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Half-year Report

Released 16:16 10-Aug-2017

Half-year Report

BlackRock World Mining Trust plc

Half Yearly Financial Report 30 June 2017

FINANCIAL HIGHLIGHTS
as at 30 June 2017

Attributable to ordinary shareholders 30 June 
2017 
(unaudited) 
31 December 
2016 
(audited) 


change 
Assets
Net assets (£'000) 656,149  677,546  (3.2)
Net asset value per ordinary share 371.85p  383.98p  (3.2)
– with income reinvested on a total return basis (0.3)
Ordinary share price (mid-market) 333.50p  336.50p  (0.9)
– with income reinvested on a total return basis 2.5 
Euromoney Global Mining Index - total return 493.29  496.61  (0.7)
 --------   -------- 
Discount to net asset value 10.3%  12.4% 
 =======   ======= 

   

For the 
six months 
ended 
30 June 2017 
(unaudited) 
For the 
six months 
ended 
30 June 2016 
(unaudited) 




change 
Revenue
Net revenue return after taxation (£'000) 14,788  11,519  28.4 
Revenue return per ordinary share 8.38p  6.51p  28.7 
Dividend per ordinary share
– 1st quarterly interim 3.00p  0.00p 
– 2nd quarterly interim/2016 interim 3.00p  4.00p 
 --------   --------   -------- 
Total dividends paid and payable 6.00p  4.00p  50.0 
 =======   =======   ======= 

CHAIRMAN’S STATEMENT

OVERVIEW

As mentioned at this year’s Annual General Meeting, performance in 2017 was unlikely to match that achieved in 2016 and, whilst the year has begun on a positive note, it is no surprise that returns in the mining sector have been more subdued during the first half of this year. The cyclical recovery in the mining sector continues with balance sheets largely repaired and the industry now generating strong cash flow, with a focus on increasing returns to shareholders. China’s economy has continued to outperform expectations with apparent steel demand reaching new highs and positive global growth raising the prospect of broader reflation across markets. Tightening measures imposed by the Chinese government towards the end of the period saw commodity and share prices give up much of their early gains, at odds with the positive tone we have seen across the space.

Over the six months to 30 June 2017, the Company’s net asset value (NAV) decreased by 0.3% and the share price increased by 2.5% (both calculated in sterling terms with income reinvested on a total return basis). During the same period, the Company’s benchmark, the Euromoney Global Mining Index, fell by 0.7%. Further information on the Company’s performance is set out in the Investment Manager’s Report.

In the period since 30 June 2017 and up to the close of business on 9 August 2017, the Company’s NAV has increased by 12.0% compared to a rise of 12.1% in the benchmark index.

REVENUE RETURN AND DIVIDENDS

The Company’s net revenue earnings for the six month period to 30 June 2017 amounted to 8.38p per share (six months to 30 June 2016: 6.51p). As mentioned in the Annual Report, the Board has increased the frequency of dividend payments from twice to four times a year. The Board declared a quarterly interim dividend of 3.00p per share on 4 May 2017, with a record date of 2 June 2017 and payment date of 30 June 2017. Today, the Board announces a second quarterly interim dividend of 3.00p per share which will be paid on 15 September 2017 to shareholders on the register on 18 August 2017, the ex-dividend date being 17 August 2017.

DISCOUNT

The discount of the Company’s share price to the underlying NAV per share finished the period under review at 10.3% on a cum income basis having stood at 12.4% at the start of the year. At the close of business on 9 August 2017, the Company’s shares were trading at a discount of 10.2%.

The Directors recognise the importance to shareholders that the market price of the Company’s shares in the stock market should not trade at a significant discount to the underlying NAV and the decision as to whether to purchase the Company’s shares is addressed regularly in Board discussions. During the period under review, and up to the date of this report, the Company has not repurchased any shares.

UNQUOTED INVESTMENTS

At the end of the period, the Company held both a royalty contract with Avanco Resources (2.5% of the portfolio) as well as an investment in Avanco Resources Limited shares (1.8% of the portfolio). Regular discussions take place with the Investment Manager regarding the size of holding in the context of the guidelines for unquoted investments. Board approval will continue to be required for all future royalty/unquoted investments.

ENVIRONMENT, SOCIAL AND CORPORATE GOVERNANCE (ESG)

The Company invests in mining companies around the world primarily on financial grounds to meets its stated objectives. The Board believes that it is important to invest in companies whose boards act responsibly in respect of ESG issues, although this does not drive the investment process.

The Company’s assets are managed by BlackRock and the Natural Resources team works closely with BlackRock’s Investment Stewardship team to engage with portfolio companies in respect of ESG issues. As a Board, we receive regular updates with regard to ESG, including the Company’s ESG score relative to the benchmark and a breakdown of portfolio companies’ individual scores, which is useful to highlight companies where engagement is necessary. The Natural Resources team has an industry ESG risk matrix which assists their research process. The industry risks, together with their related issues, impact and risk assessment cover climate change, supply chain & sourcing, water, political risk, safety incidents and land use. All portfolios are screened against the UN Global Compact Principles and any breaches or controversies will result in direct dialogue with companies to better understand actions taken and to assess progress in addressing those controversies.

OUTLOOK

After the difficulties of the last few years it is pleasing to see capital discipline now in place across much of the mining sector. The combination of this with healthy margins, strong balance sheets and the prospect of increasing cash returns to shareholders makes us feel positive about the outlook for the Company. The sell-off in the sector was at odds with the fundamentals and we can only put this down to investors still questioning whether management teams will remain disciplined in the way they allocate capital. Sizeable increases in dividends announced by the Company’s major holdings paves the way for the doubters to refresh their views and, if the cash returns continue, then the industry could see a rerating in share prices over time.

As outlined last year, the Company has increasingly moved away from backing pure commodity themes, instead identifying value via a wide range of themes such as resource replenishment, deleveraging, growth and early stage opportunities. Successful execution of this strategy will come over time and, with an increasing part of the portfolio allocated towards this, and away from income, it could limit the potential for revenue growth. However, we feel that the overall strategy should continue to deliver a premium yield to the sector, in addition to the potential for high capital returns from these longer dated investments.

Ian Cockerill
10 August 2017

INTERIM MANAGEMENT REPORT AND RESPONSIBILITY STATEMENT

The Chairman’s Statement and the Investment Manager’s Report give details of the important events which have occurred during the period and their impact on the financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks faced by the Company can be divided into various areas as follows:

The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended 31 December 2016. A detailed explanation can be found in the Strategic Report on pages 10 and 11 and note 18 on pages 64 to 76 of the Annual Report and Financial Statements which is available on the website maintained by BlackRock, at www.blackrock.co.uk/brwm.

In the view of the Board, there have not been any other changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.

GOING CONCERN

The Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective and the Company’s projected income and expenditure, are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and is financially sound. For this reason, they continue to adopt the going concern basis in preparing the financial statements. The Company has a portfolio of investments which are readily realisable and is able to meet all of its liabilities from its assets and income generated from these assets.

RELATED PARTY DISCLOSURE AND TRANSACTIONS WITH THE AIFM AND INVESTMENT MANAGER

BlackRock Fund Managers Limited (BFM) was appointed as the Company’s Alternative Investment Fund Manager (AIFM) with effect from 2 July 2014. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (BIM UK). Both BFM and BIM (UK) are regarded as related parties under the Listing Rules. Details of the management and marketing fees payable are set out in note 4 and note 11.

The related party transactions with the Directors are set out in note 12.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Disclosure and Transparency Rules (DTR) of the UK Listing Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Interim Management Report and Financial Statements.

The Directors confirm to the best of their knowledge that:

This half yearly financial report has been reviewed by the Company’s auditors and their report forms part of this announcement.

The half yearly financial report was approved by the Board on 10 August 2017 and the above responsibility statement was signed on its behalf by the Chairman.

Ian Cockerill
For and on behalf of the Board
10 August 2017

INVESTMENT MANAGER’S REPORT

The first half of 2016 marked a huge turnaround for mining shares as they rose sharply from multi year lows. After such a significant rally it is no surprise that gains have been less spectacular in the first half of 2017. For the period under review, the sector finished down 0.7% but this masks the significant intra period volatility which had at one point seen the sector up 16.5% by mid-February followed by a reversal of these gains into negative territory by the start of May. Since then there has been a healthy recovery which has continued into August.

Our approach during the period has been consistent with the strategy set out last year. The key themes of deleveraging/free cash flow, resource replenishment, quality bias and growth, have all helped to deliver a small outperformance compared to the benchmark in the first half. Over the period, the NAV of the Company is down by 0.3% versus a fall of 0.7% in the benchmark. It is pleasing to note the strong performance of the Company on a relative basis despite the volatility within the sector, with the Company up by 22.5% versus the benchmark up by 19.4% over the one year period to end June 2017.

