BLACKROCK WORLD MINING TRUST plc
All information is at 30 November 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) 11.7% 23.1% 120.3% 32.7% 177.8%
Net asset value* (diluted) 11.7% 23.1% 120.3% 35.6% 179.5%
Share price* 10.8% 19.9% 114.5% 26.6% 159.4%
HSBC Global Mining Index 13.5% 24.4% 102.8% 60.6% 201.7%
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: 644.06p# 639.40p
# Includes net revenue of 4.66p
Share price: 530.50p
Discount to NAV**: 17.0%
Total assets: £1,144.89m
Net yield: 1.04%
Gearing: Nil
Ordinary shares in issue: 177,762,242
Ordinary shares held in Treasury: 15,249,600
** Discount to NAV based on capital only.
Sector % Total Country Analysis % Total
Assets Assets
Diversified 44.6 Latin America 30.9
Base Metals 19.3 Global 18.9
Gold 14.6 Australasia 10.5
Silver/Diamonds 7.1 South Africa 9.7
Platinum 7.1 Other Africa 7.7
Industrial Minerals 5.1 Canada 7.5
Other 0.8 USA 3.9
Net current assets 1.4 India 3.7
Indonesia 3.6
Emerging Asia 1.2
Europe 1.0
Net current assets 1.4
----- -----
100.0 100.0
===== =====
Ten Largest Equity Investments (in alphabetical order)
Company
BHP Billiton
First Quantum Minerals
Freeport McMoRan
Fresnillo
Impala Platinum
Minas Buenaventura
Newcrest Mining
Rio Tinto
Teck Resources
Vale
Commenting on the markets, Evy Hambro, representing the Investment Manager
noted:
Performance
Developed equity markets performed strongly during the month of November, with
a broad based rally in the first half of the month after the end of October
sell off. The G20 pledged to continue to support the global economy with
central banks keeping interest rates low for a 'sustained period' and this was
deemed beneficial for risk assets. Materials stocks outperformed for the month
after positive data from China showing factory output increased to a 19 month
high, which is positive for the demand outlook, and industrial and precious
metals rallied. Investors looking to hedge inflation risks also supported
commodity prices.
After an unexpected increase in Chinese copper, iron ore and coal imports in
September, net commodity imports declined almost across the board in October
(according to a recent report by RBS). The huge rise in Chinese imports has
been a central pillar of the recovery in base metal prices this year and a
moderation in imports had been anticipated as inventories have been rebuilt
(from their lows in late 2008/early 2009). Just as the rise in Chinese imports
in 2009 filled the void left by collapsing demand in the OECD, so a strong
rebound in OECD demand could offset moderating Chinese imports in 2010,
preventing a significant relapse in base metal prices.
Strategy/Outlook
Since the lows in the commodity markets, we have seen a significant recovery in
prices and whilst we do not necessarily expect the same rate of price increase
going forward it is our expectation that commodity prices are likely to remain
well supported. Demand growth, particularly from the emerging markets such as
China, India and Brazil, as well as a recovery in the western world, coupled
with supply-side constraints should underpin commodity prices over the coming
years. The best performers will be those commodities that are unable to grow
supply to meet demand.
Despite the financial crisis having eased and the financial distress in the
sector now 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 December 2009