(Alliance News) - BlackRock World Mining Trust PLC on Thursday raised its dividend payout as it reported an increase in net asset value.
The investment company said 2019 was a record year in terms of revenue earnings per share and income available for distribution to shareholders.
BlackRock reported NAV per share of 433.17 pence for the year to the end of December, up from 388.81p a year earlier.
Since the year end and up until the close of business on Tuesday, the company's NAV per share has decreased by 6.9%, it said.
The trust's share price at the end of 2019 stood at 383.00p, representing an 11.6% discount to NAV.
The stock closed 5.0% lower at 331.00p each on Thursday in London.
BlackRock World Mining's NAV total return for the year stood at 17.2%. In comparison, the return for the EMIX Global Mining Index increased by 22.1%.
"The mining sector started the year strongly as mined commodity prices recovered after a challenging end to 2018. However, towards the end of the summer, the sector fell on the back of deteriorating global economic activity. In the last couple of months of the year, sentiment began to turn on a perceived easing of geopolitical tensions and confidence increased as the US and China agreed more positive terms for a trade deal," said Chair David Cheyne.
Looking ahead, the trust said that a preliminary agreement with China to halt the trade war should prove positive for markets and, in Europe, the outcome of the UK election has removed some degree of the uncertainty surrounding Brexit. It said these developments are likely to stabilise growth over the next six to twelve months, aided by easier financial conditions introduced in 2019 by the US Federal Reserve and European Central Bank.
It warned however, that the recent escalation in US-Iran tensions and the coronavirus outbreak could pose risks.
During the year, three quarterly interim dividends of 4.00p per share were paid. BlackRock World Mining proposed the payment of a final quarterly dividend of 10.00p per share. This, together with the quarterly interim dividends, makes a total of 22.00p per share, up 22% from 18.00p paid the year before.
By Ife Taiwo; ifetaiwo@alliancenews.com
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BlackRock World Mining Trust plc (BRWM)