All returns are in sterling terms and on a total return basis.

REBUILDING SHAREHOLDER CONFIDENCE

The start of 2017 followed on from the positive momentum seen in 2016 with significant gains across the breadth of the equity and commodity landscape. Key to the upwards moves was the prospect of improving GDP growth across the world and promises from President Trump around tax reform, capital spending and domestic job creation. In Europe, fears of regime change, on the back of election results, faded as Wilders lost in Holland and Macron defeated Le Pen in France. Investors took comfort from the results boosting the outlook for growth even further. Growth in China has continued ahead of expectations. Internal reforms designed to improve the quality of lending, as well as the removal of inefficient capacity from the economy, look set to help raise the quality of growth in the medium term. Overall, the combination of these events boosted the prospect of reflation and equity sectors associated with this, such as mining companies, significantly outperformed the broader market for the first few months of the year. Given the significance of the gains, and a fade in enthusiasm for Trump related change, it was not long before investors took profits which in turn caused the mining sector to give back all of the gains by the end of June.

At the corporate level, mining companies continued to follow strategies outlined in 2016 and key to this was repairing balance sheets through cutting both costs and capital expenditure. By the end of 2016 the combination of these actions (as well as raising capital through asset sales) with generally rising commodity prices meant that most companies were ahead of plan and faced a decision on what to do with surplus cash. In the last Annual Report, we highlighted that most management teams were seeking to rebuild investor confidence by limiting reinvestment into growth and returning surplus cash. We are pleased to say that at the time of writing this has continued, and looking at the Company’s results, there is a clear 55% increase in revenue from ordinary dividends in the period versus the first half of 2016 which points to improving profitability within the sector.

Outside of the core commodities that are traditionally part of the portfolio sit the industrial minerals and within this are those now used in battery applications. Demand for batteries looks set to increase substantially during the next decade as auto manufacturers gradually replace the internal combustion engine with either hybrid or pure electric vehicles. The current incumbent technology is dominated by lithium-ion batteries and supplies of the materials used in these batteries look set to benefit from demand growth rates well above those seen in other commodities. Miners who produce lithium, cobalt, vanadium and graphite have all seen interest in their shares surge as the theme has become increasingly fashionable. The Company has been selectively adding exposure to this area over the last few years and now has a range of investments, details of which are covered later in this report.

Backing up the increase in share prices has been the strength in commodity prices. Average prices for the first half of 2017 are substantially better than those seen last year (as can be seen in the table) and of particular note is the rebasing of prices for copper, zinc and the bulk commodities. With company results due shortly, we are optimistic that the improved pricing should lead to better margins and hopefully an increase in shareholder income.




Commodity 


Price 
30 June 2017 


change 
YTD in 1H 2017 
% change 
average price 
1H2017 vs 
1H2016 
Lithium (Battery Grade China) 20,567  14.7%  -24.2% 
Lead US$/lb 1.03  13.7%  28.0% 
Aluminium US$/lb 0.87  12.3%  21.2% 
Zinc US$/lb 1.25  7.6%  49.1% 
Gold US$/oz 1243.47  7.4%  1.6% 
Copper US$/lb 2.69  7.3%  22.0% 
Silver US$/oz 16.63  3.6%  9.1% 
Platinum US$/oz 922.00  2.7%  0.0% 
Uranium US$/lb 20.1  -0.7%  -24.2% 
Tin US$/lb 9.18  -4.6%  23.3% 
Nickel US$/lb 4.24  -6.2%  12.6% 
Thermal Coal (Newcastle) US$/t 77.7  -18.0%  58.2% 
Iron Ore (China 62% fines) US$/t 63.9  -19.9%  43.2% 
Met Coal US$/t 159.5  -29.1%  107.0% 

Source: Datastream.

BASE METALS

Base metal prices continued their run during the first half of 2017, with global restocking and improved fundamentals seeing all metals (except nickel) trade higher. The consequence of underinvestment over the last five years is now beginning to be felt in commodity markets and we feel that this is supportive for prices at current levels and leaves room for moves higher if companies continue to be disciplined.

Supply side disruptions have dominated the copper market during the first half of the year, with the world’s top three mines (10% of global supply) out, or down simultaneously, at one stage. While production has resumed at Escondida and Cerro Verde, strikes and discussions continue around the still unresolved Contract of Work at Freeport’s Indonesian Grasberg operation. We see a broadly stable copper market over the next few years, but retain our longstanding view that the market looks set to tighten beyond 2019 on falling Chilean mine supply driven by grade decline. The Company has 20% of the portfolio exposed to pure play copper producers (a combination of debt & equity), of which the largest exposure continues to be First Quantum (3.1% equity position; 5.0% debt). A combination of volume growth and deleveraging over the next two to three years as it brings the Tier 1 Cobre Panama project into production has the potential to drive a material rerating in the shares and should be a key source of performance for the company.

The darling of the base metals over the last year, zinc, has continued its run higher rising 7.6% year-to-date, with the average first half 2017 price +49.1% year-on-year. With inventories on both the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE) declining to ‘price critical levels’, premiums rising and Chinese domestic supply faltering, the price looks set to test the US$3,000/t level again. A key focus for the market is when Glencore looks to bring back the production it took off the market in 2015, when prices were much lower. The portfolio has a broad range of zinc exposure via its holdings in diversified producers Glencore (7.6% of the portfolio), Teck Resources (3.3%) and Lundin Mining (2.3% equity & 1.9% debt), as well as pure play producers such as Boliden (1.6%), Trevali Mining (0.5%), Volcan (0.2%) and Arizona Mining (0.2%).

The Chinese government push to rationalise the aluminum industry (as they have done with steel and coal) has led to it being the best performing base metal increasing by 12.3% year-to-date. The test will be whether or not the industry can reverse the behavior of the past and remain disciplined now that prices have risen. Finally, on nickel, the industry continues to face headwinds – primarily the relaxation of the nickel ore ban in Indonesia and the Philippines that was imposed last year. Over the last six months, the Company has reduced its position to the world’s largest nickel producer Norilisk Nickel, due to declining margins caused by lower prices and a stronger Rouble.

GOLD AND PRECIOUS METALS

The macro environment has given mixed messages for gold this year. A strong US economy, rising US interest rates and clarity on European election fears were all negative for the price of gold, whilst rising geopolitical tensions in North Korea and the Middle East have been supportive for gold, alongside the prospect of newly mined production starting to fall.

The sell-off in the gold price post the US Presidential election and Trump’s pro-growth agenda in November last year was short lived and prices soon recovered. However, as we entered the second quarter of 2017, gold gave back much of its earlier gains with the US Federal Reserve (the Fed) beginning its rate hike cycle targeting three rate increases in 2017, with a longer term target of 3%. The focus for the market is now on the pace and trajectory of future rate rises and whether or not the Fed will continue to overlook weak economic data in order to achieve their longer term rate target. Should rates not rise as much as feared, this has the potential to be supportive for gold.

Investor appetite for gold remained positive despite the strong performance of broader equity markets. Gold exchange-traded funds recorded net inflows of 3.6Moz to approximately 60.7Moz at the end of June. Whilst lower than the record inflows seen during the first half of 2016, it highlights that investor appetite for safe-haven assets remains strong with political uncertainty in the US and Europe at the forefront of investors’ minds.

Turning to the physical market, demand improved during the period largely driven by India, which saw exceptionally weak demand at the end of 2016. This was due to the impact of demonetisation, as the government withdrew the Rs 500 and Rs 1,000 notes which account for 85% of the notes in circulation as part of the government’s plan to tackle corruption and tax evasion. While Indian demand was expected to recover it was quicker than anticipated, almost matching the pre-intervention years of 2011-2013. Chinese imports remained solid, while Central Bank purchases were a little stronger than in the last two years.

It was a volatile trading period for the gold companies with the sector (as measured by the FTSE Gold Mines Index) up circa 20% at various points during the period to finish up by 3%. During the first half of 2017, gold equities underperformed the price of gold bullion which finished the period up by 7.4%. Northern Star Resources (1.5% of the portfolio), a company we have referred to a number of times in previous reports, was the key outperformer following a series of positive operational updates which look set to underpin its longer term growth ambitions.

Elsewhere in the precious metals space, silver had a great start to 2017, but gave back much of its gains by May to finish the period up by 3.6% to US$16.6/oz. Silver, as ever, tends to see greater volatility than gold and this was exaggerated during the half with the silver futures net long position at its highest level since 2007. Amongst the Company’s silver holdings Fresnillo (2.3% of the portfolio) was the key outperformer, up by 21.5% during the period with the company’s low-cost asset base, balance sheet strength and exploration upside seeing it become one of the go to names in the UK precious metals space.

