BlackRock
World Mining
Trust plc
BlackRock World Mining Trust plc
Annual Report and Financial Statements 31 December 2021
Annual Report and Financial Statements 31 December 2021
www.
blackrock.com/uk/brwm
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Financial
highlights
622.21p
NAV per ordinary share
+16.0%
£1,142.9m
Net assets
+22.8%
42.50p
Total dividends
109.4%
Increase in total
dividends per share
CPI
5
+5.4%
+20.7%
2,
4
NAV total return
MSCI ACWI Metals and Mining
30% Buffer 10/40 Index +15.1%
4
4
4
589.00p
1
Ordinary share price
+12.8%
43.59p
Revenue return per
ordinary share
+113.7%
7.2%
2,3
Yield
+17.5%
2,
4
Share price total return
MSCI ACWI Metals and Mining
30% Buffer 10/40 Index +15.1%
4
4
4
The above financial highlights are at 31 December 2021 and percentage comparisons are year-on-year
against 31 December 2020.
¹ Mid-market.
2
3
4
5
Consumer Price Index.
Section 1: Overview and performance
1
Within commodities, base metals have seen huge rises. Copper was the stand out for the
Company’s portfolio, reaching a new all-time high price during the year under review.
generators use up to 12 times more copper than traditional generators. The projected
will require 1.9 billion pounds of copper.
2
BlackRock World Mining Trust plc
Why BlackRock
World Mining
Trust plc?
Investment policy
metal assets worldwide, actively managed with the objective of maximising total returns.
While the policy is to invest principally in quoted securities, the Company’s investment
policy includes investing in royalties derived from the production of metals and minerals
as well as physical metals. Up to 10% of gross assets may be held in physical metals and
up to 20% may be invested in unquoted investments.
Reasons to invest
Conviction
A conviction-led approach to adding
value by truly understanding and
comparing companies in the mining
sector, rather than by betting on the
short-term direction of commodity
prices. Unconstrained by market cap,
sub-sector or region, the Investment
Manager can invest in a wide range of
opportunities.
Yield
The Company offers an attractive
%
yield for the year ended 31 December
2021. Whilst mainly invested in equities,
the Company makes use of fixed income
and unquoted instruments to enhance
income. The Group’s global remit means
that the majority of its holdings generate
earnings from around the world.
Flexibility
The Company provides a diversified
exposure to the mining sector, with a
total return approach. The Investment
Manager has the ability to use
investment tools such as option writing
and gearing.
Opportunity
There is an increased focus on
sustainability and, globally, regulation
is stepping up as the world looks to
crack down on pollution and carbon
emissions. The Company seeks
opportunities in mining companies that
produce materials that will help advance
these changes, including the need
for metals such as nickel, cobalt and
lithium to supply the world’s growing
demand for batteries in everything from
iPads to electric vehicles.
Expertise
The Company is managed by
BlackRock’s Sectors and Thematics
team, one of the largest investors in
natural resources. The team has the
resources to undertake extensive,
proprietary, on-the-ground research
to get to know the management of the
companies in which they invest.
ESG integration
Consideration of material
Environmental, Social and Governance
(ESG) information and sustainability
risks is integrated in the investment
process. While the Company does not
exclude investment in stocks purely
on ESG criteria, due to the high impact
that mining has on communities,
countries and the world we live in, as
a general approach the Company will
not invest in companies which have
high ESG risks and no plans to address
existing deficiencies.
