Half-year Report

BlackRock World Mining Trust plc

Half Yearly Financial Report 30 June 2016

Financial highlights
as at 30 June 2016

Attributable to ordinary shareholders	30 June  2016	31 December  2015	%  change
Assets
Net assets (£'000)	558,053	377,313	+47.9
Net asset value per ordinary share	316.26p	212.83p	+48.6
– with income reinvested			+57.0
Ordinary share price (mid-market)	270.25p	181.00p	+49.3
– with income reinvested			+59.0
Euromoney Global Mining Index	413.07	255.94	+61.4
Discount to net asset value	14.5%	15.0%

	For the  six months  ended  30 June 2016  (unaudited)	For the  six months  ended  30 June 2015  (unaudited)	%  change
Revenue
Net revenue return after taxation (£'000)	11,519	16,864	-31.7
Revenue return per ordinary share	6.51p	9.51p	-31.5
Dividend per ordinary share
– Interim	4.00p	7.00p	-42.9

Chairman’s statement

Overview
I am pleased to present my first half yearly report to you as Chairman. Equally I am delighted that the first six months heralded a strong recovery in the mining sector after a difficult start to the year when world equity markets took fright on heightened concerns over global economic growth. The Euromoney Global Mining Index was down by over 18% at one point during January but, over the next six months, the mining sector performed strongly. The reversal was driven by a combination of an improved outlook for China, a weaker US dollar and a better than expected reporting season, all of which prompted renewed investor interest in the sector. As a result of this, and post Brexit related weakness in sterling, the Company was one of the best performing trusts in the first half of 2016.

Over the six months to 30 June 2016, the Company’s net asset value (‘NAV’) increased by 57.0% and the share price by 59.0% (both calculated in sterling terms with income reinvested). During the same period, the Company’s benchmark, the Euromoney Global Mining Index, rose by 61.4%. Further information on the Company’s performance is set out in the Investment Manager’s Report.

In the period since 30 June and up to close of business on 10 August 2016, the Company’s NAV has increased by 15.8% compared to a rise of 17.1% in the benchmark index.

Revenue return and dividends
The Company’s net revenue earnings for the six month period to 30 June 2016 amounted to 6.51p per share (six months to 30 June 2015: 9.51p) and the Board has declared an interim dividend of 4.00p per share (2015: 7.00p per share). The dividend will be paid on 16 September 2016 to shareholders on the register on 26 August 2016, the ex-dividend date being 25 August 2016.

As reported in the annual statement, shareholders should expect a lower dividend this year compared with 2015, primarily as a result of a number of the underlying portfolio companies announcing reduced or cancelled dividends. Whilst the dividend is clearly an important part of a shareholder’s total return it is important that investors know that the Company will not chase income at the expense of capital appreciation. Accordingly, the Board has agreed with the Manager that, particularly at this point in the commodity cycle, numerous opportunities exist for longer term growth. By allocating capital to these opportunities, the net result should continue to leave the Company in a position to offer a premium yield to the sector whilst at the same time freeing up capital to invest in longer term strategies, such as backing listed companies with earlier stage assets.

The Board has decided that, commencing at the start of the Company's next financial year, dividends will be paid quarterly. Further guidance will be given in February, at the time of the announcement of the results for the current financial year. It remains the Company's intention to distribute substantially all of the income available.

Board changes
As reported in the latest Annual Report, Ian Barby and Anthony Lea, my predecessor as Chairman, retired from the Board in April. I would like to take this opportunity to thank them both for their contributions over the years and wish them well for the future.

Following the Annual General Meeting held on 28 April 2016, we were delighted to welcome Jane Lewis as a Director. Jane is an investment trust specialist who, until August 2013, was a director of corporate finance and broking at Winterflood Investment Trusts. Prior to this she worked at Henderson Global Investors, Gartmore Investment Management Limited and at West LB Panmure as an investment trust broker. She brings a wealth of industry experience to the Board.

Discount
The discount of the Company’s share price to the underlying NAV per share finished the period under review at 14.5% on a cum income basis. The Company traded on an average discount (cum income) of 14.3% during the period, ranging between a discount of 10.0% and 21.4%. At the close of business on 10 August 2016, the Company’s shares were trading at a discount of 17.2%.

During the period under review, the Company repurchased 832,000 ordinary shares at an average price of 224.84p and at an average discount to NAV of 14.5% at a cost of £1,882,000 including expenses. These shares are held in treasury. No shares have been repurchased since the period end and up to and including the date of this report.

The vote to leave the European Union has led to heightened uncertainty in financial markets and many closed-ended funds are now trading at wider than normal discounts. The Company’s discount has also suffered during the recent volatility and the Board will consider on an ongoing basis whether share repurchases should be made.

Investment Management Fee
Effective from 1 October 2015, the management fee (which includes all services provided by BlackRock) was reduced to 0.8% of the Company’s net assets. However, in the event that the NAV increases on a quarter-on-quarter basis, the fee will then be paid on gross assets for the quarter. Details of how the fee is calculated are set out in note 4.

Outlook
There has been much discussion as to whether the cycle has turned for mining companies but what is clear is that the sector is likely to benefit going forward from decisions taken to reduce capital expenditure, repair balance sheets and cut costs. Outside of industrial commodities, demand for gold reflects macro uncertainties and geopolitical challenges and our current weighting to precious metals makes the Company an attractive means by which investors can gain exposure to this sector. The next six months should see continued interest in ‘safe haven’ assets with decent dividends and I remain confident that the Company is well positioned for such an environment.

Ian Cockerill
11 August 2016

Interim management report and responsibility statement

The Chairman’s Statement and the Investment Manager’s Report give details of the important events which have occurred during the period and their impact on the financial statements.

Principal risks and uncertainties
The principal risks faced by the Company can be divided into various areas as follows:

-     Investment performance;
-     Market;
-     Counterparty;
-     Income/dividend;
-     Operational;
-     Financial;
-     Legal & Compliance; and
-     Marketing.

The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Accounts for the year ended 31 December 2015. A detailed explanation can be found in the Strategic Report on pages 9 to 11 and note 18 on pages 62 to 73 of the Annual Report and Financial Statements which is available on the website maintained by BlackRock, at www.blackrock.co.uk/brwm.

In the Board’s opinion, an additional uncertainty to those outlined in the Annual Report and Financial Statements now exists. In a referendum held on 23 June 2016, the United Kingdom resolved to leave the European Union (‘EU’). The referendum result may affect the Company’s risk profile through introducing potentially significant new uncertainties and instability in financial markets as the United Kingdom negotiates its exit from the EU. These uncertainties could have a material adverse effect on the Company’s business, financial condition and operations. The process of a major country leaving the EU has no precedent, so we expect an ongoing period of market uncertainty as implications are digested.

In the view of the Board, there have not been any other changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.

Going concern
The Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective and the Company’s projected income and expenditure, are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and is financially sound. For this reason, they continue to adopt the going concern basis in preparing the financial statements. The Company has a portfolio of investments which are readily realisable and is able to meet all of its liabilities from its assets and income generated from these assets. Ongoing charges (excluding interest costs and taxation) for the year ended 31 December 2015 were 1.2% of net assets but, as noted in the Chairman's Statement, the investment management fee was reduced to 0.8% with effect from 1 October 2015.

Related party disclosure and transactions with the AIFM and Investment Manager
BlackRock Fund Managers Limited (‘BFM’) was appointed as the Company’s Alternative Investment Fund Manager ('AIFM') with effect from 2 July 2014. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (‘BIM UK’). Both BFM and BIM (UK) are regarded as related parties under the Listing Rules. Details of the management and marketing fees payable are set out in note 4 and note 10. The related party transactions with the Directors are set out in note 11.

Directors’ responsibility statement
The Disclosure and Transparency Rules (‘DTR’) of the UK Listing Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Interim Management Report and Financial Statements.

The Directors confirm to the best of their knowledge that:

-     the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’; and
-     the Interim Management Report, together with the Chairman’s Statement and Investment Manager’s Report, include a fair review of the information required by 4.2.7R and 4.2.8R of the FCA’s Disclosure and Transparency Rules.

This half yearly report has been reviewed by the Company’s auditors and their report forms part of this announcement.

The half yearly financial report was approved by the Board on 11 August 2016 and the above responsibility statement was signed on its behalf by the Chairman.

