Blackrock World Mining Trust PLC — Fund Information / Factsheet 2014

Nov 14, 2014

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BLACKROCK WORLD MINING TRUST PLC - Portfolio Update

PR Newswire

London, November 13

BLACKROCK WORLD MINING TRUST plcAll information is at 31 October 2014 and unaudited.Performance at month end with net income reinvested One Three One Three Five Month Months Year Years YearsNet asset value -13.2% -25.8% -24.9% -46.0% -25.5%Share price -18.6% -28.7% -22.9% -40.4% -17.1%Euromoney Global Mining Index -5.5% -15.7% -13.8% -37.5% -20.9%(Total return)Sources: BlackRock, Euromoney Global Mining Index, DatastreamAt month endNet asset value including income*: 382.03pNet asset value capital only: 370.01p*Includes net revenue of 12.02pShare price: 349.00pDiscount to NAV**: 8.6%Total assets: £781.5mNet yield***: 6.0%Net gearing: 12.7%Ordinary shares in issue: 177,287,242Ordinary shares held in treasury: 15,724,600Ongoing charges****: 1.4%** Discount to NAV including income.*** Based on final dividend of 14.00p per share in respect of the year ended 31December 2013 and interim dividend of 7.00p per share in respect of the yearending 31 December 2014.**** Calculated as a percentage of average net assets and using expenses,excluding finance costs for the year ended 31 December 2013.Sector % Total Country Analysis % Total Assets AssetsDiversified 40.9 Global 53.4Base Metals 25.9 Latin America 12.3Gold 9.4 Other Africa 8.0Silver & Diamonds 7.3 Australasia 6.9Industrial Minerals 6.6 Canada 5.0Other 4.1 South Africa 4.0Energy Minerals 2.7 Emerging Europe 3.9Platinum 0.6 China 2.7Zinc 0.1 USA 1.1Net current assets 2.4 Indonesia 0.3 Net current assets 2.4 ----- ----- 100.0 100.0 ===== =====Ten Largest Investments % Total AssetsCompanyRio Tinto 9.5BHP Billiton 9.1First Quantum Minerals 8.4GlencoreXstrata 8.2Freeport-McMoRan 5.9MMC Norilsk Nickel 3.8Lundin Mining 3.7Vale 3.4Sociedad Minera Cerro Verde 3.2China Shenhua Energy 2.7Commenting on the markets, Evy Hambro, representing the Investment Managernoted:PerformanceOctober was a trying month for the natural resources sector, as the marketcontinued to digest slowing global demand growth expectations. This slow down,coupled with a strengthening US dollar (further exacerbated by the end of QE),led the majority of the commodity suite to fall during the month. The basemetals were the relative outperformers as displayed by a 6.7% increase in thealuminium price, 1.5% in zinc and a broadly flat month for copper whichfinished 0.6% higher (source: Thomson Reuters Datastream).It has been somewhat of a perfect storm for the mining sector as supply hascontinued to grow whilst demand has fallen short of expectations. The downwardpressure on the iron ore price caused by production growth from the majorproducers stabilised somewhat during the month and iron ore finished the month1.3% higher than it started.In addition to the poor performance of the mining sector as a whole in October,the NAV of the Company was negatively impacted by the write down of the holdingin the London Mining Marampa royalty contract and the holding in LondonMining's convertible bond to nil which resulted in a reduction in the cumincome NAV of 29.55p per share. Details relating to this were provided in theSeptember month end portfolio update published on 21 October 2014.During London Metals Exchange Week (LME) in October, the International CopperStudy Group reduced their copper supply estimates for 2014 and 2015. Zinc wasthe favoured metal of LME attendees as the projected supply deficit points toattractive fundamentals.In the precious metals space, the gold price has been very closely tied to USdollar movements, and as the dollar surged in early October to its highestlevel in more than four years, gold fell below $1,200/oz. Towards the end ofthe month the Federal Reserve announced the anticipated end to QE and had amore hawkish tone on interest rate rises. This was then followed by the Bank ofJapan announcing additional QE in Japan. These events put further pressure onthe gold price and it finished the month at $1,166/oz, 3.9% lower (source:Thomson Reuters Datastream).Strategy / OutlookThe mining sector has significantly lagged general equity markets 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. Recent commodity price moves are likely to abate some ofthe expected improvement in free cash flow within the sector. Many commoditiesare trading close to or below their marginal cost of production, implying thatprice downside should be limited, in the absence of a collapse in demand. Wesee 2014 as a year of transition, some of which has begun to materialise withthe large cap diversified miners delivering operationally, bringing down costsand reducing the levels of capital expenditure.The market has been focused on liquidity concerns and increasing volatility inChina; however, it is important to highlight that 4Q is a seasonally strongerperiod for mining demand, which in the past has supported 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.14 November 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.