Blackrock World Mining Trust PLC — Net Asset Value 2013

Jan 13, 2014

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BLACKROCK WORLD MINING TRUST PLC - Portfolio Update

PR Newswire

London, January 13

BLACKROCK WORLD MINING TRUST plcAll information is at 31 December 2013 and unaudited.Performance at month end with net income reinvested One Three One Three Five Month Months Year Years YearsNet asset value 1.4% -3.2% -24.7% -44.3% 63.3%Share price 3.0% -3.8% -17.5% -37.9% 104.7%Euromoney Global Mining Index*^ 0.3% -2.8% -24.1% -45.9% 34.4%*Total return^From 1 October 2013 the HSBC Global Mining Index was renamed Euromoney GlobalMining IndexSources: BlackRock, Euromoney Global Mining Index, DatastreamAt month endNet asset value Including Income Capital OnlyUndiluted/diluted: 499.72p* 483.89p*Includes net revenue of 15.83pShare price: 465.00pDiscount to NAV**: 6.9%Total assets: £987.86mNet yield***: 4.5%Gearing: 11.5%Ordinary shares in issue: 177,287,242Ordinary shares held in Treasury: 15,724,600** Discount to NAV including Income.*** Based on prior year final dividend of 14.00p and current year interimdividend of 7.00p per share.Sector % Total Country Analysis % Total Assets AssetsDiversified 43.1 Global 48.7Base Metals 23.3 Other Africa 22.3Industrial Minerals 16.4 Latin America 12.8Gold 7.6 South Africa 4.1Silver & Diamonds 6.4 Democratic Republic of Congo 3.6Other 1.4 Australasia 3.4Platinum 1.4 Canada 2.5Energy Minerals 0.4 Emerging Europe 1.4 USA 0.8 ----- Indonesia 0.2 100.0 People's Republic of China 0.2 ===== ----- 100.0 =====Ten Largest Investments % Total AssetsCompanyRio Tinto 11.8BHP Billiton 10.6Glencore Xstrata 9.9First Quantum Minerals 7.8London Mining Marampa Contract 6.7Freeport McMoRan 6.5Vale 4.1Cerro Verde 2.5Banro 2.5London Mining Jersey 8% 15/02/16 2.3Commenting on the markets, Evy Hambro, representing the Investment Managernoted:PerformanceThe U.S. Federal Reserve announced the beginning of the highly anticipatedtapering program. The program, set to begin in January 2014, will commence withan initial reduction of $10bn of bond buying per month by the Fed (from $85bnper month). The market's response to this initial announcement was rathermuted, as we believe much of the market impact had already been taken intoaccount on the back of ongoing rhetoric surrounding the commencement oftapering earlier in 2013.The majority of the base metals had a positive month, helped by someencouraging economic data in the first half of December. Copper finished themonth up by 4.6%, aluminium rose by 2.6%, lead ended 6.6% higher than itstarted the month and zinc led the way returning 10.0%. The news thatMinmetal's Century mine is reaching the end of its life brought the tighteningoutlook for zinc supply into focus. The Century mine is Australia's largestopen pit zinc mine and has been in operation since 1997, final production fromthe mine is expected in mid-2015. All quotes: Thomson Reuters Datastream.Many of the major mining companies held their investor days during December.Vale, the large cap diversified miner, removed one of the impediments to itsshare price as the company announced it had reached a settlement on its taxissues. However, the company was then forced to declare force majeure on 27December, as a result of heavy rain and unfavourable weather impactingoperations and their iron ore shipments. Force majeure refers to a clause incontracts which can be invoked should one party be unable to deliver on theirobligations due to extraordinary circumstances. This has since been lifted.In gold news, the gold price premium on the Shanghai Gold Exchange increased inDecember. This began to rise in the latter part of the month, as we sawincreased retail buying ahead of the Chinese New Year gifting season. BarrickGold Corp, the world's largest gold producer by production, finished the yearon a high as the market responded well to news of a structural change on theirboard of directors and the sale of an Australian asset.Strategy / OutlookThe mining sector has significantly lagged the general equity market in recentyears. However, at the beginning of 2014, a number of the downside risks forthis sector have reduced (albeit not disappeared). The industry has made goodprogress in refocusing its strategy: operating costs have been aggressivelytargeted and investment in projects reassessed. Many commodities are tradingclose to or below their marginal cost of production, implying that pricedownside should be limited, in the absence of a collapse in demand.The global economic backdrop is showing signs of synchronous growth and thishas typically been supportive of commodity prices. The companies are trading onan undemanding valuation, as well as being at a dividend yield premium to thebroader equity market, and with capital expenditure rolling off, management areguiding investors towards rising free cashflows.All data in USD terms unless otherwise stated.13 January 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.