Ian Cockerill
For and on behalf of the Board
11 August 2016

Investment manager’s report

Following five consecutive years of negative returns it is a relief to be able to write the interim report after a strong start to the year. Mining shares have soared after having been oversold in the second half of 2015 and after reaching a 13 year low in January this year. We are well aware that after so many false dawns during the last few years, calling a low for the cycle is a high risk thing to do but given that the last few years have been the worst ever run on record and companies seem to be in better shape now than a year ago it feels more realistic rather than optimistic to be doing so.

For the first half of 2016 the Euromoney Global Mining Index (total return in GBP) increased by 61.4% versus the net asset value (‘NAV’) of the Company which was up by 57.0% and the share price by 59.0%. Although the NAV is slightly behind the return of the benchmark, we are nonetheless pleased that with our focus on quality, income enhancement and exposure to unquoted investments, the NAV has performed as well as it has. In addition, the majority of the lost relative return in the first half of 2016 was due to our underweight exposure to low quality, highly leveraged gold equities. This trend continued into May but we are pleased to report that, by the end of June, the NAV had recouped some of this to finish ahead of the benchmark for the second quarter.

Recovery
As discussed in the Annual Report the mining sector went through a near death experience in the second half of 2015. The sector (Euromoney Global Mining total return index, £ terms, 30 June 2015 to 31 December 2015) fell by 30% driven by fears around i) an imminent collapse of Chinese demand for commodities; ii) mining companies breaching debt covenants; and iii) the prospect of companies needing to issue equity in order to survive. This view became consensus during the period and it was reflected in soaring Credit Default Spreads (CDS) for mining company debt.

The consensus view became an extremely crowded trade by January 2016 and it looks like this peak pessimism might just mark the low for the cycle. Since January the outlook has become more positive for commodity demand and investors no longer seem as worried about the prospects for bank default and associated equity dilution. China increased financial and fiscal support for its economy by unleashing additional liquidity in the form of bank loans and approving a range of commodity intensive projects. The improved consumer confidence was reflected in property prices across the Tiers of cities in China, with Tier 1 up by 40% year-on-year, auto sales soared and fixed asset investment increased by 7.3%. In addition, the Chinese Government aggressively stepped up its plans to rationalise the domestic industrial sector with specific reforms related to closing inefficient production capacity in steel and coal. For example, the National Development and Reform Commission announced that it will look to reduce 100-150mts of steel capacity and coal producers are now only allowed to operate for 276 (previously 330) days per year. We believe that the end result of these measures will lead to a more robust consumer base and hence a supportive demand picture for seaborne commodities such as iron ore and coking coal.

Outside of China, demand in the US has also been supportive for prices. The continued growth in the US economy has seen automotive sales rise year-on-year and US house price data continued its recovery from the post global financial crisis lows. In Europe, the European Central Bank (‘ECB’) has remained supportive by continuing to expand its stimulus programme with more quantitative easing and lower rates.

Precious metal prices benefited strongly from general uncertainty in the world. Investor concerns stretch across a whole range of topics from US Presidential elections, Eurozone elections, the Chinese economy, Federal Reserve rate decisions and, the biggest factor during the period, was Brexit. These factors seemed to feed the performance of first gold and then later in the period silver, as well as leading to huge returns for precious metal equities. Given the low base from which they started, the share price moves have been substantial with the weakest companies rising the most.

An emerging theme in the portfolio has been our exposure to lithium. Given the strong demand fundamentals and the near term inability of supply to match the expected demand growth, the Company has been carefully adding exposure using a mixture of established producers and those developing new supply. This has been a very profitable strategy but given the scale of moves elsewhere in the sector it was actually a detractor from relative returns!

In contrast to the strong share price moves, commodity price trends are very mixed. Average prices for the first half of 2016 versus the prior year period are very disappointing with most down by more than 10% and nickel the worst of all down 36.7%. However, the year to date returns paint a more encouraging picture with many up by in excess of 10%. This year we have added in the price of lithium to the table below using the spot price of battery grade material as the reference. The returns have been spectacular and it is no wonder that many junior lithium companies have seen their share prices soar.

Commodity	30 June  2016	% change  YTD in 1H 16	% change  average price  1H16 vs 1H15
Gold US$/oz	1,321.07	24.4	2.1
Silver US$/oz	18.55	33.9	-3.3
Platinum US$/oz	999	15.1	-16.6
Copper US$/lb	2.2	2.9	-20.6
Nickel US$/lb	4.26	7.1	-36.7
Aluminium US$/lb	0.75	9.5	-13.3
Zinc US$/lb	0.95	32.0	-14.7
Lead US$/lb	0.81	-0.7	-7.5
Tin US$/lb	7.75	17.0	-3.7
Uranium US$/lb	27	-21.2	-19.7
Iron Ore (China 62% fines) US$/t	54.6	26.4	-12.2
Thermal Coal (Newcastle) US$/t	56.95	12.5	-17.4
Met Coal US$/t	92.2	17.9	-14.1
Lithium (Battery Grade China)	24,067	21.2	229.7
Sources: Bloomberg and Macquarie. All spot prices.

Base metals
In contrast to the first half of last year when things started well and then deteriorated on China fears, the opposite happened in 2016. The roar of the China bears was deafening as the year started and prices fell across the board as the prospect of reduced demand weighed heavily on markets that were already perceived to be in surplus. However, China chose to shift its focus away from the clamp down on corruption and pollution in order to support growth. As mentioned earlier, this was a major catalyst for demand and it softened the tone of even the most rampant China bear. By early spring there were signs that confidence was emerging and metal prices started to recover from their lows and by the end of the period every base metal had posted a significant gain from their intra-half lows.

Zinc and tin were the best performing metals with regards to holdings in the portfolio. Among the base metals there is little doubt that zinc has the best fundamentals, with the market forecast to be in deficit this year following Glencore’s voluntary supply cuts and closure of the Century mine in 2015. With the zinc price back toward the US$1/lb range, the concern is that Chinese mined supply re-enters the market, but to date there has been little evidence of this. Holdings in Nyrstar, Boliden, Teck and Glencore all benefited on the back of the zinc price rally.

The portfolio’s largest base metals exposure is to copper where we see considerable long term value in a number of companies. The copper price (+2.9%) lagged the other base metals during the period as mined supply proved surprisingly strong due to limited mine disruptions and growth still coming through from previously committed growth projects. In 2016 there are four mines that add 900-1000kt of copper into the market. We see the market in surplus for 2016-2017, with the market forecast to move into deficit from 2018 as supply rolls off which should be supportive of prices. During the period we saw a number of asset sales announced, Freeport selling Tenke being the largest, and there seems to be a plethora of strategic buyers happy to pay a decent valuation for copper assets, supportive of the view of higher long term prices. Across the board, copper equities tended to outperform the underlying copper price move, with the portfolio’s holdings in Cerro Verde, OZ Minerals and First Quantum being key contributors to performance during the period.

A pick-up in Chinese stainless steel production saw the outlook for the nickel market improve during the period with prices rallying by over 20% from their February 2016 lows. We currently forecast that about one third of the nickel market is loss-making and has been for some time. Ultimately, the industry needs to see more capacity close; however, the industry is in somewhat of a stalemate with barriers to exit high and a number of large operations in New Caledonia continuing to operate despite being loss making. Towards the end of June news emerged of the Philippines looking to adopt stricter mining policies which could restrict supply and drove prices 10% higher in July. The Company’s exposure to nickel is primarily through its holding in Norilsk Nickel the world’s largest nickel and palladium producer with assets located in Russia. In recent years Norilsk has been one of the largest contributors to performance and income benefiting from the significant devaluation in the rouble which has protected its margins despite the decline in the nickel price. In tandem with the copper mine sales, the nickel market also saw a large transaction when Boliden bought the Kevitsa mine from First Quantum. The price paid supports a view that prices will eventually return to higher levels and for once the deal seems to benefit both the vendor and the acquirer.

Gold and precious metals & minerals
It was an incredibly supportive environment for precious metals with gold and silver up by 24.4% and 33.9% respectively, during the period. Unlike the end of 2015 where expectations of Federal Reserve (the ‘Fed’) rate hikes and US dollar strength dominated investors’ bearish view of gold, weakness across global equity markets and lacklustre U.S. economic data saw sentiment quickly change as dovish comments from the Fed suggested that the pace and trajectory of future Fed hikes was likely to be lower.

This started the first leg of the gold price rally, which was compounded by increasing levels of general uncertainty in the world. Investor concerns around the US Presidential elections, Eurozone elections, the Chinese economy and, most importantly, the UK’s decision to leave the European Union saw investors flock to ‘safe-haven’ assets. This translated in strong investment demand where, after three years of redemptions, we saw net buying of gold ETFs during the period.

