Interim Results

Merrill Lynch World Mining Tst PLC 25 July 2001 MERRILL LYNCH WORLD MINING TRUST plc Interim Results for the six months ended 30 June 2001 Performance to 30 June 2001 Six months One year Five years (with net income reinvested) Net asset value per share +17.7% +30.2% +19.5% - buy backs + 0.2% - - - underlying investment performance +17.5% - - Ordinary share price +17.1% +32.7% +19.4% HSBC Global Mining Index* +15.7% +22.2% - 3.4% Performance based on mid-market values with net income reinvested on ex-dividend date. *capital only, adjusted for exchange rates relative to sterling. Source: Merrill Lynch Investment Managers, Datastream. For further information please contact: Dr Graham Birch 020 7743 2690 Ian Barby 020 7743 5224 Nigel Webb 020 7743 2302 Merrill Lynch Investment Managers or Andrew Waterworth Financial Dynamics Tel: 020 7269 7127 The Chairman, Peter Wilmot-Sitwell, comments: 'Notwithstanding the sell-off during July, mining shares remain one of the best performing sectors of the equity market in 2001. We believe the sector continues to offer solid value with relatively good earnings visibility and attractive dividends. 'Earnings per share are significantly higher than last year, following the receipt of higher dividends from the platinum companies in the portfolio. This will be taken into account when we consider the payment of the dividend at the year end. 'I am pleased to announce the appointment of Colin Buchan and Gordon Sage as Directors of the Company with effect from today's date. Mr Buchan has worked within the UBS Warburg group since 1984, latterly as Global Head of Equities from December 1998 until his retirement at the end of March 2001. Mr Sage was a director of Rio Tinto until his retirement earlier in the year, latterly holding the position of chief executive of the Industrial Minerals Division. We are pleased to welcome these two new Directors to your Board, as they bring with them a wealth of mining and investment experience.' Commenting upon the outlook for the Company, Graham Birch of Merrill Lynch Investment Managers, the Investment Manager, notes: 'Equity investors are trying to look through the currently depressed global economic conditions towards the 'sunny uplands' of 2002. As a result, mining shares have performed quite well in absolute terms and very well relative to the price of the commodities that they produce. Although the sector is inexpensive in comparison with most others, we do feel that sentiment towards a cyclical sector such as mining could deteriorate if the economic recovery is delayed. As a result we are pursuing a more cautious than usual strategy and are making minimal use of gearing. If interest rate cuts lead to visible recovery in the US, as we believe could be the case towards the end of the year, we would become more aggressive.' CONSOLIDATED REVENUE STATEMENT for the six months ended 30 June 2001 Six months Six months Year ended ended 30 June ended 30 June 31 December 2001 2000 2000 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Note Income 3 8,308 4,273 7,970 Less: Investment management fees 4 (1,017) (920) (1,918) Operating expenses 5 (263) (251) (504) --------- ------ ------- Net return before finance costs and taxation 7,028 3,102 5,548 Finance costs (311) (791) (1,550) -------- ------ ------- Revenue on ordinary activities before taxation 6,717 2,311 3,998 Taxation (1,853) (709) (1,059) --------- ------ -------- Revenue on ordinary activities after taxation 4,864 1,602 2,939 Dividend 6 - - (2,198) --------- ------ -------- Transfer to revenue reserve 4,864 1,602 741 ===== ==== ===== CONSOLIDATED STATEMENT OF TOTAL RETURN PER ORDINARY SHARE for the six months ended 30 June 2001 Six months Six months Year ended ended 30 June ended 30 June 31 December 2001 2000 2000 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Calculated on weighted shares: Earnings per ordinary share 2.88p 0.87p 1.63p Capital return per ordinary 16.27p (18.83p) (10.33p) share --------- --------- --------- Total return per ordinary 19.15p (17.96p) (8.70p) share ===== ====== ====== Calculated on period end shares: Earnings per ordinary share 2.89p 0.88p 1.73p Capital return per ordinary 16.33p (19.07p) (10.94p) share --------- --------- --------- Total return per ordinary 19.22p (18.19p) (9.21p) share ===== ====== ====== Dividend per ordinary share - - 1.30p ===== ====== ====== SUMMARISED CONSOLIDATED BALANCE SHEET as at 30 June 2001 30 June 30 June 31 December 2001 2000 2000 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Fixed assets Investments at valuation 223,657 201,389 202,114 ---------- --------- --------- Current assets Investments of subsidiary undertakings 1,023 2,976 2,926 Debtors 516 1,579 893 ---------- --------- --------- 1,539 4,555 3,819 ---------- --------- --------- Creditors - amounts falling due within one year Bank overdraft 2,939 20,459 15,439 Other creditors 5,619 3,223 4,406 ---------- --------- --------- 8,558 23,682 19,845 ---------- --------- --------- Net current liabilities (7,019) (19,127) (16,026) ---------- --------- --------- Total assets less current liabilities 216,638 182,262 186,088 Provision for liabilities