BLACKROCK WORLD MINING TRUST PLC: Portfolio Update
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% *Total return
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% Gearing: 7.8%
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
Assets Assets 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 ----- ----- 100.0 ===== Ten Largest Investments % Total Assets Company 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 Fresnillo 2.8 Vale 2.5 Banro 2.5 Commenting on the markets, Evy Hambro, representing the Investment Manager noted: Performance 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 quickly faded. Strategy/Outlook 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 years. All data in USD terms unless otherwise stated. 11 October 2013 ENDS 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