In addition to the supportive aspects of economic and political uncertainty in markets, gold is one of the few beneficiaries of negative rates. An important driver of the gold price this year has been the increasing number of central banks joining the ‘negative rates club’ and implementing a negative rates policy. At the end of June 2016 there was over US$10 trillion of negative yielding government bonds in issue, with almost a quarter of the world’s GDP coming from economies that had negative rates on their bonds. At the end of the period the entire issuance of Swiss Government bonds, including the 50 year, was trading with a negative yield.

The positive backdrop for gold translated into exceptionally strong performance of the gold equities with the FTSE gold mines index (sterling terms) up by 134% during the period. Beginning at a low share price level, the high degree of operating and financial leverage across the industry saw the equities significantly outperform the underlying move in the gold price by a factor of four times. Across the sector the higher leveraged and lower quality companies tended to outperform, which detracted from the portfolio’s relative performance given its quality bias.

During the period we increased our exposure to precious metals in the portfolio, with gold equities at 30% and silver equities at 13% of NAV. In addition to the positive gold backdrop, one of the important drivers of our increased holding has been the improved capital discipline displayed across the sector. Unlike in previous higher gold price environments, the gold companies find themselves in a position of generating positive free cash flow as a result of a strong focus on costs and a lack of investment in growth. This year, companies have focused on repairing their balance sheets through asset sales which has helped drive a rerating of their equity value.

During the period the stand out performance came from the portfolio’s holding in silver companies, with the silver price rallying towards the end of the period where the gold-to-silver ratio declined to 72:1 versus circa 85:1 at its peak earlier in the year. The Company’s holding in Fresnillo was the largest contributor to performance during the first half of the year, with silver producers Tahoe and Penoles also contributing strongly.

Diversified mining and industrial metals
The first half of 2016 saw a dramatic swing in confidence in the long term outlook for commodity prices and thus the diversified mining companies and their valuations. We started the year with what we now realise was extremely pessimistic positioning with investor worries about balance sheets reaching a peak as evidenced by five year CDS spreads blowing out to over 14% for Anglo American and almost 12% for Glencore, well in excess of the levels seen during the financial crisis. However, just as soon as a lower for longer commodity price view became consensus for market participants, we saw Chinese lending data pick up and with this the price for most metals, including copper, zinc and iron ore. Those diversified miners with the most operating and financial leverage to rising prices outperformed. The most notable example of this strong equity outperformance came from Anglo American which outperformed the index by a massive 80%. This performance was driven by its ‘self-help’ plan based largely on asset disposals to reduce debt so as to avoid issuing equity.

While the sector strongly benefited from a China led pick-up in demand at the beginning of the year, the sobering experience of the second half of 2015 saw some high profile dividend cuts among the diversified majors, with BHP Billiton and Rio Tinto cutting their dividend by 75% and 50% respectively in February. BHP cut its progressive dividend for the first time since 1988 and cautioned that it expected a prolonged period of weaker prices and higher volatility. Rio also cut their dividend with Sam Walsh, then CEO, commenting that progressive dividend policies ‘are not appropriate in cyclical industries’. As noted in the 2015 Annual Report, as a result of the significant cuts in dividends across the sector in the last 12 months, shareholders should expect a lower dividend in 2016 than the previous year.

During the first half of the year there was evidence of a value over volume strategy emerging from the major iron ore producers with Vale, BHP Billiton and Rio Tinto delivering below expectations of Q1 2016 production numbers, as well as reducing forward guidance. Rio announced a 10-20mt reduction to 2017 iron ore guidance and BHP reduced its 2016 full year guidance by 10mts hinting at a slower ramp to the forecast 290mt capacity. Vale, the world’s largest iron ore producer, also gave tighter guidance for its iron ore division where it now anticipates production at the lower range of its last guidance of 340–350mts for 2016. While the reduction in iron ore volumes may be symptomatic of the aggressive ramp-up in volumes in recent years, it is interesting to note the positive iron ore price response when producers look to minimally restrict supply.

As confidence in rational supply discipline in iron ore increased, the Company added a position in Vale. Vale is ramping up the low cost S11D iron ore project at the end of 2016, which will mark the end of Vale’s growth capital expenditure and should see the highest production and cash flow growth out of the majors. This inflection point for the balance sheet and higher cash flow generation, combined with an active asset disposal programme to further reduce leverage, is expected to be beneficial for shareholders and drive a rerating of the equity.

Unquoted investments
At the end of the period, 3.7% of the Company’s assets were invested in unquoted investments consisting of the Avanco royalty contract and the Banro gold-linked preference share. In addition, the Company has 1.4% of its assets invested in the listed equity of Avanco Resources.

Avanco royalty contract (1.4%)
In July 2014, the Company signed a binding royalty agreement with Avanco Resources, a contractual royalty covering its exploration licenses within the world-class mineral district of Carajas in Brazil. An investment of US$12 million was made in return for Net Smelter Return (net revenue after deductions for freight, smelter and refining charges) royalty payments comprising 2% on copper, 25% on gold and 2% on all other metals that will be produced from their Antas North and Pedra Branca licences. In addition, there will be a flat 2% royalty over all metals produced from any other discoveries within Avanco’s licence area as at the time of the agreement.

Given the development style nature of the royalty, drawdown was conditional on Avanco achieving a number of milestones (achieved in 1H 2015) to in turn de-risk the Company’s royalty exposure. These conditions included the publication of a JORC compliant reserve statement, the receipt of a mining licence for Stage 1 and securing debt financing for the project.

We are pleased to announce that during the first half of 2016, Avanco successfully ramped-up its Antas Copper Project, producing 3,720t of copper and 2,611oz of gold, with the Company earning royalty revenue of £478,000 during the period. Avanco subsequently declared commercial production on 1 July 2016, targeting production of ~12,000t of copper in concentrate and 7,000oz of gold in 2016.

As noted at the Annual General Meeting in April 2016, we visited the asset to assess how ramp-up was progressing, as well as attending the official opening. Overall, we have been very pleased with the development, construction and ramp-up of the asset with project capital expenditure coming in under budget in both Brazilian reals and in US dollars. Grade reconciliation has been good, with the focus now on reducing costs as production ramps-up. The team has designed plant capacity well in excess of the planned operating rate which gives them flexibility to meet operational guidance, as well as expand in the future where they are targeting 15,000t of copper in concentrate by 2018. The company remains in a very strong position with no debt and a net cash position of ~US$20 million.

The next key focus for the company is their second project, Pedra Branca. In June Avanco provided an updated resource for the Pedra Branca East orebody of 10.5mt at 2.8% Cu and 0.7g/t gold, making it significantly larger than Antas North. Avanco is currently moving forward with a development plan for Pedra Branca, with a ‘decision to mine’ to be made in the second half of 2016. To validate the assumptions on geology, ground conditions and mining method, Avanco is targeting a low capital expenditure, pre-commercial development of Pedra Branca. During this pre-commercial phase, ore from Pedra Branca will be trucked to the Antas mine utilising the excess capacity to further increase production which will be beneficial for the royalty.

Banro gold-linked preference share (2.3%)
The Company’s portfolio has a 2.3% exposure to a gold-linked preference share issued by Canadian listed gold company Banro Corporation. The preference share provides exposure to the gold price, as well as to production growth, with the principal value moving in line with the gold price and the coupon ranging between 10% and 15% depending on Banro’s overall level of production. Since purchasing the preference share in April 2013, the Company has received a total of US$8.4 million in dividends with all outstanding deferred dividends to be repaid by the year end.

As noted in the 2015 Annual Report, Banro signed a definitive agreement with a Chinese mining investment fund, Resource FinanceWorks, for US$98.75 million at the end of 2015, with the deal subsequently closing in February 2016. The financing ensures that Banro has sufficient funding to meet the remaining coupon payments due on the senior notes maturing on 1 March 2017, repay outstanding dividends owed on the preference shares, expand crushing capacity at Twangiza and repay its DRC bank loans. Both the bonds and the equity have rallied strongly during the first half of 2016 with the increase in the gold price. We continue to monitor the company’s balance sheet closely given its tight liquidity position, as well as the US$175 million bond due in March 2017.

During the first half of the year, Twangiza and Namoya combined produced 93,865ozs of gold, in line with guidance, and a record level for the company. Given adverse wet weather conditions during the first half, Banro expects second half production to be stronger where they are targeting 2016 consolidated production of 210,000 to 230,000oz gold with cash costs between US$700-800/oz.