DIVERSIFIED MINING AND INDUSTRIAL METALS

China’s economy has continued to outperform expectations during the first half of the year. Strong infrastructure and property investment has created a robust environment for steel demand, with China achieving record steel production in April of 886mtpa (annualised). Part of this has been driven by restocking and, as we look into the second half of the year, we believe demand will moderate but still remain at healthy levels.

Iron ore consumption in China has risen to a new high with spot iron ore prices peaking in February at US$94.5/t, but since mid-May have traded at a relatively steady range of US$59-62/t with tighter credit conditions imposed in the country. While the spot price has declined 30% since its February peak, the average first half 2017 price of US$74/t was in fact 15% higher than the average price in the second half of 2016. Unsurprisingly, this has seen the supply side respond with Chinese domestic production reaching its highest level since October 2014. However, the major producers continue to remain disciplined with limited low-cost supply entering the market this year as Vale’s S11D project continues to ramp-up.

The strength in iron ore surprised the market and has been the cause for material earnings upgrades for the producers. The Company has benefited from this via its large holdings in Rio Tinto (11.1% of the portfolio) and Vale (6.5%). The Company had built a substantial position in Vale during 2016 following a visit to Brazil and numerous management meetings giving us conviction in the deleveraging potential of the business. Today, not only do we see the iron ore producers trading at attractive valuations, we also see the potential of dividend upside at the first half 2017 results.

The rollercoaster ride in seaborne metallurgical ('met') coal prices during 2016 continued into 2017. A pick-up in supply in response to the high prices of 2016 saw spot prices reach a low of US$150/t in March, only to surge to US$300/t in April following Cyclone Debbie hitting Queensland, Australia’s major met coal producing region, causing weeks of disruptions to rail logistics and supply. The last 18 months has reminded investors of the upside tail risk in commodities, such as met coal and copper which face structural supply issues. The surge in met coal prices has resulted in windfall profits for a number of the low-cost producers. The Company’s exposure to Teck Resources (3.3% of the portfolio) and South32 (2.6%) were key beneficiaries of this, with both companies anticipated to provide strong cash returns during the year.

The expected easing in thermal coal prices has taken longer to play out following the removal of China’s supply restrictions put in place last year to support the price. While the spot thermal coal price is down 18% during the first half of 2017, the average price is flat on the second half of 2016. There is an assumption that Beijing will provide a floor to the price over the medium term, which has driven a rerating in a number of the thermal coal producers. The Company’s primary exposure to thermal coal resides with our overweight position in Glencore (7.6% of the portfolio), the best performing major during the interim period.

BATTERY MATERIALS

Whilst we live in an age of disruption, few industries have the potential to change as much as the automotive sector over the next decade. The rise of the electrified vehicle (EV) appears to have reached critical mass in terms of consumer preference, government incentive, technological capability and model launches from the automakers. Companies and countries alike are announcing goals on an almost monthly basis: Volvo has promised 100% electric drive trains by 2019 and China is targeting five million EVs and Hybrids on the road by 2020. Whilst the success of these goals will be proved over the coming years, the investments needed to meet them are being made now.

One of the keys to meeting this future demand will be the supply of raw materials particularly for the battery. Increases in demand for several metals including lithium, cobalt and nickel is widely anticipated and this means new mines must be incentivised to produce the additional volume of these metals through higher prices. The Company has invested in several companies with exposure to this theme and at various stages of maturity. The most significant of these is Albemarle (1.1% of the portfolio), an established lithium carbonate producer with arguably the two lowest cost production assets in the world, the Talison mine and the Atacama Salar. Its current dominant position, tier one assets with expansion plans and strong balance sheet, leave it uniquely placed to drive shareholder returns in the coming years. Galaxy Resources (0.4%) is an emerging lithium producer in the unique position of having both cash generation from the producing Mt Cattlin mine in Australia, and one of the most promising exploration salars in Sal De Vida.

In addition to lithium, the Company has exposure to cobalt where the price is up 83% in the first six months of the year benefiting holdings in Katanga Mining (0.5% of the portfolio) and Cobalt 27 Capital (0.2%). Cobalt 27 is a holding company with a physical position in cobalt and an objective to transact on a number of streaming opportunities in the near term. Katanga Mining, after being a poor performer for the last few years, is up 357% in the first six months.

UNQUOTED INVESTMENTS

In 2014 new guidelines were put in place with regards to unquoted investments including royalties. The most relevant of these is that of thresholds on exposure to unquoted investments such as royalty contracts. The guideline states that, at the time of investment, exposure to an unquoted investment should not exceed 3% of the Company’s gross assets. In addition, for royalty contracts, in cases where the mine on which we have a royalty accounts for 30% or more of the underlying company’s revenues, then the Company’s combined equity and royalty exposure with that company should not exceed 3% of the Company’s gross assets at the time of investment. If, over time, the Company’s exposure increases above these levels then action to address this should be taken in a timely fashion and when it is in the best interests of the Company’s shareholders.

At the end of the period, the Company held both a royalty contract with Avanco, making up 2.5% of the portfolio, alongside an investment in the shares of Avanco Resources Limited amounting to a further 1.8%, making a combined weight of 4.3%. During the period, the shareholding has decreased but the overall weight has not changed materially. Debate at Board level on this investment takes place on a regular basis.

AVANCO ROYALTY CONTRACT (2.5%)

In July 2014, the Company signed a binding royalty agreement with Avanco Resources, a contractual royalty covering its exploration licenses within the world-class mineral district of Carajas in Brazil. An investment of US$12 million was made in return for a Net Smelter Return (net revenue after deductions for freight, smelter and refining charges) royalty payments comprising 2% on copper, 25% on gold and 2% on all other metals that will be produced from their Antas North and Pedra Branca licenses. In addition, there will be a flat 2% royalty over all metals produced from any other discoveries within Avanco’s licence area as at the time of the agreement.

During the period, the Antas mine performed well achieving over half of the upper-end of its annualised copper and gold production target of 14kt copper and 10koz gold. The combination of a full period of production (the mine only started in April 2016) and higher average copper and gold prices means that royalty payments should be up year-on-year. As at the end of June, Avanco had a US$26 million net cash position allowing them to raise exploration spending to US$10 million this year with a focus on proving up the Pedra Branca orebody and looking for new mineralisation close to the Antas mine. Recent results on two new electromagnetic conductors 400 metres north of Antas highlight the potential both to increase the capacity of the Antas mine as well as add life to the operations via additional sulphide mineralisation. Should Avanco be successful in this regard it would obviously be incrementally positive for the Company.

In addition, Avanco released an updated pre-feasibility study on its second asset Pedra Branca. Pedra Branca is a robust underground project, with the Pedra Branca East orebody expected to support 24ktpa copper & 16kozpa gold, with the Pedra Branca West deposit adding an additional 10ktpa copper at a later time. The box cut and portal for the mine are already established with the decline to begin in early 2018. Avanco’s previous pre-feasibility study had looked at trucking small amounts of initial material from Pedra Branca for processing at Antas; however, given the exploration success at Antas, spare processing capacity is being filled by Antas ore, with Pedra Branca now to be developed as a standalone operation. The company is targeting first production in mid-2020, with permitting and funding the key focus for the next 12 to 18 months.

DERIVATIVES ACTIVITY

The Company from time to time enters into derivatives contracts, mostly involving the sale of ‘puts’ and ‘calls’. These are taken to revenue or capital and are subject to strict Board guidelines which limit their exposure to an aggregate 10% of the portfolio. In the first half of 2017, income generated from options was £3.2 million net of contracts repurchased. During the period, the majority of contracts expired worthless aside from some put options written to assist in building holdings in the portfolio. At the end of the period the Company had 2.2% of net assets exposed to derivatives.

GEARING

At 30 June 2017 the Company had £95.5 million of net debt, with a gearing level of 14.5%. The debt is held principally in US dollars as it is managed against the value of the debt securities held in the Company. The Company also makes use of a short term sterling overdraft facility to manage near term liquidity.

OUTLOOK

After a strong start to the year it was disappointing to see share prices fall from the February high and finish the period only marginally higher than when they started the year. This is in stark contrast to the strong margins, improving balance sheets and positive tone to the world economy meaning that improved profitability of the industry seems not to be recognised by investors as doubts persist that management will remain disciplined in the way they allocate capital. Recent tightening measures imposed in China, alongside slowing growth momentum, have concerned investors; however, the recent falls in share and commodity prices more than reflect this. Macroeconomic indicators continue to point to solid activity which should support decent commodity demand this year.

We see this valuation anomaly as an opportunity. The Company has increasingly moved away from backing pure commodity themes to focusing on identifying value that should be released through the successful delivery of a business plan i.e. building new mines, discovering new sources of supply, deleveraging balance sheets, earlier stage investments etc. Our goal is to deliver a superior total return to shareholders sourced from capital growth via the unlocking of value based opportunities together with an income yield above that generally available from the mining sector.

