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Company BlackRock Commodities Income InvTst

Final Results

Released 14:10 18-Jan-2013
Number 31409-AFEC

Final Results

BlackRock Commodities Income Investment Trust plc               

Performance Record

Financial Highlights
                                      As at            As at                  
                                30 November      30 November           Change 
                                       2012             2011                % 
Net assets (£'000)*                 111,663          118,642             -5.9 
Net asset value per 
ordinary share                      118.47p          131.08p             -9.6 
- with income reinvested                  -                -             -5.2 
Ordinary share price 
(mid-market)                        122.75p          127.75p             -3.9
- with income reinvested                  -                -             +0.8 
                                   ========         ========         ======== 

                                 Year ended       Year ended                  
                                30 November      30 November           Change 
                                       2012             2011                % 
Net revenue after taxation  
(£'000)                               5,570            5,321             +4.7 
Revenue return per ordinary 
share                                 6.10p            5.88p             +3.7
                                   --------         --------         -------- 
Interim dividends                                                             
1st interim                         1.4375p           1.400p             +2.7 
2nd interim                         1.4375p           1.400p             +2.7 
3rd interim                         1.4375p           1.400p             +2.7 
4th interim                         1.5875p           1.550p             +2.4 
                                   --------         --------         -------- 
Total dividends paid and payable    5.9000p           5.750p             +2.6 
                                   ========         ========         ======== 
* The change in net assets reflects market movements and the issue of         
3,750,000 ordinary shares in the year.                                        

Chairman's Statement

The year under review has again proved to be a challenging one for equity
investors. Concerns have persisted about the high levels of government debt in
much of the developed world, and how this will impact upon future economic
growth. In recent months attention has shifted away from Europe to the US, and
the negotiations there surrounding the balance between future spending cuts and
tax increases.

Against this background, the Company's net asset value ("NAV") per share
returned -5.2% and the share price returned 0.8%. Over the same period,
the HSBC Global Mining and MSCI World Energy indices returned -12.1% and -0.8%
respectively. Since the launch of the Company in December 2005 the NAV has
returned 64.6% and the share price 67.2% (all percentages calculated in
sterling terms with income reinvested).

Since the year end, the Company's NAV has returned 3.5% and the share price 
returned 0.5%.

Revenue return and dividends

The Company's revenue return per share for the year amounted to 6.10 pence
(2011: 5.88 pence). As set out in the Company's prospectus dated 22 November
2005, it is the Company's intention to pay four quarterly dividends, details of
which are set out in note 8.

Our objective this year was to pay dividends which in total amounted to at
least 5.75 pence and I am pleased to report that we have exceeded this target
by paying quarterly dividends amounting to 5.90 pence per share (2011: 5.75

It is the Company's aim to pay dividends amounting to at least 5.90 pence per
share for the year ending 30 November 2013. Our ability to match or exceed this
target will depend on the dividend distributions from our underlying portfolio
and should not be interpreted as a profit forecast. The target level represents
a yield of 4.8% based on the share price as at the close of business on 30
November 2012.

Your Company has now been operating for seven years.  We have seen considerable 
turbulence and share price volatility over this period however, in each financial 
year, the ordinary dividends we have been able to pay to our shareholders has been 
ahead of the previous year.

Tender Offers

The Directors of the Company have the discretion to make semi-annual tender
offers at the prevailing NAV, less 2%, for up to 20% of the issued share
capital in August and February of each year.

The Board announced on 19 June 2012 that it had decided not to proceed with a
tender offer in August 2012.

On 6 December 2012 the Board announced that the semi-annual tender offer in
February 2013 would not be implemented as the Company's ordinary shares had
traded at an average premium to NAV of 1.2% during the six months to 30
November 2012. Given that this is better than a discount of 2% to NAV, the
price at which any tender offer would be made, the Board concluded that it
would not be in the interests of shareholders to implement the tender offer as
at 28 February 2013.

A resolution for the renewal of the Company's semi-annual tender authorities
will be put to shareholders at the forthcoming annual general meeting.

Share Capital

The Directors recognise the importance to investors of ensuring that the
Company's share price is as close to its underlying NAV as possible.
Accordingly, the Directors monitor the share price closely and will continue
the issue at a premium or repurchase at a discount of ordinary shares to
balance supply and demand in the market.

During the year the Company issued 3,750,000 ordinary shares at an average
price of 125.22 pence per share for a total consideration of £4,696,000, before
the deduction of issue costs.


The Company operates a flexible gearing policy which depends on prevailing
market conditions. The maximum gearing used during the year was 3.3% and at 30
November 2012 gearing was 2.9%.

Annual General Meeting

The Company's Annual General Meeting will be held at 10.30 a.m. on Friday, 8
March 2013 at the offices of BlackRock, 12 Throgmorton Avenue, London EC2N 2DL.
Details of the business of the meeting are set out in the Notice of Meeting on
pages 61 to 64 of the Annual Report. The Investment Manager will also make a
presentation to shareholders on the Company's progress and the outlook for the

Proposed change to the Articles of Association

As a result of recent changes to tax rules, onshore investment companies are
now permitted to pay out accumulated realised capital profits in the form of
dividends. While the Directors have no present intention of making use of such
powers, they believe it prudent to provide the Company with the necessary
flexibility to do so should it prove appropriate in the future. A resolution
seeking to amend the Company's Articles of Association, as set out in the
Notice of Meeting, will be proposed at the 2013 annual general meeting.

The Retail Distribution Review and the Alternative Fund Managers Directive

The current financial year will see the implementation of two important
regulatory initiatives, both of which will have a significant impact on the
Investment Trust sector. From 1 January 2013 the implementation of the
Financial Services Authority's Retail Distribution Review ("RDR") means that
advisers will have to charge directly rather than receiving commissions from
the funds in which their clients invest. Investment trusts should now be on a
level playing field with their open ended counterparts such as unit trusts. We
hope that, over time, more investors will see the attraction of investing in
investment trusts which are comparatively low cost, have the ability to gear to
enhance overall returns and which, unlike open ended funds, are a quoted
security which can be readily traded in the stock market. In addition, as part
of the FSA's platform review, which will be implemented in 2014, it is proposed
that open ended funds will be on the same footing as investment trusts as
payments from funds to platforms are also likely to be prohibited. We
anticipate that strongly performing investment trusts will see increased demand
from retail platforms and online brokers.

In the context of the implementation of RDR and the growing popularity of 
investment trusts on platforms it is worth noting that the Company’s shares 
are designed for private investors in the UK including retail investors, 
professionally-advised private clients and institutional investors who seek 
income and the potential for capital growth from investment in global markets 
and who understand and are willing to accept the risks of exposure to equities. 
When assessing the suitability of the shares, private investors should also 
consider consulting an independent financial adviser who specialises in advising 
on the acquisition of shares and other securities before acquiring shares.  
Naturally, investors should also be capable of evaluating the risks and merits 
of an investment in the Company and should always have sufficient resources to 
bear any loss that may result.

The implementation of the Alternative Investment Fund Managers Directive will
require all investment trusts to appoint an Alternative Investment Fund Manager
("AIFM") or become an AIFM themselves and also to appoint an independent
Depositary. The latter is likely to fulfil a broader role than that currently
performed by the custodian, and will be obliged to ensure that companies comply
with the relevant rules on portfolio composition and diversification. We expect
the implementation of the AIFMD will be effective from 22 July 2013.

Outstanding Achievement Award

I am delighted to report that in December 2012 Richard Davis was awarded The
Mining Journal Outstanding Achievement Award - Fund Manager Award. This
external recognition of the depth of Richard's expertise in the resources sector
is in my view well deserved and I am sure you will wish to join me in
congratulating him on this prestigious award.


There have been a number of encouraging developments in recent months. First,
the determination shown in the summer by the Governor of the European Central
Bank, Mario Draghi, to defend the integrity of the Euro has been interpreted by
market participants as significantly reducing the likelihood of a disorderly
Eurozone break up. More recently, signs of healthier economic growth in China
and the US have also emerged. However, significant structural challenges to the
world's financial system remain unresolved, and the path back to the levels of
economic growth we have enjoyed historically is unlikely to be smooth.

Nonetheless we anticipate that demand for commodities will continue to increase
significantly over the long term given the prospect of continuing growth in the
developing world. It seems highly unlikely that urbanisation and
industrialisation, the dominant drivers of demand in recent decades, will
reverse or that the pressure on resources arising from population growth will
recede. Set against the well-known constraints on future supply and an
increasing and encouraging focus on dividend distributions from the companies
in which we invest, this background provides a solid foundation for our
strategy of pursuing long term income growth from a diversified portfolio of
equities exposed to the commodities sectors.

Alan Hodson
18 January 2013

Principal risks

The key risks faced by the Company are set out below. The Board regularly
reviews and agrees policies for managing each risk, as summarised below.