A member of the Association of Investment Companies
Further details about the Company including the latest annual and half-yearly financial reports, fact sheets
and stock exchange announcements are available on the website at www.blackrock.com/uk/brwm
3
Contents
Section 1: Overview and performance
Financial highlights 1
Why BlackRock World Mining Trust plc? 2
Performance record 4
Chairman’s statement 5
Investment Manager’s report 9
Section 2: Portfolio
Ten largest investments
Investments 29
Portfolio analysis 32
Section 3: Governance
Governance structure 36
Directors’ biographies
Strategic report 39
Directors’ report 56
Directors’ remuneration report 63
Directors’ remuneration policy 66
Corporate governance statement 6
Report of the audit committee
4Statement of directors’ responsibilities in respect of the annual report
and financial statements
Section 4: Financial statements
Independent auditors’ report
Consolidated statement of comprehensive income 90
Consolidated statement of changes in equity 91
Parent company statement of changes in equity 92
Consolidated and parent company statements of financial position 93
Consolidated and parent company cash flow statements 94
Notes to the financial statements 95
Section 5: Additional information
Shareholder information 132
Analysis of ordinary shareholders 135
Historical record 136
Management and other service providers 13
AIFMD disclosures 1
139
Glossary 140
Section 6: Annual general meeting
Notice of annual general meeting 146
Share fraud warning 150
FRONT COVER
PHOTO COURTESY
4
BlackRock World Mining Trust plc
Performance record
31 December
2021
31 December
2020
Net assets (£’000)¹
Net asset value per ordinary share (NAV) (pence)
622.21
536.34Ordinary share price (mid-market) (pence)
522.00Reference Index
2
– net total return
4,566.93Discount to net asset value
5.3%
Performance (with dividends reinvested)
Net asset value per share
3
%
Ordinary share price
3
Reference Index
2
+15.1%
+20.6%
Year ended
31 December
2021
Year ended
31 December
2020
Change
%
Revenue
Net revenue profit after taxation (£’000) +122.6
35,451Revenue return per ordinary share (pence)
4
43.59
20.40
Dividends per ordinary share (pence)
– 1st interim +12.5
4.50
4.00– 2nd interim
5.50
4.00
– 3rd interim
5.50
4.00
– Final
+225.3
Total dividends paid and payable +109.4
42.50
20.301
2
3
4
Rebased to 100
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
850
900
950
1000
1050
1100
1150
1200
1250
1300
1350
1400
2021
2020
2018
2019
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1993
1994
•
Capital only share price
•
Dividend reinvested returns
Long-term capital and dividend returns
5
Dear
Shareholder
Highlights
• Record total dividend +109.4%
• NAV per share total return +20.7%
1
• Share price total return +17.5%
1
David Cheyne
Chairman
Performance
I am delighted to be able to report on
another excellent year for your Company.
Over the twelve months to 31 December
2021, the Company’s net asset value
per share (NAV) returned +
%1
1
) and the
1
(31 December
1
). In comparison, over the
same period the Company’s Reference
Index, the MSCI ACWI Metals & Mining
30% Buffer 10/40 Index (net total
return), returned +15.1%, the FTSE
the UK Consumer Price Index (CPI)
increased by 5.4%.
The average prices achieved for almost
all commodities during the year,
and base metals in particular, were
substantially ahead of 2020’s levels
and these helped drive this year’s
exceptional growth in revenue. This
was the standout feature of the year
and has resulted in total dividends
last year.
NAV growth, after a strong first
half, was more subdued in the final
two quarters, largely reflecting a
deceleration in economic growth in
China and concerns surrounding
elements of the property development
sector there.
A detailed commentary on the
portfolio’s performance, its positioning,
and how Environmental Social and
Governance (ESG) factors impact on
investment selection, can be found
in the Investment Manager’s Report,
alongside the investment outlook for
the forthcoming year. Since the year
end and up until the close of business
on 2 March 2022, the Company’s NAV
has increased by 20.2% and the share
.
Overview
The themes which have characterised
the sector in recent years continue to
apply. Strong capital discipline has
limited new supply at a time when
government stimulus, including
through infrastructure spending in the
US and Europe, has boosted demand.
In many sectors of the economy,
increased demand has been met with
bottlenecks, as post lockdown activity
has picked up, leading to disruptions in
supply chains and, often, higher prices.
In the mining sector the dynamic
looks more structural. The obstacles
to bringing on new supply have
increased, with greater focus on the
environmental and social impact of
new mining activity, including factors
such as water availability and usage.
