BLACKROCK WORLD MINING TRUST plc
All information is at 30 September 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) 11.0% 32.7% 17.0% 34.8% 159.7%
Net asset value* (diluted) 11.0% 32.7% 17.0% 35.2% 159.8%
Share price* 11.9% 28.8% 21.0% 31.5% 155.7%
HSBC Global Mining Index 11.4% 27.2% 33.0% 59.0% 176.2%
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: 580.84p# 576.59p
# Includes net revenue of 4.25p
Share price: 495.00p
Discount to NAV**: 14.2%
Total assets***: £1,032.51m
Net yield: 1.11%
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 43.3 Latin America 30.5
Base Metals 19.9 Global 18.4
Gold 13.9 Australasia 10.4
Industrial Minerals 7.0 South Africa 9.6
Platinum 6.9 Other Africa 7.4
Silver/Diamonds 6.9 Canada 6.9
Other 1.0 Indonesia 5.7
Net current assets 1.1 USA 4.0
India 3.6
Emerging Asia 1.3
Europe 1.1
Net current assets 1.1
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100.0 100.0
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Ten Largest Equity Investments (in alphabetical order)
Company
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Vale
Commenting on the markets, Evy Hambro, representing the Investment Manager
noted:
Performance
September was a strong period for the mining sector with the first half of the
month seeing strong gains spurred on by increased investor appetite for risk
and optimism about the global recovery. Momentum slowed after US housing data
disappointed and investors worried about financial regulation ahead of the G20
summit.
Looking to the commodities, base metals were generally weaker over the course
of the month (LME copper - 5.5%, LME aluminium -1.6%) whereas precious metals
were generally stronger (gold +5.7%, platinum +3.5%). The moderation of imports
into China, following a period of re-stocking of inventories, was the prime
driver of base metals whereas precious metals continue to be influenced by
moves in the US Dollar and inflation concerns.
In equity news, ENRC, a Kazakh mining group, agreed to buy CAMEC, a central
African mining group, for around $955 million. The takeover will immediately
add copper production to the portfolio of ENRC, whose main products are
currently iron ore and ferrochrome (they are one of the world's largest
producers of ferrochrome). This move was significant for two reasons; firstly,
it indicates ENRC's willingness to diversify outside of Kazakhstan and
secondly, that major companies are beginning to become more comfortable with
the geopolitical risk associated with investing in countries such as the
Democratic Republic of Congo (DRC), where CAMEC have significant assets.
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).
14 October 2009