Blackrock World Mining Trust PLC — Fund Information / Factsheet 2014

Jun 12, 2014

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BLACKROCK WORLD MINING TRUST PLC - Portfolio Update

PR Newswire

London, June 12

BLACKROCK WORLD MINING TRUST plcAll information is at 31 May 2014 and unaudited.Performance at month end with net income reinvested One Three One Three Five Month Months Year Years YearsNet asset value (undiluted) -1.2% -3.4% -9.7% -43.2% 12.4%Share price 0.2% -6.4% -2.8% -35.2% 23.4%Euromoney Global Mining Index -1.7% -2.3% -9.1% -41.6% -0.1%(Total return)Sources: BlackRock, Euromoney Global Mining Index, DatastreamAt month endNet asset value Including Income Capital OnlyUndiluted/diluted: 477.56p* 468.62p*Includes net revenue of 8.94pShare price: 457.50pDiscount to NAV**: 4.2%Total assets: £972.7mNet yield***: 4.6%Gearing: 10.9%Ordinary shares in issue: 177,287,242Ordinary 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 sharein respect of the year ended 31 December 2013.Sector % Total Country Analysis % Total Assets AssetsDiversified 41.5 Global 54.1Base Metals 22.6 Other Africa 16.9Industrial Minerals 15.5 Latin America 11.3Gold 7.6 Australasia 5.1Silver & Diamonds 6.2 Canada 3.4Other 2.1 South Africa 3.2Energy Minerals 0.9 Emerging Europe 1.0Platinum 0.6 USA 1.0Net current assets 3.0 China 0.7 Indonesia 0.3 Net current assets 3.0 ----- ----- 100.0 100.0 ===== =====Ten Largest Investments % Total AssetsCompanyRio Tinto 10.4BHP Billiton 10.2GlencoreXstrata 9.9First Quantum Minerals 8.8London Mining Marampa Contract 6.7Freeport McMoRan 5.8Vale 3.0Fresnillo 2.3Sociedad Minera Cerro Verde 2.2Iluka Resources 2.2Commenting on the markets, Evy Hambro, representing the Investment Managernoted:PerformanceMay was a supportive month for the base metals with copper, nickel and zincrising +4%, +5% and +1% respectively. Tightness in China and continued falls inexchange inventories boosted the copper price this month, whilst nickel wassupported by the dawning realisation that the Indonesian ore export ban mayremain in place longer than initially assumed. The base metals were alsosupported by a slew of strong US economic reports released during the month,including a drop in weekly jobless claims to its lowest level in seven years.In many commodities, the high supply growth rate seen during 2013 has startedto decelerate however; according to Macquarie, 2014 is set to be the secondconsecutive year of 100 million tonnes plus export growth for iron ore. Ourconviction around producers of the commodity has always acknowledged thepotential for price downside, but disagrees with consensus on the extent ofthat downside. On the back of this consensus, the market has depressed the ironore price by 16% since the beginning of the year (63.5%fe, source CLSA). Thisperiod of price transition is not only due to increasing supply of material,most notably from Australia and Brazil, but is also heavily influenced bychanges in the Chinese economy and seasonally weaker demand as we enter thenorthern hemisphere summer. Credit for iron ore trading has been tightening inChina, whilst the number of new construction projects announced was lower thanthe market expected. If we continue to see iron ore prices at this level, wewould expect some of the higher cost iron ore supply to fall away.In the precious metals space, strikes by South African workers at several ofthe world's largest platinum producers rumbled on and platinum and palladiumboth delivered positive performance with the prices rising +2.8% and +4.1%respectively. Gold and silver declined -3.8% and -1.5% during the month.Strategy / OutlookThe mining sector has significantly lagged the general equity market in recentyears. However, a number of the downside risks for this sector have reduced(albeit not disappeared). The industry has made good progress in refocusing itsstrategy: operating costs have been aggressively targeted and investment inprojects reassessed. Many commodities are trading close to or below theirmarginal cost of production, implying that price downside should be limited, inthe absence of a collapse in demand. We see 2014 as a year of transition, someof which has begun to materialise with the large cap diversified minersexceeding analyst earnings expectations in 1Q.The market has been focused on liquidity concerns and increasing volatility inChina, however we think it important to highlight the supportive backdrop ofsynchronous global growth, which in the past has bolstered commodity prices.Mining companies are trading on an undemanding valuation and an attractivedividend yield. With capital expenditure rolling off, management are guidinginvestors towards rising free cash flows.All data in USD terms unless otherwise stated.12 June 2014ENDSLatest information is available by typing www.brwmplc.co.uk on the internet,"BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICVterminal). Neither the contents of the Manager's website nor the contents ofany website accessible from hyperlinks on the Manager's website (or any otherwebsite) is incorporated into, or forms part of, this announcement.