BlackRock World Mining Trust Plc - Portfolio Update
18 May 2020 - 8:33PM
PR Newswire (US)
BLACKROCK WORLD
MINING TRUST plc (LEI - LNFFPBEUZJBOSR6PW155) |
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All information is at
30 April 2020 and unaudited. |
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|
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Performance at month
end with net income reinvested |
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|
One |
Three |
One |
Three |
Five |
|
|
Month |
Months |
Year |
Years |
Years |
|
Net asset value |
18.1% |
-8.1% |
-5.2% |
8.3% |
31.5% |
|
Share price |
17.0% |
-7.6% |
-5.5% |
11.4% |
35.5% |
|
MSCI ACWI Metals &
Mining 30% Buffer 10/40 Index (Net)* |
18.5% |
-6.9% |
-5.7% |
6.8% |
27.4% |
|
EMIX Global Mining Index
(Net)* |
19.9% |
-4.1% |
1.5% |
24.2% |
43.6% |
|
* (Total return)
Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40
Index, EMIX Global Mining Index, Datastream |
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At month end |
|
|
|
|
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Net asset value
including income1: |
363.13p |
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Net asset value capital
only: |
356.52p |
|
1 Includes
net revenue of 6.61p |
|
|
|
|
|
Share price: |
316.00p |
|
Discount to
NAV2: |
13.0% |
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Total assets: |
£725.6m |
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Net
yield3: |
7.0% |
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Net gearing: |
9.9% |
|
|
|
|
Ordinary shares in
issue: |
173,605,020 |
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Ordinary shares held in
treasury: |
19,406,822 |
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Ongoing
charges4: |
0.9% |
|
|
|
|
2 Discount to NAV including income.
3 Based on a quarterly interim dividend of 4.00p per
share declared on 30 April 2020 in respect of the year ending
31 December 2020 and two quarterly interim dividends of 4.00p per
share declared on 20 August 2019 and 14 November 2019 and
a final dividend of 10.00p per share announced on 27 February
2020 in respect of the year ended 31 December 2019.
4 Calculated as a percentage of average net assets and
using expenses, excluding finance costs, for the year ended 31
December 2019. |
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|
|
Sector |
%
Total |
|
Country
Analysis |
%
Total |
|
Assets |
|
|
Assets |
|
|
|
|
|
Diversified |
32.0 |
|
Global |
62.2 |
Gold |
30.9 |
|
Latin America |
8.4 |
Copper |
16.8 |
|
Australasia |
7.1 |
Silver & Diamonds |
4.9 |
|
Canada |
6.3 |
Nickel |
3.6 |
|
United Kingdom |
4.6 |
Industrial Minerals |
3.4 |
|
South Africa |
3.0 |
Platinum Group
Metals |
2.1 |
|
Russia |
1.5 |
Iron Ore |
1.6 |
|
Other Africa |
1.1 |
Aluminium |
0.1 |
|
Indonesia |
0.8 |
Zinc |
0.1 |
|
USA |
0.4 |
Current Assets |
4.5 |
|
Argentina |
0.1 |
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----- |
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Current Assets |
4.5 |
|
100.0 |
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----- |
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===== |
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|
100.0 |
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===== |
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The Largest
Investments |
|
|
|
|
Company |
%
Total
Assets |
|
Rio Tinto |
8.5 |
|
BHP |
8.0 |
|
Barrick Gold |
7.4 |
|
Newmont Mining |
7.3 |
|
Vale: |
|
|
Equity |
3.9 |
|
Debenture |
2.9 |
|
Anglo American |
5.1 |
|
Wheaton Precious
Metals |
4.3 |
|
OZ Minerals Brazil: |
|
|
Royalty |
2.6 |
|
Equity |
1.3 |
|
Franco-Nevada |
3.6 |
|
Freeport-McMoRan Copper
& Gold |
3.5 |
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Commenting on the markets, Evy
Hambro and Olivia Markham, representing the Investment Manager
noted: |
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Performance |
|
The Company’s NAV increased by 18.1%
in April, marginally underperforming its reference index, the MSCI
ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which
returned +18.5%. (Figures in GBP) |
|
Global equity markets started to
recover in April, as a rebound in oil prices, encouraging early
signs of COVID-19 treatment trials and expectations of further
government stimulus, helped to recover some of the losses
experienced in February and March. For reference, the MSCI All
Country World Index rose by 10.6%. |
|
China’s National Development and
Reform Commission announced a step-up in infrastructure spending in
the country to boost economic growth post COVID-19, which improved
sentiment towards mining. Most mined commodities’ prices rose over
the month, with copper, nickel and gold prices up by 4.5%, 6.0% and
5.8% respectively. The iron ore (62% fe) price was flat over the
month, albeit at a healthy level of $85/tonne, having held up well
this year. |
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April was a spectacular month for
gold equities in which they exhibited a high beta to the rise in
the gold price. This reflected a ‘catch-up’ market move, in our
view, after they had lagged the gold price through Q1 2020.
Sentiment around equities in general improved in April on the back
of coordinated central bank action. The gold price finished the
month at $1,705/oz., the highest level since December 2012. |
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Strategy and Outlook |
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We see an attractive valuation
opportunity in mining today. Mining companies have sold off in
recent weeks in anticipation of a lower level of global economic
growth in 2020. Global stimulus measures on infrastructure and
carbon transition are likely to be commodity intensive. |
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The balance sheets of mining
companies continue to be in strong shape and companies remain
focused on capital discipline. Mining companies are therefore well
positioned to continue to generate robust free cash flow and return
capital to shareholders through dividends and buybacks. In a
low-income environment this could be a catalyst for a
rerating. |
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We expect most mined commodity
prices to finish 2020 higher than the lows they have reached over
the last few weeks. On the commodity demand side, we do not
anticipate a hard-landing type event in China and we have been
encouraged by stimulus measures beginning to feed through into
improvements in some economic data points. On the commodity supply
side, supply is tight in most mined commodity markets and, given
the cuts in mining sector spending since 2012 (down ~66%), we
expect it to remain so. |
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All data points are in USD terms
unless stated otherwise. |
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18 May 2020 |
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Latest information is available by
typing www.blackrock.com/uk/brwm on the internet. 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. |
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