Blackrock World Mining Trust PLC — Net Asset Value 2014

Jul 9, 2014

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BLACKROCK WORLD MINING TRUST PLC - Portfolio Update

PR Newswire

London, July 9

BLACKROCK WORLD MINING TRUST plcAll information is at 30 June 2014 and unaudited.Performance at month end with net income reinvested One Three One Three Five Month Months Year Years YearsNet asset value (undiluted) 2.6% 1.8% 6.9% -41.5% 24.2%Share price 1.2% 0.0% 13.2% -32.4% 35.2%Euromoney Global Mining Index 2.9% 2.1% 8.6% -40.0% 10.6%(Total return)Sources: BlackRock, Euromoney Global Mining Index, DatastreamAt month endNet asset value Including Income Capital OnlyUndiluted/diluted: 489.86p* 479.78p*Includes net revenue of 10.08pShare price: 463.10pDiscount to NAV**: 5.5%Total assets: £993.3mNet yield***: 4.5%Net gearing: 14.4%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 40.4 Global 52.9Base Metals 22.3 Other Africa 16.4Industrial Minerals 15.6 Latin America 11.6Gold 8.0 Australasia 5.6Silver & Diamonds 6.3 Canada 3.7Other 2.3 South Africa 3.2Energy Minerals 1.6 China 1.4Platinum 0.6 USA 1.1Net Current Assets 2.9 Emerging Europe 1.0 Indonesia 0.2 Net Current Assets 2.9 ----- ----- 100.0 100.0 ===== =====Ten Largest Investments % Total AssetsCompanyRio Tinto 10.3BHP Billiton 10.1GlencoreXstrata 9.7First Quantum Minerals 8.4London Mining Marampa Contract 6.5Freeport McMoRan 6.0Fresnillo 2.4Sociedad Minera Cerro Verde 2.3Vale 2.3Iluka Resources 2.0Commenting on the markets, Evy Hambro, representing the Investment Managernoted:PerformanceJune was a relatively solid month for the base metals with copper, aluminiumand zinc rising +2%, +3% and +8% respectively. Nickel and tin were the onlylaggards, seeing declines of -1% and -3% respectively. Nickel's small declinecan be attributed to a "pause-for-breath" in investor sentiment following its+37% price increase since the beginning of the year. It is possible we will seethis tentative approach continue as uncertainty builds around the outcome ofthe upcoming Indonesian election (July 9th) and thus the longevity of thecurrent export ban. (All prices: Thomson Reuters Datastream as at30th June 2014)The market continued to focus on the weakening iron ore price in June; however,we saw some recovery during the final days of the month as inventories held atsteel mills hit 2 year lows. This was also helped somewhat by an increase inChinese infrastructure spend, one of the government's 'mini-stimulus'initiatives. Iron ore finished the month at $94.90/t (62% Fe), representing a+3.4% rise over the month. (Source: CLSA as at 30th June 2014)In other news, the mine strike in South Africa, which began on 23rd January andinvolved 70,000 workers, ended during the final week of the month. JosephMathunjwa, President of the Association of Mineworkers and Construction Union(AMCU), said that the union had accepted a three year no-strike wage agreementthrough to 2016. It is thought that the legacy of the strike will be felt formany months and the industry will be watching to see if there are any issues inthe ramp-up to full production. Following the announcement, both palladium andplatinum prices suffered from some selling.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 Q1.The market has been focused on liquidity concerns and increasing volatility inChina; however, it is 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.9 July 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.