As at the end of the period, the Board in conjunction with a recommendation from the BlackRock Pricing Committee, has applied a 30% discount to the valuation of the gold-linked preference share. This discount is consistent with the level of the discount to par value that the senior secured notes have traded at during the first half of 2016 and reflective of Banro’s ongoing tight liquidity position.

Derivatives activity
The Company from time to time enters into derivatives contracts, mostly involving the sale of ‘puts’ and ‘calls’. These are taken to revenue and are subject to strict Board guidelines which limit their magnitude to an aggregate 10% of the portfolio. In the first half of 2016 we took advantage of the jump in volatilities and sold a number of options at very attractive levels. The majority of these expired worthless and this has enhanced revenue for the Company. At the end of the period, the Company had 2.8% of net assets exposed to derivatives.

Gearing
At 30 June 2016 the Company had £72.8 million of net debt, with a gearing level of 13.1%. The debt is held entirely in US dollars as it is managed against the value of the debt securities held in the Company. The Company also makes use of a short term overdraft facility to manage near term liquidity.

Outlook
We are obviously delighted with the strong performance of the sector to the end of June but we are very aware that things rarely continue to rally at the same rate for long periods of time. In addition, the rally we have been through is in part a bounce from the very depressed point reached in January, as well as it being enhanced by the weakness in the pound post ‘Brexit’. If you remove the currency impact, share prices in US dollar terms have returned to levels last seen in June 2015 and, with commodity prices supportive of this move, it is likely that we will need to see additional catalysts during the balance of the year to justify further gains.

The other key factor relates to whether the support measures in China remain in place for the balance of the year allowing commodity markets to move more rapidly into deficit or they are pulled and markets give up part of their gains. It is also important for mining companies to remain focused on cost reduction and disciplined on capital allocation in order not to see this rally as a reason to start reverting back to old ways. Hopefully, the memories of the last few years are sufficiently fresh to prevent this from happening.

Outside of industrial commodities we remain positive on precious metal producers given the supportive back drop for underlying relevant metal prices and the improved equity fundamentals such as competitive free cash flow yields. The Company has significant exposure to this area and within this are a number of holdings that are scheduled to complete development projects shortly and we hope this delivers value outside of just giving exposure to commodity prices.

Evy Hambro and Olivia Markham
BlackRock Investment Management (UK) Limited
11 August 2016

Ten largest investments
as at 30 June 2016

Set out below is a brief description by the Investment Manager of the Company’s ten largest investments

BHP Billiton: 9.0% (2015: 11.3%) is the world’s largest mining company by market cap. The company is an important global player in a number of commodities including iron ore, copper, coal, manganese, aluminium, diamonds and uranium. The company is the only sizeable holding in the portfolio with significant oil and gas assets. During the first half of 2016 the company brought an end to its progressive dividend policy, cutting its dividend by 75%. Going forward, the company will pay out a minimum of 50% of underlying profit, with the ability to pay additional amounts depending on capital needs within the business. The tragic tailings dam collapse at Samarco last year and uncertainty around the size of the potential liability continues to weigh on the company.

Rio Tinto: 7.6% (2015: 10.7%) is the world’s second largest mining company by market cap. It has interests over a broad range of metals and minerals including iron ore, aluminium, copper, coal, industrial minerals, gold and uranium. During the first half of 2016 the company replaced its progressive dividend policy with a new policy which targets total cash returns to shareholders of 40% to 60% of underlying earnings through the cycle. For 2016, the intention is to pay a full year dividend of not less than 110 US cents per share. In the first six months of the year, the company approved the US$5.3 billion underground expansion of Oyu Tolgoi which will see average copper production of ~560ktpa between 2025 and 2030.

First Quantum Minerals*: 6.8% (2015: 6.7%) is an integrated copper producer whose principal operating assets are in Zambia. First Quantum is in the midst of a significant expansion of the business, most notable the Cobre Panama mine in Panama. Weakness in the copper price during 2015, combined with its heavy capital investment, saw the company take action to derisk the balance sheet. During the first half of 2016 the company successfully sold its Kevista nickel mine for US$712 million to Boliden. In addition, the company refinanced its US$3 billion credit facility with a new US$1.8 billion facility with improved financial covenants and amortisation schedule. First Quantum’s efforts to strengthen its balance sheet have been viewed positively by the equity market and credit ratings agencies. The Company holds both the equity and the senior unsecured debt.

Fresnillo: 5.2% (2015: 4.5%) is a Mexican based precious metals mining company incorporated in the United Kingdom and headquartered in Mexico City. Fresnillo is the world’s largest producer of silver and Mexico’s second largest gold miner. The company has a strong exploration focus and organic growth pipeline targeting growth to 65moz silver and 750koz of gold by 2018.

Lundin Mining*: 4.6% (2015: 5.3%) is a base metals producer with operations in Chile, Europe and the US. In addition, it holds a 24% minority stake in the Tenke copper-cobalt mine in the DRC. Lundin’s key asset, Candelaria, which was acquired from Freeport-McMoRan Copper & Gold in October 2014 performed very well during the first half of the year with management upgrading guidance for the remainder of the year. In May 2016, Freeport announced that it has entered into an agreement to sell its 56% interest in Tenke for US$2.65 billion to China Molybdenum. Lundin has a 90 day Right of First Offer and is evaluating all options for its stake in Tenke. The Company holds both the equity and the 7.875% senior secured notes due in 2022.

Newcrest Mining: 3.6% (2015: 1.6%) is a major Australian based gold producer operating in four countries. Newcrest has an industry leading reserve life and cost position and has successfully maintained or increased total production guidance for 11 consecutive quarters under new management. The company is focused on increasing throughput at its Lihir operation in PNG, as well as ramping up its newest project, Cadia East in Australia. Longer term, the company has organic growth potential at its Wafi-Golpu project in PNG.

Glencore: 3.5% (2015: 3.8%) is a diversified miner with activities in mining, smelting, refining, processing and marketing of metals and minerals, energy products and agricultural products globally. In addition, the company provides financing, logistics, marketing and purchasing services to producers and consumers of commodities. Since mid-2015 the company has been focused on rapidly de-gearing the balance sheet targeting a net debt position of US$17 to US$18 billion by December 2016, versus net debt of US$26 billion in December 2015. The company is targeting asset sale proceeds of US$4 to US$5 billion, with the company successfully selling a 40% equity stake in its agriculture business for US$2.5 billion in April 2016. Glencore remains focused on preserving its investment grade credit rating, targeting a BBB+ rating over the medium term.

Sociedad Minera Cerro Verde: 3.4% (2015: 3.8%) is a copper and molybdenum operation in Peru operated by Freeport-McMoRan Copper & Gold where they maintain a 53.6% ownership in the company. In 2013, construction activities commenced on the US$4.4 billion large scale expansion of the asset which will see copper production more than double from 210kt in 2015 to 560kt in 2017. The project successfully ramped up during the first half of 2016 with significant cash flows and dividend payments expected from 2017.

Norilsk Nickel: 3.3% (2015: 5.0%) is the world’s largest nickel and palladium producer and also with significant platinum and copper production. It is a Russian company whose core assets are located in northern Siberia, within the Arctic Circle. The company has benefited from the significant weakening in the Russian rouble in recent years.

Newmont Mining: 3.1% (2015: nil) is one of the world’s leading gold producers with the majority of its production from North America and Australia. In recent years Newmont has divested assets to build a longer life, lower cost asset portfolio. The company has reduced net debt by US$2 billion since 2013 while funding growth projects. On 30 June 2016 the company sold its interest in the Batu Hijau project in Indonesia for US$920 million in cash to be used for further debt repayment.

*   Includes fixed interest securities.
All percentages reflect the value of the holding as a percentage of total investments. Percentages in brackets represent the value of the holding as at 31 December 2015. Together, the ten largest investments represent 50.1% of total investments (31 December 2015: 56.6%).

Portfolio analysis
30 June 2016

COMMODITY EXPOSURE*

	BlackRock World Mining Trust plc 2016	BlackRock World Mining Trust plc 2015#	Euromoney Global Mining Index 2015
Aluminium	0	0.5	2.1
Coal	0	0	4.4
Iron Ore	0.1	0.1	1.1
Zinc	0.5	0	1.9
Nickel	3.5	0	1.7
Industrial Minerals	3.4	6.5	0.9
Silver & Diamonds	16.2	13.2	8.5
Copper	17.6	21.0	9.5
Gold	26.6	17.7	32.6
Diversified	32.1	40.5	35.2
Other	0.0	0.5	2.1

#              Represents exposure at 31 December 2015.

GEOGRAPHIC EXPOSURE*

	2016		2015
Global	50.7	Global	48.7
Latin America	14.8	Latin America	14.9
Australia	9.7	Australia	10.0
Africa (ex SA)	8.5	Africa (ex SA)	9.1
Canada	6.8	Canada	5.9
Other***	5.0	Other**	7.3
South Africa	4.5	South Africa	4.1

*              Based on the principal commodity exposure and place of operation of each investment.
**             Consists of Indonesia, Russia, Serbia, Sweden and Turkey.
***           Consists of Indonesia, Russia, Sweden and Turkey.

