BLACKROCK WORLD MINING TRUST plc ANNUAL RESULTS ANNOUNCEMENT for the year ended 31 December 2012
Performance to 31 December 2012 One year Three years Five years
Net asset value per share: - capital only -7.7% +3.6% -14.7% - with income reinvested -5.0% +8.0% -9.1% Ordinary share price: - capital only -7.1% +6.6% -10.5% - with income reinvested -4.1% +11.9% -3.5% HSBC Global Mining Index*: - capital only -5.0% -9.0% -7.3% - with income reinvested -2.4% -3.4% +2.5%
Chairman's Statement
Overview
Global economic conditions continued to be challenging during the year under review, with little or no respite for investors. Uncertainty across all major economic regions conspired to keep growth weak, be it the presidential election and looming 'fiscal cliff' in the US, the Chinese leadership transition, or ongoing economic and political volatility in Europe. In aggregate, the world economy remained sluggish throughout 2012 and has yet to shake off the fallout from the deep global recession of 2008 - 2009. Against this background, the Company's net asset value (NAV) decreased by 5.0% compared with a fall of 2.4% in the Company's benchmark index; the Company's share price fell by 4.1% (all percentages calculated in sterling terms with income reinvested).
Since the year end, the Company's NAV has risen by 1.5% compared with an increase of 2.4% in the benchmark index.
Revenue return and dividend The Company's revenue return in 2012 has been substantially enhanced, outstripping the record return that was generated in the previous year. Ordinary dividends from mining companies in the portfolio rose by 14% year-on-year and payments from fixed income investments increased by 28% compared with 2011. The Board's initiative to reallocate the investment management fee and finance costs 75% to capital and 25% to revenue (previously allocated 100% to the revenue account) also had a positive impact on the revenue available to return to shareholders. The Manager has also optimized income generation through exposure to fixed income securities and option writing. In addition, on 30 July 2012 the Company purchased a 2% revenue related royalty over London Mining's Marampa iron ore mine in Sierra Leone. Although payments were small during this period they are expected to increase as production ramps up.
The Directors recommend the payment of a final dividend of 14.00p per share for the year ended 31 December 2012 (2011: 14.00p), which together with the interim dividend of 7.00p per share (2011: nil), makes a total dividend of 21.00p per share (2011: 14.00p) representing an increase of 50% on the previous year. The dividend will be paid on 2 May 2013 to shareholders on the register of members on 8 March 2013.
