BlackRock World Mining Trust plc (LON:BRWM) has announced its latest portfolio update.
All information is at 31 December 2023 and unaudited.
For more information on the Blackrock World Mining Trust and how to access the opportunities presented by mining, please visit www.blackrock.com/uk/brwm
| Performance at month end with net income reinvested | |||||
| One | Three | One | Three | Five | |
| Month | Months | Year | Years | Years | |
| Net asset value | 5.6% | 1.8% | -6.2% | 33.8% | 105.4% |
| Share price | 7.1% | 0.3% | -10.4% | 32.7% | 132.2% |
| MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)* | 6.6% | 6.2% | 2.4% | 31.4% | 82.9% |
| * (Total return)Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream | |||||
At month end
| Net asset value (including income)1: | 606.51p |
| Net asset value (capital only): | 591.39p |
| Share price: | 587.00p |
| Discount to NAV2: | 3.2% |
| Total assets: | £1,309.4m |
| Net yield3: | 6.8% |
| Net gearing: | 11.9% |
| Ordinary shares in issue: | 191,183,036 |
| Ordinary shares held in Treasury: | 1,828,806 |
| Ongoing charges4: | 0.95% |
| Ongoing charges5: | 0.84% |
1 Includes net revenue of 15.12p
2 Discount to NAV including income.
3 Based on a final dividend of 23.50p per share declared on 2 March 2023 in respect of year ended 31 December 2022, a first interim dividend of 5.50p per share declared on 18 April, a second interim dividend of 5.50p per share declared on 24 August and a third interim dividend of 5.50p per share declared on 11 October 2023 with ex-date 23 November 2023 and pay date of 18 December 2023 in respect of the year ended 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 | 66.7 |
| Canada | 7.6 |
| Latin America | 7.3 |
| Australasia | 7.1 |
| United States | 6.5 |
| Other Africa | 3.2 |
| Indonesia | 0.5 |
| South Africa | 0.2 |
| Net Current Assets | 0.9 |
| —– | |
| 100.0 | |
| ===== | |
| Sector Analysis | Total Assets (%) |
| Diversified | 38.0 |
| Copper | 21.5 |
| Gold | 14.9 |
| Steel | 7.3 |
| Industrial Minerals | 5.5 |
| Aluminium | 3.3 |
| Iron Ore | 2.6 |
| Uranium | 2.3 |
| Platinum Group Metals | 1.6 |
| Nickel | 1.0 |
| Mining Services | 1.0 |
| Zinc | 0.1 |
| Net Current Assets | 0.9 |
| —– | |
| 100.0 | |
| ===== | |
| Ten largest investments | |
| Company | Total Assets % |
| BHP: | |
| Equity | 8.6 |
| Royalty | 1.4 |
| Vale: | |
| Equity | 6.8 |
| Debenture | 2.8 |
| Glencore | 8.3 |
| Rio Tinto | 7.2 |
| Freeport-McMoRan | 5.0 |
| Newmont | 3.4 |
| Barrick Gold | 3.2 |
| Wheaton Precious Metals | 3.0 |
| Norsk Hydro ASA | 2.6 |
| Teck Resources | 2.3 |
| Asset Analysis | Total Assets (%) |
| Equity | 96.5 |
| Bonds | 2.1 |
| Convertible Bonds | 0.6 |
| Option | -0.1 |
| Net Current Assets | 0.9 |
| —– | |
| 100.0 | |
| ===== |
Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:
Performance
The Company’s NAV increased by 5.6% in December, underperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which rose by 6.6% (performance figures in GBP).
The mining sector outperformed broader equity markets in December, in what was another strong month for the broader markets, with the MSCI ACWI TR Index rising by 4.1%. Lower expectations around US interest rates as the Federal Reserve indicated that rate cuts in 2024 were likely, alongside falling inflation, contributed to positive market sentiment.
Positive data points from China showed that their industrial metal demand continued to hold up well, whilst their manufacturing PMI ended the year at 50.8, marginally rising from 50.7 in November. Most mined commodities were up over the month, with copper and iron ore prices (62% fe) rising by 0.9% and 7.6% respectively. Meanwhile, precious metals were mixed, with the gold price rising by 1.4%, but the silver price falling by 4.0%.
Strategy and Outlook
China has re-opened but with less impact than had been expected. Uncertainty persists around China’s commodity demand, but we are seeing the Chinese administration announce financial support incrementally.
Longer-term, we are excited by the structural demand growth for a range of mined commodities that will result from the low carbon transition. Meanwhile, commodity supply is likely to be constrained by the capital discipline of recent years, whilst inventories for many mined commodities are at historic lows. Mining companies have low levels of debt, continue to return capital to shareholders but appear to be entering a higher capital expenditure phase.
We are seeing Brown to Green emerge as a key theme, where mining companies are focusing 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.
For more information on the Blackrock World Mining Trust and how to access the opportunities presented by mining, please visit www.blackrock.com/uk/brwm