Source: BlackRock.

Investments
as at 30 June 2016

	Main geographical  exposure	Market  value  £’000	% of  investments
Diversified
BHP Billiton	Global	56,568	9.0
Rio Tinto	Global	48,142	7.6
Lundin Mining*	Global	28,943	4.6
Glencore	Global	22,140	3.5
Teck Resources	Global	14,688	2.3
Vale*	Global	11,424	1.8
Vale OTC Call Option 15/07/16	Global	(66)	–
Hudbay Minerals 9.5% 01/10/20	Global	7,728	1.2
Boliden	Sweden	7,134	1.2
African Rainbow Minerals	South Africa	2,820	0.5
Umicore	Global	2,499	0.4
		--------	--------
		202,020	32.1
		--------	--------
Gold
Newcrest Mining	Australia	22,605	3.6
Newmont Mining	Global	19,748	3.1
Banro Barbados+#	DRC	14,528	2.3
Randgold Resources	Africa	13,801	2.2
Franco-Nevada	Global	13,115	2.1
Barrick Gold	Global	11,967	1.9
Barrick Gold Call Option 15/07/16	Global	(193)	–
Eldorado Gold	Global	11,380	1.8
Northern Star Resources	Australia	10,984	1.7
Gold Fields	South Africa	10,956	1.7
Agnico Eagle Mines	Canada	7,955	1.3
Detour Gold	Canada	7,435	1.2
Oceanagold	Global	5,464	0.9
Alamos Gold	Mexico	4,160	0.6
Anglogold Ashanti	South Africa	3,375	0.5
Anglogold Ashanti Call Option 15/07/16	South Africa	(195)	–
Metals X	Australia	2,350	0.4
G-Resources	Indonesia	2,316	0.4
Shanta Gold convertible	Tanzania	1,907	0.3
Pretium Resources	Canada	1,689	0.3
Minas Buenaventura	Peru	1,183	0.2
Stratex International	Turkey	634	0.1
		--------	--------
		167,164	26.6
		--------	--------
Copper
First Quantum Minerals*	Global	43,020	6.8
Sociedad Minera Cerro Verde	Peru	21,474	3.4
Avanco Resources*#~	Brazil	17,891	2.8
Nevsun Resources	Eritrea	15,400	2.5
OZ Minerals	Australia	12,010	1.9
Katanga Mining	DRC	940	0.1
Ivanhoe Mines#	DRC	525	0.1
		--------	--------
		111,260	17.6
		--------	--------
Silver & Diamonds
Fresnillo	Mexico	32,551	5.2
Industrias Penoles	Mexico	12,346	2.0
Tahoe Resources	Global	12,562	2.0
Tahoe Resources Call Option 15/07/16	Global	(578)	(0.1)
Petra Diamonds*	South Africa	11,033	1.8
Silver Wheaton	Canada	10,437	1.7
Mountain Province Diamonds	Canada	8,656	1.4
Lucara Diamond	Botswana	5,713	0.9
Dominion Diamond	Canada	4,567	0.7
Dominion Diamond OTC Call Option 15/07/16	Canada	(7)	–
Silver Mines	Australia	1,346	0.2
Sierra Metals	Peru	1,228	0.2
Volcan	Peru	842	0.1
MAG Silver	Mexico	469	0.1
		--------	--------
		101,165	16.2
		--------	--------
Industrial Minerals
Iluka Resources	Australia	10,828	1.7
Albemarle	Global	8,352	1.3
Nemaska Lithium	Canada	1,530	0.2
Bacanora Minerals	Mexico	1,226	0.2
		--------	--------
		21,936	3.4
		--------	--------
Nickel
Norilsk Nickel	Russia	20,846	3.3
Western Areas	Australia	1,021	0.2
Bindura Nickel	Zimbabwe	24	-
		--------	--------
		21,891	3.5
		--------	--------
Zinc
Nyrstar	Global	3,217	0.5
Sociedad Minera El Brocal	Peru	286	-
		--------	--------
		3,503	0.5
		--------	--------
Iron Ore
Equatorial Resources	Republic of Congo	543	0.1
		--------	--------
		543	0.1
		--------	--------
Portfolio		629,482	100.0
		--------	--------
* Includes fixed interest investments. # Investments held at Directors’ valuation. + Includes Banro gold-linked preference share. ~ Includes mining royalty contract.

All investments are in equity shares unless otherwise stated.
The total number of investments as at 30 June 2016 (including options classified as liabilities on the balance sheet) was 64 (31 December 2015: 56).

Consolidated statement of comprehensive income
for the six months ended 30 June 2016

		Revenue £’000			Capital £’000			Total £’000
	Notes	Six  months  ended  30.06.16  (unaudited)	Six  months  ended  30.06.15  (unaudited)	Year  ended  31.12.15  (audited)	Six  months  ended  30.06.16  (unaudited)	Six  months  ended  30.06.15  (unaudited)	Year  ended  31.12.15  (audited)	Six  months  ended  30.06.16  (unaudited)	Six  months  ended  30.06.15  (unaudited)	Year  ended  31.12.15  (audited)
Income from investments held at fair value through profit or loss	3	10,628	16,263	30,503	–	–	–	10,628	16,263	30,503
Other income	3	3,361	4,084	8,742	–	–	–	3,361	4,084	8,742
		--------	--------	--------	--------	--------	--------	--------	--------	--------
		13,989	20,347	39,245	–	–	–	13,989	20,347	39,245
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Profit/(loss) on investments held at fair value through profit or loss		–	–	–	203,649	(56,505)	(236,061)	203,649	(56,505)	(236,061)
(Loss)/profit on foreign exchange		–	–	–	(6,189)	200	(2,942)	(6,189)	200	(2,942)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Total revenue		13,989	20,347	39,245	197,460	(56,305)	(239,003)	211,449	(35,958)	(199,758)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Expenses
Investment management fees	4	(490)	(845)	(1,328)	(1,641)	(2,536)	(3,984)	(2,131)	(3,381)	(5,312)
Operating expenses	5	(426)	(480)	(1,030)	(9)	(3)	(13)	(435)	(483)	(1,043)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Total operating expenses		(916)	(1,325)	(2,358)	(1,650)	(2,539)	(3,997)	(2,566)	(3,864)	(6,355)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Net profit/(loss) on ordinary activities before finance costs and taxation		13,073	19,022	36,887	195,810	(58,844)	(243,000)	208,883	(39,822)	(206,113)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Finance costs		(113)	(151)	(288)	(336)	(452)	(864)	(449)	(603)	(1,152)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Net profit/(loss) on ordinary activities before taxation		12,960	18,871	36,599	195,474	(59,296)	(243,864)	208,434	(40,425)	(207,265)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Taxation		(1,441)	(2,007)	(3,855)	368	601	989	(1,073)	(1,406)	(2,866)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Profit/(loss) for the period		11,519	16,864	32,744	195,842	(58,695)	(242,875)	207,361	(41,831)	(210,131)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Earnings/(loss) per ordinary share	7	6.51p	9.51p	18.47p	110.76p	(33.11p)	(137.00p)	117.27p	(23.60p)	(118.53p)
		========	========	========	========	========	========	========	========	========

The total column of this statement represents the Consolidated Statement of Comprehensive Income, prepared in accordance with International Financial Reporting Standards (‘IFRS’), as adopted by the European Union (‘EU’). The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies (‘AIC’). All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period. All income is attributable to the equity holders of BlackRock World Mining Trust plc. There were no minority interests. The Group does not have any other comprehensive income. The net profit/(loss) for the period/year disclosed above represents the Group’s total comprehensive income/(loss).