Evy Hambro and Olivia Markham
BlackRock Investment Management (UK) Limited
10 August 2017

TEN LARGEST INVESTMENTS
as at 30 June 2017

Set out below is a brief description by the Investment Manager of the Company’s ten largest investments

Rio Tinto: 11.1% (2016: 10.0%) is the world’s second largest mining company by market capitalisation. It has interests over a broad range of metals and minerals including iron ore, aluminium, copper, coal, industrial minerals, gold and uranium. At around 15% geared Rio Tinto has a strong balance sheet, currently stronger than its stated 20% to 30% gearing target range. This will help the company both sustain its dividend policy of a 40% to 60% pay-out of earnings and drive organic growth and shareholder returns. The most significant organic growth project is the Oyu Tolgoi phase II copper project in Mongolia. In 2016 Rio announced productivity targets to drive US$5 billion of free cash flow over the next five years to further drive shareholder returns. During the first half of the year the company announced the sale of its Coal & Allied business to Yancoal for US$2.7 billion.

First Quantum Minerals*: 8.1% (2016: 9.4%) is an integrated copper producer whose principal operating assets are in Zambia. First Quantum is in the midst of a significant expansion of its business, most notably the Cobre Panama mine in Panama. At the beginning of 2016 we saw the company take action to de-risk the balance sheet including the sale of the Kevitsa nickel mine for US$712 million to Boliden. In addition, the company refinanced its US$3 billion credit facility with a new US$1.8 billion facility with improved financial covenants and amortisation schedule. Through the course of 2016, First Quantum added to a copper price hedge to ensure the capital availability for the Cobre Panama expenditure. During the first half of 2017 the company commissioned the new Sentinel copper mine in the Democratic Republic of Congo which has the capacity to produce over 250kt of copper in concentrate annually. The Company holds both the equity and the senior unsecured debt.

Glencore: 7.6% (2016: 7.3%) is a diversified miner with activities in mining, smelting, refining, processing and marketing of metals and minerals, energy products and agricultural products globally. In addition, the company provides financing, logistics, marketing and purchasing services to producers and consumers of commodities. Glencore remains focused on preserving its investment grade credit rating, targeting a BBB+ rating over the medium term. Since mid-2015 the company has been focused on rapidly de-gearing the balance sheet, with net debt falling from US$26 billion (Dec 2015) to US$15.5 billion (Dec 2016), to provide greater balance sheet strength and flexibility going forward.

BHP: 6.9% (2016: 8.2%) is the world’s largest mining company by market capitalisation. The company is an important global player in a number of commodities including iron ore, copper, petroleum & gas, coal, manganese, aluminium, diamonds and uranium. During the first half of 2016 the company brought an end to its progressive dividend policy, cutting its dividend by 75%. Going forward, the company will pay out a minimum of 50% of underlying profit, with the ability to pay additional amounts depending on capital needs within the business. The underperformance of BHP over the last three years has seen the company come under focus from a number of shareholders including activist shareholder Elliott Advisors who have publicly called for a full review of the petroleum business.

Vale: 6.5% (2016: 5.4%) Vale is a Brazilian-based diversified mining company and the world’s largest producer of iron ore and nickel, as well as rising outputs of copper, coal and fertilizers. Its main mining operations are in Brazil, Canada, Australia, Indonesia and Mozambique, and the dominant earnings and cash flow driver continues to be its Brazilian based iron ore operations. During 2016 the company significantly de-geared through a divestment programme and significant cash flow generation from its mining operations. Going forward, Vale has a net debt target of US$15-17 billion. In May 2017, Vale appointed a new CEO Fabio Schvartsman with a key focus of creating a leaner and more competitive company. In addition, the shareholders of Vale approved a new corporate structure which will see the shares migrate to a single share class structure which should further improve corporate governance and liquidity.

Lundin Mining*: 4.2% (2016: 4.4%) is a base metals producer with operations in Chile, Europe and the US. At the end of 2016, Lundin announced that they had successfully negotiated a deal to sell their 24% stake in Tenke to China Molybdenum for US$1.2 billion. Freeport-McMoRan announced that it had entered an agreement to sell its 56% interest in Tenke for US$2.65 billion to China Molybdenum earlier in the year and this prompted Lundin’s exit. Today, Lundin maintains a strong balance sheet and continues to look for value accretive M&A opportunities. Key priorities for the company in 2017 include the Zinkgruvan mill expansion, zinc expansion at Neves-Corvo, Eagle East ramp development and the Candelaria Consolidation Project. The Company holds both the equity and the 7.875% senior secured notes due 2022.

Sociedad Minera Cerro Verde: 3.3% (2016: 3.2%) is a copper and molybdenum operation in Peru operated by Freeport-McMoRan Copper & Gold where they maintain a 53.6% ownership in the company. In 2013, construction activities commenced on the US$4.4 billion large-scale expansion of the asset which will see copper production more than double from 210kt in 2015 to 560kt in 2017. The project successfully ramped-up during 2016 with significant cash flows and dividend payments expected from 2018.

Teck Resources: 3.3% (2016: 2.6%) is a world leader in metallurgical coal production, with an 8% share of the global seaborne coking coal market. The company is also the world’s third-largest zinc concentrate producer and the tenth-largest zinc metal refiner. Teck is a major producer of copper and also produces gold, lead, molybdenum, and various other metal products. Teck owns a 20% interest in the Fort Hills oil sands project with first oil expected at the end of 2017. The strong rally in coking coal prices in 2016, combined with asset sales, has allowed Teck to materially strengthen its balance sheet as it looks to approve its QB2 Project over the next year.

Newmont Mining: 3.1% (2016: 2.8%) is one of the world’s leading gold producers with the majority of its production from North America and Australia. In recent years Newmont has divested assets to build a longer-life, lower cost asset portfolio. With a stronger balance sheet, Newmont updated its dividend policy at the end of 2016 targeting a 25% pay-out of free cash flow. In May 2017, the company announced that it had bought 19.9% of Continental Gold and entered into an Investment Agreement which includes various standstill provisions until Continental’s Buritica Project goes into production in 2020.

South32: 2.6% (2016: 2.7%) is a globally-diversified metals and mining company listed in Australia and South Africa. South32 was created as a divestment from BHP Billiton in 2015. The assets are recognised as among the world’s best operating in the lower half of their industry cost curves. The company has a portfolio of mining, smelter and refining assets producing alumina, aluminium, coal, manganese, nickel, silver, lead and zinc in Australia, Southern Africa, Brazil and Columbia. South32 currently has a strong balance sheet to enable it to pursue investment opportunities which meet their strict investment criteria, such as a recent position in Arizona Mining. At today’s commodity prices, the company is highly cash flow generative and has publicly said they will consider considerable cash returns to shareholders if their cash remains above US$500 million.

* Includes fixed interest securities.

All percentages reflect the value of the holding as a percentage of total investments. Percentages in brackets represent the value of the holding as at 31 December 2016. Together, the ten largest investments represent 56.7% of total investments (31 December 2016: 58.0%).

PORTFOLIO ANALYSIS
30 June 2017

COMMODITY EXPOSURE*

BlackRock World
Mining Trust plc 2017
%
BlackRock World
Mining Trust plc 2016#
%
Euromoney Global
Mining Index 2017
%
Other 0.0 0.0 2.8
Aluminium 0.0 0.0 3.1
Coal 0.0 0.0 4.9
Zinc 0.7 0.6 0.8
Iron Ore 1.1 0.1 1.6
Industrial Minerals 5.7 3.7 1.1
Silver & Diamonds 8.8 9.8 5.9
Gold 18.7 18.6 24.0
Copper 20.4 19.8 10.5
Diversified 44.6 47.4 45.3

GEOGRAPHIC EXPOSURE*

2017
%
Global 63.3
Latin America 12.1
Australia 10.9
Africa (ex SA) 7.3
Canada 3.7
Other*** 1.7
South Africa 1.0

   

2016#
%
Global 57.1
Latin America 11.2
Australia 10.2
Africa (ex SA) 6.9
Other** 6.6
Canada 6.2
South Africa 1.8

* Based on the principal commodity exposure and place of operation of each investment.
** Consists of Indonesia, Russia, Serbia, Sweden and Turkey.
*** Consists of India, Kazakhstan, Philippines, Russia, Turkey and USA.
# Represents exposure at 31 December 2016.
Source: BlackRock.