Performance risk - The Board is responsible for deciding the investment
strategy to fulfil the Company's objectives and monitoring the performance of
the Investment Manager. An inappropriate strategy may lead to poor performance.
To manage this risk the Investment Manager provides an explanation of
significant stock selection decisions and the rationale for the composition of
the investment portfolio. The Board monitors and maintains an adequate spread
of investments in order to minimise the risks associated with particular
countries (including the risk of government intervention and confiscation of
assets) or factors specific to particular sectors, based on the diversification
requirements inherent in the Company's investment policy.

Income/dividend risk - The amount of dividends and future dividend growth
will depend on the Company's underlying portfolio. Any change in the tax
treatment of the dividends or interest received by the Company (including as a
result of withholding taxes or exchange controls imposed by jurisdictions in
which the Company invests) may reduce the level of dividends received by
shareholders. The Board monitors this risk through the receipt of detailed
income forecasts and considers the level of income at each meeting.

Regulatory risk - The Company operates as an investment trust in accordance
with the requirements of Chapter 4 of Part 24 of the Corporation Tax Act 2010.
As such, the Company is exempt from capital gains tax on the profits realised
from the sale of its investments. The Investment Manager monitors investment
movements, the level and type of forecast income and expenditure and the amount
of quarterly dividends to ensure that the provisions of Chapter 4 of Part 24 of
the Corporation Tax Act 2010 are not breached and the results are reported to
the Board at each meeting.

The Company must also comply with the provisions of the Companies Act 2006 and,
as its shares are admitted to the Official List, the UKLA Listing Rules, the
Disclosure and Transparency Rules and the Prospectus Rules. A breach of the
Companies Act 2006 could result in the Company and/or the Directors being fined
or the subject of criminal proceedings. Breach of the UKLA Listing Rules could
result in the Company's shares being suspended from listing, which in turn
would breach the requirements of Chapter 4 of Part 24 of the Corporation Tax
Act 2010. The Board relies on the services of its professional advisers and its
Company Secretary to ensure compliance with all relevant regulations. The
Company Secretary has stringent compliance procedures in place and monitors
regulatory developments and changes.

Operational risk - In common with most other investment trust companies, the
Company has no employees. The Company therefore relies upon the services
provided by third parties and is dependent on the control systems of the
Investment Manager and the Company's other service providers. The security, for
example, of the Company's assets, dealing procedures, accounting records and
maintenance of regulatory and legal requirements, depend on the effective
operation of these systems. These are regularly tested and monitored and an
internal control report, which includes an assessment of risks together with
procedures to mitigate such risks, is prepared by the Investment Manager and
reviewed by the Audit and Management Engagement Committee at least twice a
year. The custodian, Bank of New York Mellon (International) Limited ("BNYM")
and the Investment Manager also produce internal controls reports on a
quarterly and annual basis respectively, which are reviewed by their respective
auditors and give assurance regarding the effective operation of controls.

Market risk - Market risk arises from volatility in the prices of the
Company's investments. It represents the potential loss the Company might
suffer through holding investments in the face of negative market movements.
The Board considers asset allocation, stock selection, unquoted investments and
levels of gearing on a regular basis and has set investment restrictions and
guidelines which are monitored and reported on by the Investment Manager. The
Board monitors the implementation and results of the investment process with
the Investment Manager.

Liquidity risk - Investments in the Company's portfolio are subject to
liquidity risk, particularly from any unquoted investments. The Company may
also invest in smaller capitalisation companies or the securities markets of
developing countries which are not as large as the more established securities
markets and have substantially less trading volume, which may result in a lack
of liquidity and higher price volatility.

Financial risk - The Company's investment activities expose it to a variety
of financial risks that include market price risk, foreign currency risk and
interest rate risk. These factors are taken into consideration by the Directors
when determining the valuation of unquoted holdings. Further details are
disclosed in note 19 of the annual report, together with a summary of the policies 
for managing these risks and liquidity and credit risks.

Sector risk - Changes in general economic and market conditions in the
different countries in which the business in which the Company may invest
operate, such as interest rates, exchange rates, rates of inflation, industry
conditions, competition, political events and trends, tax laws, national and
international conflicts, economic sanctions and other factors can substantially
and adversely affect the securities and, as a consequence the Company's
prospects and share price.

Third party risk - The Company has no employees and the Directors have all
been appointed on a non-executive basis. The Company must therefore rely upon
the performance of third party service providers to perform its executive
functions. In particular, the Investment Manager, the Administrator, the
Registrar, the Custodian and their respective delegates, if any, will perform
services that are integral to the Company's operations and financial
performance. Failure by any service provider to carry out its obligations to
the Company in accordance with the terms of its appointment, to exercise due
care and skill, or to perform its obligations to the Company at all as a result
of insolvency, bankruptcy or other causes could have a material adverse effect
on the Company's performance and returns to holders of Ordinary Shares. The
termination of the Company's relationship with any third party service provider
or any delay in appointing a replacement for such service provider, could
materially disrupt the business of the Company and could have a material
adverse effect on the Company's performance and returns to holders of Ordinary

Related party transactions

The Investment Manager is regarded as a related party and details of the 
investment management fees payable are set out in note 4.

The Board consists of four non-executive Directors, all of whom, with the
exception of Mr Ruck Keene who is an employee of the Investment Manager, are
considered to be independent by the Board. None of the Directors has a service
contract with the Company. For the year ended 30 November 2012, the Chairman
received an annual fee of £30,000, the Chairman of the Audit and Management
Engagement Committee received an annual fee of £23,000 and each of the other
Directors received an annual fee of £20,000. Mr Ruck Keene waived the
entitlement to his fees. With effect from 1 December 2012 the annual
remuneration of the Chairman was increased to £32,000, the Chairman of the
Audit and Management Engagement Committee to £24,000 and the other Directors to

Three members of the Board hold shares in the Company. Alan Hodson holds 150,000
ordinary shares, Humphrey van der Klugt holds 35,000 ordinary shares and
Jonathan Ruck Keene holds 14,000 ordinary shares. Michael Merton does not hold
any shares in the Company at this time.

Statement of Director's Responsibilities

In accordance with Disclosure and Transparency Rule 4.1.12, the Directors also
confirm to the best of their knowledge that:

• the financial statements, which have been prepared in accordance with IFRS as 
adopted by the European Union, give a true and fair view of the assets, liabilities, 
financial position and net profit/(loss) of the Company and the Group; and

• this Annual Report includes a fair review of the development and performance
of the business and the position of the Company and the Group, together with a
description of the principal risks and uncertainties that it faces.

For and on behalf of the Board of Directors
Alan Hodson
18 January 2013

Investment Manager's Report

The Investment Manager reports that for the year to 30 November 2012, the
Company's NAV returned -5.2% and the share price returned 0.8%. Over the same
period, the HSBC Global Mining and MSCI World Energy indices returned -12.1% and
-0.8% respectively. (All data are in sterling with dividends re-invested.)

Commodity Market Overview

The period under review began well, albeit off a low base and in the first
quarter of 2012, returns were looking promising. At this point, concerns about
the Eurozone's sovereign debt crisis had been moderated by the ECB's Long Term
Refinancing Operation, while US economic data points had surprised on the
upside - the "risk-on" trade was back. However, these gains were all given back
as concerns about global economic growth and the possibility of Greece exiting
the Euro weighed heavily on sentiment. Thus, by mid-year the returns were not
encouraging - all commodities and their related equities had fallen. A third
round of quantitative easing then provided some positive momentum for commodity
markets and towards the end of the period under review, data out of China
suggested that the economy was showing signs of improvement. Industrial
production and export data had strengthened providing investors with a degree
of comfort that the world's largest consumer of industrial commodities was not
going to suffer a hard landing. This supportive macro environment provided the
momentum for commodities to trend higher. The performance of commodity markets
is summarised in the following table.

Commodity                            30 November       30 November              
                                            2011              2012     % Change 
Base Metals (US$/tonne)                                                         
Aluminium                                  2,103             2,094        -0.4
Copper                                     7,860             7,979         1.5 
Lead                                       2,091             2,258         8.0 
Nickel                                    17,492            17,598         0.6 
Tin                                       20,875            21,862         4.7 
Zinc                                       2,073             2,029        -2.1 
Precious Metals (US$/oz)                                                        
Gold                                       1,746             1,718        -1.6 
Silver (USc/oz)                            3,135             3,428         9.3 
Platinum                                   1,558             1,612         3.5 
Palladium                                    620               685        10.5 

Oil (WTI) (US$/Bbl)(1)                     100.4              88.5       -11.9 
Oil (Brent) (US$/Bbl)(2)                   111.2             110.7        -0.4 
Natural Gas (US$/MMBTU)(3)                   3.5               3.4        -2.9 
Uranium (US$/lb)(4)                         52.3              41.8       -20.1 
Bulk Commodities (US$/tonne)                                                    
Iron ore(5)                                147.0             119.0       -19.0 
Coking coal(6)                             235.2             161.0       -31.5 
Thermal coal(7)                            112.0              90.9       -18.8 
Potash (US$/st)(8)                         533.0             505.0        -5.3 
Equity Indices                                                                  
HSBC Global Mining Index (US$)             590.9             515.2       -12.8 
HSBC Global Mining Index (£)               375.7             321.5       -14.4 
MSCI World Energy Index (US$)              242.0             237.4        -1.9 
MSCI World Energy Index (£)                153.9             148.1        -3.8 
1. West Texas Intermediate                                                      
2. Brent                                                                        
3. Henry Hub                                                                    
4. Nuexco Restricted, U3O8                                                      
5. CFR China (Bloomberg)                                                        
6. Spot HCC (Macquarie)                                                          
7. FOB Newcastle (Macquarie)                                                    
8. Standard Muriate, Saskatchewan                                               
Source: Datastream. All data are on a capital basis only.                       