Consolidated statement of changes in equity
for the six months ended 30 June 2016 (unaudited)

	Ordinary  share  capital  £’000	Share  premium  account  £’000	Special  reserve  £’000	Capital  redemption  reserve  £’000	Capital  reserves  £’000	Revenue  reserve  £’000	Total  £’000
For the six months ended 30 June 2016 (unaudited)
At 31 December 2015	9,651	127,155	116,471	22,779	55,022	46,235	377,313
Total comprehensive income:
Net profit for the period	–	–	–	–	195,842	11,519	207,361
Transactions with owners, recorded directly to equity:
Ordinary shares purchased into treasury	–	–	(1,882)	–	–	–	(1,882)
Dividends paid(a)	–	–	–	–	–	(24,739)	(24,739)
	--------	--------	--------	--------	--------	--------	--------
At 30 June 2016	9,651	127,155	114,589	22,779	250,864	33,015	558,053
	--------	--------	--------	--------	--------	--------	--------
For the six months ended 30 June 2015 (unaudited)
At 31 December 2014	9,651	127,155	116,471	22,779	297,897	50,721	624,674
Total comprehensive income:
Net (loss)/profit for the period	–	–	–	–	(58,695)	16,864	(41,831)
Transactions with owners, recorded directly to equity:
Dividends paid(b)	–	–	–	–	–	(24,820)	(24,820)
	--------	--------	--------	--------	--------	--------	--------
At 30 June 2015	9,651	127,155	116,471	22,779	239,202	42,765	558,023
	--------	--------	--------	--------	--------	--------	--------
For the year ended 31 December 2015 (audited)
At 31 December 2014	9,651	127,155	116,471	22,779	297,897	50,721	624,674
Total comprehensive income:
Net (loss)/profit for the year	–	–	–	–	(242,875)	32,744	(210,131)
Transactions with owners, recorded directly to equity:
Dividends paid(c)	–	–	–	–	–	(37,230)	(37,230)
	--------	--------	--------	--------	--------	--------	--------
At 31 December 2015	9,651	127,155	116,471	22,779	55,022	46,235	377,313
	--------	--------	--------	--------	--------	--------	--------

(a)           The final dividend for the year ended 31 December 2015 of 14.00p per share, declared on 29 February 2016 and paid on 6 May 2016.
(b)           The final dividend for the year ended 31 December 2014 of 14.00p per share, declared on 19 March 2015 and paid on 8 May 2015.
(c)           The final dividend in respect of the year ended 31 December 2014 of 14.00p per share, declared on 19 March 2015 and paid on 8 May 2015 and interim dividend for the year ended 31 December 2015 of 7.00p per share declared on 13 August 2015 and paid on 18 September 2015.

The transaction costs incurred on the acquisition and disposal of investments are included within the capital reserves. Purchase and sale costs amounted to £235,000 and £119,000 respectively for the period ended 30 June 2016 (six months ended 30 June 2015: £221,000 and £242,000; year ended 31 December 2015: £636,000 and £468,000).

Consolidated statement of financial position
as at 30 June 2016

	Notes	30 June 2016  £’000  (unaudited)	30 June 2015  £’000  (unaudited)	31 December 2015  £’000  (audited)
Non current assets
Investments held at fair value through profit or loss	9	630,521	628,419	426,085
		--------	--------	--------
		630,521	628,419	426,085
		--------	--------	--------
Current assets
Cash and cash equivalents		–	146	13,223
Collateral held on margin deposit with brokers		2,967	2,310	1,340
Other receivables		4,314	3,311	3,797
Amounts due from brokers		6,749	3,397	–
		--------	--------	--------
		14,030	9,164	18,360
		--------	--------	--------
Total assets		644,551	637,583	444,445
		--------	--------	--------
Current liabilities
Other payables		(4,040)	(5,098)	(3,540)
Amounts due to brokers		(8,499)	–	(2,714)
Derivative instruments – written options		(1,039)	(782)	(161)
Bank loans		(71,065)	(73,651)	(60,708)
Bank overdrafts		(1,855)	–	–
		--------	--------	--------
		(86,498)	(79,531)	(67,123)
		--------	--------	--------
Total assets less current liabilities		558,053	558,052	377,322
Non current liabilities
Deferred tax liabilities		–	(29)	(9)
		--------	--------	--------
Net assets		558,053	558,023	377,313
		--------	--------	--------
Equity attributable to equity holders
Ordinary share capital	8	9,651	9,651	9,651
Share premium account		127,155	127,155	127,155
Special reserve		114,589	116,471	116,471
Capital redemption reserve		22,779	22,779	22,779
Capital reserves		250,864	239,202	55,022
Revenue reserve		33,015	42,765	46,235
		--------	--------	--------
Total equity shareholders’ funds		558,053	558,023	377,313
		--------	--------	--------
Net asset value per ordinary share	7	316.26p	314.76p	212.83p
		========	========	========

Consolidated cash flow statement
for the six months ended 30 June 2016

	Six months  ended  30 June 2016  £’000  (unaudited)	Six months  ended  30 June 2015  £’000  (unaudited)	Year  ended  31 December 2015  £’000  (audited)
Net cash inflow from operating activities	7,824	26,711	68,922
	--------	--------	--------
Financing activities
Interest paid	(449)	(603)	(1,242)
Drawdown/(repayment) of loans	4,138	(32,396)	(48,305)
Shares purchased into treasury	(1,882)	–	–
Dividends paid	(24,739)	(24,820)	(37,230)
	--------	--------	--------
Net cash outflow from financing activities	(22,932)	(57,819)	(86,777)
	--------	--------	--------
Decrease in cash and cash equivalents	(15,108)	(31,108)	(17,855)
Effect of foreign exchange rate changes	30	200	24
	--------	--------	--------
Change in cash and cash equivalents	(15,078)	(30,908)	(17,831)
Cash and cash equivalents at start of the period	13,223	31,054	31,054
	--------	--------	--------
Cash and cash equivalents at the end of the period	(1,855)	146	13,223
	========	========	========
Comprised of:
Cash at bank	–	146	13,223
	--------	--------	--------
Bank overdraft	(1,855)	–	–
	--------	--------	--------
	(1,855)	146	13,223
	========	========	========

Reconciliation of net profit before finance costs and taxation to net cash flow from operating activities
for the six months ended 30 June 2016

	Six months  ended  30 June 2016  £’000  (unaudited)	Six months  ended  30 June 2015  £’000  (unaudited)	Year ended  31 December 2015  £’000  (audited)
Operating activities
Profit/(loss) before taxation*	208,434	(40,425)	(207,265)
Add back interest paid	449	603	1,152
(Profit)/loss on investments held at fair value through profit or loss including transaction costs	(203,649)	56,505	236,061
Loss/(profit) on foreign exchange	6,189	(200)	2,942
Sales of investments held at fair value through profit or loss	110,559	115,162	230,407
Purchases of investments held at fair value through profit or loss	(110,468)	(104,533)	(197,355)
(Increase)/decrease in other receivables	(517)	3,122	2,187
(Increase)/decrease in amounts due from brokers	(6,749)	(3,379)	18
Increase/(decrease) in other payables	359	1,675	(191)
Increase in amounts due to brokers	5,785	–	2,714
Net movement in cash held on margin deposit with brokers	(1,627)	(626)	344
Taxation paid	(666)	(393)	(441)
Taxation on investment income included within gross income	(275)	(800)	(1,651)
	--------	--------	--------
Net cash inflow from operating activities	7,824	26,711	68,922
	--------	--------	--------
*     Dividends and interest received in the six months ended 30 June 2016 amounted to £7,206,000 and £3,005,000 (six months ended 30 June 2015: £15,108,000 and £3,409,000 and year ended 31 December 2015: £25,713,000 and £6,634,000) respectively.

Notes to the financial statements
for the six months ended 30 June 2016

1. Principal activity
The principal activity of the Company is that of an investment trust company within the meaning of section 1158 of the Corporation Tax Act 2010.

The principal activity of the subsidiary, BlackRock World Mining Investment Company Limited, is investment dealing.

2. Basis of operation
The half yearly financial statements have been prepared using the same accounting policies as set out in the Company’s Annual Report and Financial Statements for the year ended 31 December 2015 (which were prepared in accordance with International Financial Reporting Standards (‘IFRS’) as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006) and applied in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’. These comprise standards and interpretations of International Accounting Standards and Standard Interpretations Committee as approved by the International Accounting Standards Committee that remain in effect, to the extent that IFRS has been adopted by the European Union.

Insofar as the Statement of Recommended Practice (‘SORP’) for investment trust companies and venture capital trusts issued by the Association of Investment Companies (‘AIC’), revised in November 2014 is compatible with IFRS, the financial statements have been prepared in accordance with guidance set out in the SORP.

