BLACKROCK COMMODITIES INCOME INVESTMENT TRUST PLC
All information is at 31 December 2008 and unaudited.
Performance at month end with net income reinvested
One Three Six One Since
Month Months Months Year Launch*
Net asset value 11.9% -17.8% -47.8% -42.6% 2.6%
Share price 16.6% -23.1% -48.5% -43.4% -5.6%
Sources: Datastream, BlackRock
* 13 December 2005
At month end
Net asset value - capital only: 85.58p
Net asset value - cum income**: 87.21p
Share price: 83.00p
Premium to NAV (capital only): 3.01%
Net yield: 6.51%
Gearing - cum income: 9.5%
Revenue per share: 1.63p^
Total assets: £69.23m^^
Ordinary shares in issue: 71,810,662#
# 500,000 shares were sold out of Treasury on 04/11/08 for a consideration of £
431,500.
**Includes net revenue of 1.63p.
^Revenue per share is stated after deduction of the first quarterly dividend of
1.3125p which was paid on 25 April 2008, the second quarterly dividend of
1.3125p which was paid on 25 July 2008, the third quarterly dividend of 1.3125p
which was paid on 24 October 2008 and the fourth quarterly dividend of 1.4625p
which will be paid on 20 January 2009.
^^includes current year revenue.
% of Total % of Total
Sector Analysis Assets Country Analysis Assets
Integrated Oil 27.9 Europe 30.5
Diversified 17.3 USA 28.7
Exploration & Production 15.0 Canada 13.1
Gold 8.4 Latin Amercia 9.6
Copper 5.9 Asia 9.3
Fertilizer 5.3 South Africa 2.9
Oil Services 5.3 Russia 2.0
Aluminium 4.0 China 1.3
Platinum 3.9 Australia 1.2
Coal 2.3 India 0.9
Nickel 1.7 Africa 0.6
Distribution 1.3 Current liabilities (0.1)
Tin 1.2 -----
Zinc 0.6 100.0
Current liabilities (0.1) =====
-----
100.0
=====
Ten Largest Equity Investments (in alphabetical order)
Company Region of Risk
Alcoa USA
Anadarko Petroleum USA
BHP Billiton Global
BP Global
Conocophillips USA
Exxon Mobile Global
Rio Tinto Global
StatoilHydro Europe
Total Global
Vale Latin America
Commenting on the markets, Richard Davis, representing the Investment Manager
noted:
After the steep equity market declines of previous months, December was a more
settled period for commodity equity markets. Energy shares and mining shares
gained 3.0% and 12.3% (in sterling terms) respectively. Commodities, however,
were weaker. In the energy market oil demand projections continue to be reduced
in both Western and emerging market economies. As demand has weakened,
inventories have increased (although they are still within the 5-year range);
this has also been exacerbated by the fact that the oil futures curve is in
contango, which rewards inventory building. Oil prices ended the month at
US$44.6/barrel, having traded at US$33/barrel at one point. Whilst demand
continues to be the focus of the market, the supply side of the equation is
becoming more interesting. In order to offset some of this weakness in demand,
OPEC announced additional production cuts. There are some signs that OPEC
members are adhering to the quotas and this may help to stabilise the market in
the short term. As prices have fallen below the marginal cost of production in
several instances, the industry has already started to self-correct by limiting
future supply through the cancellation of future exploration and development
projects by energy companies. With long term supply already significantly
constrained due to the declining production of ageing oil fields, the supply
problem has been compounded with lower prices causing additional project
delays, declining rig counts, and complete cancellations of new supply
projects. The probability of a rise in energy prices once demand stabilizes
appears to be increasing. In the mining sector, we continue to see an
aggressive supply response to the recent commodity price declines, with many
producers announcing further cuts to production. For example, it is estimated
that around 7% of the global supply of nickel has already been cut. Most
commodity spot prices remain significantly below long term incentive prices. We
are also beginning to see some corporate activity amongst some of the smaller
cap names with interesting assets.
Latest information is available by typing www.blackrock.co.uk/its on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).
23 January 2009
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Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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