The information contained in this release was correct as at
30 April 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 30 April
2023 and unaudited.
| Performance at month
end with net income reinvested |
|
|
One |
Three |
One |
Three |
Five |
|
Month |
Months |
Year |
Years |
Years |
| Net asset value |
-3.7% |
-12.5% |
-5.3% |
107.4% |
93.3% |
| Share price |
-2.2% |
-10.3% |
-4.2% |
144.3% |
130.7% |
| MSCI ACWI Metals & Mining 30%
Buffer 10/40 Index (Net)* |
-2.8% |
-9.5% |
-4.2% |
75.8% |
61.9% |
|
* (Total
return)
Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40
Index, Datastream |
|
At month end
| Net asset value
(including income)1: |
639.67p |
| Net asset value
(capital only): |
628.27p |
| Share price: |
653.00p |
| Premium to
NAV2: |
2.1% |
| Total assets: |
£1,370.3m |
| Net
yield3: |
6.0% |
| Net gearing: |
14.6% |
| Ordinary shares in
issue: |
190,458,036 |
| Ordinary shares held
in Treasury: |
2,553,806 |
| Ongoing
charges4: |
1.0% |
| Ongoing
charges5: |
0.8% |
|
|
1 Includes net revenue of 11.40p.
2 Premium to NAV including income.
3 Based on a second and third interim dividend of 5.50p
per share declared on 23 August 2022
and 16 November 2022 respectively, 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, and a first interim
dividend of 5.50p per share declared on 18
April 2023 with ex-date 4 May
2023 and pay date of 31 May
2023 in respect of the year ending 31
December 2023.
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
Assets (%) |
|
|
| Global |
67.2 |
| Australasia |
12.0 |
| Latin America |
8.0 |
| United States |
5.3 |
| Canada |
4.1 |
| Other Africa |
2.7 |
| Indonesia |
0.9 |
| South Africa |
0.3 |
| United Kingdom |
0.2 |
| Net Current Liabilities |
-0.7 |
|
----- |
|
100.0 |
|
===== |
|
|
| Sector Analysis |
Total
Assets (%) |
|
|
| Diversified |
35.2 |
| Copper |
23.0 |
| Gold |
16.3 |
| Steel |
7.8 |
| Industrial Minerals |
6.9 |
| Aluminium |
3.9 |
| Iron Ore |
2.4 |
| Platinum Group Metals |
1.9 |
| Nickel |
1.5 |
| Mining Services |
1.0 |
| Uranium |
0.6 |
| Zinc |
0.2 |
| Net Current Liabilities |
-0.7 |
|
----- |
|
100.0 |
|
===== |
|
|
| Ten largest investments |
|
|
|
| Company |
Total Assets
% |
|
|
| Vale: |
|
| Equity |
6.7 |
| Debenture |
2.2 |
| BHP |
8.1 |
| Glencore |
6.7 |
| Teck Resources |
5.6 |
| ArcelorMittal |
4.2 |
| Freeport-McMoRan |
3.9 |
| OZ Minerals: |
|
| Equity |
2.3 |
| Royalty |
1.5 |
| First Quantum Minerals: |
|
| Equity |
2.7 |
| Bond |
0.9 |
| Newmont Mining |
3.3 |
| Wheaton Precious Metals |
3.3 |
| Asset Analysis |
Total Assets
(%) |
| Equity |
94.3 |
| Preferred Stock |
3.3 |
| Bonds |
3.1 |
| Net Current Liabilities |
-0.7 |
|
----- |
|
100.0 |
|
===== |
| Commenting on the markets, Evy
Hambro and Olivia Markham, representing the Investment Manager
noted: |
|
| Performance |
The Company’s NAV
declined by 3.7% in April, underperforming its reference index, the
MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return),
which declined by 2.8% (performance figures in GBP).
April was a challenging month for the mining sector as economic
data from China was softer than expected. China’s manufacturing
PMI, for example, fell to 49.5, down from 50.0 in March. Industrial
mined commodity prices were weak, with the copper price falling
-4.7% and the iron ore (62%fe) price sliding down -17.3%. China
also announced plans to cap 2023 domestic steel production (for
which iron ore is a key input) at around 2022 levels to limit
potential oversupply and contain carbon emissions.
Battery minerals prices also continued to fall sharply, with
lithium prices in China falling -21.7%, on faltering sentiment
surrounding electric vehicle demand. Further weakness in the US
dollar helped precious metals perform strongly, however, with gold,
silver and platinum prices rising +0.5%, +3.8% and +9.5%
respectively. Lastly, Q1 production results were reported during
the month and were generally soft, with the first quarter suffering
from typical seasonal weather impacts, as well as ongoing Covid
impacted operational issues. |
| 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. |
16 May 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. |