BlackRock World Mng Portfolio Update
March 15 2023 - 11:18AM
UK Regulatory
TIDMBRWM
The information contained in this release was correct as at 28 February 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 28 February 2023 and unaudited.
Performance at month end with net income reinvested
One Three One Three Five
Month Months Year Years Years
Net asset value -7.6% -0.1% 2.9% 123.4% 103.3%
Share price -7.3% 0.7% 2.1% 160.7% 133.7%
MSCI ACWI Metals & Mining 30% Buffer 10/40 -8.1% -0.6% 0.1% 82.9% 60.7%
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: 699.12p
Net asset value (capital only): 673.24p
1 Includes net revenue of 25.88p
Share price: 698.00p
Discount to NAV2: 0.2%
Total assets: £1,478.4m
Net yield3: 5.7%
Net gearing: 12.6%
Ordinary shares in issue: 188,903,036
Ordinary shares held in Treasury: 4,108,806
Ongoing charges4: 1.0%
Ongoing charges5: 0.8%
2 Discount to NAV including income.
3 Based on 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, and a
final dividend of 23.50p per share declared on 2 March 2023 with ex-date 9
March 2023 and pay date of 26 April 2023 in respect of the 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 2022.
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 2022.
Country Analysis Total Sector Analysis Total
Assets (%) Assets (%)
Global 67.4 Diversified 37.4
Australasia 10.5 Copper 22.3
Latin America 7.6 Gold 12.1
United States 6.6 Steel 8.5
Canada 4.4 Industrial Minerals 7.5
Other Africa 2.4 Aluminium 4.1
Indonesia 0.9 Iron Ore 3.0
South Africa 0.5 Platinum Group Metals 2.0
United Kingdom 0.2 Mining Services 1.5
Net Current Liabilities -0.5 Nickel 1.5
----- Uranium 0.4
100.0 Zinc 0.2
===== Net Current Liabilities -0.5
-----
100.0
=====
Ten largest investments
Company Total Assets %
BHP 8.9
Vale:
Equity 6.4
Debenture 2.5
Glencore 6.6
Teck Resources 4.7
Rio Tinto 4.7
ArcelorMittal 4.4
Freeport-McMoRan 4.1
First Quantum Minerals:
Equity 2.4
Bond 1.7
Anglo American 3.1
Ivanhoe
Equity 1.9
Bond 0.9
Asset Analysis Total Assets (%)
Equity 93.1
Bonds 4.0
Preferred Stock 3.4
Net Current Liabilities -0.5
-----
100.0
=====
Commenting on the markets, Evy Hambro and Olivia Markham, representing the
Investment Manager noted:
Performance
The Company's NAV declined by 7.6% in February, outperforming its reference
index, the MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (net return), which
fell by 8.1% (performance figures in GBP).
After several months of strong performance, the mining sector pulled back in
February as improvements in Chinese economic data were slower than had been
hoped. It is worth noting, however, that after the month-end, China's
Manufacturing PMI came in at 51.6, up from 49.2 in January, which has supported
the sector's performance so far in March. Broader equity markets were also down
in February but less so, with the MSCI ACWI TR Index falling -2.5%. The month
saw mined commodity prices give up some of their recent gains, with copper,
iron ore (62% fe) and gold prices declining -2.7%, -2.3% and -5.3%
respectively.
Many of the miners reported full year 2022 results during the month. Cost
inflation remained an issue, but this is expected to ease with lower energy
prices and consumables. Meanwhile, in most cases, production results were in
line with expectations, with downgrades and guidance restatements having been
well flagged last year.
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 March 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
(END) Dow Jones Newswires
March 15, 2023 11:18 ET (15:18 GMT)
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