinary shares of 5p
each
At 31 December 2023 191,183,036 1,828,806 193,011,842 9,651
Ordinary shares (165,000) 165,000 – –
repurchased into treasury
At 31 December 2024 191,018,036 1,993,806 193,011,842 9,651
Ordinary shares (4,335,000) 4,335,000 – –
repurchased into treasury
At 31 December 2025 186,683,036 6,328,806 193,011,842 9,651
========= ========= ========= =========
During the year ended
Since the year end and up to
10. Reserves
Capital reserve Capital reserve
Share Capital Special arising on arising on
premium redemption reserve investments revaluation of Revenue reserve
account reserve sold investments
held
Group £’000 £’000 £’000 £’000 £’000 £’000
At 31 December 151,493 22,779 193,008 510,400 214,761 57,959
2023
Movement
during the
year:
Total
comprehensive
(loss)/income:
Net
(loss)/profit – – – (13,425) (150,643) 44,127
for the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – (868) – – –
repurchased
into treasury
Share
repurchase – – (6) – – –
costs
Dividends – – – – – (64,037)
paid
At 31 December 151,493 22,779 192,134 496,975 64,118 38,049
2024
--------------- --------------- --------------- --------------- --------------- ---------------
Movement
during the
year:
Total
comprehensive
income:
Net profit – – – 77,298 565,425 45,867
for the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – (21,947) – – –
repurchased
into treasury
Share
repurchase – – (154) – – –
costs
Dividends – – – – – (43,260)
paid
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 151,493 22,779 170,033 574,273 629,543 40,656
2025
========= ========= ========= ========= ========= =========
Distributable reserves
Capital reserve Capital reserve
Share Capital Special arising on arising on
premium redemption reserve investments revaluation of Revenue reserve
account reserve sold investments
held
Company £’000 £’000 £’000 £’000 £’000 £’000
At 31 December 151,493 22,779 193,008 508,899 222,168 52,053
2023
Movement
during the
year:
Total
comprehensive
(loss)/income:
Net
(loss)/profit – – – (13,425) (150,526) 44,010
for the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – (868) – – –
repurchased
into treasury
Share
repurchase – – (6) – – –
costs
Dividends – – – – – (64,037)
paid
At 31 December 151,493 22,779 192,134 495,474 71,642 32,026
2024
--------------- --------------- --------------- --------------- --------------- ---------------
Movement
during the
year:
Total
comprehensive
income:
Net profit – – – 77,298 565,522 45,770
for the year
Transactions
with owners,
recorded
directly to
equity:
Ordinary
shares – – (21,947) – – –
repurchased
into treasury
Share
repurchase – – (154) – – –
costs
Dividends – – – – – (43,260)
paid
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 December 151,493 22,779 170,033 572,772 637,164 34,536
2025
========= ========= ========= ========= ========= =========
Pursuant to a resolution of the Company passed at an Extraordinary General Meeting on
The share premium account and capital redemption reserve of £151,493,000 and £22,779,000 (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 reserves of the Parent Company may be used as distributable reserves for all purposes and, in particular, the repurchase by the Parent Company of its ordinary shares and for payment as dividends. In accordance with the Company’s Articles of Association, the special reserve of £170,033,000 (2024: £192,134,000), capital reserves of £1,209,936,000 (2024: £567,116,000) and the revenue reserve of £34,536,000 (2024: £32,026,000) may be distributed by way of dividend. The Parent Company’s capital gains of £1,209,936,000 (2024: £567,116,000) comprise a gain on the capital reserve arising on investments sold of £572,772,000 (2024: £495,474,000), a gain on the capital reserve arising on revaluation of listed investments of £632,821,000 (2024: £56,862,000), revaluation losses on unquoted investments of £3,278,000 (2024: gains of £7,256,000) and a revaluation gain on the investment in the subsidiary of £7,621,000 (2024: £7,524,000). The capital reserve arising on the revaluation of listed investments of £632,821,000 (2024: £56,862,000) is subject to fair value movements and may not be readily realisable at short notice; as such it may not be entirely distributable. The investments are subject to financial risks, as such capital reserves (arising on investments sold) and the revenue reserve may not be entirely distributable if a loss occurred during the realisation of these investments. The reserves of the subsidiary company are not distributable until distributed as a dividend to the Parent Company.