INVESTMENTS
as at 30 June 2017


Main 
geographical 
exposure 

Market 
value 
£’000 


of 
investments 
Diversified
Rio Tinto Global  84,292   11.1 
Glencore Global  58,014   7.6 
BHP Global  52,897   7.0 
BHP Put Option 21/07/17 £12 Global  (522)  (0.1)
Vale* Global  49,100   6.5 
Lundin Mining* Global  31,598   4.2 
Teck Resources Global  24,709   3.3 
South32 Global  20,344   2.6 
Boliden Global  12,585   1.6 
KAZ Minerals Kazakhstan  2,085   0.3 
Osisko Metals Canada  1,969  0.3 
Vedanta Resources India  1,434   0.2 
 --------   -------- 
338,505   44.6 
 --------   -------- 
Copper
First Quantum Minerals* Global  61,652   8.1 
Avanco Resources#~ Brazil  32,365   4.3 
Sociedad Minera Cerro Verde Peru  24,820   3.3 
Nevsun Resources Eritrea  11,061   1.5 
OZ Minerals Australia  10,939   1.4 
Ivanhoe Mines DRC  6,701   0.9 
Katanga Mining DRC  4,201   0.5 
Metals X Australia  3,080   0.4 
 --------   -------- 
154,819   20.4 
 --------   -------- 
Gold
Newmont Mining Global  23,703   3.1 
Newcrest Mining Australia  19,047   2.5 
Agnico Eagle Mines Canada  11,499   1.5 
Randgold Resources Africa  11,439   1.5 
Northern Star Resources Australia  11,220   1.5 
Franco-Nevada Global  11,085   1.5 
Oceanogold Global  7,925   1.0 
Centamin Egypt  7,735   1.0 
Eldorado Gold Global  6,877   0.9 
Alamos Gold Global  5,969   0.8 
B2Gold Global  5,380   0.7 
Banro Corporation DRC  4,946   0.6 
Polyus Russia  3,426   0.5 
TMAC Resources Canada  3,008   0.4 
Metals Exploration Philippines  2,736   0.4 
Shanta Gold Convertible* Tanzania  2,137   0.3 
Pretium Resources Canada  1,835   0.2 
Beadell Resources Brazil  1,240   0.2 
Stratex International Turkey  402   0.1 
Detour Gold Canada  18  – 
 --------   -------- 
141,627   18.7 
 --------   -------- 
Silver & Diamonds
Fresnillo Mexico  17,386   2.3 
Wheaton Precious Metals Global  12,154   1.6 
Industrias Penoles Mexico  8,678   1.1 
Petra Diamonds* South Africa  7,794   1.0 
Lucara Diamond Botswana  6,449   0.9 
Mountain Province Diamonds Canada  5,785   0.8 
Sierra Metals Peru  3,233   0.4 
Kennady Diamonds Canada  2,649   0.3 
Volcan Peru  1,220   0.2 
Silver Mines Australia  1,081   0.1 
MAG Silver Mexico  499   0.1 
 --------   -------- 
66,928   8.8 
 --------   -------- 
Industrial Minerals
Iluka Resources Australia  17,919   2.4 
Albemarle Global  8,938   1.1 
Pilbara Minerals* Australia  7,699   1.0 
Galaxy Resources Australia  2,786   0.4 
Sheffield Resources Australia  1,565   0.2 
Nemaska Lithium+ Canada  1,492   0.2 
Cobalt 27 Capital Global  1,467   0.2 
Bacanora Minerals Mexico  1,263   0.2 
 --------   -------- 
43,129   5.7 
 --------   -------- 
Iron Ore
Fortescue Metals Australia  7,530   1.0 
Equatorial Resources Republic of Congo  682   0.1 
 --------   -------- 
8,212   1.1 
 --------   -------- 
Zinc
Trevali Mining Global  4,059   0.5 
Arizona Mining USA  1,455   0.2 
 --------   -------- 
5,514   0.7 
 --------   -------- 
Other
Bindura Nickel Zimbabwe  73   – 
 --------   -------- 
73  – 
 --------   -------- 
Portfolio 758,807   100.0 
 --------   -------- 
Comprising:
– Investments 759,329  100.1 
– written options (522) (0.1)
 --------   -------- 
758,807  100.0 
 --------   -------- 

* Includes fixed interest investments.
# Investments held at Directors’ valuation.
~ Includes mining royalty contract.
+ Includes warrant investments.

All investments are in equity shares unless otherwise stated.

The total number of investments as at 30 June 2017 (including options classified as liabilities on the balance sheet) was 64 (31 December 2016: 60).

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2017

Revenue £’000 Capital £'000 Total £'000



Notes
Six months
ended 
30.06.17 
(unaudited) 
Six months 
ended 
30.06.16 
(unaudited) 
Year 
ended 
31.12.16 
(audited) 
Six months
ended 
30.06.17 
(unaudited) 
Six months
ended 
30.06.16 
(unaudited) 
Year 
ended 
31.12.16 
(audited 
Six months
ended 
30.06.17 
(unaudited) 
Six months
ended 
30.06.16 
(unaudited) 
Year 
ended 
31.12.16 
(audited) 
Income from investments held at fair value through profit or loss 14,484  10,628  22,383  –  –  –  14,484  10,628  22,383 
Other income 3,243  3,361  6,487  –  –  –  3,243  3,361  6,487 
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Total revenue 17,727  13,989  28,870  –  –  –  17,727  13,989  28,870 
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
(Loss)/profit on investments held at fair value through profit or loss
– 

– 

– 

(17,491)

203,649 

326,525 

(17,491)

203,649 

326,525 
Profit/(loss) on foreign exchange –  –  –  4,860  (6,189) (11,981) 4,860  (6,189) (11,981)
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Total 17,727  13,989  28,870  (12,631) 197,460  314,544  5,096  211,449  343,414 
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Expenses
Investment management fees (687) (490) (1,179) (2,171) (1,641) (3,848) (2,858) (2,131) (5,027)
Other operating expenses (510) (426) (895) (2) (9) (13) (512) (435) (908)
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Total operating expenses (1,197) (916) (2,074) (2,173) (1,650) (3,861) (3,370) (2,566) (5,935)
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Net profit/(loss) on ordinary activities before finance costs and taxation

16,530 


13,073 


26,796 


(14,804)


195,810 


310,683 


1,726 


208,883 


337,479 
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Finance costs (229) (113) (309) (702) (336) (940) (931) (449) (1,249)
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Net profit/(loss) on ordinary activities before taxation
16,301 

12,960 

26,487 

(15,506)

195,474 

309,743 

795 

208,434 

336,230 
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Taxation (1,513) (1,441) (3,184) 496  368  866  (1,017) (1,073) (2,318)
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Profit/(loss) for the period 14,788  11,519  23,303  (15,010) 195,842  310,609  (222) 207,361  333,912 
    --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Earnings/(loss) per ordinary share
8.38p 

6.51p 

13.19p 

(8.51p) 

110.76p 

175.85p 

(0.13p) 

117.27p 

189.04p 
    ========   ========   ========   ========   ========   ========   ========   ========   ======== 

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

The Group does not have any other comprehensive income. The net profit/(loss) disclosed above represents the Group’s total comprehensive income.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2017




Note
Ordinary 
share 
capital 
£’000 
Share 
premium 
account 
£’000 

Special 
reserve 
£’000 
Capital 
redemption 
reserve 
£’000 

Capital 
reserves 
£’000 

Revenue 
reserve 
£’000 


Total 
£’000 
For the six months ended 30 June 2017 (unaudited)
At 31 December 2016 9,651  127,155  114,589  22,779  365,631  37,741  677,546 
Total comprehensive income:
Net (loss)/profit for the period –  –  –  –  (15,010) 14,788  (222)
Transactions with owners, recorded directly to equity:
Dividends paid(a) –  –  –  –  –  (21,175) (21,175)
    --------   --------   --------   --------   --------   --------   -------- 
At 30 June 2017 9,651  127,155  114,589  22,779  350,621  31,354  656,149 
    --------   --------   --------   --------   --------   --------   -------- 
For the six months ended 30 June 2016 (unaudited)
At 31 December 2015 9,651  127,155  116,471  22,779  55,022  46,235  377,313 
Total comprehensive income:
Net profit for the period –  –  –  –  195,842  11,519  207,361 
Transactions with owners, recorded directly to equity:
Ordinary shares purchased into treasury –  –  (1,882) –  –  –  (1,882)
Dividends paid(b) –  –  –  –  –  (24,739) (24,739)
    --------   --------   --------   --------   --------   --------   -------- 
At 30 June 2016 9,651  127,155  114,589  22,779  250,864  33,015  558,053 
    --------   --------   --------   --------   --------   --------   -------- 
For the year ended 31 December 2016 (audited)
At 31 December 2015 9,651  127,155  116,471  22,779  55,022  46,235  377,313 
Total comprehensive income:
Net profit for the year –  –  –  –  310,609  23,303  333,912 
Transactions with owners, recorded directly to equity:
Share purchase costs –  –  (9) –  –  –  (9)
Ordinary shares purchased into treasury –  –  (1,873) –  –  –  (1,873)
Dividends paid(c) –  –  –  –  –  (31,797) (31,797)
    --------   --------   --------   --------   --------   --------   -------- 
At 31 December 2016 9,651  127,155  114,589  22,779  365,631  37,741  677,546 
    --------   --------   --------   --------   --------   --------   -------- 


(a) The final dividend for the year ended 31 December 2016 of 9.00p per share, declared on 23 February 2017 and paid on 12 May 2017 and 1st quarterly interim dividend for the year ending 31 December 2017 of 3.00p per share, declared on 4 May 2017 and paid on 30 June 2017.

