Portfolio Update

BLACKROCK WORLD MINING TRUST plc
All information is at 31 May 2015 and unaudited.
Performance at month end with net income reinvested
		One			Three				One	Three		Five
		Month			Months				Year	Years		Years
Net asset value		-2.4%			-1.0%				-22.6%	-38.7%		-39.3%
Share price		-1.5%			1.9%				-27.8%	-37.7%		-36.9%
Euromoney Global Mining Index		-4.1%			-4.9%				-12.0%	-25.9%		-37.1%
(Total return)
Sources: BlackRock, Euromoney Global Mining Index, Datastream
At month end
Net asset value including income*:								350.12p
Net asset value capital only:								341.67p
*Includes net revenue of 8.45p
Share price:								311.40p
Discount to NAV**:								11.1%
Total assets:								£695.5m
Net yield***:								6.7%
Net gearing:								12.3%
Ordinary shares in issue:								177,287,242
Ordinary shares held in treasury:								15,724,600
Ongoing charges****:								1.4%
** Discount to NAV including income. *** Based on an interim dividend of 7.00p and a final dividend of 14.00p in respect of the year ended 31 December 2014. **** Calculated as a percentage of average net assets and using expenses, excluding finance costs for the year ended 31 December 2014.
Sector	% Total					Country Analysis					% Total
	Assets										Assets
Diversified	41.4					Global					53.1
Base Metals	23.5					Latin America					13.5
Gold	13.6					Australasia					8.7
Silver & Diamonds	9.9					Other Africa					8.2
Industrial Minerals	4.7					Canada					6.8
Other	4.3					Emerging Europe					4.9
Aluminium	1.2					South Africa					3.0
Energy Minerals	1.2					China					1.2
Zinc	0.4					Indonesia					0.5
Net current liabilities	(0.2)					USA					0.3
						Net current liabilities					(0.2)
	--------										--------
	100.0										100.0
	=====										=====
Ten Largest Investments
Company				% Total Assets
BHP Billiton				11.5
Rio Tinto				10.3
First Quantum Minerals				8.8
Glencore				8.1
Lundin Mining				4.7
MMC Norilsk Nickel				4.6
Sociedad Minera Cerro Verde				3.8
Banro				3.1
Fresnillo				3.0
Iluka Resources				2.8

Commenting on the markets, Evy Hambro, representing the Investment Manager noted:

Performance

Following April’s strong performance, the mining sector continued its rally during the first half of May. However, evidence of lacklustre commodity demand in China during April, as well as a strengthening of the US dollar, saw the mining sector finish the month lower. Encouragingly, recent easing measures, including a third interest rate cut in five months announced during May, are beginning to show early signs of a pick-up in economic activity.

Against the trend, iron ore continued its advance up +9.3% to US$61/tonne (62% Fe, source: CLSA), helped by falling port inventories during the month. Despite the 30% rally in the iron ore price from its April lows, we remain cautious on our outlook given planned low cost production growth from the major producers, as well as the potential for higher cost supply to restart given more buoyant prices. The Company’s underweight to Vale, the world’s largest iron ore producer, was one of the top contributors to performance during the month.

The Company’s overweight to copper producers, including First Quantum and Cerro Verde, aided relative performance during the month. First Quantum, the Company’s largest copper holding, raised C$1.25bn of fresh equity to de-risk the balance sheet underpinning the company’s impressive growth profile over the medium term.

Within the Company’s unquoted investments, Avanco Resources completed its equity financing, raising A$80m which sees it fully financed into production. With all pre-conditions now met for drawdown under the royalty, the transaction is expected to complete during Q2 2015. In addition, Banro, where the Company has exposure via a gold-linked preference share and senior secured notes, reported Q1 2015 results with strong operational performance from the company’s existing gold asset Twangiza. Increased liquidity in the senior secured notes and a recommendation from BlackRock’s Pricing Committee, has resulted in the 10% discount previously applied to the senior secured notes being reduced to nil. As the senior secured notes continue to trade at a discount to par value, the discount of 15% on the valuation of the gold-linked preference shares remains unchanged.

Strategy and Outlook

In 2014, good company strategy was outweighed by weakening commodity demand and falling commodity prices and the sector ultimately trended lower. Looking ahead, the outlook for commodity prices remains subdued, given expectations of further US dollar strength and a modest demand outlook. This pressure will continue to force tough decisions and mining companies are likely to remain in austerity mode. Recent commodity price falls suggest further cuts to analyst earnings will be required. As the year progresses, we would expect an acceleration of closures of high-cost capacity in oversupplied markets. This bodes well for the longer term and limits the industry’s ability to respond to the next upturn in demand which will ultimately see prices go higher.

While the sector continues to face headwinds, it is important to remember that we are another year further into the underinvestment phase and closer to the deficit markets that we foresee. We expect an inflection point to be reached once price (and consequently return) expectations start to recover as a result of the supply curtailment, which should accelerate with the current commodity price weakness.

15 June 2015

ENDS

Latest information is available by typing www.brwmplc.co.uk on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).  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.