Blackrock World Mining Trust PLC — Net Asset Value 2014

Sep 15, 2014

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BLACKROCK WORLD MINING TRUST PLC - Portfolio Update

PR Newswire

London, September 15

BLACKROCK WORLD MINING TRUST plcAll information is at 31 August 2014 and unaudited.Performance at month end with net income reinvested One Three One Three Five Month Months Year Years YearsNet asset value -4.6% 4.2% -1.2% -36.7% 5.6%Share price -3.5% 4.7% 3.5% -25.4% 21.4%Euromoney Global Mining Index -1.2% 8.0% 3.8% -32.4% 1.6%(Total return)Sources: BlackRock, Euromoney Global Mining Index, DatastreamAt month endNet asset value Including Income Capital Only 490.95p* 483.96p*Includes net revenue of 6.99pShare price: 472.00pDiscount to NAV**: 3.9%Total assets: £1,002.2mNet yield***: 4.4%Net gearing: 13.5%Ordinary shares in issue: 177,287,242Ordinary shares held in Treasury: 15,724,600Ongoing charges****: 1.4%** Discount to NAV including Income.*** Based on 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 yearended 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 41.5 Global 54.4Base Metals 22.1 Other Africa 13.6Industrial Minerals 12.6 Latin America 11.5Gold 9.3 Australasia 6.2Silver & Diamonds 6.5 Canada 4.2Other 3.7 South Africa 3.6Energy Minerals 2.2 China 2.1Platinum 0.6 USA 1.6Net current assets 1.5 Emerging Europe 1.0 Indonesia 0.3 Net current assets 1.5 ----- ----- 100.0 100.0 ===== =====Ten Largest Investments % Total AssetsCompanyGlencoreXstrata 10.7Rio Tinto 10.6BHP Billiton 10.1First Quantum Minerals 8.3Freeport McMoRan 6.1London Mining Marampa Contract 4.3Fresnillo 2.6Sociedad Minera Cerro Verde 2.3Vale 2.3Iluka Resources 2.2Commenting on the markets, Evy Hambro, representing the Investment Managernoted:PerformanceFollowing a strong July, the mining sector retreated over the month as weakeryear-on-year economic data from China weighed on market sentiment. China'sofficial purchasing managers index fell to 51.1, down from 51.7 in July. Thesedata reports increased market speculation around the likelihood of injectionsof government stimulus in the near-term. Iron ore continued to see sizeablesell-offs during the month, as concerns mounted over increasing supply andweakening demand, causing its price to slide by 8.1%. At current iron ore pricelevels, we expect to begin to see higher-cost domestic Chinese productionwithdraw from the market.The mining sector entered its first-half reporting period during the month.Cost reductions, capital discipline and capital returns were key themes fromthe sector. Rio Tinto announced strong earnings results driven by record ironore production, better-than-expected cost reductions and guided the market tolower capital expenditure in 2014. The results signalled that the company maybe in a position to announce a share buyback in the next six to twelve months.Fellow diversified miner Glencore also pleased the market by delivering on itspromises to focus on returning cash to shareholders, announcing a share buybackprogramme of approximately $1bn.BHP Billiton disappointed the market by not announcing the much talked aboutshare buyback. It did announce however, that it plans to create Spinco, "anindependent global metals and mining company based on a selection of itshigh-quality aluminium, coal, manganese, nickel and silver assets." Thedemerger is not expected to be completed until the first half of 2015.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.15 September 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.