Base metals, as measured by the MG Base Metal Price Index, gained 6.5% over the
year. One important development in the copper market has been the decline in
London Metal Exchange inventories, which have fallen 35.1%. At 30 November 2012
inventories stood at a very low level of 251,000 tonnes, representing just 5
days of global demand. This has kept the market tight in the face of weaker
demand and copper prices continue to trade at a significant premium to the
marginal cost of production. Our preferred base metal is copper and at the 
financial year-end the Company had 10.2% of gross assets invested in copper 
shares. Our investments include Freeport McMoran Copper & Gold, Southern Copper 
and Antofagasta. Some of the diversified miners, such as Teck Resources, also 
produce copper. Elsewhere, aluminium and zinc remain in supply surplus with 
inventories at multi-year highs.

In the bulk commodity markets, iron ore prices closed the period down by 19.0%.
Metallurgical coal - the other key steel making ingredient - has also been
weaker. Both commodities have been impacted by destocking by the Chinese steel
mills, as well as lower steel demand in Europe, India and the Middle East. In
August, prices suffered a severe drop to US$87/tonne (from a peak of around
US$200/tonne in early 2011), but quickly recovered as high cost Chinese production
was curtailed. The Company's diversified miners, such as Rio Tinto and BHP
Billiton have significant iron ore exposure. These producers operate quality
iron ore production in Western Australia, much of which feeds the Chinese steel
mills. These are low cost, high volume businesses and margins are protected by
a steep cost curve, where the high cost Chinese producers are usually quick to
shut-in production when prices drift back towards the US$110-120/tonne range. Kumba
Iron Ore, the South African producer, and Fortescue Metals, based in Western
Australia, are the Company's only pure-play iron ore companies. On 30 November
2012 the Company had 2.6% of gross assets invested in these producers.

In the precious metals sector, gold prices have been surprisingly disappointing
given all the concerns about the macro environment and a policy of monetary
easing adopted by many central banks. While these factors have buoyed
investment demand, jewellery demand from India - the world's top consumer - has
fallen. This is partly due to the weakness in the Rupee which has made imports
more expensive. Gold equities have been even more disappointing and have fallen
to a significant discount relative to bullion prices. During the period under
review, the FTSE Gold Mines Index fell 25.1% compared with a 1.6% decline in
the bullion price. This equity index traded at the same level when gold
prices were around US$1,100/oz. Consequently, we have been adding to the
portfolio's gold equity exposure on this weakness and the shares made up 6.3% of 
gross assets on 30 November 2012. Our gold equities include Kinross Gold, Eldorado
Gold, IAMGOLD and Barrick Gold. To increase the Company's gold weighting
further, put options were written in Yamana Gold and Barrick Gold. Freeport is
also a significant producer of the yellow metal at its world class Grasberg
copper-gold mine in Indonesia.

Elsewhere in the precious metals space, the Platinum Group Metal ("PGM") prices
have performed better. South Africa is the biggest producer of PGMs and supply
has been impacted by growing labour unrest in the country, which included the
tragic death of 10 miners at Lonmin's Marikana mine in Rustenburg. It is
estimated that around 340,000 ounces of platinum production has been lost,
reducing global supply to 7.6 million ounces. Gains in platinum prices might
have been higher were it not for the weakness in demand from the auto sector in
Europe. We have one PGM stock in the portfolio - Impala Platinum. Our exposure
to this stock reduced during the period in response to the ongoing social
issues in South Africa.

Oil prices moved higher early in 2012 as concerns about Iran's nuclear
intentions generated a supply-disruption premium in the market. Elsewhere,
supply-side risks in Syria, Sudan and Yemen were also supportive, along with
low OPEC spare capacity. Prices were then negatively impacted by a combination
of factors, including concerns about demand in Europe and Asia and rising
supply from OPEC and North America. While demand for oil has fallen, tightness
on the supply-side has kept prices buoyant, and volatile. Brent prices moved as
high as US$130/Bbl in March before falling back to US$90/Bbl in June. Prices
then recovered, in line with the industrial metals, to close the period at
US$111/Bbl. In October, Hurricane Sandy hit the eastern seaboard of the US,
causing widespread destruction of property. The storm also had an impact on the 
oil refining industry, forcing the shut-down of approximately 8% of capacity.

Japan has been a significant source of incremental oil demand over the last
eighteen months. After the Fukushima nuclear disaster in March 2011, Japan's
entire nuclear industry was effectively shut-in and even now only two of its 54
reactors are in operation. Oil and natural gas fired power capacity has had to
make up much of the power generation shortfall. The International Energy Agency
is forecasting that Japan's oil demand will have grown by an additional 4.1% in
2012 compared to 2011 as a result. Japan approved a new energy bill during the
period which formalised the country's intention to phase out nuclear power from
the energy mix. Before Fukushima, nuclear power was responsible for 30% of the
country's energy supply and the government now intends that renewable energy
will eventually assume that same share. In the meantime, however, Japan will
have to remain a key importer of oil and natural gas.

The spread between Brent and West Texas Intermediate ("WTI") has widened again
and stood at US$22/Bbl at 30 November 2012. The relative weakness in WTI, the
benchmark crude price in the US, reflects the fact that levels of storage at
Cushing in Oklahoma, the point of delivery for the NYMEX contract, hit a 30
year high during October. This inventory build is primarily due to the
sluggishness in the US economy and to the increase in oil production, in part
from unconventional oil shales. Brent oil prices, which are more representative
of global supply-demand dynamics, declined by just 0.4%, compared to an 11.9%
fall in WTI during the period.

In the US gas prices fell to US$1.82/MMBTU during the period, their lowest
level since November 2001. Temperatures over the winter period in the US were
unusually high, which dampened the demand for gas heating. These conditions
extended well into the first quarter of 2012. March, for example, was 4.5
degrees warmer than the previous warmest March on record. Prices then rallied
in a move driven in part by higher than expected coal to gas switching by the 
power utilities, which reduced the storage surplus. There has also been a 
cut-back in drilling activity in the US. At US$2.5/MMBTU only 30% of the 9.1 
billion cubic feet per day of new gas supply being drilled will yield a 10% 
rate of return on capital. By the end of the period under review, gas prices 
had recovered to US$3.46/MMBTU, still below the marginal cost of production.

One of the most important developments in commodity markets, which will have
profound long term implications for global energy markets, is the US shale oil
and gas boom. Reserves are vast and as a consequence of the favourable geology
and well developed infrastructure, technological developments have already
driven significant growth in US domestic oil and gas production. US oil
production has risen by 1 million barrels per day in the space of just two
years. Gas production has also risen and this is a key factor in depressing US
gas prices. In Asia, gas prices are several times higher than those in the US,
but there is no easy way to arbitrage this difference without huge investment
in liquefying gas and transporting it to market. In its recent World Energy
Outlook, the International Energy Agency estimates that North America could
become the world's largest energy producer by around 2020 and a net exporter of
oil by 2030. The Company has exposure to US shale through investments in
Southwestern Energy and Ultra Petroleum. Other companies that have also gained
exposure to US shale include Chevron, Total, Eni, BP and Statoil (all of which
are held in the portfolio). BHP Billiton also made an acquisition in 2011.

At 30 November 2012, more than half of the portfolio's energy exposure,
amounting to 31.4% of gross assets, was through investments in integrated oil
companies, including Exxon, Chevron, Total and Eni. Our key exploration and
production positions include Peyto E&D and Anadarko, while Schlumberger is the
portfolio's main oil services company. We have also added KBR to the portfolio
(using a put option writing strategy). The Company's positioning in the oil
services sector reflects our belief that strong oil prices combined with high
production decline rates from mature oil fields are encouraging an increase in
capital expenditure, which translates into additional contracts for oil service
companies. Further downstream, and therefore less leveraged to movements in oil
prices, we have an investment in Enbridge, a distribution company.

In commodity equity markets, the major corporate news during the period under
review was the merger between Glencore and Xstrata, the diversified mining (and
trading) companies. In November 2012, investors voted in favour of the deal
(without the management incentives). The deal is likely to close in early 2013
once all regulatory approvals are in place. While investors have generally held
a cautious view of mining equities, it is interesting to note that the same has
not always been true of debt investors. For the major companies low cost debt 
is readily available. In September, BHP Billiton priced €1.25 billion due 2020 at 
2.25% and €750 million due 2027 at 3.25%. These rates of interest are less than 
the equity dividend yield of the company.