(b) The final dividend for the year ended 31 December 2015 of 14.00p per share, declared on 29 February 2016 and paid on 6 May 2016.

(c) The final dividend in respect of the year ended 31 December 2015 of 14.00p per share, declared on 29 February 2016 and paid on 6 May 2016 and interim dividend for the year ended 31 December 2016 of 4.00p per share declared on 25 August 2016 and paid on 16 September 2016.

The transaction costs incurred on the acquisition and disposal of investments are included within the capital reserves. Purchase and sale costs amounted to £155,000 and £128,000 respectively for the period ended 30 June 2017 (six months ended 30 June 2016: £235,000 and £119,000; year ended 31 December 2016: £592,000 and £296,000).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2017



Notes 
30 June 2017 
£’000 
(unaudited) 
30 June 2016 
£’000 
(unaudited) 
31 December 2016 
£’000 
(audited) 
Non current assets
Investments held at fair value through profit or loss
10 

759,329 

630,521 

760,167 
    --------   --------   -------- 
759,329  630,521  760,167 
Current assets
Other receivables 1,709  4,314  5,153 
Amounts due from brokers 25  6,749  – 
Cash and cash equivalents 137  –  68 
Collateral held on margin deposit with brokers 2,013  2,967  2,412 
    --------   --------   -------- 
Total current assets 3,884  14,030  7,633 
    --------   --------   -------- 
Total assets 763,213  644,551  767,800 
    --------   --------   -------- 
Current liabilities
Other payables (4,319) (4,040) (2,931)
Amounts due to brokers (6,497) (8,499) – 
Derivative financial liabilities held at fair value through profit or loss (522) (1,039) (855)
Bank loans (92,382) (71,065) (84,976)
Bank overdrafts (3,229) (1,855) (1,324)
    --------   --------   -------- 
Total current liabilities (106,949) (86,498) (90,086)
    --------   --------   -------- 
Total assets less current liabilities 656,264  558,053  677,714 
    --------   --------   -------- 
Non current liabilities
Deferred tax liabilities (115) –  (168)
    --------   --------   -------- 
Net assets 656,149  558,053  677,546 
    --------   --------   -------- 
Equity attributable to equity holders
Called up share capital 9,651  9,651  9,651 
Share premium account 127,155  127,155  127,155 
Capital redemption reserve 22,779  22,779  22,779 
Special reserve 114,589  114,589  114,589 
Capital reserves 350,621  250,864  365,631 
Revenue reserve 31,354  33,015  37,741 
    --------   --------   -------- 
Total equity 656,149  558,053  677,546 
    --------   --------   -------- 
Net asset value per ordinary share 371.85p  316.26p  383.98p 
    ========   ========   ======== 

CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 2017

Six months 
ended 
30 June 2017 
£’000 
(unaudited) 
Six months 
ended 
30 June 2016 
£’000 
(unaudited) 
Year 
ended 
31 December 2016 
£’000 
(audited) 
Net cash inflow from operating activities 8,004  7,824  8,162 
 --------   --------   -------- 
Financing activities
Interest paid (931) (449) (1,249)
Drawdown of loans 11,914  4,138  11,896 
Shares purchased into treasury –  (1,882) (1,882)
Dividends paid (21,175) (24,739) (31,797)
 --------   --------   -------- 
Net cash outflow from financing activities (10,192) (22,932) (23,032)
 --------   --------   -------- 
Decrease in cash and cash equivalents (2,188) (15,108) (14,870)
Effect of foreign exchange rate changes 352  30  391
 --------   --------   -------- 
Change in cash and cash equivalents (1,836) (15,078) (14,479)
Cash and cash equivalents at start of the period (1,256) 13,223  13,223 
 --------   --------   -------- 
Cash and cash equivalents at end of the period (3,092) (1,855) (1,256)
 ========   ========   ======== 
Comprised of:
Cash at bank 137  –  68 
Bank overdraft (3,229) (1,855) (1,324)
 --------   --------   -------- 
(3,092) (1,855) (1,256)
 ========   ========   ======== 

RECONCILIATION OF NET PROFIT BEFORE TAXATION TO NET CASH FLOW FROM OPERATING ACTIVITIES
for the six months ended 30 June 2017

Six months 
ended 
30 June 2017 
£’000 
(unaudited) 
Six months 
ended 
30 June 2016 
£’000 
(unaudited) 
Year 
ended 
31 December 2016 
£’000 
(audited) 
Operating activities
Profit on ordinary activities before taxation 795  208,434  336,230 
Add back interest expense 931  449  1,249 
Loss/(profit) on investments held at fair value through profit or loss (including transaction costs) 17,491  (203,649) (326,525)
Net (profit)/loss on foreign exchange (4,860) 6,189  11,981 
Sales of investments held at fair value through profit or loss 121,786  110,559  264,377 
Purchases of investments held at fair value through profit or loss (138,773) (110,468) (271,240)
Decrease/(increase) in other receivables 3,444  (517) (1,356)
(Increase) in amounts due from brokers (25) (6,749) – 
Increase/(decrease) in other payables 1,325  359  (660)
Increase/(decrease) in amounts due to brokers 6,497  5,785  (2,714)
Net movement in cash held on margin deposit with brokers 399  (1,627) (1,072)
Taxation paid (514) (666) (1,495)
Taxation on overseas investment income included within gross income (492) (275) (613)
 --------   --------   -------- 
Net cash inflow from operating activities 8,004  7,824  8,162 
 ========   ========   ======== 

NOTES TO THE FINANCIAL STATEMENTS
for the six months ended 30 June 2017

1. Principal activity

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 World Mining Investment Company Limited, is investment dealing.

2. Basis of preparation

The half yearly financial statements have been prepared using the same accounting policies as set out in the Company’s Annual Report and Financial Statements for the year ended 31 December 2016 (which were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006) and applied in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’. These comprise standards and interpretations of the International Accounting Standards and Standard Interpretations Committee as approved by the International Accounting Standards Committee that remain in effect, to the extent that IFRS has been adopted by the European Union.

Insofar as the Statement of Recommended Practice (SORP) for investment trust companies and venture capital trusts issued by the Association of Investment Companies (AIC), revised in November 2014 is compatible with IFRS, the financial statements have been prepared in accordance with guidance set out in the SORP.

3. Income

Six months 
ended 
30 June 2017 
£’000 
(unaudited) 
Six months 
ended 
30 June 2016 
£’000 
(unaudited) 
Year 
ended 
31 December 2016 
£’000 
(audited) 
Investment income:
UK listed dividends 4,438  2,934  4,727 
Overseas listed dividends 6,646  4,198  9,008 
Overseas listed special dividends –  –  1,038 
Income from contractual rights (Avanco royalty) 940  478  1,595 
Fixed interest income 2,460  3,018  6,015 
 --------   --------   -------- 
14,484  10,628  22,383 
 --------   --------   -------- 
Interest receivable and other income:
Option premiums 3,229  3,315  6,397 
Deposit interest
Stock lending income 11  43  84 
 --------   --------   -------- 
3,243  3,361  6,487 
 --------   --------   -------- 
Total 17,727  13,989  28,870 
 ========   ========   ======== 

Dividends and interest received in the six months ended 30 June 2017 amounted to £14,061,000 and £2,790,000 (six months ended 30 June 2016: £7,206,000 and £3,005,000 and year ended 31 December 2016: £13,253,000 and £6,157,000) respectively.

During the period, the Group received option premium income totalling £3,007,000 (six months ended 30 June 2016: £3,306,000; year ended 31 December 2016: £6,800,000) for writing put and covered call options for the purposes of revenue generation. Option premiums of £3,229,000 (six months ended 30 June 2016: £3,315,000; year ended 31 December 2016: £6,397,000) are credited to the revenue column of the Consolidated Statement of Comprehensive Income and recognised evenly over the life of the option contracts.

At 30 June 2017, there was 1 open position (30 June 2016: 5; 31 December 2016: 3) with an associated liability of £522,000 (30 June 2016: £1,039,000; 31 December 2016: £855,000).

