Blackrock World Mining Trust PLC — Net Asset Value 2014

Aug 12, 2014

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BLACKROCK WORLD MINING TRUST PLC - Portfolio Update

PR Newswire

London, August 12

BLACKROCK WORLD MINING TRUST plcAll information is at 31 July 2014 and unaudited.Performance at month end with net income reinvested One Three One Three Five Month Months Year Years YearsNet asset value (undiluted/diluted) 6.6% 8.0% 6.8% -37.7% 15.4%Share price 7.2% 8.7% 10.7% -27.8% 29.5%Euromoney Global Mining Index 6.2% 7.5% 8.0% -35.3% 4.1%(Total return)Sources: BlackRock, Euromoney Global Mining Index, DatastreamAt month endNet asset value Including Income Capital OnlyUndiluted/diluted: 522.07p* 510.05p*Includes net revenue of 12.02pShare price: 496.30pDiscount to NAV**: 4.9%Total assets: £1,051.2mNet yield***: 4.2%Net gearing: 11.5%Ordinary shares in issue: 177,287,242Ordinary shares held in Treasury: 15,724,600Ongoing charges**** 1.4%** 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.**** 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 41.2 Global 53.8Base Metals 22.8 Other Africa 15.2Industrial Minerals 14.9 Latin America 11.9Gold 8.0 Australasia 6.1Silver & Diamonds 6.2 Canada 3.7Other 2.5 South Africa 3.2Energy Minerals 2.1 China 2.0Platinum 0.5 USA 1.1Net current assets 1.8 Emerging Europe 0.9 Indonesia 0.3 Net current assets 1.8 ----- ----- 100.0 100.0 ===== =====Ten Largest Investments % Total AssetsCompanyRio Tinto 10.6BHP Billiton 10.2GlencoreXstrata 10.1First Quantum Minerals 8.6London Mining Marampa Contract 6.0Freeport-McMoRan 5.9Fresnillo 2.4Sociedad Minera Cerro Verde 2.4Vale 2.4China Shenhua Energy 2.0Commenting on the markets, Evy Hambro, representing the Investment Managernoted:PerformanceBase metals were buoyant during the month, whilst precious metals lagged.Chinese government stimulus and Chinese Manufacturing PMI strengthening to an18-month high (as measured by the HSBC China Manufacturing PMI) helped driveperformance of the base metals. The star performers were zinc and aluminium,which rose +7.4% and +6.6% respectively. Both metals continued to seemeaningful inventory erosion, with aluminium experiencing the largest inventorydeclines since mid-1995. The outlook for zinc prices looks positive as futuresupply appears set to be challenged by a number of mine closures over thecoming years. Additionally, the International Lead and Zinc Study Group havereported that the zinc market was in a 200kt deficit over the opening fivemonths of the year.Performance of the precious metals was weaker with gold, silver and platinumprices declining -2.3%, -0.9% and -0.5% respectively. Gold experienced somemoderate 'safe haven' interest, on the back of increasing geo-political tensionin the Israel-Gaza Strip conflict and the civilian plane tragedy in Ukraine.However, this was outweighed by robust US economic data, strong US dollarperformance and the peak of the 'summer lull' for gold trading.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 the first half of the year.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.12 August 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.