One positive feature of the mining equities has been a greater focus on capital
discipline and shareholder returns. For example, BHP Billiton has postponed the
Outer Harbour project and Olympic Dam expansion and cancelled the Peak Downs
coking coal expansion. Meanwhile, dividend increases have continued, despite it
being an unremarkable year for commodity prices. Amongst the diversified
miners, BHP (+10.9%), Rio Tinto (+43.5%) and Teck Resources (+21.4%) all raised
their dividend payments. Teck has already announced a 12.5% dividend increase
for 2013.

During October, in the energy sector, Rosneft announced its intention to buy
TNK-BP from BP and AAR (a consortium of Russian tycoons) in a US$55 billion deal.
BP is set to receive US$12 billion in cash and an 18.5% stake in Rosneft in
exchange for its holding in TNK-BP. This transaction seemingly ends what has
been a tumultuous relationship for BP and, as well as receiving a meaningful
cash payment, allows them to retain an interest in the exploration of the
potentially oil rich Arctic region. Meanwhile, BG Group, a European energy
company with a focus on natural gas and liquefied natural gas, announced that
it expected no output growth in 2013 due to project delays and a scaling back
of activities in US shale gas (where pricing has made some activities
uneconomic). The market took this announcement negatively and at one point the
stock was down close to 20% on the day. We took advantage of the sell-off to
make the Company's first investment in BG Group.

Elsewhere, the Company's exposure to some of the fertilizer producers has
helped our performance during the period. Following the drought conditions in
the US, grain prices rose strongly and this benefited Agrium, a large producer
and distributor of fertilizer in North America. Following the stock's strong
performance, the Investment Manager wrote call options against the position. At
30 November 2012, the Company had 1.2% of gross assets invested in the
fertilizer sector.

Energy equities outperformed mining shares during the period under review. This, 
in the Investment Manager’s view, partly reflects the better performance of 
Brent oil relative to the bulk commodities, which are significant revenue 
contributors for some of the large diversified mining companies such as Vale 
and Rio Tinto. The poor performance of the gold equities was also a factor. 
During the period the portfolio had a higher weighting in the energy sector 
relative to the mining sector. This helped the Company’s performance relative 
to the composite benchmark.

Portfolio review

At 30 November 2012, the Company held 54 investments within the energy and
mining sectors. The Company's overweight position in energy reflects the 
Investment Manager's view that energy shares are (marginally) better value and 
higher yielding than mining equities.

The relative performance of mining and energy equities can be seen in the
tables below.

Asset Allocation - Geography

Global        32.2%
Canada        20.3%
USA           18.0%
Latin America  9.7%
Asia           6.9%
Europe         6.0%
Africa         3.8%
China          1.6%
Australia      1.5%

Source: BlackRock.

Asset Allocation - Commodity

Energy        57.9%
Mining        42.1%

Diversified   39.5%
Copper        24.2%
Gold          14.8%
Iron ore       6.3%
Aluminium      4.9%
Fertilizers    2.8%
Tin            2.6%
Nickel         1.7%
Platinum       1.7%
Zinc           1.5%

Integrated oil           54.4%
Exploration & production 24.8%
Oil services              8.0%
Oil sands                 6.8%
Distribution              3.3%
Coal                      2.7%

The Group generated £5.6 million of net revenue during the year. Dividend and
coupon payments from investee companies amounted to £4.7 million, or 71.2% of 
total revenue. This net revenue exceed the Company's dividend target of 5.75 
pence per share. Consequently, the fourth quarter dividend was raised bringing 
the total dividend to 5.90 pence per share. Group revenue reserves increased 
to £3.3 million. A full analysis of income and expenses is contained in the 
notes to the financial statements on pages 39 to 55 of the annual report.


While there are signs that the global economy is stabilising, uncertainties are
likely to persist in the short-term as the market remains focussed on
macro-economic issues such as the Eurozone debt crisis. In this environment,
investors have treated the commodity equities with some caution, especially the
mining shares. Consequently, they continue to trade at attractive valuations,
both in absolute terms and relative to their long term averages. The Company's 
investments are in good health operationally and balance sheets are stronger than
they have been for many years. Consequently, the equities are well positioned
to return more cash to shareholders by way of dividend payments.

Longer term, we remain optimistic about the prospects for commodity markets. In
the mining sector, urbanisation and industrialisation in China will continue to
be key drivers of demand growth for commodities. In the energy sector, demand
is also expected to grow, with China, India and the Middle East accounting for
a significant component of the increase. One of the key long term issues facing
commodity markets will be supply. We believe that supply growth, for some
commodities will remain constrained due to several factors including a lack of
exploration success; permitting and financing challenges; and rising capital
and operating costs. This will maintain upwards pressure of commodity prices,
which will benefit the Company's investments.

Richard Davis
18 January 2013

Ten Largest Investments
30 November 2012

ExxonMobil - 6.2% (2011: 5.0%, is the world's largest
publicly traded international oil and gas company and the largest refiner and
marketer of petroleum products.

Chevron - 5.7% (2011: 3.2%, is one of the world's leading
integrated energy companies engaged in every aspect of the oil, gas and power
generation industries. Chevron is one of the world's "supermajor" oil
companies, along with BP, Exxon, Shell and Total.

BHP Billiton - 5.2% (2011: 4.0%, is the world's largest
diversified natural resources company. The company is a major producer of
aluminium, iron ore, copper, thermal and metallurgical coal, manganese,
uranium, nickel, silver, titanium minerals and diamonds. The company also 
has significant interests in oil, gas and liquefied natural gas.

Rio Tinto - 4.6% (2011: 4.1%, is one of the world's leading
mining companies. The company produces aluminium, copper, diamonds, gold,
industrial minerals, iron ore and energy products.

Peyto Exploration & Development - 3.8% (2011: 3.8%, is an
explorer and producer of unconventional natural gas. The company's wells, gas
plants and pipelines are situated in the foothills of the Rockies in Alberta.

Freeport McMoRan Copper & Gold - 3.5% (2011: 1.9%, is the world's
largest publicly traded copper company. The company is also the world's largest
producer of molybdenum and a significant gold producer. The company's key asset
is the Grasberg mine in Indonesia, which is the world's largest copper and gold
mine in terms of recoverable reserves.

Total - 3.5% (2011: 3.8%, based in France, Total is one of the
world's largest international oil and gas companies with operations covering
the entire energy chain, from oil exploration and production to trading,
shipping and refining and marketing of petroleum products.

Southern Copper - 3.1% (2011: 1.1%, with operations in
Mexico and Peru, Southern Copper is a major producer of copper, molybdenum,
silver and zinc. Around 80% of Southern Copper is owned by Mexican mining
conglomerate Grupo Mexico.

Eni - 3.1% (2011: 2.1%, based in Italy, Eni is a major integrated
energy company with activities in exploration and production, refining and
marketing as well as power generation. Eni is also the leading player in the
European gas market. In the oil services sector, Eni owns a major stake in
Saipem, a leading turnkey contractor in the oil and gas industry.

Anadarko Petroleum - 3.0% (2011: 3.0%, is one of the largest
independent oil and gas exploration and production companies in the world. The
company is a leading deepwater producer in the Gulf of Mexico and has
production in Alaska, Algeria and Ghana. Anadarko owns key positions in US
onshore shales and has exploration activities in West Africa, Mozambique,
Kenya, South Africa, New Zealand and China.

All percentages reflect the value of the holding as a percentage of total
investments. For this purpose where more than one class of securities is held
these have been aggregated.

