Correction : Portfolio Update

NAV and share price return data has been amended to include the reinvestment
factor for the 3.00p per ordinary share dividend which went xd on 31 May 2018
(previously omitted).

BLACKROCK WORLD MINING TRUST plc (LEI - LNFFPBEUZJBOSR6PW155)
All information is at 31 May 2018 and unaudited.
Performance at month end with net income reinvested
		One			Three				One	Three		Five
		Month			Months				Year	Years		Years
Net asset value		6.2%			5.7%				26.4%	53.5%		7.3%
Share price		6.7%			4.6%				25.6%	55.3%		9.1%
Euromoney Global Mining Index (Gross)		5.0%			3.6%				24.0%	47.2%		16.5%
Euromoney Global Mining Index (Net)*		5.0%			3.9%				24.7%	49.4%		19.6%
(Total return)
Sources: BlackRock, Euromoney Global Mining Index, Datastream
* The Company’s performance benchmark (the Euromoney Global Mining Total Return Index) may be calculated on either a Gross or a Net return basis.  Net return (NR) indices calculate the reinvestment of dividends net of withholding taxes using the tax rates applicable to non-resident institutional investors, and hence give a lower total return than indices where calculations are on a Gross basis.  As the Company is subject to the same withholding tax rates for the countries in which it invests, the NR basis is felt to be the most accurate, appropriate, consistent and fair comparison for the Company.  Historically the benchmark data for the Company has always been stated on a Gross basis, and therefore for transparency both sets of benchmark data are provided in the table above.  Going forward it is the Board’s intention to monitor the Company’s performance with reference to the NR version of the benchmark.
At month end
Net asset value including income1:								457.35p
Net asset value capital only:								451.95p
1 Includes net revenue of 5.40p
Share price:								402.50p
Discount to NAV2:								12.0%
Total assets:								£817.2m
Net yield3:								3.9%
Net gearing:								15.8%
Ordinary shares in issue:								176,455,242
Ordinary shares held in treasury:								16,556,600
Ongoing charges4:								1.00%
2 Discount to NAV including income. 3 Based on a quarterly interim dividend of 3.00p per share declared on 25 April 2018 in respect of the year ending 31 December 2018 and quarterly interim dividends of 3.00p per share declared on 10 August 2017 and 10 November 2017 and a final dividend of 6.60p per share in respect of the year ended 31 December 2017. 4 Calculated as a percentage of average net assets and using expenses, excluding finance costs, for the year ended 31 December 2017.
Sector	% Total					Country Analysis					% Total
	Assets										Assets
Diversified	48.7					Global					62.7
Copper	21.3					Latin America					13.4
Gold	13.5					Australasia					9.3
Silver & Diamonds	7.9					Canada					6.6
Industrial Minerals	7.4					Other Africa					6.2
Zinc	1.3					USA					0.9
Steel	0.4					South Africa					0.6
Aluminium	0.2					Kazakhstan					0.4
Iron Ore Net current liabilities	0.1 -0.8					Russia Argentina					0.3 0.2
	-----					Mexico					0.2
	100.0					Net current liabilities					-0.8
	=====										-----
											100.0
											=====
Ten Largest Investments
Company				% Total Assets
Rio Tinto				10.5
BHP				9.9
Glencore				8.1
Vale				8.0
First Quantum Minerals				7.5
Teck Resources				5.8
Sociedad Minera Cerro Verde				3.5
Mountain Province Diamonds				2.8
Avanco Resources				2.4
Avanco Resources – Royalty Contract				2.2

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

Performance

The Company’s NAV increased by 6.2% in May, outperforming its benchmark, the Euromoney Global Mining Index (net return), which returned 5.0%.

The mining sector performed strongly during the first half of May. The rally was driven by continued healthy reductions in China’s steel inventories and strong manufacturing activity in the country, with the official China Manufacturing Purchasing Managers’ Index (PMI) hitting 51.9, the highest level since September 2017. In the second half of the month, however, the macroeconomic environment became less supportive, and the negative impacts of rising US yields and a strengthening US dollar became more prevalent. In addition, the financing environment became tighter for property companies in China. Turning to commodities, base metals weathered these headwinds well and performed well during the month, with nickel rising by 11.5% and copper and aluminium gaining 1.1% and 1.5%, respectively. Precious metals, on the other hand, were weaker, with gold falling by 0.9% in May. (Commodity returns in USD.)

Elsewhere, Bank of America Merrill Lynch (BAML) held its 35th Annual Global Mining, Metals & Steel Conference during the month. The general tone of the conference highlighted that mining companies remained disciplined, targeting further debt and cost reductions. We are encouraged by the continued focus on capital discipline and value over volume, which sees a number of companies, in particular the large cap diversified companies, well positioned to continue to generate attractive levels of free cash flow at current commodity prices.

During the month, the Company’s copper names such as First Quantum, Teck Resources, Ivanhoe Mines and Ero Copper performed well.

In terms of portfolio activity, we initiated a position in the debt of a lithium producer and added to a diamond company, as well as some of our preferred mid-cap holdings.

Strategy and Outlook

Despite recent market volatility we remain positive on the outlook for global economic growth. After two strong years, investors that have not been exposed to mining may now be questioning if they have missed the opportunity. We are, however, still a long way below the peak in 2011 and the sector continues to trade at a valuation discount to broader equity markets. Meanwhile, the miners are trading on very attractive cash flow multiples with Glencore, BHP Billiton and Rio Tinto all currently trading at forward free cash flow yields of around 10% for example. For the mined commodities, in most cases, we believe they look reasonably fairly priced and so our base case is that they remain relatively range-bound at current levels which sees healthy profitability for the sector. Crucially, however, mining equities are still pricing in commodity prices well below current spot prices and, as such, we are constructive on the shares but neutral the commodities themselves. Many still distrust the miners, expecting them to make the same mistakes of the past in terms of poor capital discipline. Our view though is that the pain of the recent down-cycle is still too fresh in the minds of management teams for this to become a widespread issue in the near-term. We have begun to see moderate increases in sustaining capex announced but we believe for the most part these have been necessary increases rather than indicative of a widespread return to poor capital discipline.

All data points are in GBP terms unless stated otherwise.

5 July 2018

ENDS

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