BlackRock World Mining Trust Plc - Portfolio Update
20 Noviembre 2019 - 9:47AM
PR Newswire (US)
BLACKROCK WORLD
MINING TRUST plc (LEI - LNFFPBEUZJBOSR6PW155) |
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All information is at
31 October 2019 and unaudited. |
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Performance at month
end with net income reinvested |
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|
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|
One |
Three |
One |
Three |
Five |
|
|
Month |
Months |
Year |
Years |
Years |
|
Net asset value |
-2.8% |
-9.1% |
4.7% |
20.9% |
36.5% |
|
Share price |
-5.0% |
-11.0% |
4.7% |
19.3% |
30.6% |
|
EMIX Global Mining Index
(Net)* |
-1.7% |
-6.8% |
14.5% |
27.6% |
46.6% |
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(Total return) |
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|
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Sources: BlackRock, EMIX Global Mining Index, Datastream |
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At month end |
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|
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Net asset value
including income1: |
403.32p |
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Net asset value capital
only: |
390.98p |
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1 Includes
net revenue of 12.34p |
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|
|
|
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Share price: |
340.00p |
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Discount to
NAV2: |
15.7% |
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Total assets: |
£823.1m |
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Net
yield3: |
5.9% |
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Net gearing: |
11.8% |
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|
|
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Ordinary shares in
issue: |
176,122,207 |
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Ordinary shares held in
treasury: |
16,889,635 |
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Ongoing
charges4: |
0.9% |
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|
|
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2 Discount to NAV including income.
3 Based on quarterly interim dividends of 4.00p per
share declared on 20 August 2019 and 2 May 2019 in
respect of the year ending 31 December 2019 and a
quarterly interim dividend of 3.00p per share declared on 8
November 2018 and a final dividend of 9.00p per share announced on
28 February 2019 in respect of the year ended 31 December 2018.
4 Calculated as a percentage of average net assets and
using expenses, excluding finance costs, for the year ended 31
December 2018. |
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Sector |
%
Total |
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Country
Analysis |
%
Total |
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Assets |
|
|
Assets |
|
|
|
|
|
Diversified |
38.0 |
|
Global |
62.6 |
Gold |
23.5 |
|
Latin America |
9.5 |
Copper |
18.0 |
|
Australasia |
8.3 |
Silver & Diamonds |
6.0 |
|
Canada |
6.6 |
Industrial Minerals |
5.1 |
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South Africa |
3.0 |
Materials |
3.3 |
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United Kingdom |
1.3 |
Coal |
1.1 |
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Other
Africa |
1.2 |
Nickel |
1.0 |
|
Indonesia |
1.0 |
Zinc |
0.3 |
|
Sweden |
0.9 |
Aluminium |
0.1 |
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Kazakhstan |
0.8 |
Iron Ore |
0.1 |
|
Russia |
0.7 |
Current assets |
3.5 |
|
USA |
0.5 |
|
|
|
Argentina |
0.1 |
|
|
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Current
assets |
3.5 |
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----- |
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----- |
|
100.0 |
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|
100.0 |
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===== |
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===== |
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Ten Largest
Investments |
Company |
%
Total
Assets |
|
BHP |
9.2 |
|
Vale:
Equity
Debenture |
4.9
3.8 |
|
Rio Tinto |
8.5 |
|
Barrick
Gold |
5.1 |
|
Newmont Mining |
4.5 |
|
Anglo
American |
4.4 |
|
OZ Minerals
Brazil:
Royalty
Equity |
2.3
1.7 |
|
Agnico Eagle
Mines |
3.9 |
|
Wheaton Precious
Metals |
3.6 |
|
First Quantum
Minerals |
3.6 |
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Commenting on the markets, Evy
Hambro and Olivia Markham, representing the Investment Manager
noted: |
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Performance |
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The Company’s NAV fell by 2.8% in
October, underperforming its reference index, the EMIX Global
Mining Index (net return), which declined by 1.7%. |
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During the month we saw a degree of
thawing in terms of the trade tensions between the US and China.
Elsewhere, the yield curve for US 10-year Treasuries reversed and
is no longer inverted below the 2-year rate. In other news, at the
end of the month the US Federal Reserve (the Fed) cut interest
rates to a target range of 1.50% to 1.75%. This was the third rate
cut that we have seen from the Fed this year. The Fed also flagged
that there were no plans to start raising rates again until they
see a significant increase in inflation. In this environment,
equity markets posted positive returns, with the MSCI World Index
rising by 2.5%. (Figures in USD.) |
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Most mined commodity prices were up
over the month. The base metals benefited from the improvement in
the global economic growth outlook, with copper, aluminium and zinc
prices up by 1.3%, 3.1% and 4.0% respectively. Meanwhile, in the
precious metals space, gold and silver prices were up by 2.5% and
5.6% respectively, as US dollar weakness provided a tailwind. The
bulk commodities were mixed, however, with the coking coal price up
by 5.2% but the iron ore (62% fe) price falling by 9.6% to
$84/tonne. (Figures in USD.) |
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Strategy and Outlook |
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We see an attractive
valuation opportunity in mining today. The mining sector is
generating close to record free cash flow today, whilst balance
sheets are in strong shape and companies remain focused on capital
discipline. Whilst US-China trade tensions are fuelling
uncertainty, our base case remains that we have positive global
economic growth for the next 12-18 months, albeit at a slower rate
than was expected this time last year. Barring an economic
recession, we expect the mining sector to re-rate as the miners
continue to generate robust free cash flow and return capital to
shareholders through dividends and buybacks. We expect most mined
commodity prices to be stable to rising through the remainder of
this year. On the commodity demand side, we do not anticipate a
hard-landing type event in China and we have been encouraged by
stimulus measures beginning to feed through into improvements in
some economic data points. On the commodity supply side, supply is
tight in most mined commodity markets and, given the cuts in mining
sector spending since 2012 (down ~66%), we expect it to remain
so. |
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All data points are in GBP terms
unless stated otherwise. |
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20 November 2019 |
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Latest information is available by
typing www.blackrock.co.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. |
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