as at 30 November 2012
                                                Main       Market            % 
                                          geographic        value           of 
                                            exposure        £'000  investments 
Integrated Oil                                                                 
ExxonMobil                                    Global        7,143          6.2 
Chevron                                       Global        6,590          5.7 
Total                                         Global        3,997          3.5 
Eni                                           Europe        3,541          3.1 
BP                                            Global        3,345          2.9 
Occidental Petroleum                             USA        2,815          2.4 
Royal Dutch Shell                             Global        2,693          2.3 
Statoil                                       Europe        2,668          2.3 
ConocoPhillips                                   USA        1,953          1.7 
Hess                                             USA        1,145          1.0 
BG                                            Global          428          0.4 
Hess call option 19/01/13                        USA          (44)           - 
                                                         --------     -------- 
                                                           36,274         31.5 
                                                         --------     -------- 
Diversified Mining                                                             
BHP Billiton                                  Global        5,945          5.2 
Rio Tinto                                     Global        4,669          4.0 
Teck Resources                                Canada        2,941          2.5 
Vale                                   Latin America        2,832          2.5 
Xstrata                                       Global        1,365          1.2 
Rio Tinto Finance 8.95% 01/05/14*             Global          695          0.6 
Vedanta Resources                               Asia          493          0.4 
Glencore                                      Global          225          0.2 
Teck Resources put option 19/01/13            Canada          (40)           - 
                                                         --------     -------- 
                                                           19,125         16.6 
                                                         --------     -------- 
Energy Exploration & Production                                            
Peyto Exploration & Development               Canada        4,431          3.8 
Anadarko Petroleum                               USA        3,495          3.0 
Vermilion Energy                              Canada        2,210          1.9 
Crescent Point Energy Trust Units             Canada        2,207          1.9 
Noble Energy                                     USA        1,280          1.1 
Range Resources                                  USA        1,198          1.1 
Southwestern Energy                              USA        1,191          1.0 
Ultra Petroleum                                  USA          624          0.6 
Peyto Exploration & Development call  
option 19/01/13                               Canada          (49)           -
Devon Energy put option 19/01/13                 USA          (59)        (0.1)
                                                         --------     -------- 
                                                           16,528         14.3 
                                                         --------     -------- 
Freeport McMoRan Copper & Gold                  Asia        4,013          3.5 
Southern Copper                        Latin America        3,643          3.1 
Antofagasta                            Latin Amercia        2,846          2.5 
South Peru Copper                      Latin America          676          0.6 
Turquoise Hill                                  Asia          599          0.5 
Southern Copper call option 19/01/13   Latin America          (28)           - 
                                                         --------     -------- 
                                                           11,749         10.2 
                                                         --------     -------- 
Kinross                                       Canada        2,802          2.5 
Eldorado Gold                                   Asia        2,073          1.8 
IAMGOLD                                       Africa        1,399          1.2 
Barrick Gold                                  Canada        1,077          1.0 
Yamana Gold put option 19/01/13        Latin America          (69)        (0.1)
Barrick Gold put option 19/01/13              Canada          (82)        (0.1)
                                                         --------     -------- 
                                                            7,200          6.3 
                                                         --------     -------- 
Oil Services                                                                   
Schlumberger                                     USA        2,793          2.4 
KBR                                              USA        1,301          1.1 
Baker Hughes                                     USA        1,212          1.1 
                                                         --------     -------- 
                                                            5,306          4.6 
                                                         --------     -------- 
Oil Sands                                                                      
Suncor Energy                                 Canada        2,136          1.9 
Canadian Oil Sands                            Canada        1,266          1.1 
Cenovus Energy                                Canada        1,165          1.0 
Suncor Energy call option 19/01/13            Canada          (26)           - 
                                                         --------     -------- 
                                                            4,541          4.0 
                                                         --------     -------- 
Iron Ore                                                                       
Kumba Iron Ore                                Africa        2,178          1.9 
Fortescue Metals                           Australia          861          0.7 
                                                         --------     -------- 
                                                            3,039          2.6 
                                                         --------     --------  
Alcoa                                            USA        1,515          1.3 
Alumina                                    Australia          888          0.8 
                                                         --------     -------- 
                                                            2,403          2.1 
                                                         --------     -------- 
Enbridge Income Fund Trust                    Canada        2,185          1.9 
                                                         --------     -------- 
                                                            2,185          1.9 
                                                         --------     -------- 
China Shenhua Energy                           China        1,819          1.6 
                                                         --------     -------- 
                                                            1,819          1.6 
                                                         --------     -------- 
Potash Corporation of Saskatchewan            Canada        1,021          0.9 
Mosaic                                           USA          337          0.3 
                                                         --------     -------- 
                                                            1,358          1.2 
                                                         --------     -------- 
Minsur                                 Latin America        1,261          1.1 
                                                         --------     -------- 
                                                            1,261          1.1 
                                                         --------     -------- 
Vale Indonesia                                  Asia          810          0.7 
                                                         --------     -------- 
                                                              810          0.7 
                                                         --------     -------- 
Impala Platinum                               Africa          809          0.7 
                                                         --------     -------- 
                                                              809          0.7 
                                                         --------     -------- 
Nyrstar                                       Europe          711          0.6 
                                                         --------     -------- 
                                                              711          0.6 
                                                         --------     -------- 
Portfolio                                                 115,118        100.0 
                                                         ========     ======== 
* Fixed interest security.                                                     

 All investments are in ordinary shares unless otherwise stated.

The total number of holdings as at 30 November 2012 was 54 (30 November 2011: 57)

The total number of open options as at 30 November 2012 was 8 (30 November 2011: 3)

The negative valuations of £397,000 in respect of options held represent the
notional cost of repurchasing the contracts at market prices as at 30 November 2012.

Consolidated Statement of Comprehensive Income
for the year ended 30 November 2012

                               Revenue    Revenue    Capital    Capital      Total      Total 
                                  2012       2011       2012       2011       2012       2011 
                      Notes      £'000      £'000      £'000      £'000      £'000      £'000 
Income from          
investments held at                                                                           
fair value through                                                                            
profit or loss            3      4,724      4,625          -          -      4,724      4,625 
Other income              3      1,910      1,822          -          -      1,910      1,822 
                              --------   --------   --------   --------   --------   -------- 
Losses on investments 
held at fair value                                                                            
through profit or                                                                             
loss                                 -          -    (10,890)    (6,401)   (10,890)    (6,401)
                              --------   --------   --------   --------   --------   -------- 
Total Revenue                    6,634      6,447    (10,890)    (6,401)    (4,256)        46 
                              --------   --------   --------   --------   --------   -------- 
Investment management
fee                       4       (307)      (363)      (922)    (1,090)    (1,229)    (1,453)
Other expenses            5       (235)      (268)         -          -       (235)      (268)
                              --------   --------   --------   --------   --------   -------- 
Total operating 
expenses                          (542)      (631)      (922)    (1,090)    (1,464)    (1,721)
                              --------   --------   --------   --------   --------   -------- 
Profit/(loss) before 
finance costs and                                                                             
taxation                         6,092      5,816    (11,812)    (7,491)    (5,720)    (1,675)
                              --------   --------   --------   --------   --------   -------- 
Finance costs             6         (8)       (20)       (22)       (55)       (30)       (75)
                              --------   --------   --------   --------   --------   -------- 
Profit/(loss) before 
taxation                         6,084      5,796    (11,834)    (7,546)    (5,750)    (1,750)
                              --------   --------   --------   --------   --------   -------- 
Taxation (charge)/ 
credit                    7       (514)      (475)         3        125       (511)      (350)
                              --------   --------   --------   --------   --------   -------- 
Net profit/(loss) for
the year after                                                                                
taxation                         5,570      5,321    (11,831)    (7,421)    (6,261)    (2,100)
                              --------   --------   --------   --------   --------   -------- 
Earnings/(loss) per
ordinary share            9      6.10p      5.88p    (12.96p)    (8.20p)    (6.86p)    (2.32p)
                              ========   ========   ========   ========   ========   ======== 

The total column of this statement represents the Group's Consolidated
Statement of Comprehensive Income, prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European Union.

The supplementary revenue and capital columns are both prepared under guidance
published by the Association of Investment Companies ("AIC"). All items in the
above statement derive from continuing operations. No operations were acquired
or discontinued during the year. All income is attributable to the equity
holders of BlackRock Commodities Income Investment Trust plc. There were no
minority interests.

The total net loss of the Company and the Group for the year was £6,261,000
(2011: loss of £2,100,000).

The Group does not have any other recognised gains or losses. The net profit/
(loss) disclosed above represents the Group's total comprehensive income/

Statements of Changes in Equity
for the year ended 30 November 2012

                               Ordinary      Share                                             
                                  share    premium    Special    Capital    Revenue            
                                capital    account    reserve   reserves    reserve      Total 
Group                  Notes      £'000      £'000      £'000      £'000      £'000      £'000 
For the year ended 30                                                                          
November 2012                                                                                  
At 30 November 2011                 905     20,778     71,223     22,638      3,098    118,642 
Total comprehensive                                                                            
Net (loss)/profit for 
the year                              -          -          -    (11,831)     5,570     (6,261)
Transactions with                                                                              
owners, recorded                                                                               
directly to equity:                                                                            
Shares issued             10         38      4,658          -          -          -      4,696 
Share issue costs                     -         (7)         -          -          -         (7)
Dividends paid             8          -          -          -          -     (5,407)    (5,407)
                                    ---     ------     ------     ------      -----    -------
At 30 November 2012                 943     25,429     71,223     10,807      3,261    111,663 
                                    ===     ======     ======     ======      =====    ======= 
For the year ended 30                                                                          
November 2011                                                                                  
At 30 November 2010                 905     20,748     71,223     30,059      2,913    125,848 
Total comprehensive                                                                            
Net (loss)/profit for
the year                              -          -          -     (7,421)     5,321     (2,100)  
Transactions with                                                                              
owners, recorded                                                                               
directly to equity:                                                                            
Write back of issue 
costs                                 -         30          -          -          -         30 
Dividends paid             8          -          -          -          -     (5,136)    (5,136)
                                    ---     ------     ------     ------      -----    -------
At 30 November 2011                 905     20,778     71,223     22,638      3,098    118,642 
                                    ===     ======     ======     ======      =====    =======

