Portfolio Update

The information contained in this release was correct as at 30 September 2021. Information on the Company’s up to date net asset values can be found on the London Stock Exchange website at:

https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.

BLACKROCK WORLD MINING TRUST PLC (LEI - LNFFPBEUZJBOSR6PW155 )

All information is at 30 September 2021 and unaudited.
 

Performance at month end with net income reinvested
	One	Three	One	Three	Five
	Month	Months	Year	Years	Years
Net asset value	-8.9%	-9.2%	26.4%	51.3%	96.6%
Share price	-7.4%	-13.0%	35.8%	70.0%	123.8%
MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*	-8.6%	-7.4%	24.1%	38.4%	75.2%
* (Total return) Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream

At month end

Net asset value (including income)1:	554.49p
Net asset value (capital only):	524.96p
1 Includes net revenue of 29.53p
Share price:	524.00p
Discount to NAV2:	5.5%
Total assets:	£1,157.9m
Net yield3:	4.3%
Net gearing:	9.8%
Ordinary shares in issue:	183,681,116
Ordinary shares held in Treasury:	9,330,726
Ongoing charges4:	0.9%

² Discount to NAV including income.

³ Based on a quarterly interim dividend of 4.00p per share declared on 12 November 2020 and a final dividend of 8.30p per share announced on 5 March 2021 in respect of the year ended 31 December 2020, and a first interim dividend of 4.50p per share declared on 29 April 2021 and a second interim dividend of 5.50p per share declared on 19 August 2021 in respect of the year ending 31 December 2021.

⁴ Calculated as a percentage of average net assets and using expenses, excluding finance costs, for the year ended 31 December 2020.

Country Analysis	Total Assets (%)		Sector Analysis	Total Assets (%)
Global	68.0		Diversified	39.3
Australasia	6.5		Copper	18.8
Latin America	6.5		Gold	16.3
United States	5.2		Steel	8.6
Other Africa	2.7		Iron Ore	3.6
South Africa	2.3		Platinum Group Metals	3.5
Canada	2.2		Aluminium	2.7
Russia	1.2		Industrial Minerals	2.3
Indonesia	1.2		Nickel	1.2
United Kingdom	0.8		Zinc	0.2
Net Current Assets	3.4		Silver & Diamonds	0.1
	-----		Net Current Assets	3.4
	100.0			-----
	=====			100.0
				=====

Ten largest investments
Company	Total Assets %
Vale:
Equity	5.7
Debenture	4.4
Glencore	7.8
BHP	7.2
Anglo American	7.0
Freeport-McMoRan	5.3
ArcelorMittal	4.9
Rio Tinto	4.5
Newmont Mining	3.6
OZ Minerals
Equity	1.2
Royalty	1.9
Barrick Gold	2.9

Asset Analysis	Total Assets (%)
Equity	88.5
Bonds	4.1
Preferred Stock	3.9
Warrants	0.1
Net Current Assets	3.4
	-----
	100.0
	=====

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

Performance

The Company’s NAV returned -8.9% in September, underperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which returned -8.6% (Figures in GBP).

September was a difficult month for the mining sector on the back of falling mined commodity prices. The Chinese government continued to curb steel production as part of its efforts to tackle carbon emissions. This weighed on the demand outlook for iron ore, the price of which (62% fe.) fell by 25.2%, ending down by 46.9% from the 2021 peak in July. Meanwhile, a liquidity crisis at Chinese property giant, Evergrande, caused concern around China’s property market and the wider economy. Global power market tightness saw thermal coal prices continue to surge and put upward pressure on some of the more energy-intensive mined commodities, such as steel and aluminium, as capacity is being constrained. Elsewhere, platinum group metals (PGMs) prices were weak as a global semiconductor chip shortage constrained autos production (auto catalytic converters typically account for a significant proportion of PGM demand).

Strategy and Outlook

We believe the outlook for mined commodity prices remains robust, whilst mining shares offer attractive value. Recovering global economic growth, accommodative monetary policy, rising government spending and increased focused on green capital investment all point towards strong demand. Meanwhile, supply is constrained following years of capital discipline from the producers and we are seeing no signs that this is set to change.

We are encouraged by what we are hearing from management teams in terms of maintaining their focus on capital discipline. Longer term, ill-discipline remains a risk but, regardless, increases in capital expenditure would take some time to feed through into new supply given the time-lags associated with mining projects. We are also seeing inflationary data increase and commodities have traditionally been a core way for investors to both protect themselves from this but also benefit from such trends. 

We believe the best risk-adjusted opportunity today is in the shares of mining companies in robust financial positions with strong balance sheets and high levels of free cash flow. Mining companies are continuing to return capital to shareholders through dividends and buybacks.

All data points are in USD terms unless stated otherwise.

18 October 2021

Latest information is available by typing www.blackrock.com/uk/brwm on the internet. 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.