Blackrock World Mining Share Discussion Threads

[giltedge1] 16/11/2024 12:34

USD strength will help income returns, BRWM safer bet than individual mining shares. Income may reduce next few years, but then rise again. BRWM backed, by gold, copper etc. End of day better to have investments backed by gold, copper than deflating GBP in bank account with bloated govt debt on the trillions & rising eroding GBP.

[rogerrail] 13/10/2024 17:42

Agree, also worth looking at WT Enhanced Commidity ETF.

[xtrmntr] 13/10/2024 14:01

https://money-makers.co/2024/10/12/money-makers-podcast-12-oct-2024/

[giltedge1] 10/10/2024 13:36

With Gold at 2620, & copper rising as well, worth buying for exposure to those two commodity classes, let alone other holdings. Good hedge against depreciating GBP, a Starmer Put.

[shieldbug] 18/9/2024 12:52

Strictly speaking it is an investment trust not a fund. Therefore they publish an Annual Report containing all the information you are likely to need. I am sure management fees and costs are covered.

[r2oo] 16/9/2024 08:15

As this is an actively managed fund, can someone please explain the fee structure upon owning this.

[podgyted] 15/9/2024 19:34

Discount at over 8% is attractive.

[giltedge1] 14/9/2024 15:17

Interesting buy, Au, Ag, Cu upwards trend, Fe downwards. Most diversified miners rely on Fe for cashflow. End of the day mines Hellishly expensive to develop & with esg will be more so. World needs more mines, so existing mines will become more valuable. Agreed maybe short term dividend cut, to 5%, but long term outlook good especially Au & Cu. Have held in the past done very well, looking to buy back.

[topazfrenzy] 10/9/2024 18:27

Topped up today.

Remember that the dividend also goes up once the miners start paying more again.

[uhound] 09/9/2024 09:27

Would still be happy with 5% divi plus future share price growth.

No one knows if this is the bottom, so I just add a few every now and then.

[masurenguy] 09/9/2024 09:17

Due to the fall in revenue here the dividend is likely to be cut and could easily drop from circa 7% to 5% at todays shareprice. Consequently I have taken some profits by halving my holding.

[uhound] 09/9/2024 08:49

The world will always need miners, so load up while the stock is good value. At these prices, a regular buy for me.

Still a good divi too.

Portfolio staple for me.

[veryniceperson] 09/9/2024 08:44

How long is a piece of string. But probably a good middle/ long-term bet.

[masurenguy] 09/9/2024 08:40

Anyone think whether this has bottomed out yet ?

[danb45] 06/9/2024 19:43

surely China will fire up again sometime ?? for better or worse, been buying in tranches here last few weeks... good luck all holders

[mister md] 06/9/2024 11:30

I have BRWM very high up on my 'top-up' list - I'm pretty sure a few years from now the shareprice will be a lot higher. Safer than buying individual miners, although do have RIO in my portfolio for the long term.

[lageraemia] 06/9/2024 08:34

The 'short the share then cover by buying shares in placings' trick works well for the small and mid-cap miners, and the big companies are liquid enough to short on sentiment with less fear of a short squeeze.

Either commodities boom in the near future, and the mining shares follow, or the opposite.....if commodity prices fall on weaker global economics, then investment in new capcity (and the need to raise capital) will fall...ensuring shortages in the future. In the meantime the secotr now has low debt and focus on cash flow and not mining at a loss in a lower inflation environment.

The cure for low prices is low prices. What cannot last for ever will not last for ever etc.

I'm drip feeding my wife's SIPP into BRWM monthly, so right now its allowing a lower accumulation price.

[spangle93] 06/9/2024 08:31

Indeed, my thoughts exactly. I added at 530 a few months ago, thinking that was the base, but seriously considering adding more.

[masurenguy] 06/9/2024 08:15

Shareprice down by 33% over the past 18 months and currently at a 45 month low. Around 4% discount to NAV with a yield of circa 7% at the current shareprice. I've held this for the yield since 2020 and at 432p I'm still ahead on the shareprice and have collected circa 133p in dividends to date. Question is - are we near the bottom now or is there a further decline still to come ?

