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Annual Results

BlackRock World Mining NAV down 26.4%

20 March 2015 07:43

BlackRock World Mining Trust reports 'very disappointing' results for the year to the end of December with the net asset value per share down by 26.4% and the share price falling by 30.4%.

The company's benchmark, the Euromoney Global Mining Index, declined by 13.0% in the period - all percentages calculated in sterling terms with income reinvested.

Chairman A W Lea said: "2014 was a challenging year for the company. Against a backdrop of slowing global growth, the board had taken the decision in the previous year to allocate up to 20% of assets in unquoted investments including mining royalties, equities and bonds.

"The strategic rationale for investing in royalties was, and remains, attractive in that it allows the Company to participate in long term production revenues by providing financing at a time of global banking constraint.

"However, the company's exposure to the London Mining Marampa royalty contract was impacted by two unforeseen factors: the rapid and substantial decline in iron ore pricing following a collapse in Chinese demand and the spread of Ebola in West Africa. Our subsequent decision to write down the value of our investment in London Mining was taken only after careful consideration with our advisers.

"The board is fully aware of the resultant effect on shareholders and, on behalf of my fellow directors, I should like to offer our most sincere regret."

Story provided by StockMarketWire.com

Related Company: BRWM

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