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

2.8%

2.2%

-10.4%

-12.8%

71.5%

Share price

9.4%

7.4%

-11.1%

 -18.0%

92.3%

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

1.2%

1.1%

-9.0%

-3.9%

62.1%

* (Total return) 

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

Net asset value (including income)1:

524.67p

Net asset value (capital only):

520.24p

Share price:

501.00p

Discount to NAV2:

4.5%

Total assets:

£1,075.8m

Net yield3:

4.6%

Net gearing:

7.1%

Ordinary shares in issue:

187,383,036

Ordinary shares held in Treasury:

5,628,806

Ongoing charges4:

0.95%

Ongoing charges5:

0.84%

Country Analysis

TotalAssets (%)

Global

55.5

Canada

12.5

Latin America

9.2

Australasia

8.4

United States

5.3

Other Africa

3.7

South Africa

2.8

Indonesia

0.4

Net Current Assets

2.2

-----

100.0

=====

Sector Analysis

TotalAssets (%)

Gold

31.1

Diversified

26.6

Copper

23.7

Steel

5.8

Platinum Group Metals

2.3

Iron Ore

2.1

Industrial Minerals

2.1

Uranium

1.5

Aluminium

1.0

Nickel

0.7

Silver

0.7

Zinc

0.2

Net Current Assets

2.2

-----

100.0

=====

Ten largest investments

Company

Total Assets %

Agnico Eagle Mines

7.4

Rio Tinto

7.3

BHP:

Equity

4.5

Royalty

1.9

Vale:

Equity

3.6

Debenture

2.6

Wheaton Precious Metals

5.4

Freeport-McMoRan

4.5

Anglo American

4.1

Kinross Gold

3.9

Glencore

3.3

Newmont

3.0

Asset Analysis

Total Assets (%)

Equity

94.8

Bonds

1.9

Convertible Bond

0.7

Preferred Stock

0.5

Option

-0.1

Net Current Assets

2.2

-----

100.0

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

Performance

Mining equities posted gains in May, albeit lagging broader equity markets, represented by the MSCI All Country World Index, which rose by 5.7%. Strong equity market performance reflected cautious optimism among investors on the back of progress in tariff negotiations and an improving economic outlook.

Mined commodity performance was mixed: prices for iron ore (62% Fe) and nickel fell by 1.6% and 1.2% respectively, whereas the copper price increased by 4.7%. The copper market appears to have notably tightened, evidenced by a significant decline in inventories in China.

Within precious metals, the gold price decreased by 0.7%, whilst the silver and platinum prices rose by 1.0% and 10.2% respectively. Reduced geopolitical and economic uncertainty contributed to the gold price easing. However, increased hybrid vehicle penetration drove strong demand for platinum, where we have also seen supply-side constraints become apparent.

Strategy and Outlook

Near term, we expect performance to be driven by the China stimulus situation, which is evolving, and we are watching closely to see if it translates into a pickup in demand. Longer term, we expect mined commodity demand growth to be driven by increased global infrastructure build out, particularly related to the low carbon transition and increased power demand.

Meanwhile, the supply side of the equation is constrained. Mining companies have focused on capital discipline in recent years, meaning they have opted to pay down debt, reduce costs and return capital to shareholders, rather than investing in production growth. This is limiting new supply coming online and there is unlikely to be a quick fix, given the time lags involved in investing in new mining projects. The cost of new projects has also risen significantly and recent M&A activity in the sector suggests that, like us, strategic buyers see an opportunity in existing assets in the listed market, currently trading well below replacement costs. Other issues restricting supply include cases of governments closing mines, permitting issues and a general lack of shovel-ready projects.

Turning to the companies, balance sheets in the sector are very strong relative to history. Despite this, valuations are low relative to historic averages and relative to broader equity markets.

17 June 2025

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