[panshanger1] 05/9/2024 08:20

Ex div today 5.5 pence

[dope007] 05/9/2024 07:43

Keeping a close eye on these. I want exposure to miners and see this as my best way. With commodities under pressure for now this could be a great buy in the ISA for when growth returns

[kenmitch] 27/8/2024 19:03

My forecast of 15p final dividend this year was wrong. I had forgotten we’ve already had that bigger dividend and it was 17p.

[xtrmntr] 27/8/2024 18:37

BlackRock World Mining revenues plunge amid dividend droughtThe 6.3%-yielder's revenues fall 28.6% as mining company dividend cuts filter through, but managers Evy Hambro and Olivia Markham say tone toward sector is generally positive.BYJAMIE COLVINBlackRock World Mining Trust (BRWM) has been knocked by dividend cuts and warned of further market volatility amid a weak outlook for China and rising geopolitical tensions.Newly appointed chair Chip Goodyear, a former BHP chief executive, warned investors in the £1bn trust that China, the largest global consumer of commodities, had fuelled concerns over the growth outlook given its ailing economy, which has hampered demand for metals.The 6.3%-yielder's half-year results show that over the six months to the end of June, revenues plunged 28.6% to 11.95p per share year-on-year as many mining companies slashed their dividends in the wake of softening commodity prices last year, a weaker dollar and higher costs.BlackRock managers Evy Hambro and Olivia Markham said the first half had been 'frustrating'. A generally positive tone toward the sector saw gold and copper prices hit all-time highs and buoyed merger and acquisition (M&A) activity, but this was not reflected in performance, with net asset value (NAV) softening by 1.9%.The composite reference index, made up of the MSCI ACWI Metals and Mining 30% Buffer 10/40 index, returned 0.6%, while the FTSE 100 jumped 7.9% and the consumer prices index gained 2%.Shareholder returns totalled 1.1%, which included the fully covered 5.5p dividend, as the discount narrowed from 3.3% to 0.6%. Goodyear noted the board would consider share buybacks, having not bought back any stock since the shares fell below par last year.He added that there were reasons for hope in the commodities sector, with miners playing a key role in the delivery of materials required for infrastructure investment, while AI depends on minerals and metals.'Despite the pick-up in M&A activity, we are pleased to see mining companies continue to show strong capital discipline, which should ensure there is an appropriate split of available cashflow between shareholder distributions and growth,' Goodyear said.Gold and copper shineThe copper price reached an all-time high in May, finishing the half up 11.7%, driven by investments into the grid, electric vehicles, wind and solar power, and traditional Chinese demand drivers switching from being property-linked to low-carbon infrastructure and manufacturing. Among base metals, aluminium rose 6.1%, nickel gained 4.1% and zinc added 9%.Gold jumped 12.6% to a then-all-time high of $2,427 (£1,834) per ounce, driven by geopolitical tensions and central bank purchasing, particularly from China. Retail investors appeared more cautious, with gold exchange-traded fund holdings declining over the period, which Hambro and Markham said was perplexing given its role as a safe haven asset.Silver climbed 20.7% as the market recognised its relative price attractiveness versus gold along with its industrial demand in the solar sector, the managers said.On the other hand, the prices of iron ore, lithium and thermal coal fell on weaker demand and, in the case of lithium, supply threats that undermined long-term price assumptions.Hambro and Markham increased exposure to precious metals companies to reflect their positive outlook on gold and the expected improvement in earnings from gold companies. Gold makes up 23% of assets, according to the July factsheet. Copper is another key exposure, at 24% of the portfolio.'Prices for both commodities have been strong, and key for performance will be how these translate into earnings for the companies,' they said. 'Too often higher prices end up being lost to the pressures of poor operating performance, inflation, taxation or consumed in reinvestment by the companies. It is our expectation that the management teams have the processes and skills to mitigate these negative impacts.'Diversified mining company Glencore (GLEN) is the largest holding, at 7.7% of assets, followed by Australian miner BHP, whose hostile offer for Anglo American (AAL), another holding, was rejected during the period, and Rio Tinto (RIO).Shares in the trust rose 1.3% to 538.89p per share on Tuesday morning, putting them on a 6% discount to the June NAV of 572.21p.