Blackrock World Mining Share Discussion Threads

[neilyb675] 19/4/2017 15:17

After a strong start to the year, the mining sector has surrendered some of its gains owing to some profit taking. The sector had a positive reporting season with deleveraging emerging as the key theme, as improved commodity prices have allowed companies to significantly improve their balance sheets. For example, Rio Tinto and Glencore announced reductions in net debt of -30% over the last 12 months and -48% over the last 18 months respectively. Positively, the capital discipline story remained intact, with limited capex increases announced and management rhetoric still focusing on shareholder returns. Our view is that for now the pain of the recent down-cycle is too fresh and do not see companies falling back into old habits of poor capital discipline in the near-term.

Many of the miners are now trading on attractive free cash flow yields, for example, Glencore, Rio Tinto and Vale (the Company’s three largest mining positions) are all trading on free cash flow yields of between 9% and 11%. The market does not appear to believe these yields are sustainable, with many still cautious of mining shares, but every day that commodity prices remain at current levels the miners are growing cash on their balance sheets. BHP Billiton, Glencore and Rio Tinto all announced sizeable increases in their dividends in the recent reporting season, less than two years after being forced to cut them, showing cash is being returned to shareholders.

Looking ahead, we expect the mining sector’s performance to remain volatile but see the outlook as positive. The macroeconomic backdrop points to a stable to improving demand picture, whilst the underinvestment of recent years is constraining the supply side of the equation. Capital expenditure in the mining sector has fallen by two-thirds since the peak in 2012 and this is feeding through to production, with most mined commodities recording declines in 2016 versus 2015. China remains the key risk for investors in the mining sector and should sentiment deteriorate significantly again the sector would likely come under pressure.

[davidlloyd] 18/4/2017 15:59

That's a big discount to NAV now.....
DL

[neilyb675] 18/4/2017 12:02

The unaudited net asset values for BlackRock World Mining Trust plc at close of
business on 13 April 2017 were:

405.21p Capital only (undiluted)
410.72p Including current year income (undiluted) XD

[racg] 09/4/2017 11:34

4.5% going forward, I d wager.

[celeritas] 05/4/2017 15:32

3.6% then.
I expect that to rise as miners have recently started paying divis again or bigger dividends.

[mad foetus] 05/4/2017 15:22

I think its a 13p divi for the year 2016 and that is expected to be at least maintained going forward.

[celeritas] 05/4/2017 15:18

Whats the yield now?

[mad foetus] 05/4/2017 15:15

bought back in, miners all up sharply today, this is 10p behind the curve.

[wskill] 05/4/2017 12:40

It is a growing dividend as miners are increasing their payouts to shareholders that is the main reason for me and the decent discount to NAV.

[topazfrenzy] 05/4/2017 10:41

Quarterly dividend here from now, good to stay in as a play on the miners without too much risk in one or two stocks, gold in the portfolio too as a hedge.

[topazfrenzy] 28/3/2017 17:36

Well under NAV here, a buy at these rates or at least a hold for the dividend IMO

[action] 22/3/2017 19:02

Sorry 335 limit order

[action] 22/3/2017 19:01

Buy order for 235 did not go through as if they see my limit buy order from my broker?

[topazfrenzy] 17/3/2017 13:47

The case for £5 here this year is intact IMO, way undervalued still.

[mad foetus] 16/3/2017 09:08

Sold the traders I bought last week. Bought them for 344, sold for 365 plus dividend to come, so not bad for a week's work.

[mad foetus] 16/3/2017 08:56

Worth emphasising that it's gone ex div today, so in reality share price is a further 9p ahead today

[steve3sandal] 13/3/2017 21:53

Yes. They will open XD so Thursday's buyers buy without.

[fenboy2] 13/3/2017 20:45

Quick question. Do I still get the dividend if I sell these shares on Thurs?

[s2lowner] 10/3/2017 15:42

I added too

[mad foetus] 10/3/2017 13:57

Miners all up, this should be 5p up today, not 5p down. Strong buy.