BlackRock World Mng Portfolio Update

 
TIDMBRWM 
 
BLACKROCK WORLD MINING TRUST plc (LEI - LNFFPBEUZJBOSR6PW155) 
 
All information is at 31 January 2020 and unaudited. 
 
Performance at month end with net income reinvested 
 
                                           One          Three       One     Three       Five 
 
                                         Month         Months      Year     Years      Years 
 
Net asset value                          -5.6%           2.5%      3.4%      9.6%      55.9% 
 
Share price                              -6.8%           6.2%      6.1%      8.7%      61.0% 
 
EMIX Global Mining Index (Net)*          -5.5%           1.4%      8.6%     15.8%      57.9% 
 
(Total return) 
 
Sources: BlackRock, EMIX Global Mining Index, Datastream 
 
At month end 
 
Net asset value including income1:                                                   409.21p 
 
Net asset value capital only:                                                        398.17p 
 
1 Includes net revenue of 11.04p 
 
Share price:                                                                         357.00p 
 
Discount to NAV2:                                                                      12.8% 
 
Total assets:                                                                        GBP805.7m 
 
Net yield3:                                                                             5.9% 
 
Net gearing:                                                                           10.2% 
 
Ordinary shares in issue:                                                        174,639,466 
 
Ordinary shares held in treasury:                                                 18,372,376 
 
Ongoing charges4:                                                                       1.0% 
 
2 Discount to NAV including income. 
3 Based on quarterly interim dividends of 4.00p per share declared on 
14 November 2019, 20 August 2019 and 2 May 2019 in respect of the year ended 
31 December 2019 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 2019. 
 
Sector                           % Total        Country Analysis                      % Total 
 
                                  Assets                                               Assets 
 
Diversified                         39.2        Global                                   63.0 
 
Gold                                24.8        Australasia                               9.1 
 
Copper                              15.6        Latin America                             8.7 
 
Silver & Diamonds                    5.8        Canada                                    8.2 
 
Materials                            4.9        United Kingdom                            2.2 
 
Industrial Minerals                  4.7        South Africa                              2.2 
 
Iron Ore                             1.1        Other Africa                              1.1 
 
Nickel                               0.9        USA                                       0.8 
 
Coal                                 0.4        Indonesia                                 0.8 
 
Aluminium                            0.2        Sweden                                    0.8 
 
Zinc                                 0.2        Russia                                    0.7 
 
Current assets                       2.2        Argentina                                 0.1 
 
                                   -----        Kazakhstan                                0.1 
 
                                   100.0        Current assets                            2.2 
 
                                   =====                                                ----- 
 
                                                                                        100.0 
 
                                                                                        ===== 
 
Ten Largest Investments 
 
                                                  % Total 
Company                                            Assets 
 
BHP                                                   9.1 
 
Vale: 
 
  Equity                                              4.9 
 
  Debenture                                           3.9 
 
Rio Tinto                                             8.5 
 
Anglo American                                        5.6 
 
Newmont Mining                                        4.8 
 
Barrick Gold                                          4.7 
 
First Quantum Minerals                                4.0 
 
Agnico Eagle Mines                                    3.9 
 
Wheaton Precious Metals                               3.8 
 
Oz Minerals Brazil: 
 
  Royalty                                             2.2 
 
  Equity                                              1.3 
 
 
 
 
Commenting on the markets, Evy Hambro and Olivia Markham, representing the 
Investment Manager noted: 
 
Performance 
 
The Company's NAV decreased by 5.6% in January, marginally underperforming its 
reference index, the EMIX Global Mining Index (net return), which returned 
-5.5%. (Figures in GBP) 
 
Global equity markets came under pressure in January, with the MSCI World Index 
returning -0.9%. At the beginning of the year, markets were impacted by 
increased tensions in the middle east after a US-led drone strike killed the 
Iranian General, Qasem Soleimani.  As we progressed through the month, stock 
markets were also negatively impacted by the outbreak of the coronavirus, due 
to fears around the impact that the epidemic could have on the global economy. 
 
Against this backdrop, mined commodity prices came under pressure, with copper, 
aluminium and nickel prices returning -9.7%, -4.3%, and -8.5% respectively. For 
precious metals, the gold price rose by 4.4% in January, finishing the month at 
a price of $1,589/oz, as the yellow metal performed well on the back of 
safe-haven buying. However, gold equities lagged the move up in the gold price, 
partly reflecting the strong performance of the mid-cap gold companies in Q4 
2019, as well as some of the higher beta names announcing poorer results than 
the market expected. 
 
In other news, BlackRock's CEO, Larry Fink, wrote a letter to CEO's, as well as 
another open letter to clients underlining the firm's commitment to make 
sustainability the new standard for investing. One important element within 
Larry's letter was that BlackRock has committed to exit investments in thermal 
coal producers in an effort to strengthen the firm's commitment to 
sustainability.  For the Company, thermal coal appears in the investment 
universe.  As a team, we have not had pure-play thermal coal exposure for some 
time, due to the environmental risks that we deem to be material. 
 
Strategy and Outlook 
 
We see an attractive valuation opportunity in mining today. The mining sector 
is generating close to record free cash flow, whilst balance sheets are in 
strong shape and companies remain focused on capital discipline. 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 2020. 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 USD terms unless stated otherwise. 
 
18 February 2020 
 
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

February 18, 2020 11:14 ET (16:14 GMT)