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 6.9% 2.6% 2.4% 25.7% 86.2%
Share price 5.7% -2.3% -0.9% 26.6% 108.0%
MSCI ACWI Metals & Mining 30% Buffer 10/40 Index 6.9% 2.3% 9.3% 25.4% 72.3%
(Net)*
* (Total return)
Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index,
Datastream.
At month end
Net asset value (including income)1: 580.66p Net asset value (capital only): 571.76p Share price: 550.00p Discount to NAV2: 5.3% Total assets: £1,236.9m Net yield3: 6.1% Net gearing: 11.9% 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 8.90p.
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 62.4
Canada 11.9
Latin America 7.4
Australasia 6.5
United States 5.9
Other Africa 3.9
South Africa 0.7
Indonesia 0.6
Net Current Assets 0.7
-----
100.0
=====
Sector Analysis Total
Assets (%)
Diversified 36.2
Copper 23.3
Gold 22.1
Steel 4.9
Iron Ore 3.3
Industrial Minerals 3.2
Uranium 2.6
Aluminium 1.3
Platinum Group Metals 1.3
Nickel 1.0
Zinc 0.1
Net Current Assets 0.7
-----
100.0
=====
Ten largest investments Company Total Assets % BHP: Equity 9.4 Royalty 1.4 Rio Tinto 7.0 Glencore 6.6 Anglo American 5.3 Newmont 5.2 Freeport-McMoRan 4.7 Agnico Eagle Mines 4.5 Vale: Debenture 2.3 Equity 1.9 Teck Resources 3.7 Wheaton Precious Metals 3.5 5
Asset Analysis Total Assets (%)
Equity 96.9
Bonds 1.4
Preferred Stock 0.7
Convertible Bond 0.6
Option -0.3
Net Current Assets 0.7
-----
100.0
=====
Commenting on the markets,Evy Hambro andOlivia Markham , representing the Investment Manager noted: Performance The Company’s NAV rose by 6.9% inSeptember 2024 , performing in line with its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return) which increased by 6.9% (performance figures in GBP). The mining sector performed strongly in September as mined commodity prices rose across the board. For reference, global equity markets, as measured by the MSCI ACWI TR Index, returned +2.3%. The main news for mining wasChina announcing a range of stimulus measures. This was welcome news following a ~18-month period in which weak economic data (particularly property-related data) has been the main drag on the sector. The People’s Bank of China said it would cut the reserve requirement ratio (the amount of cash banks need to hold in reserve), reduce interest rates for existing mortgages and lower the minimum down payment on home purchases. These monetary measures were then followed by a report thatChina also plans to issue ~2 trillion yuan of special sovereign bonds as part of a fresh fiscal stimulus package. In the commodities space, iron ore (62% fe), copper and gold prices rose by 8.4%, 6.3% and 5.1% respectively. Meanwhile, energy costs came down during the month with the Brent oil price falling by 9.8%, suggesting a positive outlook for the miners’ margins. Elsewhere, the uranium price rose by 3.0% as excitement built around nuclear. During the month, Microsoft signed a deal with Constellation Energy to restart itsThree Mile Island nuclear plant inPennsylvania to help power Microsoft’s data centres. Strategy and Outlook Near term, we expect performance to be driven by theChina stimulus situation, which is evolving, and we are watching closely to see if it translates into a pickup in demand. Longer term, we expect mined commodity demand growth to be driven by increased global infrastructure build out, particularly related to the low carbon transition and increased power demand. Meanwhile, the supply side of the equation is constrained. 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 mergers and acquisitions 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. Turning to the companies, balance sheets in the sector are very strong relative to history. Despite this, valuations are low relative to historic averages and relative to broader equity markets.17 October 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.
Release