3. Income

	Six months  ended  30 June 2016  £’000  (unaudited)	Six months  ended  30 June 2015  £’000  (unaudited)	Year ended  31 December 2015  £’000  (audited)
Income from investments:
UK listed dividends	2,934	4,508	9,782
Overseas listed dividends	4,198	8,548	14,460
Overseas listed special dividends	–	–	71
Income from contractual rights	478	–	–
Fixed interest income	3,018	3,207	6,190
	--------	--------	--------
	10,628	16,263	30,503
	--------	--------	--------
Other income:
Option premiums	3,315	3,992	8,647
Profit of futures	–	25	25
Deposit interest	3	15	26
Stock lending income	43	9	44
Underwriting commission	–	43	–
	--------	--------	--------
	3,361	4,084	8,742
	--------	--------	--------
Total	13,989	20,347	39,245
	========	========	========

During the six month period ended 30 June 2016, the option premium income of £3,306,000 (six months ended 30 June 2015: £4,437,000; year ended 31 December 2015: £8,503,000) received by the Group was from options written for income purposes of which £3,315,000 (six months ended 30 June 2015: £3,992,000; year ended 31 December 2015: £8,647,000) has been credited to the revenue column of the Consolidated Statement of Comprehensive Income and recognised evenly over the life of the option contract.

4. Investment management fee

	Six months  ended  30 June 2016  £’000  (unaudited)	Six months  ended  30 June 2015  £’000  (unaudited)	Year ended  31 December 2015  £’000  (audited)
Investment management fee:
– Allocated to revenue	490	845	1,328
– Allocated to capital	1,641	2,536	3,984
	--------	--------	--------
	2,131	3,381	5,312
	========	========	========

Until 31 March 2015 the investment management fee was levied quarterly at a rate of 1.3% per annum, based on the value of the gross assets on the last day of each quarter.

Between 1 April 2015 and 30 June 2015, the annual fee was reduced to:

-     1.10% on the first £500 million of gross assets

-     0.70% on the next £500 million

-     0.40% on gross assets above £1 billion

Between 1 July 2015 and 30 September 2015, the annual management fee was:

-     1.20% on the first £500 million of gross assets

-     1.00% on the next £500 million

-     0.85% on gross assets above £1 billion

With effect from 1 October 2015 the annual management fee was reduced to 0.8% of net assets. However, in the event that the NAV increases on a quarter-on-quarter basis, the fee will then be paid on gross assets for the quarter.

75% of investment management fees are allocated to the capital column and 25% to the revenue column of the Consolidated Statement of Comprehensive Income.

5. Operating expenses

	Six months  ended  30 June 2016  £’000  (unaudited)	Six months  ended  30 June 2015  £’000  (unaudited)	Year ended  31 December 2015  £’000  (audited)
Allocated to revenue:
Custody fee	40	52	90
Auditors’ remuneration:
– audit services	13	11	29
– other assurance services	6	6	6
Directors’ emoluments	129	119	256
Registrar’s fee	37	37	72
Broker fees	12	5	269
Depositary fees	24	36	62
Marketing fees	69	95	17
Other administration costs	96	119	229
	--------	--------	--------
	426	480	1,030
	--------	--------	--------
Allocated to capital:
Transaction charges – capital	9	3	13
	--------	--------	--------
	435	483	1,043
	--------	--------	--------

6. Dividends
The final dividend of 14.00p per share for the year ended 31 December 2015 was paid on 6 May 2016.

The Board has declared an interim dividend of 4.00p per share for the six months ended 30 June 2016 and will be paid on 16 September 2016 to shareholders on the register on 26 August 2016. This dividend has not been accrued in the financial statements for the six months ended 30 June 2016 as, under IFRS, interim dividends are not recognised until paid.

Dividends are debited directly to reserves.

7. Consolidated earnings and net asset value per ordinary share

Total revenue and capital returns and net asset value per share are shown below and have been calculated using the following:

	Six months  ended  30 June 2016  (unaudited)	Six months  ended  30 June 2015  (unaudited)	Year ended  31 December 2015  (audited)
Net revenue profit attributable to ordinary shareholders (£’000)	11,519	16,864	32,744
Net capital profit/(loss) attributable to ordinary shareholders (£’000)	195,842	(58,695)	(242,875)
	--------	--------	--------
Total profit/(loss) attributable to ordinary shareholders (£’000)	207,361	(41,831)	(210,131)
	========	========	========
Total equity attributable to equity holders (£’000)	558,053	558,023	377,313
	--------	--------	--------
The weighted average number of ordinary shares in issue during each period, on which the return per ordinary share was calculated was:	176,826,057	177,287,242	177,287,242
The actual number of ordinary shares in issue at the end of each period, on which the undiluted net asset value was calculated was:	176,455,242	177,287,242	177,287,242
Revenue earnings per share	6.51p	9.51p	18.47p
Capital profit/(loss) per share	110.76p	(33.11p)	(137.00p)
	--------	--------	--------
Total profit/(loss) per share	117.27p	(23.60p)	(118.53p)
	--------	--------	--------
	As at  30 June 2016  (unaudited)	As at  30 June 2015  (unaudited)	As at  31 December 2015  (audited)
Net asset value per share	316.26p	314.76p	212.83p
Share price	270.25p	288.50p	181.00p

8. Called up share capital

	Ordinary  shares in  issue  (number)	Treasury  shares  (number)	Total  shares  (number)	Nominal  value  £’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 5 pence each
	-----------	-----------	-----------	--------
At 1 January 2016	177,287,242	15,724,600	193,011,842	9,651
	-----------	-----------	-----------	--------
Shares purchased into treasury	(832,000)	832,000	–	–
	-----------	-----------	-----------	--------
At 30 June 2016	176,455,242	16,556,600	193,011,842	9,651
	==========	=========	==========	========

During the period to 30 June 2016, 832,000 ordinary shares were purchased (six months ended 30 June 2015: nil; year ended 31 December 2015: nil) and held in treasury at a total cost of £1,882,000 including expenses (six months ended 30 June 2015: nil; year ended 31 December 2015: nil).

No ordinary shares were cancelled during the period (six months ended 30 June 2015: nil; year ended 31 December 2015: nil). Since 30 June 2016 and up to the date of this report, no ordinary shares have been repurchased.

9. Valuation of financial instruments
Financial assets and financial liabilities are either carried in the Consolidated Statement of Financial Position at their fair value (investment and derivatives) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and bank overdrafts). IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note 2(h) and 2(o), as set out in the Company’s Annual Report and Financial Statements for the year ended 31 December 2015.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset as follows.

The fair value hierarchy has the following levels:

Level 1 – Quoted market price in an active market for an identical instrument. These include exchange traded derivative option contracts. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

Level 2 – Valuation techniques used to price securities based on observable inputs. This category includes instruments valued using quoted prices in active markets for identical instruments; quoted prices for similar instruments in markets that are less active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

Valuation techniques used for non-standard financial instruments such as options, currency swaps and other over-the-counter derivatives, include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making maximum use of market inputs and relying as little as possible on entity specific inputs.

Over-the-counter derivative option contracts have been classified as Level 2 investments as their valuation has been based on market observable inputs represented by the underlying quoted securities to which these contracts expose the Group.

Level 3 – Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs could have a significant impact on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement.

For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

The determination of what constitutes ‘observable’ requires significant judgement by the Investment Manager. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

There has been no change to the valuation techniques during the period under review or as at the date of this report.

The table below sets out fair value measurements using the IFRS 13 fair value hierarchy.

Financial assets/(liabilities) at fair value through profit or loss at 30 June 2016	Level 1  £’000	Level 2  £’000	Level 3  £’000	Total  £’000
Assets:
Equity investments	540,349	–	14,524	554,873
Investment in contractual rights	–	–	8,795	8,795
Fixed interest securities	66,853	–	–	66,853
	--------	--------	--------	--------
	607,202	–	23,319	630,521
	--------	--------	--------	--------
Liabilities:
Derivative financial instruments – written options	–	(1,039)	–	(1,039)
	--------	--------	--------	--------
	607,202	(1,039)	23,319	629,482
	========	========	========	========

Financial assets/(liabilities) at fair value through profit or loss at 30 June 2015	Level 1  £’000	Level 2  £’000	Level 3  £’000	Total  £’000
Assets:
Equity investments	540,307	346	13,291	553,944
Investment in contractual rights	–	–	–	–
Fixed interest securities	74,475	–	–	74,475
	--------	--------	--------	--------
	614,782	346	13,291	628,419
	--------	--------	--------	--------
Liabilities:
Derivative financial instruments – written options	–	(782)	–	(782)
	--------	--------	--------	--------
	614,782	(436)	13,291	627,637
	========	========	========	========

Financial assets/(liabilities) at fair value through profit or loss at 31 December 2015	Level 1  £’000	Level 2  £’000	Level 3  £’000	Total  £’000
Assets:
Equity investments	352,482	76	10,572	363,130
Investment in contractual rights	–	–	8,142	8,142
Fixed interest securities	54,813	–	–	54,813
	--------	--------	--------	--------
	407,295	76	18,714	426,085
	--------	--------	--------	--------
Liabilities:
Derivative financial instruments – written options	–	(161)	–	(161)
	--------	--------	--------	--------
	407,295	(85)	18,714	425,924
	========	========	========	========

A reconciliation of fair value measurement in Level 3 is set out below.

