BlackRock World Mng Portfolio Update
February 15 2023 - 10:04AM
UK Regulatory
TIDMBRWM
The information contained in this release was correct as at 31 January 2023.
Information on the Company's up to date net asset values can be found on the
London Stock Exchange website at:
https://www.londonstockexchange.com/exchange/news/market-news/
market-news-home.html.
BLACKROCK WORLD MINING TRUST PLC (LEI - LNFFPBEUZJBOSR6PW155)
All information is at 31 January 2023 and unaudited.
Performance at month end with net income reinvested
One Three One Three Five
Month Months Year Years Years
Net asset value 10.0% 25.7% 28.4% 117.8% 117.2%
Share price 8.0% 24.6% 27.3% 151.7% 150.2%
MSCI ACWI Metals & Mining 30% Buffer 10/40 9.8% 26.2% 22.5% 80.8% 72.0%
Index (Net)*
* (Total return)
Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index,
Datastream
At month end
Net asset value (including income)1: 756.74p
Net asset value (capital only): 731.96p
1 Includes net revenue of 24.78p
Share price: 753.00p
Discount to NAV2: 0.5%
Total assets: £1,584.6m
Net yield3: 5.8%
Net gearing: 9.9%
Ordinary shares in issue: 188,903,036
Ordinary shares held in Treasury: 4,108,806
Ongoing charges4: 0.9%
Ongoing charges5: 0.8%
2 Discount to NAV including income.
3 Based on a final dividend of 27.00p per share declared on 8 March 2022 in
respect of the year ended 31 December 2021, and a first, second and third
interim dividend of 5.50p per share declared on 6 May 2022, 23 August 2022 and
16 November 2022 respectively, in respect of year ended 31 December 2022.
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 31 December 2021.
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 31 December 2021.
Country Analysis Total Sector Analysis Total
Assets (%) Assets (%)
Global 68.0 Diversified 38.8
Australasia 10.1 Copper 21.5
Latin America 7.2 Gold 12.8
United States 5.7 Steel 7.8
Canada 4.2 Industrial Minerals 7.4
Other Africa 2.4 Aluminium 3.5
Indonesia 1.0 Iron Ore 3.0
South Africa 0.5 Platinum Group Metals 1.8
United Kingdom 0.1 Nickel 1.5
Net Current Assets 0.8 Mining Services 0.6
----- Uranium 0.4
100.0 Zinc 0.1
===== Net Current Assets 0.8
-----
100.0
=====
Ten largest investments
Company Total Assets %
BHP 9.4
Vale:
Equity 6.8
Debenture 2.4
Glencore 6.8
Rio Tinto 5.3
Anglo American 4.2
ArcelorMittal 4.1
Freeport-McMoRan 4.1
First Quantum Minerals:
Equity 2.3
Bond 1.6
Teck Resources 3.6
Franco-Nevada 2.5
Asset Analysis Total Assets (%)
Equity 92.4
Bonds 3.6
Preferred Stock 3.2
Net Current Assets 0.8
-----
100.0
=====
Commenting on the markets, Evy Hambro and Olivia Markham, representing the
Investment Manager noted:
Performance
The Company's NAV rose by 10.0% in January, outperforming its reference index,
the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which
returned +9.8% (performance figures in GBP).
The mining sector performed strongly during the month, with the Company's
reference index recording its best start to a year since 2017 as China
continued to re-open its economy. The sector also outperformed broader equity
markets, with the MSCI ACWI TR Index returning +7.2%. Mined commodity prices
were up almost across the board, supported by the impressive pace of China's
reopening and expectations for a pickup in demand.
We saw downgrades to supply in the release of quarterly production results
during the month, which with inventories at record lows, highlights continued
supply constraints. Civil unrest in Peru created further risks to commodity
supply, significantly impacting the tin and copper markets. Iron ore (62% fe.)
and copper prices were up +9.8% and +10.0% respectively over the month.
Meanwhile, the gold price was up +6.2%, aided by a weakening US dollar. There
was also record central bank purchases of gold during the month.
Warmer-than-expected weather caused weakness in natural gas prices, which put
pressure on thermal coal prices, particularly in Europe.
Strategy and Outlook
We do not expect the mining sector to be immune to deteriorating global
economic growth. However, whilst recession looms for developed markets, the
most important economy for mining, China, is moving in the opposite direction,
re-opening following a year of lockdowns and a strict zero-Covid policy.
Meanwhile, mined commodity markets are generally tight, with inventories for
many commodities at historic lows. At the same time, mined supply is being
constrained by the underinvestment of recent years and continued capital
discipline. Mining companies are in an excellent financial position, in our
view, with high levels of free cash flow, rock-solid balance sheets and a
continued focus on returning capital to shareholders.
Last year, we saw greater appreciation of the role mining companies will need
to play in supplying the materials required for lower carbon technologies like
wind turbines, solar panels and electric vehicles. In 2023, we expect Brown to
Green to emerge as a key theme, where mining companies focus on reducing the
greenhouse gas emissions intensity associated with their production. We expect
to see a re-rating for the mining companies able to best navigate this and are
playing this in the portfolio.
All data points are in USD terms unless stated otherwise.
15 February 2023
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.
END
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February 15, 2023 10:04 ET (15:04 GMT)
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