BlackRock World Mining Trust Plc - Portfolio Update
All information is at
Performance at month end with net income reinvested
One Three One Three Five
Month Months Year Years Years
Net asset value -0.8% -4.0% -6.7% 6.4% 68.4%
Share price -1.1% -2.7% -4.7% 10.3% 97.3%
MSCI ACWI Metals & Mining 30% Buffer 10/40 Index -1.0% -4.5% 1.1% 8.0% 58.7%
(Net)*
* (Total return)
Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index,
Datastream
At month end
Net asset value (including income)1: 567.78p Net asset value (capital only): 560.61p Share price: 563.00p Discount to NAV2: 0.8% Total assets: £1,217.9m Net yield3: 6.0% Net gearing: 11.7% Ordinary shares in issue: 191,183,036 Ordinary shares held inTreasury : 1,828,806 Ongoing charges4: 0.91% Ongoing charges5: 0.81%
1 Includes net revenue of 7.17p.
2 Discount to NAV including income.
3
Based on a second interim dividend of 5.50p per share declared on
4
The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended
5
The Company’s ongoing charges are calculated as a percentage of average daily gross assets and using the management fee and all other operating expenses, excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain other non-recurring items for the year ended
Country Analysis Total
Assets (%)
Global 62.7
Canada 10.8
Latin America 8.5
United States 6.8
Australasia 5.7
Other Africa 3.7
South Africa 0.7
Indonesia 0.6
Net Current Assets 0.5
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100.0
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Sector Analysis Total
Assets (%)
Diversified 35.4
Copper 24.4
Gold 22.8
Steel 5.3
Industrial Minerals 3.7
Iron Ore 2.1
Platinum Group Metals 1.7
Aluminium 1.6
Uranium 1.4
Nickel 1.0
Zinc 0.1
Net Current Assets 0.5
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100.0
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Ten largest investments Company Total Assets % Glencore 7.7 BHP: Equity 5.8 Royalty 1.6 Rio Tinto 7.2 Vale: Debenture 2.6 Equity 2.9 Newmont 5.5 Anglo American 5.2 Agnico Eagle Mines 4.9 Freeport-McMoRan 4.6 Teck Resources 3.7 Wheaton Precious Metals 3.6
Asset Analysis Total Assets (%)
Equity 96.7
Bonds 1.6
Preferred Stock 0.7
Convertible Bond 0.6
Option -0.1
Net Current Assets 0.5
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100.0
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Commenting on the markets,Evy Hambro andOlivia Markham , representing the Investment Manager noted: Performance The Company’s NAV declined by 0.8% in July, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which fell by 1.0% (performance figures in GBP). The mining sector was broadly flat in July and lagged broader equity markets, with the MSCI ACWI TR Index rising by 1.6%. Mined commodity prices were mostly soft, with copper and iron ore (62% fe.) prices falling by 3.7% and 4.2% respectively. Gold bucked the trend, however, rising by 4.1% as declining real interest rate expectations and US dollar weakness were tailwinds. In macroeconomic news,China held its Third Plenum during the month, a key meeting which takes place roughly every five years that aims to map out long-term economic and social policies. A broad range of reform measures were announced (over 300 in total) but the market appeared disappointed it did not contain more drastic property support measures. Meanwhile, as polls indicated increased popularity for former US president,Donald Trump , concerns grew around potential tariffs, US-China trade tensions and the impact on growth. Turning to the miners, they reported on Q2 production during the month and some reported on earnings. It was a mixed picture, with some companies experiencing production challenges and cost and capex increases announced. We also saw a pick-up in mergers and acquisitions (M&A) activity with Cleveland-Cliffs announcing the acquisition of Stelco and BHP and Lundin Mining announcing a joint acquisition ofFilo Corp. Strategy and Outlook Constrained mined commodity supply, an evolving demand picture, strong balance sheets and valuations below historic averages make us optimistic about the outlook for the sector on a long-term view. Mining companies have focused on capital discipline in recent years, meaning they have opted to pay down debt, reduce costs and return capital to shareholders, rather than investing in production growth. This is limiting new supply coming online and there is unlikely to be a quick fix, given the time lags involved in investing in new mining projects. The cost of new projects has also risen significantly and recent M&A activity in the sector suggests that, like us, strategic buyers see an opportunity in existing assets in the listed market, currently trading well below replacement costs. Other issues restricting supply include cases of governments closing mines, permitting issues and a general lack of shovel-ready projects. Meanwhile, the demand side of the equation appears to be evolving. The commodity super-cycle (2002 – 2011) was all about China’s extraordinary demand growth. Today,China remains the most important individual economy for mining, but we are expecting this importance to gradually decline through to the end of the decade. We expect global infrastructure spending to drive the next wave of demand, with low carbon transition-related infrastructure particularly meaningful. Offshore wind, for example, requires 5.4x more steel and 2.9x more copper per megawatt of power capacity when compared with gas (source: BHP analysis, Hatch, ArcelorMittal,August 2023 ). The other area gaining attention is the implications for materials from the build out of AI-related data centres, both for the centres themselves but also for the increased power infrastructure required.16 August 2024 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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