Level 3 Financial assets at fair value through profit or loss	Six months  ended  30 June 2016  £’000  (unaudited)	Six months  ended  30 June 2015  £’000  (unaudited)	Year ended  31 December 2015  £’000  (audited)
Opening fair value	18,714	17,864	17,864
Purchases at cost	–	–	7,685
Disposals	–	–	(8,861)
Return of capital-royalty	(182)	–	–
Transfer from Level 3 to Level 1	–	(6,491)	–
Total gains or losses included in gains/(losses) on investments in the Consolidated Statement of Comprehensive Income:
– assets disposed during the period	–	–	2,370
– assets held at the end of the period	4,787	1,918	(344)
	--------	--------	--------
Closing balance	23,319	13,291	18,714
	========	========	========

The Level 3 investments as at 30 June 2016 in the table above relate to the Avanco royalty and Banro gold-linked preference share. A liquidity discount was applied to the observable inputs for the valuation of Banro gold-linked preference share as at 30 June 2016, 30 June 2015 and 31 December 2015. Therefore, in accordance with IFRS 13, these investments were categorised as Level 3. As at 30 June 2015, after considering the liquidity in the Banro 10% senior secured note, the liquidity discount was removed and the investment was priced as per bid market prices and categorised as a Level 1 investment. In arriving at the fair value of this investment, the key inputs are the underlying commodity prices and liquidity discount.

The level 3 valuation process and techniques used by the Company are explained in the accounting practices in notes 2(h) and 2(o) and a detailed explanation of the techniques is also available on page 71 under ‘valuation process and techniques’ in the Company’s Annual Report and Financial Statements for the year ended 31 December 2015.

Quantitative information of significant unobservable inputs – Level 3

Description	Six  months  ended  30 June 2016  £’000  (unaudited)	Six  months  ended  30 June 2015  £’000  (unaudited)	Year  ended  31 December 2015  £’000  (audited)	Valuation  technique	Unobservable  input
Banro gold-linked preference share	14,524	13,291	10,572	Discount to gold price	Illiquidity discount
Avanco royalty*	8,795	–	8,142	Discounted cash flows	Discount rate – weighted average cost of capital Average gold and copper prices
	----------	---------	---------
Total	23,319	13,291	18,714
	======	======	======

*  Adjusted for changes in currency movements and return of capital.

Sensitivity analysis to significant changes in unobservable inputs within Level 3 hierarchy

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy, together with an estimated quantitative sensitivity analysis, as at 30 June 2016 are as shown below. The rationale for the explanation of the illiquidity discount is given on pages 16 and 17 of the Company’s Annual Report and Financial Statements for the year ended 31 December 2015.              

Description	Input	Estimated  sensitivity  used*	Impact  on  fair  value
Banro gold-linked preference share	Average gold prices	10%	£1.5m
Avanco royalty	Discount rate – weighted average cost of capital	1%	£0.6m
	Average gold and copper prices	10%	£1.6m

*     The sensitivity analysis refers to a percentage amount added or deducted from the input and the effect this has on the fair value.

The sensitivity impact on fair value is calculated based on the sensitivity estimates set out by the independent valuer in its report on the valuation of contractual rights. Significant increases (decreases) in estimated commodity prices and discount rates in isolation would result in a significantly higher (lower) fair value measurement. Generally, a change in the assumption made for the estimated value is accompanied by a directionally similar change in commodity prices and discount rates.

10. Transactions with the AIFM and the Investment Manager
BlackRock Fund Managers Limited (‘BFM’) was appointed as the Company’s Alternative Investment Fund Manager (‘AIFM’) with effect from 2 July 2014. BlackRock Investment Management (UK) Limited (‘BIM (UK)’) continues to act as the Company’s Investment Manager under a delegation agreement with BFM.

The investment management fee due to BFM for the six months ended 30 June 2016 amounted to £2,131,000 (six months ended 30 June 2015: £3,381,000; year ended 31 December 2015: £5,312,000).

At the period end, £2,128,000 was outstanding in respect of the investment management fee (six months ended 30 June 2015: £3,395,000; year ended 31 December 2015: £1,952,000).

In addition to the above services, BlackRock has provided the Company with marketing services. The total for these services to 30 June 2016 amounted to £47,000 excluding VAT (six months ended 30 June 2015: £95,000; year ended 31 December 2015: £17,000). Marketing fees of £36,000 were outstanding as at 30 June 2016 (30 June 2015: £394,000; 31 December 2015: £143,000).

11. Related party disclosure
The Board consists of six non-executive Directors, all of whom are considered to be independent by the Board. None of the Directors has a service contract with the Company. The Chairman receives an annual fee of £45,000, the Chairman of the Audit Committee and Management Engagement Committee/Senior Independent Director receives an annual fee of £37,500 and each of the other Directors receives an annual fee of £30,000.

At the period end, interests of the Directors in the ordinary shares of the Company are as set out below:

	Ordinary  shares
Ian Cockerill	36,789
Colin Buchan	29,000
David Cheyne	24,000
Jane Lewis (appointed on 28 April 2016)	nil
Russell Edey	7,000
Judith Mosely	7,400

12. Contingent liabilities
There were no contingent liabilities at 30 June 2016 (six months ended 30 June 2015: nil; year ended 31 December 2015: nil).

13. Publication of non statutory accounts
The financial information contained in this half yearly report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the six months ended 30 June 2016 and 30 June 2015 has been reviewed by the Company’s auditors.

The information for the year ended 31 December 2015 has been extracted from the latest published audited financial statements, which have been filed with the Registrar of Companies, unless otherwise stated. The report of the auditors on those accounts contained no qualification or statement under sections 498(2) or (3) of the Companies Act 2006.

14. Annual results
The Board expects to announce the annual results for the year ending 31 December 2016 in mid February 2017. Copies of the results announcement can be obtained from the Secretary on 020 7743 3000. The annual report should be available by the beginning of March 2017, with the Annual General Meeting being held in April 2017.

Independent review report
to BlackRock World Mining Trust plc

Report on the financial statements

Our conclusion
We have reviewed BlackRock World Mining Trust plc’s financial statements (the ‘interim financial statements’) in the Half Yearly Financial Report of BlackRock World Mining Trust plc for the six month period ended 30 June 2016. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’, as adopted by the European Union and the Disclosure Rules and Transparency Rules of the United Kingdom’s Financial Conduct Authority.

As disclosed in note 2 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

Responsibilities for the interim financial statements and the review

Our responsibilities and those of the directors
The Half Yearly Financial Report, including the interim financial statements, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half Yearly Financial Report in accordance with the Disclosure Rules and Transparency Rules of the United Kingdom’s Financial Conduct Authority.

Our responsibility is to express a conclusion on the interim financial statements in the Half Yearly Financial Report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the Disclosure Rules and Transparency Rules of the United Kingdom’s Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

What a review of interim financial statements involves
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’ issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Half Yearly Financial Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

PricewaterhouseCoopers LLP
Chartered Accountants
London
11 August 2016

a)            The maintenance and integrity of the BlackRock World Mining Trust plc website is the responsibility of BlackRock; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the interim financial statements since they were initially presented on the website.
b)            Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

ENDS

The Half Yearly Financial Report will also be available on the BlackRock website at blackrock.co.uk/brwm.  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.

For further information, please contact:

Mark Johnson, Managing Director, Investment Trusts, BlackRock Investment Management (UK) Limited -
Tel: [phone]

Evy Hambro, Fund Manager, BlackRock Investment Management (UK) Limited –
Tel: [phone]

Press enquiries:
Lucy Horne, Lansons Communications – Tel:  [phone]
E-mail:  [e-mail]

12 Throgmorton Avenue
London EC2N 2DL
11 August 2016