BLACKROCK COMMODITIES INCOME INVESTMENT TRUST PLC: Portfolio
BLACKROCK COMMODITIES INCOME INVESTMENT TRUST plc
All information is at 31 July 2012 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 0.5% -4.9% -12.2% -18.2% 25.7% 7.7% Share price -2.1% -6.8% -13.0% -19.6% 21.5% 10.5%
Sources: Datastream, BlackRock
At month end Net asset value - capital only: 114.31p Net asset value - cum income**: 114.89p Share price: 114.75p Discount to NAV (cum income): 0.1% Net yield: 5.1% Gearing - cum income: 3.3% Total assets^^: £111.07m Ordinary shares in issue: 93,508,000
**Includes net revenue of 0.58p. ^^includes current year revenue.
Sector % Total Country % Total Analysis Cap Assets Analysis Cap Assets
Integrated Oil 26.1 Global 27.8 Exploration & Production 18.1 Canada 24.0 Diversified 17.4 USA 21.2 Gold 6.1 Asia 7.2 Copper 5.9 Latin America 6.8 Oil Services 5.1 Europe 5.9 Iron Ore 4.4 South Africa 4.2 Oil Sands 4.3 Australia 1.5 Fertilizers 3.3 China 1.5 Coal 2.6 Africa 1.2 Distribution 2.0 Current liabilities (1.3) Aluminium 2.0 ----- Nickel 1.5 100.0 Tin 1.2 ===== Platinum 0.7 Zinc 0.6 Current liabilities (1.3)
----- 100.0 ===== Ten Largest Equity Investments (in alphabetical order) Company Region of Risk Anadarko Petroleum USA BHP Billiton Global Chevron Global ExxonMobil Global Kumba Iron Ore South Africa Peyto Exploration & Development Canada Rio Tinto Global Teck Resources Canada Total Global Vale Latin America Commenting on the markets, Richard Davis, representing the Investment Manager noted: Equities began the month by trending lower but recovered later in the month when ECB President Mario Draghi made some encouraging comments about support for the Euro. In China, interest rate cuts in both June and July may go some way to easing the availability of credit. Despite this, most metal commodities trended lower over the period. Weak steel prices continued to drag on commodities involved in the production of steel. Iron ore and coking coal both came under pressure over the month. Many commodities are currently trading close to their marginal cost of production (including, nickel, zinc, aluminium, iron ore and thermal coal). This is providing support at current levels with any further falls likely to trigger production cuts. We have a preference for those commodities that have a steeper cost curve allowing those producers operating at the lower end or middle of the cost curve to generate strong positive cash margins through all market cycles. Iron ore is a good example of this; the companies the portfolio has exposure to are producing at around US$40-60/t yet the marginal cost producers are significantly above the current price of US$116/t. This is supportive of the strong margin that lower cost producers are currently benefitting from. The HSBC Global Mining Index closed the month up 2.1% (in Sterling terms). In the energy sector, the shares performed better with the MSCI World Energy Index gaining 3.4% (in Sterling terms). Brent crude rose back through the US$100/Bbl level and finished the month at US$105.9/Bbl, a gain of 12.3%. Crude has recovered strongly since its recent low of US$88.5/Bbl. Sanctions are biting in Iran: production from the country fell to a 20-year low in June of 3.2mbpd and European sanctions officially came into force on 1 July. The Iranian shortfall combined with firmer demand in the US courtesy of the advent of the driving season and the anomalously high temperatures helped generate the price momentum for crude. Stifling temperatures have also had a marked effect on the US natural gas price, which finished the month 16.8% higher. 13 August 2012 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. END -0- Aug/13/2012 13:55 GMT