As at
11. Valuation of financial instruments
Financial assets and financial liabilities are either carried in the Consolidated and Parent Company Statements of Financial Position at their fair value (investment and derivatives) or at amortised cost (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and bank overdrafts). IFRS 13 requires the Group to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Group are explained in the accounting policies note 2(h) to the Financial Statements above.
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset.
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if quoted prices are readily available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The Group does not adjust the quoted price for these instruments.
Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for similar instruments in markets that are considered less than active, or other valuation techniques where all significant inputs are directly or indirectly observable from market data.
Valuation techniques used for non-standardised financial instruments such as options, currency swaps and other over-the-counter derivatives include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity specific inputs.
Over-the-counter derivative option contracts have been classified as Level 2 investments as their valuation has been based on market observable inputs represented by the underlying quoted securities to which these contracts expose the Group.
Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique includes inputs not based on market data and these inputs could have a significant impact on the instrument’s valuation.
This category also includes instruments that are valued based on quoted prices for similar instruments where significant entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement requires judgement, considering factors specific to the asset or liability including an assessment of the relevant risks including but not limited to credit risk, market risk, liquidity risk, business risk and sustainability risk. The determination of what constitutes ‘observable’ inputs requires significant judgement by the Investment Manager and these risks are adequately captured in the assumptions and inputs used in measurement of Level 3 assets or liabilities.
Valuation process and techniques for Level 3 valuations
Jetti Resources and
The fair value of the investment equity shares of Jetti Resources and
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 Level 1 Level 2 Level 3 Total
through profit £’000 £’000 £’000 £’000
or loss
at 31 December
2025 – Group
Assets:
Equity 1,595,718 – 32,792 1,628,510
investments
Fixed income – 46,547 – 46,547
securities
Total assets 1,595,718 46,547 32,792 1,675,057
Liabilities:
Derivative
financial (349) (10) – (359)
instruments –
written options
--------------- --------------- --------------- ---------------
Total 1,595,369 46,537 32,792 1,674,698
========= ========= ========= =========
Financial
assets/
(liabilities) at
fair value Level 1 Level 2 Level 3 Total
through profit £’000 £’000 £’000 £’000
or loss
at 31 December
2024 – Group
Assets:
Equity 987,723 10,555 36,070 1,034,348
investments
Fixed income – 36,653 – 36,653
securities
Investment in
contractual – – 22,197 22,197
rights
Total assets 987,723 47,208 58,267 1,093,198
Liabilities:
Derivative
financial – (622) – (622)
instruments –
written options
--------------- --------------- --------------- ---------------
Total 987,723 46,586 58,267 1,092,576
========= ========= ========= =========
Financial
assets/
(liabilities) at
fair value Level 1 Level 2 Level 3 Total
through profit £’000 £’000 £’000 £’000
or loss
at 31 December
2025 – Company
Assets:
Equity 1,595,718 – 40,413 1,636,131
investments
Fixed income – 46,547 – 46,547
investments
Total assets 1,595,718 46,547 40,413 1,682,678
Liabilities:
Derivative
financial (349) (10) – (359)
instruments –
written options
--------------- --------------- --------------- ---------------
Total 1,595,369 46,537 40,413 1,682,319
========= ========= ========= =========
Financial
assets/
(liabilities) at
fair value Level 1 Level 2 Level 3 Total
through profit £’000 £’000 £’000 £’000
or loss
at 31 December
2024 – Company
Assets:
Equity 987,723 10,555 43,594 1,041,872
investments
Fixed income – 36,653 – 36,653
securities
Investment in
contractual – – 22,197 22,197
rights
Total assets 987,723 47,208 65,791 1,100,722
Liabilities:
Derivative
financial – (622) – (622)
instruments –
written options
--------------- --------------- --------------- ---------------
Total 987,723 46,586 65,791 1,100,100
========= ========= ========= =========
A reconciliation of fair value measurement in Level 3 is set out below.