These increase the return hurdles
required to justify new investment.
In addition, the grades from existing
Chairman’s Statement
1
calculated in
S
terling terms with dividends reinvested. Further details of the calculation of
performance with dividends reinvested are given in
the Glossary on page
14
1.
6
BlackRock World Mining Trust plc
mines have often continued to decline
as the mines mature and forecasts of
production output in recent years have
also generally been too optimistic. On
the demand side, the pressing need
to decarbonise economic activity in
forthcoming decades will create further
pressure on all commodities associated
with the electrification of energy
production and transportation, such as
copper, nickel, lithium and cobalt.
Progress has also been made this year
in how leading mining companies
have responded to the challenge of
improving their ESG credentials and
your Investment Manager addresses
this in their report.
Revenue return and
dividends
The Company’s revenue return per
share for the year amounted to 43.59p
compared with 20.40p for the previous
During the year, three quarterly interim
dividends of 4.50p, 5.50p and 5.50p
per share were paid on 25 June 2021,
24 September 2021 and 24 December
2021. The Board is proposing a final
dividend payment of
p per share for the year ended 31 December 2021.
This, together with the quarterly interim
dividends, makes a total of 42.50p
per share (2020: 20.30p per share)
representing an increase of 109.4%
on payments made in the previous
financial year and, as in past years, all
dividends are fully covered by income.
In accordance with the Board’s stated
policy, the total dividends represent
substantially all of the year’s available
income.
Subject to approval at the Annual
General Meeting, the final dividend
will be paid on 19 May 2022 to
shareholders on the Company’s
register on
2022, the ex-dividend date being
2022.It has been an exceptional year for
dividend receipts. The Company’s
income is highly dependent on the
dividends paid by the companies it
invests in. It should not be assumed
that the very high level of these
dividends will continue this year or
that the Company’s revenue return,
and accordingly the Company’s
total dividends, will be at the same
level as last year. It remains the
Board’s intention to seek to distribute
substantially all of the Company’s
available income in the future.
Discount control
The Board recognises the importance
to investors that the market price of the
Company’s shares should not trade at
a significant discount to the underlying
NAV. Accordingly, the Board monitors
the Company’s discount to NAV and
will look to buy back shares in normal
market conditions if it is deemed to
be in shareholders’ interests. During
share for a total cost of £393,000. All
shares have been placed in treasury.
I am pleased to report that in the
first half of the year the Company’s
shares were trading at a premium
and the Company was able to reissue
10,200,000 ordinary shares from
treasury for a net consideration of
0.9% premium to NAV. Since the
year end and up to 2 March 2022,
have been reissued from treasury for
a total consideration net of costs of
As at 2 March 2022 the
premium stood at 1.4%.
Resolutions to renew the authorities
to issue and buy back shares will be
put to shareholders at the forthcoming
Annual General Meeting.
ESG integration and socially
responsible investment
As a Board we are conscious that ESG
criteria are increasingly at the forefront
of investors’ minds. Given the nature
of mining as an industry, your Board
has a strong focus on ESG and believes
that it is important that our Company’s
investee companies operate in a
responsible and sustainable way
having regard to the interests of all
their stakeholders, whether these are
shareholders, employees, customers,
regulators or suppliers. The Board is
also aware that ESG issues and risks
must be considered when investing
in the Natural Resources sector and,
as a general approach, the Company
will not invest in companies which the
Investment Manager considers to have
high ESG risks and no plans to address
existing deficiencies.
Our Manager, BlackRock, has an
Investment Stewardship team which
is responsible for protecting and
enhancing the value of your Company’s
investments through engagement with
companies to encourage business and
management practices that support
sustainable financial performance over
the long term. Further information can
be found in the Strategic Report on
pages 52 to 55.
Annual general meeting
The Company’s Annual General
Meeting (AGM) will be held at the
offices of BlackRock at 12 Throgmorton
Avenue, London EC2N 2DL on Friday,
6 May 2022 at 11.30 a.m. Details of the
business of the meeting are set out in
the Notice of Meeting on pages 146 to
149 of this Annual Report.