                               Ordinary      Share                                             
                                  share    premium    Special    Capital    Revenue            
                                capital    account    reserve   reserves    reserve      Total 
Company                Notes      £'000      £'000      £'000      £'000      £'000      £'000 
For the year ended 30                                                                          
November 2012                                                                                  
At 30 November 2011                 905     20,778     71,223     24,196      1,540    118,642 
Total comprehensive                                                                            
Net (loss)/profit for 
the year                              -          -          -    (11,755)     5,494     (6,261)
Transactions with                                                                              
owners, recorded                                                                               
directly to equity:                                                                            
Shares issued             10         38      4,658          -          -          -      4,696 
Share issue costs                     -         (7)         -          -          -         (7)
Dividends paid             8          -          -          -          -     (5,407)    (5,407)
                                    ---     ------     ------     ------      -----    -------
At 30 November 2012                 943     25,429     71,223     12,441      1,627    111,663 
                                    ===     ======     ======     ======      =====    =======
For the year ended 
30 November 2011   
At 30 November 2010                 905     20,748     71,223     31,444      1,528    125,848 
Total comprehensive                                                                            
Net (loss)/profit for
the year                              -          -          -     (7,248)     5,148     (2,100)
Transactions with                                                                              
owners, recorded                                                                               
directly to equity:                                                                            
Write back of issue 
costs                                 -         30          -          -          -         30 
Dividends paid             8          -          -          -          -     (5,136)    (5,136)
                                    ---     ------     ------     ------      -----    -------
At 30 November 2011                 905     20,778     71,223     24,196      1,540    118,642 
                                    ===     ======     ======     ======      =====    =======

Statements of Financial Position
as at 30 November 2012
                                             2012       2012       2011       2011 
                                            Group    Company      Group    Company 
                                 Notes      £'000      £'000      £'000      £'000 
Non current assets                                                                 
Investments held at fair value 
through profit or loss                    115,118    116,752    120,961    122,519
                                          -------    -------    -------    ------- 
Current assets                                                                     
Other receivables                             654        654        354      1,577 
Cash and cash equivalents                      75         26          -         46 
                                          -------    -------    -------    -------
                                              729        680        354      1,623 
                                          -------    -------    -------    -------
Total assets                              115,847    117,432    121,315    124,142 
                                          -------    -------    -------    -------
Current liabilities                                                                
Other payables                               (951)      (656)      (557)      (431)
Bank overdraft                             (3,233)    (5,113)    (2,116)    (5,069)
                                          -------    -------    -------    -------
                                           (4,184)    (5,769)    (2,673)    (5,500)
                                          -------    -------    -------    -------
Net assets                                111,663    111,663    118,642    118,642 
                                          =======    =======    =======    ======= 
Equity attributable to equity                                                      
Ordinary share capital               10       943        943        905        905 
Share premium account                      25,429     25,429     20,778     20,778 
Special reserve                            71,223     71,223     71,223     71,223 
Capital reserves                           10,807     12,441     22,638     24,196 
Revenue reserve                             3,261      1,627      3,098      1,540 
                                          -------    -------    -------    ------- 
Total equity                              111,663    111,663    118,642    118,642 
                                          =======    =======    =======    ======= 
Net asset value per ordinary  
share                                9    118.47p    118.47p    131.08p    131.08p
                                          =======    =======    =======    ======= 
Cash Flow Statements
for the year ended 30 November 2012
                                             2012       2012       2011       2011 
                                            Group    Company      Group    Company 
                                  Note      £'000      £'000      £'000      £'000 
Operating activities                                                               
Loss before taxation                       (5,750)    (5,919)    (1,750)    (1,848)
Add back interest paid                         37         37         68         67 
Losses on investments held at     
fair value through profit or loss                                                  
including transaction costs                10,890     10,814      6,401      6,228 
(Increase)/decrease in other 
receivables                                   (15)     1,208         30     (1,193)
Increase/(decrease) in other 
payables                                      252        252       (520)      (520)
(Increase)/decrease in amounts 
due from brokers                             (266)      (266)     1,128      1,128 
Decrease in amounts due to 
brokers                                         -          -       (533)      (533)
Movements in investments held at  
fair value through profit or loss          (4,972)    (4,972)    (1,102)    (1,102)
                                           ------     ------     ------     ------ 
Net cash inflow from operating 
activities before interest and                                                     
taxation                                      176      1,154      3,722      2,227 
                                           ------     ------     ------     ------ 
Interest paid                                 (37)       (37)       (68)       (67)

Taxation (paid)/recovered                     (16)       (16)      (319)       119 
Taxation on investment income
included within gross income                 (372)      (372)      (394)      (394)
                                           ------     ------     ------     ------ 
Net cash (outflow)/inflow from 
operating activities                         (249)       729      2,941      1,885 
                                           ------     ------     ------     ------ 
Financing activities                                                               
Share issue costs paid                         (7)        (7)      (320)      (320)
Shares issued                               4,696      4,696          -          - 
Equity dividends paid                8     (5,407)    (5,407)    (5,136)    (5,136)
                                           ------     ------     ------     ------ 
Net cash outflow from financing
activities                                   (718)      (718)    (5,456)    (5,456)
                                           ------     ------     ------     ------ 
(Decrease)/increase in cash and
cash equivalents                             (967)        11     (2,515)    (3,571)
                                           ------     ------     ------     ------ 
Cash and cash equivalents at 
start of the year                          (2,116)    (5,023)       374     (1,477)
Effect of foreign exchange rate 
changes                                       (75)       (75)        25         25 
                                           ------     ------     ------     ------ 
Cash and cash equivalents at end 
of the year                                (3,158)    (5,087)    (2,116)    (5,023)
                                           ------     ------     ------     ------ 
Comprised of:                                                                      
Cash and cash equivalents                      75         26          -         46 
Bank overdraft                             (3,233)    (5,113)    (2,116)    (5,069)
                                           ------     ------     ------     ------ 
                                           (3,158)    (5,087)    (2,116)    (5,023)
                                           ======     ======     ======     ====== 

Notes to the Financial Statements

1. Principal activities

The principal activity of the Company is that of an investment trust company
within the meaning of section 1158 of the Corporation Tax Act 2010.

The principal activity of the subsidiary, BlackRock Commodities Securities
Income Company Limited, is investment dealing and options writing.

2. Accounting policies

The principal accounting policies adopted by the Group and the Company are set
out below.

(a) Basis of preparation

The Group and Parent Company financial statements have been prepared in
accordance with IFRS as adopted by the European Union and as applied in
accordance with the provisions of the Companies Act 2006. The Company has taken
advantage of the exemption provided under section 408 of the Companies Act 2006
not to publish its individual Statement of Comprehensive Income and related
notes. All of the Group's operations are of a continuing nature.

The Group's financial statements are presented in Sterling, which is the
currency of the primary economic environment in which the Group operates. All
values are rounded to the nearest thousand pounds (£'000) except when otherwise

Insofar as the Statement of Recommended Practice ("SORP") for investment trust
companies and venture capital trusts issued by the AIC, revised in January 2009
is compatible with IFRS, the financial statements have been prepared in
accordance with guidance set out in the SORP.

A number of new standards, amendments to standards and interpretations are
effective for annual periods beginning after 1 December 2012, and have not been
applied in preparing these financial statements. Few of these are expected to
have a significant effect on the measurement of the amounts recognised in the
financial statements of the Company. IFRS 9 "Financial Instruments" issued in
November 2009 will change the classification of financial assets, but is not
expected to have an impact on the measurement basis of the financial assets
since the majority of the Company's financial assets are measured at fair value
through profit or loss.

IFRS 9 (effective 1 January 2015) deals with classification and measurement of
financial assets and its requirements represent a significant change from the
existing requirements in IAS 39 in respect of financial assets. The standard
contains two primary measurement categories for financial assets: at amortised
cost and fair value. A financial asset would be measured at amortised cost if
it is held within a business model whose objective is to hold assets in order
to collect contractual cash flows, and the asset's contractual terms give rise
on specified dates to cash flows that are solely payments of principal and
interest on the principal outstanding. All other financial assets would be
measured at fair value. The standard eliminates the existing IAS 39 categories
of "held to maturity", "available for sale" and "loans" and "receivables".

IFRS 10 Consolidated Financial Statements (effective 1 January 2013)
establishes a single control model that applies to all entities including
special purpose entities. IFRS 11 Joint Arrangements (effective 1 January 2013)
removes the option to account for jointly controlled entities using
proportionate consolidation. IFRS 12 Disclosure of Involvement with Other
Entities (effective 1 January 2013) now requires additional disclosures that
relate to an entity's interests in subsidiaries, joint arrangements, associates
and structured entities.

IFRS 13 Fair Value Measurement (effective 1 January 2013) establishes a single
source of guidance under IFRS for all fair value measurements. It does not
change when an entity is required to use fair value, but rather provides
guidance on how to measure fair value under IFRS when fair value is required or
permitted. The Company is currently assessing the impact that this standard
will have on the financial position and performance.

