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BlackRock Energy and Resources (BERI)

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Monday 30 December, 2019

BlackRock Energy and Resources

Portfolio Update

BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31)
All information is at 30 November 2019 and unaudited.
Performance at month end with net income reinvested
One Three Six One Three Five
Month Months Months Year Years Years
Net asset value 0.8% -3.6% 0.7% 4.4% 4.6% 12.3%
Share price -2.7% -2.3% -3.1% -1.3% -6.5% -7.8%
Sources: Datastream, BlackRock
At month end
Net asset value – capital only: 74.09p
Net asset value cum income*: 75.29p
Share price: 66.00p
Discount to NAV (cum income): 12.3%
Net yield: 6.1%
Gearing - cum income: 14.6%
Total assets: £98.3m
Ordinary shares in issue: 114,170,349
Gearing range (as a % of net assets): 0-20%
Ongoing charges**: 1.4%
* Includes net revenue of 1.20p.
** Calculated as a percentage of average net assets and using expenses, excluding any interest costs and excluding taxation for the year ended 30 November 2018.
Sector Analysis % Total Assets^ Country Analysis % Total Assets^ 
Integrated Oil 32.3 Global 63.8
Diversified Mining 20.2 USA 12.4
Gold 14.6 Canada 11.1
Copper 11.0 Australia 5.0
Exploration & Production 7.9 Latin America 4.0
Industrial Minerals 4.6 Asia 2.0
Silver 3.1 South Africa 1.5
Distribution 2.2 Africa 0.4
Diamonds 2.1 Net Current Liabilities^ -0.2
Electricity 1.9 -----
Steel 0.3 100.0
Net Current Liabilities^ -0.2 =====
-----
100.0
=====
^ Total Liabilities for the purposes of these calculations exclude bank overdrafts, and the net current asset figure shown in the tables above therefore exclude bank overdrafts equivalent to 14.4% of the Company’s net asset value.
Ten Largest Investments
Company
Region of Risk % Total Assets
BHP Global 7.8
First Quantum Minerals* Global 7.4
Royal Dutch Shell ‘B’ Global 6.0
Barrick Gold Global 5.1
BP Group Global 4.9
Chevron Global 4.7
Exxon Mobil Global 4.2
ConocoPhillips USA 3.6
Total Global 3.6
Rio Tinto Global 3.5
Commenting on the markets, Olivia Markham and Tom Holl, representing the Investment Manager noted:
The Company’s NAV increased by 0.8% during the month of November (in Sterling terms).

General equity market sentiment improved in November on a perceived easing of geopolitical tensions as confidence increased that the US and China were close to signing a phase 1 trade deal. US President Donald Trump stated towards the end of the month that the US and China were, “in the final throes of a very important deal.” Meanwhile, China’s official Purchasing Managers’ Index came in at 50.2, up from 49.3 in October and indicating modest expansion. Amidst this backdrop, global equity markets performed well, with the MSCI World Index rising by 2.8%.

Against this macroeconomic backdrop, oil prices increased, with the Brent Crude and West Texas Intermediate indexes returning +8.8% and +2.2%, to end the period at prices of $65/bbl and $55/bbl respectively. This positive return reflected the improving macroeconomic sentiment, combined with some evidence that US shale growth continues to decline.

In the mining space, the month saw mixed performance from mined commodities. Bulk commodity prices were generally positive, with the iron ore (62% fe) price finishing up by 4.7%. Base metals were mixed, however, with the copper price rising by 1.3% but the nickel price off by 18.4%. The sharp move down for nickel followed news that the Indonesian government had delayed implementation of its ban on nickel ore exports until January 2020. Meanwhile, the precious metals were generally weak, with the gold price falling by 3.2% on reduced ‘safe-haven’ demand and US Dollar strength.


All data points in US Dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream.

Source: BlackRock. Data as at 30 November 2019.

30 December 2019
ENDS
Latest information is available by typing www.blackrock.co.uk/brci on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).  Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.

*The holding in First Quantum Minerals includes both an equity holding and a holding in several bonds.

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