BLACKROCK WORLD MINING TRUST plc
All information is at 30 September 2013 and unaudited.
Performance at month end with net income reinvested
One Three One Three Five
Month Months Year Years Years
Net asset value (undiluted) -0.3% 9.6% -19.1% -27.5% 12.3%
Net asset value (diluted) -0.3% 9.6% -19.1% -27.5% 12.3%
Share price 1.6% 14.9% -13.2% -16.4% 28.9%
HSBC Global Mining Index* -1.3% 8.5% -19.8% -31.9% 15.5%
Sources: BlackRock, HSBC Global Mining Index, DataStream
At month end
Net asset value Including Income Capital Only
Undiluted/diluted: 516.42p* 503.86p
*Includes net revenue of 12.56p
Share price: 483.30p
Discount to NAV**: 6.4%
Total assets: £1,018.98m
Net yield***: 4.3%
Ordinary shares in issue: 177,287,242
Ordinary shares held in Treasury: 15,724,600
** Discount to NAV including Income.
*** Based on prior year final dividend of 14.00p and current year interim
dividend of 7.00p per share.
Sector % Total Country Analysis % Total
Diversified 41.3 Global 45.5
Base Metals 21.2 Other Africa 22.0
Industrial Minerals 17.1 Latin America 13.3
Gold 7.7 Australasia 4.9
Silver & Diamonds 7.0 South Africa 3.9
Other 1.3 Democratic Republic of Congo 3.2
Platinum 1.0 Canada 1.9
Energy Minerals 0.2 Emerging Europe 0.9
Net current assets 3.2 USA 0.8
----- Indonesia 0.4
100.0 Net current assets 3.2
Ten Largest Investments % Total
Glencore Xstrata 11.2
Rio Tinto 10.9
BHP Billiton 10.4
First Quantum Minerals 8.3
London Mining Marampa Contract 6.7
Freeport McMoRan 4.8
Iluka Resources 2.8
Commenting on the markets, Evy Hambro, representing the Investment Manager
September saw an improvement in risk appetite. The decision from the US Federal
Reserve to delay the tapering of its Quantitative Easing (QE) programme came as
a positive surprise for equity markets while the re-election of Angela Merkel
in Germany also contributed to the positive performance of European equities.
On the macroeconomic front, Chinese leading indicators surprised on the upside
with industrial production, investment growth, electricity production and PMIs
all showing improvements.
Encouraging data from China and the surge in risk appetite was positive for
most metals and in particular for copper which added 3.0%. Nickel, aluminium
and tin added 1.2%, 1.8% and 9.8% respectively, in September. Over the month,
steel inventories in China remained low while iron ore inventories increased as
more supply came into the market. Despite a negative performance of
approximately -4%, the iron ore price remained more resilient than expected,
staying above $130/t.
Gold's turbulent year continued into September with the gold price falling
$100/oz as concerns over the prospect of military intervention in Syria eased
and expectations of QE tapering by the Federal Reserve began to be factored
into the gold price. News that the FED would not commence tapering caused the
gold price to rise sharply towards the end of the month; however, this rally
The mining sector and other economically sensitive areas have struggled over
the last two years as the market has downgraded global growth expectations.
In the medium term, commodity prices are likely to remain range-bound as supply
and demand have come closer into balance. We expect constructive price pressure
to return for certain commodities, but for now mining companies need to be
focused on capital discipline, operational efficiency and growing margins
through cost control. In such an environment, well-managed mining businesses
should be able to generate free cash flow, be in a strong position to return
cash to shareholders and should see their share prices rewarded as a result. In
the Company, we are looking to identify the winners and the stock specific
stories that have been neglected in the risk averse markets of the last two
All data in USD terms unless otherwise stated.
11 October 2013
Latest information is available by typing www.brwmplc.co.uk 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.
-0- Oct/11/2013 08:14 GMT
Press spacebar to pause and continue. Press esc to stop.