The standards are effective for subsequent annual periods beginning on or after
1 January 2013 but are not yet approved by the EU. Earlier application is
permitted. The Company does not plan to adopt these standards early.

(b) Basis of consolidation

The Group's financial statements consolidate the financial statements of the
Company and its wholly owned subsidiary, which is registered and operates in
England and Wales, BlackRock Commodities Securities Income Company Limited.

(c) Presentation of the Consolidated Statement of Comprehensive Income

In order to reflect better the activities of an investment trust company and in
accordance with guidance issued by the AIC, supplementary information which
analyses the Consolidated Statement of Comprehensive Income between items of a
revenue and a capital nature has been presented alongside the Consolidated
Statement of Comprehensive Income. In accordance with the Company's status as
an investment trust under the previous provisions of section 1158 of the
Corporation Tax Act 2010, net capital returns may not be distributed by way of

(d) Segmental reporting

The Directors are of the opinion that the Group is engaged in a single segment
of business being investment business.

(e) Income

Dividends receivable on equity shares are treated as revenue for the year on an
ex-dividend basis. Where no ex-dividend date is available dividends receivable
on or before the year end are treated as revenue for the year. Provision is
made for any dividends not expected to be received. Special dividends, if any,
are treated as a capital or a revenue receipt depending on the facts or
circumstances of each particular case. The return on a debt security is
recognised on a time apportionment basis so as to reflect the effective yield
on the debt security.Interest income is accounted for on an accruals basis.
Premia on written options are recognised as income.

(f) Expenses

All expenses, including finance costs, are accounted for on an accruals basis.
Expenses have been charged wholly to the revenue column of the Consolidated
Statement of Comprehensive Income except as follows:

- expenses which are incidental to the acquisition of an investment are
included within the cost of the investment. Details of transaction costs on the
purchases and sales of investments are disclosed in note 10 of the annual report;

- expenses are treated as capital where a connection with the maintenance or
enhancement of the value of the investments can be demonstrated; and

- the investment management fees and finance costs of borrowing borne by the
Company have been allocated 75% to the capital column and 25% to the revenue
column of the Consolidated Statement of Comprehensive Income in line with the
Board's expectations of the long term split of return, in the form of capital
gains and income respectively, from the investment portfolio.

(g) Taxation

Deferred taxation is recognised in respect of all temporary differences that
have originated but not reversed at the financial reporting date, where
transactions or events that result in an obligation to pay more taxation in the
future or right to pay less taxation in the future have occurred at the
financial reporting date. This is subject to deferred taxation assets only
being recognised if it is considered more likely than not that there will be
suitable profits from which the future reversal of the temporary differences
can be deducted. Deferred taxation assets and liabilities are measured at the
rates applicable to the legal jurisdictions in which they arise.

(h) Investments held at fair value through profit or loss

The Company's investments are classified as held at fair value through profit
or loss in accordance with IAS 39 "Financial Instruments: Recognition and
Measurement" and are managed and evaluated on a fair value basis in accordance
with its investment strategy.

All investments are initially recognised as held at fair value through profit
and loss. Purchases of investments are recognised on a trade date basis. The
sales of investments are recognised at the trade date of the disposal. Proceeds
are measured at fair value, which is regarded as the proceeds of sale less any
transaction costs.

The fair value of financial instruments is based on their quoted bid price at
the financial reporting date, without deduction for any estimated future
selling costs. Unquoted investments are valued by the Directors at fair value
using International Private Equity and Venture Capital Association Guidelines.
This policy applies to all current and non current asset investments held by
the Group.

Changes in the value of investments held at fair value through profit or loss
and gains and losses on disposal are recognised in the Consolidated Statement
of Comprehensive Income as "Gains or losses on investments held at fair value
through profit or loss". Also included within this heading are transaction
costs in relation to the purchase or sale of investments.

Under IFRS, the investment in the trading subsidiary is carried at fair value
which is deemed to be the total equity of the subsidiary.

(i) Other receivables and other payables

Other receivables and other payables do not carry any interest and are short
term in nature and are accordingly stated at their nominal value.

(j) Dividends payable

Under IFRS interim dividends are recognised when paid to shareholders. Final
dividends, if any, are only recognised after they have been approved by

(k) Foreign currency translation

Transactions involving foreign currencies are converted at the rate ruling at
the date of the transaction.

Foreign currency monetary assets and liabilities are translated into Sterling
at the rate ruling on the financial reporting date. Foreign exchange
differences arising on translation are recognised in the Consolidated Statement
of Comprehensive Income as a revenue or capital item depending on the income or
expense to which they relate.

(l) Cash and cash equivalents

Cash comprises cash in hand and on demand deposits. Cash equivalents are short
term, highly liquid investments that are readily convertible to known amounts
of cash and that are subject to an insignificant risk of changes in value.

(m) Bank borrowings

Bank overdrafts are recorded as the proceeds received. Finance charges are
accounted for on an accruals basis in the Consolidated Statement of
Comprehensive Income using the effective interest rate method and are added to
the carrying amount of the instruments to the extent that they are not settled
in the period in which they arise.

3. Income

                                                                 2012       2011 
                                                                £'000      £'000 
Investment Income:                                                               
Overseas listed dividends                                       3,979      3,962 
Fixed interest                                                    152        321 
UK listed dividends                                               593        342 
                                                                -----      ----- 
                                                                4,724      4,625 
                                                                -----      ----- 
Other operating income:                                                          
Deposit interest                                                    3          - 
Underwriting commission                                            13          - 
Option premium income                                           1,894      1,822 
                                                                -----      ----- 
                                                                1,910      1,822 
                                                                -----      ----- 
Total                                                           6,634      6,447 
                                                                =====      ===== 

Option premium income is stated after deducting transaction costs incurred on
the purchases and sales of investments.

4. Investment management fee

                                     2012                      2011           
                           Revenue  Capital   Total  Revenue  Capital   Total 
                             £'000    £'000   £'000    £'000    £'000   £'000 
Investment management fee      307      922   1,229      363    1,090   1,453 
                              ====     ====   =====     ====    =====   =====

Details of the investment management contract are disclosed in the Directors'
Report on page 20 of the annual report. The investment management fee is levied
at a rate of 1.1% of gross assets per annum based on the gross assets on the
last day of each quarter and is allocated 25% to the revenue column and 75% to
the capital column of the Consolidated Statement of Comprehensive Income. The
investment management fee is levied quarterly, based on the gross assets on the
last day of each quarter, and is charged 25% to the revenue column and 75% to
the capital column of the Consolidated Statement of Comprehensive Income.

5. Other expenses
                                                                 2012       2011 
                                                                £'000      £'000 
Custody fee                                                        18         24 
Auditor's remuneration:                                                          
- audit services                                                   24         24 
- other services                                                    6          5 
Directors' emoluments                                              79         85 
Registrar's fee                                                    25         33 
Other administrative costs                                         83         97 
                                                                  ---        --- 
                                                                  235        268 
                                                                  ===        === 
The Company's ongoing charges, calculated as a percentage 
of average net assets and using expenses, excluding any                          
interest costs and excluding taxation, was:                      1.3%       1.3% 
The Company's ongoing charges, calculated as a percentage 
of average net assets and using expenses, excluding any                          
interest costs and including taxation, was:                      1.7%       1.6% 
                                                                 ====       ====

Fees paid to the Auditor for other services comprise £6,000 (2011: £5,500)
relating to the review of the half yearly financial statements.

6. Finance costs

                                     2012                      2011           
                           Revenue  Capital   Total  Revenue  Capital   Total 
                             £'000    £'000   £'000    £'000    £'000   £'000 
Interest on bank 
overdrafts                       8       22      30       20       55      75 
                              ====     ====   =====     ====    =====   =====

Finance costs are charged 25% to the revenue column and 75% to the capital
column of the Consolidated Statement of Comprehensive Income.

