BLACKROCK WORLD MINING TRUST plc All information is at 30 June 2014 and unaudited. Performance at month end with net income reinvested One Three One Three Five Month Months Year Years Years Net asset value (undiluted) 2.6% 1.8% 6.9% -41.5% 24.2% Share price 1.2% 0.0% 13.2% -32.4% 35.2% Euromoney Global Mining Index 2.9% 2.1% 8.6% -40.0% 10.6% (Total return) Sources: BlackRock, Euromoney Global Mining Index, Datastream At month end Net asset value Including Income Capital Only Undiluted/diluted: 489.86p* 479.78p *Includes net revenue of 10.08p Share price: 463.10p Discount to NAV**: 5.5% Total assets: £993.3m Net yield***: 4.5% Net gearing: 14.4% Ordinary shares in issue: 177,287,242 Ordinary shares held in Treasury: 15,724,600 ** Discount to NAV including income. *** Based on interim dividend of 7.00p and final dividend of 14.00p per share in respect of the year ended 31 December 2013. Sector % Total Country Analysis % Total Assets Assets Diversified 40.4 Global 52.9 Base Metals 22.3 Other Africa 16.4 Industrial Minerals 15.6 Latin America 11.6 Gold 8.0 Australasia 5.6 Silver & Diamonds 6.3 Canada 3.7 Other 2.3 South Africa 3.2 Energy Minerals 1.6 China 1.4 Platinum 0.6 USA 1.1 Net Current Assets 2.9 Emerging Europe 1.0 Indonesia 0.2 Net Current Assets 2.9 ----- ----- 100.0 100.0 ===== ===== Ten Largest Investments % Total Assets Company Rio Tinto 10.3 BHP Billiton 10.1 GlencoreXstrata 9.7 First Quantum Minerals 8.4 London Mining Marampa Contract 6.5 Freeport McMoRan 6.0 Fresnillo 2.4 Sociedad Minera Cerro Verde 2.3 Vale 2.3 Iluka Resources 2.0 Commenting on the markets, Evy Hambro, representing the Investment Manager noted: Performance June was a relatively solid month for the base metals with copper, aluminium and zinc rising +2%, +3% and +8% respectively. Nickel and tin were the only laggards, seeing declines of -1% and -3% respectively. Nickel's small decline can be attributed to a "pause-for-breath" in investor sentiment following its +37% price increase since the beginning of the year. It is possible we will see this tentative approach continue as uncertainty builds around the outcome of the upcoming Indonesian election (July 9th) and thus the longevity of the current export ban. (All prices: Thomson Reuters Datastream as at 30th June 2014) The market continued to focus on the weakening iron ore price in June; however, we saw some recovery during the final days of the month as inventories held at steel mills hit 2 year lows. This was also helped somewhat by an increase in Chinese infrastructure spend, one of the government's 'mini-stimulus' initiatives. Iron ore finished the month at $94.90/t (62% Fe), representing a +3.4% rise over the month. (Source: CLSA as at 30th June 2014) In other news, the mine strike in South Africa, which began on 23rd January and involved 70,000 workers, ended during the final week of the month. Joseph Mathunjwa, President of the Association of Mineworkers and Construction Union (AMCU), said that the union had accepted a three year no-strike wage agreement through to 2016. It is thought that the legacy of the strike will be felt for many months and the industry will be watching to see if there are any issues in the ramp-up to full production. Following the announcement, both palladium and platinum prices suffered from some selling. Strategy / Outlook The mining sector has significantly lagged the general equity market in recent years. However, a number of the downside risks for this sector have reduced (albeit not disappeared). The industry has made good progress in refocusing its strategy: operating costs have been aggressively targeted and investment in projects reassessed. Many commodities are trading close to or below their marginal cost of production, implying that price downside should be limited, in the absence of a collapse in demand. We see 2014 as a year of transition, some of which has begun to materialise with the large cap diversified miners exceeding analyst earnings expectations in Q1. The market has been focused on liquidity concerns and increasing volatility in China; however, it is important to highlight the supportive backdrop of synchronous global growth, which in the past has bolstered commodity prices. Mining companies are trading on an undemanding valuation and an attractive dividend yield. With capital expenditure rolling off, management are guiding investors towards rising free cash flows. All data in USD terms unless otherwise stated. 9 July 2014 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- Jul/09/2014 14:12 GMT
BLACKROCK WORLD MINING TRUST PLC: Portfolio Update
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