BlackRock World Mining Trust plc Regulatory News (BRWM)

Performance at month end with net income reinvested

One

Three

One

Three

Five

Month

Months

Year

Years

Years

Net asset value

-5.9%

-7.9%

-19.6%

9.4%

67.1%

Share price

-9.3%

-10.1%

-24.9%

-1.0%

84.3%

MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (Net)*

-3.1%

-3.4%

-8.0%

15.7%

56.8%

* (Total return)

Sources: BlackRock, MSCI ACWI Metals & Mining 30% Buffer 10/40 Index, Datastream

Net asset value (including income)1:

528.63p

Net asset value (capital only):

509.81p

Share price:

492.50p

Discount to NAV2:

6.8%

Total assets:

£1,161.6m

Net yield3:

8.1%

Net gearing:

10.6%

Ordinary shares in issue:

191,183,036

Ordinary shares held in Treasury:

1,828,806

Ongoing charges4:

0.91%

Ongoing charges5:

0.81%

Country Analysis

TotalAssets (%)

Global

61.8

United States

9.0

Latin America

7.3

Canada

7.1

Australasia

6.9

Other Africa

3.6

Indonesia

0.5

South Africa

0.1

Net Current Assets

3.7

-----

100.0

=====

Sector Analysis

TotalAssets (%)

Diversified

36.2

Copper

22.9

Gold

13.0

Steel

9.9

Industrial Minerals

4.4

Aluminium

2.9

Iron Ore

2.6

Uranium

1.9

Platinum Group Metals

1.0

Nickel

0.8

Mining Services

0.6

Zinc

0.1

Net Current Assets

3.7

-----

100.0

=====

Ten largest investments

Company

Total Assets %

BHP:

Equity

8.0

Royalty

1.6

Vale:

Equity

5.9

Debenture

3.1

Rio Tinto

7.4

Glencore

6.9

Freeport-McMoRan

4.0

Nucor Corp

4.0

Barrick Gold

2.9

Wheaton Precious Metals

2.7

Jetti Resources

2.4

Teck Resources

2.3

Asset Analysis

Total Assets (%)

Equity

93.2

Bonds

2.4

Convertible Bonds

0.7

Net Current Assets

3.7

-----

100.0

=====

Commenting on the markets, Evy Hambro and Olivia Markham, representing the Investment Manager noted:

Performance

The Company’s NAV fell by 5.9% in February, underperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which declined by 3.1% (performance figures in GBP).

February was a challenging month for the mining sector, particularly relative to broader equity markets, as the MSCI All Country World Index returned +4.2%. Most mined commodities experienced price declines, appearing to reflect lower consumption levels in China as domestic activity slowed during the Chinese New Year holiday period. Ongoing property sector weakness in the country also contributed to the decline. China’s manufacturing PMI remained below 50 and fell marginally month-on-month from 49.2 to 49.1. For reference, prices for iron ore (62% fe) and zinc fell by 11.7% and 5.4% respectively, although nickel bucked the trend, rising by 10.3%.

Meanwhile, the gold price remained stable, but the other precious metals came under pressure, with silver and platinum prices falling by 2.1% and 4.0% respectively. The mining sector's reporting season demonstrated that companies are generally adhering to their capital allocation frameworks. Operating cost inflation appears to have peaked; however, some capital costs remain persistently high. Lastly, delays to copper production growth were a notable theme which increased our conviction in supply-side tightness for the metal over the next few years.

Strategy and Outlook

China has re-opened but with less impact than had been expected. Uncertainty persists around China’s commodity demand, but we are seeing the Chinese administration announce financial support incrementally.

Longer term, we are excited by the structural demand growth for a range of mined commodities that will result from the low carbon transition. Meanwhile, commodity supply is likely to be constrained by the capital discipline of recent years, whilst inventories for many mined commodities are at historic lows. Mining companies have low levels of debt, continue to return capital to shareholders but appear to be entering a higher capital expenditure phase.

We are seeing Brown to Green emerge as a key theme, where mining companies are focusing on reducing the greenhouse gas emissions intensity associated with their production. We expect to see a re-rating for the mining companies able to best navigate this and are playing this in the portfolio.

25 March 2024

Latest information is available by typing www.blackrock.com/uk/brwm on the internet. Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.