7. Taxation

a) Analysis of charge for the year
                                    2012                             2011               
                         Revenue    Capital      Total    Revenue    Capital      Total 
                           £'000      £'000      £'000      £'000      £'000      £'000 
Current taxation:                                                                       
Corporation taxation         169          -        169        126          -        126 
Overseas taxation            345          -        345        383          -        383 
Prior year adjustment          -          -          -        (29)         -        (29)
                             ---        ---        ---        ---        ---        --- 
Total current taxation       514          -        514        480          -        480 
                             ===        ===        ===        ===        ===        === 
Deferred taxation              -         (3)        (3)        (5)      (125)      (130)
                             ---        ---        ---        ---        ---        --- 
Total taxation charge/  
(credit) (note 7b)           514         (3)       511        475       (125)       350
                             ===        ===        ===        ===        ===        === 

b) Factors affecting current taxation charge for the year

The taxation assessed for the year is lower than the standard rate of
corporation taxation in the UK for a large company of 24.67% (2011: 26.66%).
The differences are explained below:

                                                       2012       2012       2012 
                                                    Revenue    Capital      Total 
                                                      £'000      £'000      £'000 
Total profit/(loss) on ordinary activities before 
taxation                                              6,084    (11,834)    (5,750)
                                                      -----     ------      ----- 
Profit/(loss) on ordinary activities multiplied 
by standard rate of corporation taxation 24.67%       1,501     (2,919)    (1,418)
                                                      -----     ------      ----- 
Effects of:                                                                       
Non taxable capital loss                                  -      2,686      2,686 
Taxation effect of allowable expenses in capital       (233)       233          - 
UK dividends                                           (146)         -       (146)
Non taxable overseas dividends                         (947)         -       (947)
Expense relief for overseas taxation                     (5)         -         (5)
Marginal relief                                          (1)         -         (1)
Provision for Peruvian capital gains taxation             -         (3)        (3)
Overseas taxation charge                                345          -        345 
                                                      -----     ------      ----- 
                                                       (987)     2,916      1,929 
                                                      -----     ------      ----- 
Total corporation taxation charge/(credit) for  
the year (note 7a)                                      514         (3)       511
                                                      =====     ======      ===== 

                                                       2011       2011       2011 
                                                    Revenue    Capital      Total 
                                                      £'000      £'000      £'000 
Total profit/(loss) on ordinary activities before     5,796     (7,546)    (1,750)
                                                      -----     ------      ----- 
Profit/(loss) on ordinary activities multiplied 
by standard rate of corporation taxation 26.66%       1,545     (2,012)      (467)
                                                      -----     ------      ----- 
Effects of:                                                                       
Non taxable capital loss                                  -      1,707      1,707 
Taxation effect of allowable expenses in capital       (305)       305          - 
Prior year adjustment                                   (29)         -        (29)
UK dividends                                            (91)         -        (91)
Non taxable overseas dividends                       (1,021)         -     (1,021)
Effect of income taxable in different periods             3          -          3 
Expense relief for overseas taxation                     (6)         -         (6)
Marginal relief                                          (4)         -         (4)
Provision for Peruvian capital gains taxation             -          3          3 
Reversal of deferred taxation provision                   -       (128)      (128)
Overseas taxation charge                                383          -        383 
                                                      -----     ------      ----- 
                                                     (1,070)     1,887        817 
                                                      -----     ------      ----- 
Total corporation taxation charge for the year 
(note 7a)                                               475       (125)       350 
                                                      =====     ======      ===== 

Investment trusts are exempt from corporation taxation on capital gains
provided the Company obtains agreement from HM Revenue & Customs that the tests
outlined in Chapter 4 of Part 24 of the Corporation Tax Act 2010 have been met.

Due to the Company's intention to meet the conditional requirement to obtain
approval under section 1158 of the Corporation Tax Act 2010 it has not provided
for taxation on any capital gains.

8. Dividends

Under IFRS final dividends, if any, are not recognised until approved by
shareholders, and special and interim dividends are not recognised until they
are paid. They are also debited directly to reserves. The dividends disclosed
in the table below have been considered in view of the requirements of section
1158 of the Corporation Tax Act 2010 and section 833 of the Companies Act 2006,
and the amounts declared meet the relevant requirements. Amounts recognised as
distributions to ordinary shareholders during the year to 30 November 2012 were
as follows:

                                                                 2012       2011 
                                                                £'000      £'000 
Fourth interim dividend for the year ended 30 November 2011  
- 1.55p (2010: 1.475p)                                          1,403      1,335
First interim dividend for the year ended 30 November 2012 
- 1.4375p (2011: 1.40p)                                         1,316      1,267
Second interim dividend for the year ended 30 November 2012 
- 1.4375p (2011: 1.40p)                                         1,344      1,267 
Third interim dividend for the year ended 30 November 2012  
- 1.4375p (2011: 1.40p)                                         1,344      1,267
                                                                -----      ----- 
                                                                5,407      5,136 
                                                                =====      ===== 

For the year ended 30 November 2012, a fourth interim dividend of 1.5875p
(2011: 1.55p) per ordinary share has been declared and will be paid on 24
January 2013, to shareholders on the Company's register on 21 December 2012.

The total dividends payable in respect of the year which form the basis of
section 1158 of the Corporation Tax Act 2010 are set out below:

                                                                 2012       2011 
                                                                £'000      £'000 
First interim dividend paid on 21 April 2012 of 1.4375p  
(2011: 1.40p)                                                   1,316      1,267
Second interim dividend paid on 22 July 2012 of 1.4375p
(2011: 1.40p)                                                   1,344      1,267 
Third interim dividend paid on 21 October 2012 of 1.4375p
(2011: 1.40p)                                                   1,344      1,267 
Fourth interim dividend payable on 24 January 2013 of 
1.5875p (2012: 1.55p)                                           1,496      1,403
                                                                -----      ----- 
                                                                5,500      5,204 
                                                                =====      ===== 

9. Consolidated earnings and net asset value per ordinary share

Revenue and capital earnings per share are shown below and have been calculated
using the following:

                                                                2012        2011 
Net revenue profit attributable to ordinary shareholders 
(£'000)                                                        5,570       5,321
Net capital loss attributable to ordinary shareholders 
(£'000)                                                      (11,831)     (7,421)
                                                             -------     ------- 
Total loss attributable to ordinary shareholders (£'000)      (6,261)     (2,100)
                                                             =======     ======= 
Equity shareholders' funds (£'000)                           111,663     118,642 
                                                             =======     ======= 
The weighted average number of ordinary shares in issue
during each period, on which the return per ordinary                             
share was calculated was:                                 91,308,022  90,508,000 
The actual number of ordinary shares in issue at the year
end, on which the net asset value was calculated was:     94,258,000  90,508,000 
The number of ordinary shares in issue including treasury 
shares at the year end was:                               94,258,000  90,508,000 
                                                          ----------  ---------- 
Revenue earnings per share                                     6.10p       5.88p 
Capital earnings per share                                   (12.96p)     (8.20p)
                                                             -------     ------- 
Total earnings per share                                      (6.86p)     (2.32p)
                                                             -------     ------- 
Net asset value per share                                    118.47p     131.08p 
Share price (mid-market)                                     122.75p     127.75p 
                                                             =======     ======= 

10. Share capital
                                         Ordinary   Treasury       Total    Nominal 
                                           shares     shares      shares      value 
                                           number     number      number      £'000 
Allotted, called up and fully paid                                                  
share capital comprised:                                                            
Ordinary shares of 1p each                                                          
                                       ----------   --------  ----------   -------- 
Shares in issue at 30 November 2011    90,508,000          -  90,508,000        905 
                                       ----------   --------  ----------   -------- 
Shares issued                           3,750,000          -   3,750,000         38 
                                       ----------   --------  ----------   -------- 
At 30 November 2012                    94,258,000          -  94,258,000        943 
                                       ==========   ========  ==========   ======== 

The number of ordinary shares in issue at the year end was 94,258,000 of which
none were held in treasury (2011: nil).

The ordinary shares carry the right to receive any dividends and have one
voting right per ordinary share. There are no restrictions on the voting rights
of the ordinary shares or on the transfer of the ordinary shares.

11. Publication of non-statutory accounts

The financial information contained in this announcement does not constitute
statutory accounts as defined in the Companies Act 2006. The 2012 annual report
and financial statements will be filed with the Registrar of Companies shortly.

The report of the Auditor for the year ended 30 November 2012 contains no
qualification or statement under section 498(2) or (3) of the Companies Act

The comparative figures are extracts from the audited financial statements of
BlackRock Commodities Income Investment Trust plc and its subsidiary for the
year ended 30 November 2011, which have been filed with the Registrar of
Companies. The report of the Auditor on those accounts contained no
qualification or statement under section 498 of the Companies Act.

This announcement was approved by the Board of Directors on 18 January 2013.

12. Annual Report

Members will be notified that the annual report is available shortly or if a
hard copy has been requested this will be sent shortly. It will also be
available from the registered office, c/o The Company Secretary, BlackRock
Commodities Income Investment Trust plc, 12 Throgmorton Avenue, London EC2N

13. Annual General Meeting

The Annual General Meeting of the Company will be held at 12 Throgmorton
Avenue, London EC2N 2DL on Friday, 8 March 2013 at 10:30 a.m.


The Annual Report will also be available on the BlackRock Investment Management
website at
blackrock-commodities-income-investment-trust-plc-annual-report.pdf. 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.

For further information, please contact:

Jonathan Ruck Keene, Chairman, Specialist Client Group, BlackRock Investment
Management (UK) Limited
Tel: 020 7743 2178

Richard Davis, Natural Resources Team, BlackRock Investment Management (UK)
Tel: 020 7743 2668

Emma Phillips, Media & Communication, BlackRock Investment Management (UK)
Tel: 020 7743 2922

18 January 2013
12 Throgmorton Avenue
London EC2N 2DL


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Final Results - RNS