BLACKROCK WORLD MINING TRUST plc
All information is at 31 August 2009 and unaudited.
Performance at month end with net income reinvested
One Three One Three Five
Month Months Year Years Years
Net asset value* (undiluted) 4.2% 10.9% -26.0% 16.4% 160.3%
Net asset value* (diluted) 4.2% 10.9% -25.3% 17.5% 155.9%
Share price* 2.9% 6.4% -24.6% 15.7% 152.6%
HSBC Global Mining Index 1.2% 6.2% -13.7% 36.1% 170.2%
Sources: BlackRock, HSBC Global Mining Index, Datastream
*Net asset value and share price performance includes the warrant reinvestment,
assuming the 2004 and 2006 bonus warrant entitlement per share was sold and the
proceeds reinvested on the first day of trading.
At month end
Net asset value Including Income Capital only
Undiluted/Diluted: 523.16p# 519.89p
# Includes net revenue of 3.27p
Share price: 442.50p
Discount to NAV**: 14.89%
Total assets***: £918.51m
Net yield: 1.24%
Gearing: Nil
Ordinary shares in issue##: 177,762,242
## Excluding 15,249,600 shares held in treasury.
** Discount to NAV based on capital only.
*** Includes current year revenue.
Sector % Total Country Analysis % Total
Assets Assets
Diversified 43.8 Latin America 29.1
Base Metals 19.9 Global 19.7
Gold 13.0 South Africa 10.9
Platinum 7.8 Australasia 10.5
Industrial Minerals 7.2 Other Africa 7.3
Silver/Diamonds 6.6 Canada 6.6
Other 1.0 Indonesia 5.7
Net current assets 0.7 USA 4.0
India 3.6
Europe 1.0
Emerging Asia 0.9
Net current assets 0.7
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100.0 100.0
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Commenting on the markets, Evy Hambro, representing the Investment Manager
noted:
Performance
The month was a mixed period for the mining sector as the market digested
slightly better industrial production data and power demand from Europe, but
this was pared against newsflow from China that the government aimed to limit
loan growth and commodity imports showed signs of slowing. July's trade data
from China indicated that copper, aluminium, zinc and lead imports all declined
during the month, albeit from record levels in June.
In the precious metal sector, the third generation of the Central Bank Gold
Agreement (CBGA) was announced during the month. The agreement imposes a quota
on the amount of gold that could be sold by the collective signatories in any
one year. This five year agreement has imposed a reduced annual limit of gold
sales to 400tpa (from 500tpa) and an assertion by the signatories that any
potential IMF gold sales would fall within this quota. As a group, the CBGA
signatories are the largest holders of gold amongst the world's central banks,
who are in turn the world's largest institutional holders of gold. This new
deal seems to indicate that the supply of gold from the European central banks
is likely to be less going forward than it has been in previous years, which is
positive for the gold market.
Strategy/Outlook
The mining sector is facing a significantly better outlook than it was at the
start of 2009. Commodity prices have rallied as the financial crisis has eased
and, although financial distress in the sector has diminished, there remain
many companies that have projects that are unlikely to be developed in the
short term, if ever. Across the industry, the appetite for taking on
development risk is quite a long way from returning and those projects that are
being developed have had their scale revised markedly lower to reduce the
financial and development risk. The shutdown of existing capacity over the last
12 months and the cancellation and scaling back of new supply means many
commodities are constrained on the supply side. When we see demand recover, as
we are possibly already starting to see the early signs of, the supply side's
recent lack of investment should provide support for commodity prices.
Latest information is available by typing www.blackrock.co.uk/its on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).
21 September 2009
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