The information contained in this release was correct as at
31 December 2022. 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 December
2022 and unaudited.
| Performance at month
end with net income reinvested |
|
|
One |
Three |
One |
Three |
Five |
|
Month |
Months |
Year |
Years |
Years |
| Net asset value |
-1.7% |
15.1% |
17.5% |
86.9% |
94.4% |
| Share price |
0.6% |
23.5% |
26.0% |
117.1% |
131.4% |
| MSCI ACWI Metals & Mining 30%
Buffer 10/40 Index (Net)* |
-1.5% |
14.5% |
11.5% |
54.9% |
57.6% |
|
* (Total
return)
Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40
Index, Datastream |
|
At month end
| Net asset value
(including income)1: |
687.86p |
| Net asset value
(capital only): |
663.91p |
| 1 Includes
net revenue of 23.95p |
|
| Share price: |
697.00p |
| Premium to
NAV2: |
1.3% |
| Total assets: |
£1,457.1m |
| Net
yield3: |
6.2% |
| Net gearing: |
10.2% |
| Ordinary shares in
issue: |
188,753,036 |
| Ordinary shares held
in Treasury: |
4,258,806 |
| Ongoing
charges4: |
0.9% |
| Ongoing
charges5: |
0.8% |
2 Premium 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 the year ending
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
Assets (%) |
|
|
| Global |
68.4 |
| Australasia |
8.7 |
| Latin America |
7.3 |
| United States |
5.9 |
| Canada |
4.0 |
| Other Africa |
2.3 |
| South Africa |
0.7 |
| Indonesia |
0.7 |
| United Kingdom |
0.2 |
| Net Current Assets |
1.8 |
|
----- |
|
100.0 |
|
===== |
|
|
| Sector Analysis |
Total
Assets (%) |
|
|
| Diversified |
39.1 |
| Copper |
21.5 |
| Gold |
12.7 |
| Steel |
7.9 |
| Industrial Minerals |
6.4 |
| Aluminium |
3.2 |
| Iron Ore |
3.0 |
| Platinum Group Metals |
1.9 |
| Nickel |
1.3 |
| Mining Services |
0.7 |
| Uranium |
0.4 |
| Zinc |
0.1 |
| Net Current Assets |
1.8 |
|
----- |
|
100.0 |
|
===== |
|
|
|
|
| Ten largest investments |
|
|
|
| Company |
Total Assets
% |
|
|
| BHP |
9.3 |
| Vale: |
|
| Equity |
6.4 |
| Debenture |
2.6 |
| Glencore |
7.5 |
| Anglo American |
5.1 |
| Rio Tinto |
4.4 |
| First Quantum Minerals: |
|
| Equity |
2.3 |
| Bond |
1.7 |
| ArcelorMittal |
3.9 |
| Freeport-McMoRan |
3.9 |
| Teck Resources |
3.5 |
| Franco-Nevada |
2.6 |
|
| Asset Analysis |
Total Assets
(%) |
| Equity |
91.5 |
| Bonds |
3.8 |
| Preferred Stock |
3.0 |
| Options |
-0.1 |
| Net Current Assets |
1.8 |
|
----- |
|
100.0 |
|
===== |
|
| Commenting on the
markets, Evy Hambro and Olivia Markham, representing the Investment
Manager noted: |
|
| Performance |
| The Company’s NAV fell by 1.7% in
December, underperforming its reference index, the MSCI ACWI Metals
and Mining 30% Buffer 10/40 Index (net return), which returned
-1.5% (performance figures in GBP). |
|
| The mining sector outperformed
broader equity markets during the month, with the MSCI ACWI TR
Index falling by 3.8%. The main news was the Chinese administration
confirming the removal of most Covid-related restrictions. The
reaction from mining equities was muted, however, having moved
higher in October and November on expectations that China was about
to re-open. Meanwhile, economic data from China remained weak, with
its manufacturing PMI reading for December falling to 47.0, albeit
this is now expected to improve. |
|
| Mined commodity prices generally
performed well, aided by a weakening US dollar. For reference, iron
ore (62% fe.) and copper prices were up by 15.7% and 1.7%
respectively over the month. Meanwhile, warmer-than-expected
weather during the month led to falling gas prices which reduced
cost pressures for the miners. |
|
| 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 January 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. |