BlackRock World Mng Portfolio Update

 
TIDMBRWM 
 
BLACKROCK WORLD MINING TRUST plc  (LEI - LNFFPBEUZJBOSR6PW155) 
 
All information is at 31 July 2017 and unaudited. 
 
Performance at month end with net income reinvested 
 
                                         One         Three       One     Three       Five 
 
                                       Month        Months      Year     Years      Years 
 
Net asset value                        10.7%          7.1%     22.0%     -5.7%     -17.0% 
 
Share price                            10.4%         10.5%     31.1%     -9.2%     -12.7% 
 
Euromoney Global Mining Index          10.1%          8.5%     18.1%      6.5%      -2.2% 
 
(Total return) 
 
Sources: BlackRock, Euromoney Global Mining Index, Datastream 
 
At month end 
 
Net asset value including income1:                                                411.68p 
 
Net asset value capital only:                                                     405.85p 
 
1 Includes net revenue of 5.83p 
 
Share price:                                                                      368.25p 
 
Discount to NAV2:                                                                   10.5% 
 
Total assets:                                                                     GBP819.1m 
 
Net yield3:                                                                          4.3% 
 
Net gearing:                                                                        12.8% 
 
Ordinary shares in issue:                                                     176,455,242 
 
Ordinary shares held in treasury:                                              16,556,600 
 
Ongoing charges4:                                                                   1.10% 
 
2 Discount to NAV including income. 
3 Based on a quarterly interim dividend of 3.00p per share declared on 4 May 
2017 in respect of the year ending 31 December 2017, and an interim dividend of 
4.00p per share and a final dividend of 9.00p per share in respect of the year 
ended 31 December 2016. 
4 Calculated as a percentage of average net assets and using expenses, 
excluding finance costs, for the year ended 31 December 2016. 
 
Sector                        % Total         Country Analysis                     % Total 
 
                               Assets                                               Assets 
 
Diversified                       47.1        Global                                   64.2 
 
Copper                            20.9        Latin America                            11.5 
 
Gold                              17.2        Australasia                              10.8 
 
Silver & Diamonds                  7.5        Other Africa                              7.0 
 
Industrial Minerals                5.3        Canada                                    4.3 
 
Iron Ore                           1.1        South Africa                              0.9 
 
Zinc                               0.7        Russia                                    0.4 
 
Aluminium                          0.2        Kazakhstan                                0.4 
 
                                 -----        India                                     0.2 
 
                                 100.0        USA                                       0.2 
 
                                 =====        Emerging Europe                           0.1 
 
                                                                                      ----- 
 
                                                                                      100.0 
 
                                                                                      ===== 
 
Ten Largest Investments 
 
                                               % Total 
Company                                         Assets 
 
Rio Tinto                                         11.1 
 
First Quantum Minerals                             8.5 
 
Glencore                                           8.2 
 
BHP                                                7.6 
 
Vale                                               6.8 
 
Lundin Mining                                      4.1 
 
Teck Resources                                     3.7 
 
Newmont Mining                                     3.3 
 
Sociedad Minera Cerro Verde                        3.3 
 
South32                                            2.8 
 
 
 
 
Commenting on the markets, Evy Hambro and Olivia Markham, representing the 
Investment Manager noted: 
 
Performance 
 
It was a strong month for the mining sector as economic data from China 
exceeded expectations, which sent mined commodity prices up almost across 
the board. Robust data included China's official year-on-year Q2 GDP growth 
coming in at 6.9% (up from 6.7% in Q2 2016) and manufacturing PMI hitting a 
4-month high of 51.1, indicating expansion. These data points eased 
concerns that tighter credit conditions could cause a sharp slowdown in 
China's growth, concerns which had dragged mined commodity prices lower in 
April and May. Towards the end of the month, the mining sector entered the 
H1 reporting season and whilst most companies did not report until August, 
general themes that had begun to emerge were rising free cash flow, 
deleveraging and cash returns to shareholders. 
 
Of the mined commodities, iron ore was the strongest, rising 15.6% to $74/ 
tonne; well above analyst consensus for the 2017 average iron ore price 
which is below $60/tonne. Copper also performed well, gaining 6.9%, on 
signs of market tightness with news emerging that China, the world's 
largest copper scrap consumer, may look to ban imports of low quality 
copper scrap from 2018. The gold price also gained 2.0% over the month, 
buoyed by continued US dollar weakness. 
 
Among the Company's unquoted investments, Avanco released its second 
quarter operational results with its Antas Mine producing copper and gold 
above guidance, while continuing to drop costs and generate free cash flow. 
Avanco is in the midst of an exploration programme which shows some 
exciting near mine and underground potential at Antas. In addition, the 
company released the pre-feasibility study on its second project Pedra 
Branca East which demonstrates attractive economics for a standalone 
underground mine targeting 24ktpa copper and 16koz of gold. 
 
Strategy and Outlook 
 
The mining sector is in the midst of reporting end Q2 results and rising 
free cash flow, deleveraging and cash returns to shareholders are emerging 
as the key themes. The miners' latest results illustrate the turnaround we 
have seen in the mining sector since the beginning of 2016. Back then, to 
imagine the miners would be reporting these numbers in 18 months' time, 
would have been considered outlandish. The key question for investors in 
mining companies today is whether the mining companies can maintain the 
same level of capital discipline shown in recent years, when cash 
generation of the industry improves. 
 
We recognize that China remains the key risk for investors in the mining 
sector but we believe that the Chinese administration has shown itself 
willing and able to step in with support to avoid a 'hard-landing' type 
event. China should also benefit from a spill over effect from the general 
improvements we have seen in global economic growth in recent months; this 
is reflected by 2017 being expected to be the best year for China's export 
growth since 2012. In addition, global growth is beating expectations and 
now looks to be synchronous for the first time in years. Meanwhile, 
commodity prices should be supported by constraints on the supply side 
resulting from the underinvestment we have seen in the sector, with global 
mining sector capex down 66% since the peak in 2012. Finally, mining shares 
are trading at attractive valuations relative to broader equity markets and 
their own history with price-to-book multiples close to historic lows. 
 
All data points are in US dollar terms unless stated otherwise. 
 
16 August 2017 
 
ENDS 
 
Latest information is available by typing www.brwmplc.co.uk on the 
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 
(ICV terminal).  Neither the contents of the Manager's website nor the 
contents of any website accessible from hyperlinks on the Manager's website 
(or any other website) is incorporated into, or forms part of, this 
announcement. 
 
 
 
END 
 

(END) Dow Jones Newswires

August 16, 2017 07:53 ET (11:53 GMT)