BlackRock World Mng Portfolio Update

 
TIDMBRWM 
 
BLACKROCK WORLD MINING TRUST plc  (LEI - LNFFPBEUZJBOSR6PW155) 
 
All information is at 31 October 2019 and unaudited. 
 
Performance at month end with net income reinvested 
 
                                         One          Three       One     Three       Five 
 
                                       Month         Months      Year     Years      Years 
 
Net asset value                        -2.8%          -9.1%      4.7%     20.9%      36.5% 
 
Share price                            -5.0%         -11.0%      4.7%     19.3%      30.6% 
 
EMIX Global Mining Index (Net)*        -1.7%          -6.8%     14.5%     27.6%      46.6% 
 
(Total return) 
 
Sources: BlackRock, EMIX Global Mining Index, Datastream 
 
At month end 
 
Net asset value including income1:                                                 403.32p 
 
Net asset value capital only:                                                      390.98p 
 
1 Includes net revenue of 12.34p 
 
Share price:                                                                       340.00p 
 
Discount to NAV2:                                                                    15.7% 
 
Total assets:                                                                      GBP823.1m 
 
Net yield3:                                                                           5.9% 
 
Net gearing:                                                                         11.8% 
 
Ordinary shares in issue:                                                      176,122,207 
 
Ordinary shares held in treasury:                                               16,889,635 
 
Ongoing charges4:                                                                     0.9% 
 
2 Discount to NAV including income. 
3 Based on quarterly interim dividends of 4.00p per share declared on 20 August 
2019 and 2 May 2019 in respect of the year ending 31 December 2019 and a 
quarterly interim dividend of 3.00p per share declared on 8 November 2018 and a 
final dividend of 9.00p per share announced on 28 February 2019 in respect of 
the year ended 31 December 2018. 
4 Calculated as a percentage of average net assets and using expenses, 
excluding finance costs, for the year ended 31 December 2018. 
 
Sector                         % Total        Country Analysis                      % Total 
 
                                Assets                                               Assets 
 
Diversified                       38.0        Global                                   62.6 
 
Gold                              23.5        Latin America                             9.5 
 
Copper                            18.0        Australasia                               8.3 
 
Silver & Diamonds                  6.0        Canada                                    6.6 
 
Industrial Minerals                5.1        South Africa                              3.0 
 
Materials                          3.3        United Kingdom                            1.3 
 
Coal                               1.1        Other Africa                              1.2 
 
Nickel                             1.0        Indonesia                                 1.0 
 
Zinc                               0.3        Sweden                                    0.9 
 
Aluminium                          0.1        Kazakhstan                                0.8 
 
Iron Ore                           0.1        Russia                                    0.7 
 
Current assets                     3.5        USA                                       0.5 
 
                                              Argentina                                 0.1 
 
                                              Current assets                            3.5 
 
                                 -----                                                ----- 
 
                                 100.0                                                100.0 
 
                                 =====                                                ===== 
 
Ten Largest Investments 
 
                                                % Total 
Company                                          Assets 
 
BHP                                                 9.2 
 
Vale: 
  Equity                                            4.9 
  Debenture                                         3.8 
 
Rio Tinto                                           8.5 
 
Barrick Gold                                        5.1 
 
Newmont Mining                                      4.5 
 
Anglo American                                      4.4 
 
OZ Minerals Brazil: 
  Royalty                                           2.3 
  Equity                                            1.7 
 
Agnico Eagle Mines                                  3.9 
 
Wheaton Precious Metals                             3.6 
 
First Quantum Minerals                              3.6 
 
 
 
 
Commenting on the markets, Evy Hambro and Olivia Markham, representing the 
Investment Manager noted: 
 
Performance 
 
The Company's NAV fell by 2.8% in October, underperforming its reference 
index, the EMIX Global Mining Index (net return), which declined by 1.7%. 
 
During the month we saw a degree of thawing in terms of the trade tensions 
between the US and China. Elsewhere, the yield curve for US 10-year 
Treasuries reversed and is no longer inverted below the 2-year rate. In 
other news, at the end of the month the US Federal Reserve (the Fed) cut 
interest rates to a target range of 1.50% to 1.75%. This was the third rate 
cut that we have seen from the Fed this year. The Fed also flagged that 
there were no plans to start raising rates again until they see a 
significant increase in inflation. In this environment, equity markets 
posted positive returns, with the MSCI World Index rising by 2.5%.  (Figures 
in USD.) 
 
Most mined commodity prices were up over the month. The base metals 
benefited from the improvement in the global economic growth outlook, with 
copper, aluminium and zinc prices up by 1.3%, 3.1% and 4.0% respectively. 
Meanwhile, in the precious metals space, gold and silver prices were up by 
2.5% and 5.6% respectively, as US dollar weakness provided a tailwind. The 
bulk commodities were mixed, however, with the coking coal price up by 5.2% 
but the iron ore (62% fe) price falling by 9.6% to $84/tonne. (Figures in 
USD.) 
 
Strategy and Outlook 
 
We see an attractive valuation opportunity in mining today. The mining 
sector is generating close to record free cash flow today, whilst balance 
sheets are in strong shape and companies remain focused on capital 
discipline. Whilst US-China trade tensions are fuelling uncertainty, our 
base case remains that we have positive global economic growth for the next 
12-18 months, albeit at a slower rate than was expected this time last year. 
Barring an economic recession, we expect the mining sector to re-rate as the 
miners continue to generate robust free cash flow and return capital to 
shareholders through dividends and buybacks. We expect most mined commodity 
prices to be stable to rising through the remainder of this year. On the 
commodity demand side, we do not anticipate a hard-landing type event in 
China and we have been encouraged by stimulus measures beginning to feed 
through into improvements in some economic data points. On the commodity 
supply side, supply is tight in most mined commodity markets and, given the 
cuts in mining sector spending since 2012 (down 66%), we expect it to 
remain so. 
 
All data points are in GBP terms unless stated otherwise. 
 
 20 November 2019 
 
Latest information is available by typing www.blackrock.co.uk/brwm on the 
internet. Neither the contents of the Manager's website nor the contents of 
any website accessible from hyperlinks on the Manager's website (or any 
other website) is incorporated into, or forms part of, this announcement. 
 
 
 
END 
 

(END) Dow Jones Newswires

November 20, 2019 10:47 ET (15:47 GMT)