and charges 69 54 66 ---------- --------- --------- Net assets 216,569 182,208 186,022 ====== ====== ====== Capital and reserves Share capital 8,410 9,110 8,505 Capital redemption reserve 22,509 21,809 22,414 Other capital reserves (31,466) (75,064) (58,933) ----------- --------- --------- (547) (44,145) (28,014) Special reserve 208,688 221,928 210,472 Revenue reserve 8,428 4,425 3,564 ---------- --------- -------- Total equity shareholders' funds 216,569 182,208 186,022 ====== ====== ====== Net asset value per ordinary share 128.76p 100.00p 109.36p ====== ====== ====== CONSOLIDATED CASH FOW STATEMENT for the six months ended 30 June 2001 Six months Six months Year ended ended 30 June ended 30 June 31 December 2001 2000 2000 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Net cash inflow from operating 8,687 1,306 3,790 activities Returns on investment and servicing (311) (791) (1,550) of finance Taxation (paid)/refunded (290) (52) 17 Capital expenditure and financial investment: Purchase of investments (48,430) (45,895) (109,184) Proceeds from the sale of investments 56,958 60,234 138,111 Exchange movements on foreign (133) (79) 15 currency transactions Equity dividends paid (2,197) (2,218) (2,218) Buy-back of ordinary shares (1,784) (8,046) (19,502) --------- --------- --------- Net cash inflow 12,500 4,459 9,479 ===== ==== ==== RECONCILIATION OF NET RETURN BEFORE FINANCE COSTS AND TAXATION TO NET CASH FLOW FROM OPERATING ACTIVITIES Six months Six months Year ended ended 30 ended 30 31 December June 2001 June 2000 2000 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Net return before finance costs and 7,028 3,102 5,548 taxation Net sales/(purchases) of investments by 2,892 (819) (299) subsidiary undertakings Increase in debtors (204) (145) (110) Increase/(decrease) in creditors 44 (112) (67) Tax on investment income included within (306) (405) (709) gross income Profit on investment dealing by (767) (315) (573) subsidiary undertakings ------- ------- ------- Net cash flow from operating activities 8,687 1,306 3,790 ===== ==== ==== NOTES ON THE INTERIM RESULTS 1. Principal activity The principal activity of the Company is that of an investment trust within the meaning of section 842 of the Income and Corporation Taxes Act 1988. The principal activity of its two subsidiary undertakings is investment dealing. 2. Basis of preparation The interim financial statements have been prepared on the basis of the accounting policies set out in the Company's financial statements at 31 December 2000. Income and operating expenses have been accrued in accordance with the same principles used in the preparation of the annual financial statements. The taxation charge has been calculated by applying an estimate of the annual effective tax rate to the profit for the period. 3. Income Six months Six months Year ended ended 30 ended 30 31 December June 2001 June 2000 2000 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Income from investments: UK listed 484 306 626 Overseas listed 7,056 3,647 6,769 ------- ------- ------- 7,540 3,953 7,395 ------- ------- ------- Interest received and other income: Deposit interest and other income 1 5 2 Profit on investment dealing by subsidiary undertakings 767 315 573 ----- ----- ----- 768 320 575 ----- ----- ----- Total 8,308 4,273 7,970 ==== ==== ==== 4. Investment management fees Six months Six months Year ended ended 30 June ended 30 June 31 December 2000 2001 2000 £'000 £'000 £'000 (audited) (unaudited) (unaudited) Investment management fees 977 901 1,848 Irrecoverable VAT thereon 40 19 70 ----- ----- ------- 1,017 920 1,918 ==== === ==== All investment management fees are charged to revenue. 5. Operating expenses Six months Six months Year ended ended 30 June 2001 ended 30 June 2000 31 December 2000 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Custody fee 103 95 194 Administration fee 61 56 114 Directors' emoluments 23 32 62 Registrars' fee and other administrative 76 68 134 expenses ---- ---- ----- 263 251 504 ==== === === 6. Dividend The Board has not declared an interim dividend, as dividends are considered and paid annually in respect of each accounting period. 7. Gearing ratio The ratio of borrowings to net assets was 1.4% (31.12.2000 : 8.3%) 8. Ordinary shares 30 June 2001 30 June 2000 31 December 2000 The weighted number of 168,787,815 184,496,621 180,199,129 ordinary shares in issue during each period, on which the return per ordinary share was calculated, was: The number of ordinary 168,200,000 182,199,852 170,099,852 shares in issue at the end of the period was: Share price 105.75p 80.75p 91.50p 9. Publication of non-statutory accounts The financial information contained in this interim statement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the six months ended 30 June 2000 and 2001 has not been audited. The information for the year ended 31 December 2000 has been extracted from the latest published audited financial statements, which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under sections 237(2) or (3) of the Companies Act 1985. 25 July 2001 33 King William Street London EC4R 9AS

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