NII has had a good run recently,well worth a look, I note your already in ANW
6 May '14
RE: 3 Ways To Play A Mining Recover..
Finally some positive publicity!
6 May '14
3 Ways To Play A Mining Recovery
3 Ways To Play A Mining Recovery: BHP Billiton plc, BlackRock World Mining Trust and Ferrexpo Plc When commodity prices were rising, companies, desperate to increase their production, poured money into huge, expensive projects with little thought on costs. But with the price of commodities now falling, miners have realised that the growth-at-all-costs strategy no longer works. Instead, miners have begun to shift towards a more sustainable business model, shedding unprofitable mines, focusing on free cash flow and dividend yields. The mining industry is changing and miners are now putting their shareholders first. So, here are three ways to play this trend. The bigger the better BHP Billiton (LSE: BLT) (NYSE: BHP.US) is the world’s largest miner by market capitalisation and I believe it deserves a place within any portfolio. Indeed, one of BHP’s most attractive qualities is the company’s diversification. In particular, BHP’s business is based around four key pillars: coal, copper, iron ore and most importantly oil. BHP has recently changed its strategy, slowing plans for growth, ramping up output at existing mines and paying down debt. Actually, BHP has just revealed record production figures for the nine months to March, despite slashing capital spending by around 20% during 2013. Further, there are rumors that BHP could spin off around $20bn worth of non-core, low margin assets, as part of the company’s plan to return to growth. A disposal of this kind would leave BHP debt free with plenty of cash to return to investors. What’s more, BHP is targeting cost efficiencies of $5.5bn by the end of the 2014. Rising production and falling costs only mean one thing; rising profits. It would seem that City analysts universally agree BHP’s plans to boost profits will ultimately result in multi-billion dollar shareholder returns. Low risk Another great pick for any portfolio focused on the mining industry is BlackRock World Mining Trust (LSE: BRWM). BlackRock World Mining Trust is a specialist investment trust that invests predominantly in the shares of mining and resources companies. The trust’s three largest holdings are, BHP, Rio Tinto and Glencore Xstrata, so investors can benefit from exposure to the mining industry’s three key players. Management’s goal is shareholder returns, only investing in companies willing to return cash to shareholders in the form of dividends. The trust also invests in bonds and other securities such as, royalty payments, which give the trust rights to a share of future mine income in return for a loan. At present the trust offers a gross yield of 4.6% and trades at a 4% discount to net asset value.
29 Apr '14
BRWN on hl.co.uk
BlackRock World Mining Trust plc Richard Troue | Mon 28 April 2014 BlackRock World Mining Trust plc is a specialist investment trust that invests predominantly in the shares of mining and resources companies worldwide. As it invests in such a niche area it is likely to appeal only to adventurous investors looking to add some spice to a well-diversified portfolio. Evy Hambro has been involved with the management of this trust since its launch in December 1993. He was officially appointed manager in 2000. In 2009 Catherine Raw joined him as co-manager having worked with the team since 2003. They are supported by an experienced and well-resourced team of analysts at BlackRock. View the BlackRock World Mining Trust plc factsheet Philosophy To combine the team's outlook for the wider economy, including commodity prices, with the prospects for individual companies. Process & portfolio construction The team look to identify the factors likely to drive commodity prices and assess the direction in which certain commodity prices will move. They focus on trends likely to affect supply and demand, while also taking investor sentiment into consideration. This all feeds into their analysis of individual companies. Meeting management is also an integral part of the process, with the team believing good management is essential to a company's success. They are looking for those with high quality reserves keeping costs low. They currently have a preference for mature businesses with mines already in production or on the verge of production, rather than those at a pure exploration stage. View the BlackRock World Mining Trust plc factsheet The portfolio tends to have a bias towards larger companies, but they do have the flexibility to invest in higher risk smaller and medium-sized companies. The team has also been focusing on increasing the yield on the portfolio. As well as investing in companies willing to return cash to shareholders in the form of dividends, they have the flexibility to invest in bonds and other securities such as royalties issued by mining companies. Royalties provide the trust with a share of future income from the mine in return for making a loan to the company. Up to 10% of the portfolio can be invested in physical metals. Overall the portfolio tends to be concentrated with high conviction placed behind the manager's favourite companies, which allows each holding to contribute significantly to performance, but it is higher risk. The trust sits in the AIC Sector Specialist Commodities & Natural Resources Sector and uses the HSBC Global Mining Index as a benchmark. Fee structure The annual management charge on this trust is 1.3%, 75% of which is charged to capital and 25% to income. There is no performance fee. For full details of the trust's fees please refer to the latest annual report & accounts. Gearing The board has given the manager permission to use gearing (borrowing to inves
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.