4. Investment management fee

Six months 
ended 
30 June 2017 
£’000 
(unaudited) 
Six months 
ended 
30 June 2016 
£’000 
(unaudited) 
Year 
ended 
31 December 2016 
£’000 
(audited) 
Investment management fee:
– Allocated to revenue 687  490  1,179 
– Allocated to capital 2,171  1,641  3,848 
 --------   --------   -------- 
2,858  2,131  5,027 
 ========   ========   ======== 

The management fee (which includes all services provided by BlackRock) is 0.8% of the Company’s gross assets. However, in the event that the NAV per share decreases on a quarter-on-quarter basis, the fee will then be paid on net assets for the quarter. During the period, £2,688,000 of the investment management fee was generated from net assets and £170,000 from the gearing effect on gross assets due to the quarter-on-quarter increase in the NAV per share during the period. The average of the net assets under management during the period ended 30 June 2017 was £713,036,000.

75% of the investment management fee is allocated to the capital column and 25% to the revenue column of the Consolidated Statement of Comprehensive Income.

5. Operating expenses

Six months 
ended 
30 June 2017 
£’000 
(unaudited) 
Six months 
ended 
30 June 2016 
£’000 
(unaudited) 
Year 
ended 
31 December 2016 
£’000 
(audited) 
Allocated to revenue:
Custody fee 57  40  91 
Auditors’ remuneration:
– audit services 12  13  31 
– other assurance services
Directors’ emoluments 110  129  228 
Registrar’s fee 38  37  78 
Broker fees 12  12   – 
Depositary fees 40  24  60 
Marketing fees 59  69  149 
Bank facility fees 103 
Other administration costs 73  96  252 
 --------   --------   -------- 
510  426  895 
 --------   --------   -------- 
Allocated to capital:
Transaction charges 13 
 --------   --------   -------- 
512  435  908 
 --------   --------   -------- 

The marketing fees budget of £37,000 (six months ended 30 June 2016: £47,000; year ended 31 December 2016: £104,000) is included within the management fee.

6. Finance costs

Six months ended
30 June 2017
(unaudited)
Six months ended
30 June 2016
(unaudited)
Year ended
31 December 2016
(audited)
Revenue 
£’000 
Capital 
£’000 
Total 
£’000 
Revenue 
£’000 
Capital 
£’000 
Total 
£’000 
Revenue 
£’000 
Capital 
£’000 
Total 
£’000 
Interest on bank loans 226  693  919  102  304  406  289  881  1,170 
Interest on bank overdraft 12  11  32  43  20  59  79 
 --------   --------   --------   --------   --------   --------   --------   --------   -------- 
Total 229  702  931  113  336  449  309  940  1,249 
 ========   ========   ========   ========   ========   ========   ========   ========   ======== 

7. Dividends

The final dividend of 9.00p per share for the year ended 31 December 2016 was paid on 12 May 2017. The Board has declared a first quarterly interim dividend of 3.00p per share for the quarter ended 31 March 2017, paid on 30 June 2017 to shareholders on the register on 2 June 2017. Dividends are debited directly to reserves.

The Board has declared a second quarterly interim dividend of 3.00p per share for the quarter ended 30 June 2017 which will be paid on 15 September 2017 to shareholders on the register on 18 August 2017. This dividend has not been accrued in the financial statements for the six months ended 30 June 2017 as, under IFRS, interim dividends are not recognised until paid.

It is expected that the third quarterly interim dividend and final dividend for the year ending 31 December 2017 will be declared on 9 November 2017 and 22 February 2018, respectively.

Dividends on equity shares paid during the period were:

Six months 
ended 
30 June 2017 
(unaudited) 
Six months 
ended 
30 June 2016 
(unaudited) 
Year 
ended 
31 December 2016 
(audited) 
Final dividend for the year ended 31 December 2016 of 9.00p (2015: 14.00p) 15,881  24,739  24,739 
First quarterly interim dividend for the year ending 31 December 2017 of 3.00p (2016: nil) 5,294  – 
Interim dividend for the year ended 31 December 2016 of 4.00p (2015: 7.00p) 7,058 
 --------   --------   -------- 
21,175  24,739  31,797 
 ========   ========   ======== 

8. Consolidated earnings and net asset value per ordinary share

Total revenue and capital returns per share and net asset value per share are shown below and have been calculated using the following:

Six months 
ended 
30 June 2017 
(unaudited) 
Six months 
ended 
30 June 2016 
(unaudited) 
Year 
ended 
31 December 2016 
(audited) 
Net revenue profit attributable to ordinary shareholders (£’000) 14,788  11,519  23,303 
Net capital (loss)/profit attributable to ordinary shareholders (£’000) (15,010) 195,842  310,609 
 --------   --------   -------- 
Total (loss)/profit attributable to ordinary shareholders (£’000) (222) 207,361  333,912 
 --------   --------   -------- 
Total equity attributable to equity holders (£’000) 656,149  558,023  677,546 
 --------   --------   -------- 
The weighted average number of ordinary shares in issue during each period on which the return per ordinary share was calculated was:
176,455,242 

176,826,057 

176,639,636 
 --------   --------   -------- 
The actual number of ordinary shares in issue (excluding treasury shares) at the period end on which the net asset value was calculated was:
176,455,242 

176,455,242 

176,455,242 
 --------   --------   -------- 
Returns per share
Revenue earnings per share 8.38p  6.51p  13.19p 
Capital (loss)/profit per share (8.51p) 110.76p  175.85p 
 --------   --------   -------- 
Total (loss)/earnings per ordinary share (0.13p) 117.27p  189.04p 
 ========   ========   ======== 
As at 
30 June 
2017 
(unaudited) 
As at 
30 June 
2016 
(unaudited) 
As at 
31 December 
2016 
(audited) 
Net asset value per ordinary share 371.85p  316.26p  383.98p 
 --------   --------   -------- 
Share price 333.50p  270.25p  336.50p 
 ========   ========   ======== 

9. Called up share capital


Ordinary 
shares 
in issue 
(number) 


Treasury 
shares 
(number) 


Total 
shares 
(number) 


Nominal 
value 
£’000 
Allotted, issued and fully paid share capital comprised:
Ordinary shares of 5 pence each:
At 31 December 2016 and 30 June 2017 176,455,242 16,556,600 193,011,842 9,651
======== ======== ======== ========

During the period to 30 June 2017, no ordinary shares were purchased (six months ended 30 June 2016: 832,000; year ended 31 December 2016: 832,000) at a total cost of nil including expenses (six months ended 30 June 2016: £1,882,000; year ended 31 December 2016: £1,882,000).

No ordinary shares were cancelled during the period (six months ended 30 June 2016: nil; year ended 31 December 2016: nil). Since 30 June 2017 and up to the date of this report, no ordinary shares have been repurchased.

10. Valuation of financial instruments

Financial assets and financial liabilities are either carried in the Consolidated Statement of Financial Position at their fair value (investment and derivatives) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and bank overdrafts). IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note 2(h) and 2(o), as set out in the Company’s Annual Report and Financial Statements for the year ended 31 December 2016.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset.

The fair value hierarchy has the following levels:

Level 1 – Quoted market price in an active market for an identical instrument. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

Level 2 – Valuation techniques used to price securities based on observable inputs. Valuation techniques used for non-standard instruments such as options currency swaps and other over-the-counter derivatives, include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs.

Level 3 – Valuation techniques using significant unobservable inputs other than quoted prices within Level 1. This category includes all instruments where the valuation technique includes inputs not based on observable market data and unobservable inputs could have a significant impact on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market. The level in the hierarchy within the fair value measurement is determined on the basis of the lowest level input that is significant to the fair value measurement.

If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

There has been no change to the valuation techniques during the period under review or as at the date of this report.

The table below sets out fair value measurements using the IFRS 13 fair value hierarchy.

Financial assets/(liabilities) at fair value
through profit or loss at 30 June 2017 
Level 1 
£’000 
Level 2 
£’000 
Level 3 
£’000 
Total 
£’000 
Assets:
Equity investments 667,294  –   6,708  674,002 
Investment in contractual rights  –   –   18,765   18,765 
Fixed interest securities  66,562   –   –   66,562 
 --------   --------   --------   -------- 
733,856   –   25,473  759,329 
 --------   --------   --------   -------- 
Liabilities:
Derivative financial instruments – written options –  (522)  –  (522)
 --------   --------   --------   -------- 
733,856  (522) 25,473  758,807 
 ========   ========   ========   ======== 

   

Financial assets/(liabilities) at fair value
through profit or loss at 30 June 2016 
Level 1 
£’000 
Level 2 
£’000 
Level 3 
£’000 
Total 
£’000 
Assets:
Equity investments 540,349   –   14,524  554,873 
Investment in contractual rights  –  –   8,795   8,795 
Fixed interest securities  66,853  –  –   66,853 
 --------   --------   --------   -------- 
 607,202  –   23,319   630,521 
 --------   --------   --------   -------- 
Liabilities:
Derivative financial instruments – written options  –  (1,039) –  (1,039)
 --------   --------   --------   -------- 
607,202  (1,039) 23,319  629,482 
 ========   ========   ========   ======== 

   

Financial assets/(liabilities) at fair value
through profit or loss at 31 December 2016 
Level 1 
£’000 
Level 2 
£’000 
Level 3 
£’000 
Total 
£’000 
Assets:
Equity investments 655,028   4   13,633  668,665 
Investment in contractual rights  –   –   19,917   19,917 
Fixed interest securities  68,015   3,570   –   71,585 
 --------   --------   --------   -------- 
 723,043   3,574   33,550   760,167 
 --------   --------   --------   -------- 
Liabilities:  – 
Derivative financial instruments – written options  –  (855)  –  (855)
 --------   --------   --------   -------- 
723,043  2,719  33,550  759,312 
 ========   ========   ========   ======== 

A reconciliation of fair value measurement in Level 3 is set out below.