Group Company
2025 2024 2025 2024
Level 3
Financial assets
at fair value £’000 £’000 £’000 £’000
through profit
or loss
at 31 December
Opening fair 58,267 51,011 65,791 58,418
value
Return of
capital – (483) (397) (483) (397)
royalty
Additions at 2,847 5,626 2,847 5,626
cost
Sale of (52,582) – (52,582) –
investments
Total profit or
loss included in
net profit/
(loss) on
investments in
the Consolidated
Statement of
Comprehensive
Income
– realised gain
on investments 30,868 – 30,868 –
sold
– unrealised
(losses)/gains
on assets held (6,125) 2,027 (6,028) 2,144
at the end of
the year
--------------- --------------- --------------- ---------------
Closing balance 32,792 58,267 40,413 65,791
========= ========= ========= =========
The BHP Brazil Royalty was sold on
The Level 3 valuation process and techniques used are explained in the accounting policies in notes 2(h) and 2(q). A more detailed description of the techniques is found in the Company’s Annual Report for the year ended
The Level 3 investments as at
In arriving at the fair value of Jetti Resources and
Quantitative information of significant unobservable inputs – Level 3 – Group and Company
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy,
together with an estimated quantitative sensitivity analysis, as at
As at
Range of Reasonable Impact on
31 December Valuation Unobservable weighted
Description possible fair
2025 technique input average shift¹ +/- value
inputs
£’000
Market Price of
MCC Mining 20,356 approach recent 10.0% £2.0m
transaction
Jetti 12,436 Market Earnings 17.50x 10.0% £1.2m
Resources approach multiple
---------------
Total 32,792
=========
As at
Range of Reasonable Impact
31 December Valuation Unobservable weighted on
Description possible
2024 technique input average shift¹ +/- fair
inputs value
£’000
Discount
rate–
BHP Brazil 22,197 Discounted weighted 5.0% - 1.0% £1.2m
Royalty cash flows average cost 8.0%
of capital
US$2,270 -
Average
gold prices US$2,376 10.0% £2.1m
per ounce
US$9,025 -
Average
copper US$9,325 10.0% £1.0m
prices
per tonne
Jetti 21,973 Market Earnings 4.75x 10.0% £2.3m
Resources approach multiple
Market Price of
MCC Mining 14,097 approach recent 10.0% £1.4m
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.
12. Transactions with the Investment Manager and AIFM
The investment management fee due for the year ended
In addition to the above services, BIM (
The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in
13. Related party disclosure
Directors’ emoluments
At the date of this report, the Board consists of five non-executive Directors, all of whom are considered to be independent of the Manager by the Board. Following the conclusion of the Annual General Meeting on
Disclosures of the Directors’ interests in the ordinary shares of the Company and fees and expenses payable to the Directors are set out in the Directors’ Remuneration Report in the Company’s Annual Report for the year ended
Significant holdings
The following investors are:
a.
funds managed by the
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 (
Total % of shares held Number of Significant
Total % of shares by Significant Investors who are not
held by Related Investors who are not affiliates of
BlackRock Funds affiliates of BlackRock Group or
BlackRock Group or BlackRock, Inc.
BlackRock, Inc.
As at 31 December 1.18 n/a n/a
2025
As at 31 December 1.19 n/a n/a
2024
========= ========= =========
14. Contingent liabilities
There were no contingent liabilities at
15. Publication of non statutory accounts
The financial information contained in this announcement does not constitute statutory accounts as defined in the Companies Act 2006. The Annual Report and Financial Statements for the year ended
The figures set out above have been reported upon by the auditor, whose report for the year ended
The comparative figures are extracts from the audited financial statements of
16. Annual Report and Financial Statements
Copies of the Annual Report and Financial Statements will be published shortly and will be available from the registered office, c/o The Secretary,
17. Annual General Meeting
The Annual General Meeting of the Company will be held at
The Annual Report and Financial Statements will also be available on the BlackRock website at www.blackrock.com/uk/brwm. Neither the contents of the website nor the contents of any website accessible from hyperlinks on the website (or any other website) is incorporated into, or forms part of, this announcement.
For further information, please contact:
Press enquires:
Tel: 020 7294 3616
E-mail: BlackRockInvestmentTrusts@lansons.com or EdH@lansons.com
ENDS
Release
