Performance at month end with net income reinvested

One

Three

One

Three

Five

Month

Months

Year

Years

Years

Net asset value

-1.2%

2.1%

8.4%

17.6%

89.2%

Share price

-3.1%

-4.3%

5.1%

  14.0%

112.3%

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

-2.3%

0.9%

11.9%

19.9%

71.2%

* (Total return)

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

Net asset value (including income)1:

573.64p

Net asset value (capital only):

563.84p

Share price:

533.00p

Discount to NAV2:

7.1%

Total assets:

£1,228.0m

Net yield3:

6.3%

Net gearing:

9.1%

Ordinary shares in issue:

191,018,036

Ordinary shares held in Treasury:

1,993,806

Ongoing charges4:

0.91%

Ongoing charges5:

0.81%

Country Analysis

Total
Assets (%)

Global

59.3

Canada

12.4

Latin America

8.0

Australasia

6.3

United States

6.2

Other Africa

3.7

South Africa

0.8

Indonesia

0.6

Net Current Assets

2.7

-----

100.0

=====

Sector Analysis

Total
Assets (%)

Diversified

32.8

Copper

24.3

Gold

22.1

Steel

4.6

Iron Ore

3.0

Industrial Minerals

3.0

Uranium

2.9

Aluminium

2.2

Platinum Group Metals

1.3

Nickel

1.0

Zinc

0.1

Net Current Assets

2.7

-----

100.0

=====

Ten largest investments

Company

Total Assets %

BHP:

    Equity

7.0

    Royalty

1.5

Rio Tinto

6.8

Glencore

6.1

Anglo American

5.3

Agnico Eagle Mines

4.9

Freeport-McMoRan

4.5

Vale:

    Debenture

2.3

    Equity

1.8

Wheaton Precious Metals

3.9

Barrick Gold

3.3

Teck Resources

3.3

Asset Analysis

Total Assets (%)

Equity

94.6

Bonds

1.5

Preferred Stock

0.7

Convertible Bond

0.6

Option

-0.1

Net Current Assets

2.7

-----

100.0

=====

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

Performance

The Company’s NAV fell by 1.2% in October, outperforming its reference index, the MSCI ACWI Metals and Mining 30% Buffer 10/40 Index (net return), which declined by 2.3% (performance figures in GBP).

The mining sector had mixed performance in October 2024, as a lack of detail on China’s stimulus measures weighed on commodities. For reference, global equity markets, as measured by the MSCI ACWI TR Index, returned -2.2%.

In the commodities space, iron ore (62% fe), copper and nickel fell by 7.3%, 3.3% and 10.5% respectively.  The aluminium price held up better, down by just 0.7%, as supply was disrupted by port issues at Jamalco and as future supply looked set to be increasingly constrained by Alcoa announcing the curtailment of its Kwinana alumina refinery in Western Australia.

In the precious metals space, gold and silver prices rose by 4.1% and 4.8% respectively, appearing to benefit from ‘safe-haven’ demand as a result of ongoing geopolitical tensions in the Middle East and the approaching U.S. presidential election.

Finally, we saw more technology hyperscalers, indicating a preference for nuclear to power their artificial intelligence (AI) datacentres, which lifted sentiment on uranium and uranium miners.

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.

26 November 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.