BlackRock World Mining Trust Plc - Portfolio Update
All information is at
Performance at month end with net income reinvested
One Three One Three Five
Month Months Year Years Years
Net asset value -3.3% -10.2% -3.4% 7.1% 72.4%
Share price -6.6% -10.8% -4.9% 10.9% 99.5%
MSCI ACWI Metals & Mining 30% Buffer 10/40 Index -3.4% -8.5% 3.7% 7.3% 60.4%
(Net)*
* (Total return)
Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index,
Datastream
At month end
Net asset value (including income)1: 549.06p Net asset value (capital only): 537.60p Share price: 526.00p Discount to NAV2: 4.2% Total assets: £1,179.1m Net yield3: 6.4% Net gearing: 8.6% Ordinary shares in issue: 191,183,036 Ordinary shares held inTreasury : 1,828,806 Ongoing charges4: 0.91% Ongoing charges5: 0.81%
1 Includes net revenue of 11.46p
2 Discount to NAV including income.
3
Based on a third interim dividend of 5.50p per share declared on
4
The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended
5
The Company’s ongoing charges are calculated as a percentage of average daily gross assets and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended
Country Analysis Total
Assets (%)
Global 59.8
Canada 12.3
Latin America 7.9
United States 5.9
Australasia 5.6
Other Africa 3.8
South Africa 0.8
Indonesia 0.6
Net Current Assets 3.3
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100.0
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Sector Analysis Total
Assets (%)
Diversified 31.8
Gold 24.3
Copper 23.8
Steel 5.2
Industrial Minerals 3.4
Uranium 2.4
Iron Ore 2.1
Platinum Group Metals 1.4
Aluminium 1.2
Nickel 1.0
Zinc 0.1
Net Current Assets 3.3
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100.0
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Ten largest investments Company Total Assets % Rio Tinto 7.6 Glencore 7.0 BHP: Equity 5.3 Royalty 1.5 Newmont 6.0 Agnico Eagle Mines 5.2 Anglo American 5.1 Freeport-McMoRan 4.5 Wheaton Precious Metals 3.8 Teck Resources 3.7 Barrick Gold 3.1
Asset Analysis Total Assets (%)
Equity 93.9
Bonds 1.5
Preferred Stock 0.7
Convertible Bond 0.6
Net Current Assets 3.3
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100.0
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Commenting on the markets,Evy Hambro andOlivia Markham , representing the Investment Manager noted: Performance The Company’s Net Asset Value (NAV) declined by 3.3% in August, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which fell by 3.4% (Performance figures in GBP). It was another weak month for the mining sector, particularly relative to broader equity markets as the MSCI ACWI TR Index rose by 1.7% (GBP terms). Negative sentiment aroundChina continued to drag on the sector. Indicators for the country’s property market, such as average house prices and floor space started, showed significant year-on-year declines. Mined commodities delivered mixed performance with the iron ore (62% fe) price flat but copper and gold prices up by 3.1% and 4.8% respectively. US dollar weakness provided a tailwind for commodities, especially gold. The miners concluded their Q2 earnings reporting season during the month which was somewhat disappointing overall. However, positive takeaways included a greater focus on M&A, stabilising operating costs and capital allocation frameworks continuing to prioritise returning capital to shareholders. Strategy and Outlook Constrained mined commodity supply, an evolving demand picture, strong balance sheets and valuations below historic averages make us optimistic about the outlook for the sector. Mining companies have focused on capital discipline in recent years, meaning they have opted to pay down debt, reduce costs and return capital to shareholders, rather than investing in production growth. This is limiting new supply coming online and there is unlikely to be a quick fix, given the time lags involved in investing in new mining projects. The cost of new projects has also risen significantly and recent M&A activity in the sector suggests that, like us, strategic buyers see an opportunity in existing assets in the listed market, currently trading well below replacement costs. Other issues restricting supply include cases of governments closing mines, permitting issues and a general lack of shovel-ready projects. Meanwhile, the demand side of the equation appears to be evolving. The commodity super-cycle (2002 – 2011) was all about China’s extraordinary demand growth. Today,China remains the most important individual economy for mining, but we are expecting this importance to gradually decline through to the end of the decade. We expect global infrastructure spending to drive the next wave of demand, with low carbon transition-related infrastructure particularly meaningful. The other area gaining attention is the implications for materials from the build out of AI-related data centres, both for the centres themselves but also for the increased power infrastructure required. All data points are in USD terms unless stated otherwise.30 September 2024 Latest information is available by typing www.blackrock.com/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.
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