Level 3 Financial assets at fair value
through profit or loss 
Six months 
ended 
30 June 2017 
£’000 
(unaudited) 
Six months 
ended 
30 June 2016 
£’000 
(unaudited) 
Year 
ended 
31 December 2016 
£’000 
(audited) 
Opening fair value 33,550  18,714  18,714 
Purchases at cost 6,708  –  – 
Disposals –  –  – 
Return of capital – royalty (474) (182) (477)
Banro preference shares converted into listed equity shares and classified as Level 1 (7,236) –  – 
Banro preference shares previously in Level 3 redeemed for cash (6,397) –  – 
Total gains or losses included in gains/(losses) on investments in the Consolidated Statement of Comprehensive Income:
– assets disposed during the period –  –  – 
– assets held at the end of the period (678)  4,787  15,313 
 --------   --------   -------- 
Closing balance  25,473   23,319  33,550 
 ========   ========   ======== 

The Level 3 investments as at 30 June 2017 in the table below relate to the Avanco royalty and listed equity shares held under a lock up arrangement. In accordance with IFRS 13, these investments were categorised as Level 3. In arriving at the fair value of these investments, the key inputs are the underlying commodity prices and illiquidity discount. The listed equity shares held under a lock up arrangement are valued at a discount to their quoted equity price at 30 June 2017.

The Level 3 valuation process and techniques used by the Company are explained in the accounting practices in notes 2(h) and 2(o) and a detailed explanation of the techniques is also available on page 73 under ‘valuation process and techniques’ in the Company’s Annual Report and Financial Statements for the year ended 31 December 2016.

Quantitative information of significant unobservable inputs – Level 3





Description 
Six months 
ended 
30 June 2017 
£’000 
(unaudited) 
Six months 
ended 
30 June 2016 
£’000 
(unaudited) 

Year ended 
31 December 2016 
£’000 
(audited) 



Valuation 
technique 



Unobservable 
input 
Kennady Diamonds 2,649  –  –  Discount to quoted prices  Illiquidity
discount 
Trevali Mining 4,059  –  –  Discount to quoted prices  Illiquidity
discount 
Banro gold-linked preference shares –  14,524  13,633  Discount to gold prices  30% Illiquidity
discount 
Avanco royalty* 18,765  8,795  19,917  Discounted cash flows  Discount rate – weighted average cost of capital Average gold and copper prices 
Total 25,473  23,319  33,550 

* Adjusted for changes in currency movements and return of capital.

Sensitivity analysis to significant changes in unobservable inputs within Level 3 hierarchy

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy, together with an estimated quantitative sensitivity analysis, as at 30 June 2017 are as shown below.


Description 

Input 
Estimated 
sensitivity used* 
Impact on 
fair value 
Kennady Diamonds Illiquidity discount  10%  £0.3m 
Trevali Mining Illiquidity discount  10%  £0.4m 
Avanco royalty Discount rate – weighted
average cost of capital 
1%  £2.2m 
Average gold and copper prices  10%  £4.8m 

* The sensitivity analysis refers to a percentage amount added or deducted from the input and the effect this has on the fair value.

The sensitivity impact on fair value is calculated based on the sensitivity estimates set out by the independent valuer in its report on the valuation of contractual rights. Significant increases/(decreases) in estimated commodity prices and discount rates in isolation would result in a significantly higher/(lower) fair value measurement. Generally, a change in the assumption made for the estimated value is accompanied by a directionally similar change in commodity prices and discount rates.

11. Transactions with the AIFM and the Investment Manager

BlackRock Fund Managers Limited (BFM) was appointed as the Company’s Alternative Investment Fund Manager (AIFM) with effect from 2 July 2014. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (BIM (UK)).

The investment management fee due to BFM for the six months ended 30 June 2017 amounted to £2,858,000 (six months ended 30 June 2016: £2,131,000; year ended 31 December 2016: £5,027,000). At the period end, £2,858,000 was outstanding in respect of the investment management fee (six months ended 30 June 2016: £2,128,000; year ended 31 December 2016: £1,952,000).

In addition to the above services, BlackRock has provided the Company with marketing services. The total fees paid or payable for these services for the period ended 30 June 2017 amounted to £37,000 excluding VAT (six months ended 30 June 2016: £47,000; year ended 31 December 2016: £104,000). Marketing fees of £37,000 were outstanding as at 30 June 2017 (30 June 2016: £36,000; 31 December 2016: £94,000).

12. Related party disclosure

The Board consists of six non-executive Directors, all of whom are considered to be independent by the Board. None of the Directors has a service contract with the Company. The Chairman receives an annual fee of £45,000, the Chairman of the Audit & Management Engagement Committee/Senior Independent Director receives an annual fee of £37,500 and each of the other Directors receives an annual fee of £30,000.

As at 30 June 2017 no amounts (30 June 2016: nil; 31 December 2016: nil) were outstanding in respect of Directors’ fees.

At the period end members of the Board held ordinary shares in the Company as set out below:

Ordinary 
shares 
Ian Cockerill1 40,789 
Colin Buchan2 29,000 
David Cheyne 24,000 
Russell Edey 20,000 
Jane Lewis 2,429 
Judith Mosely 7,400 

1. Chairman.

2. Chairman of the Audit & Management Engagement Committee and Senior Independent Director.

13. Contingent liabilities

There were no contingent liabilities at 30 June 2017 (six months ended 30 June 2016: nil; year ended 31 December 2016: nil).

14. Publication of non statutory accounts

The financial information contained in this half yearly financial report does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the six months ended 30 June 2017 and 30 June 2016 has been reviewed by the Company’s auditors.

The information for the year ended 31 December 2016 has been extracted from the latest published audited financial statements, which have been filed with the Registrar of Companies, unless otherwise stated. The report of the auditors on those accounts contained no qualification or statement under sections 498(2) or (3) of the Companies Act 2006.

15. Annual results

The Board expects to announce the annual results for the year ending 31 December 2017, as prepared under IFRS, in mid-February 2018.

Copies of the results announcement can be obtained from the Secretary on 020 7743 3000 or at cosec@blackrock.com. The Annual Report should be available by the beginning of March 2018, with the Annual General Meeting being held in April 2018.

INDEPENDENT REVIEW REPORT TO BLACKROCK WORLD MINING TRUST PLC

REPORT ON THE FINANCIAL STATEMENTS

OUR CONCLUSION

We have reviewed BlackRock World Mining Trust plc’s financial statements (the ‘interim financial statements’) in the half yearly financial report of BlackRock World Mining Trust plc for the six month period ended 30 June 2017. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’, as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority.

WHAT WE HAVE REVIEWED

The interim financial statements comprise:

The interim financial statements included in the half yearly financial report have been prepared in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’, as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority.

As disclosed in note 2 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

RESPONSIBILITIES FOR THE INTERIM FINANCIAL STATEMENTS AND THE REVIEW

OUR RESPONSIBILITIES AND THOSE OF THE DIRECTORS

The half yearly financial report, including the interim financial statements, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half yearly financial report in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority.

Our responsibility is to express a conclusion on the interim financial statements in the half yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

WHAT A REVIEW OF INTERIM FINANCIAL STATEMENTS INVOLVES

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’ issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

PricewaterhouseCoopers LLP
Chartered Accountants
London
10 August 2017

a) The maintenance and integrity of the BlackRock World Mining Trust plc website is the responsibility of BlackRock; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the interim financial statements since they were initially presented on the website.

b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.


ENDS

The half yearly financial report will also be available on the BlackRock website at blackrock.co.uk/brwm. 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:

Nick McLeod-Clarke, Managing Director, Investment Trusts, BlackRock Investment Management (UK) Limited -
Tel: 020 7743 2731

Evy Hambro, Fund Manager, BlackRock Investment Management (UK) Limited –
Tel: 020 7743 4511

Press enquiries:

Lucy Horne, Lansons Communications – Tel:  020 7294 3689
E-mail:  lucyh@lansons.com

12 Throgmorton Avenue
London EC2N 2DL
 

10 August 2017


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Half-year Report - RNS