At present UK Government restrictions
on public gatherings are no longer in
and the AGM can be held in the normal
way with physical attendance by
shareholders. However, shareholders
should be aware that it is possible that
such restrictions could be reimposed
prior to the date of the AGM. In such
event, these restrictions could mean
that the AGM is required to be held
as a closed meeting as happened last
year with physical attendance limited
to only a small number of attendees
comprising the required quorum
for the meeting and those persons
whose attendance is necessary for
the conduct of the meeting, and that
any other persons will be refused
entry. Accordingly, all shareholders
are recommended to vote by proxy in
advance of the AGM and to appoint the
Chairman of the meeting as their proxy.
This will ensure that shareholders’
votes will be counted even if they (or
any appointed proxy) are not able to
attend. All votes will be taken by poll
so that all proxy votes are counted.
Appointing a proxy does not prevent
a shareholder attending the AGM
in person.
The Company may impose entry
restrictions on persons wishing
to attend the AGM (including, if
required, refusing entry) in order to
secure the orderly conduct of the
AGM and the safety of the attendees.
All shareholders intending to attend
should either be fully vaccinated or
obtain a negative COVID
test result before entering the venue. Negative
test results must be obtained no earlier
than one day before entering the venue
and fully vaccinated shareholders are
also strongly encouraged to get tested.
Shareholders who have recovered from
of their infection are exempt from the
above.
Attendees will also be required to wear
a face covering at all times within
the venue except when seated in the
relevant meeting room. Shareholders
are also requested not to attend the
AGM if they have tested positive
to the AGM, are experiencing new
symptoms, have been in close contact
with anyone who is experiencing
during the 10 days prior to the AGM or
are required to self-isolate pursuant to
UK Government guidance.
Outlook
In the short term our Investment
Manager is optimistic that the Chinese
economy is now accelerating again
after the dip seen in the second half
of last year and metals and mining
stocks have certainly made a strong
start to 2022. Although the risk of
variants cannot be ruled out, the most
recent news on the milder impact of the
Omicron variant has been encouraging.
Last year’s exceptional growth in
revenue is unlikely to be repeated,
but our Investment Manager remains
optimistic about the sector’s prospects
in the medium term.
Much of the new demand for metals
over the last two decades resulted
from the urbanisation of the Chinese
economy. It is possible that the drive
to decarbonise economic activity will
have a similar long-term structural
impact. It may also be the case that
the investment required to supply the
raw materials for this transformation
will sustain prices for longer than in
previous cycles; higher prices will be
needed to provide the incentive to
invest to meet this demand.
Last year’s COP26 climate conference
in Glasgow brought home the urgency
of the need for radical action to tackle
global warming. As your Investment
Manager points out, the holdings in
your Company will play a huge part in
supplying the raw materials necessary
by 2050. This imperative, and a return
to sustainable economic growth
following the pandemic, provide strong
underpinning for your Company’s
prospects.
At the time of writing geopolitical
tensions remain very high following
Russia’s invasion of Ukraine. As at
3 March 2022, 0.1% of net assets
securities with exposure to companies
whose principal activities are in
Russia. BlackRock also announced on
suspended the purchase of all Russian
securities in its active and index funds.
The appalling humanitarian
consequences of the war are already
evident. It is too early to assess the
long-term implications of these events
but it seems inevitable that they will
lead to higher volatility in commodity
prices and likely that they will add to
short-term concerns on inflation.
David Cheyne
Chairman
March 2022
The holdings in your Company will play a huge part in
supplying the raw materials necessary for the world to
transition to net zero by 2050.
9
Investment
M
anager’s
report
Portfolio performance
The last few years have been tremendous for the resources sector and in turn for
the Company. We are pleased to report that 2021 was another year of positive
returns but sadly not as much as expected given the stark difference between the
first half of the year and the second. It really was a year of two halves as seen in the
chart below. During first six months of the year ended 31 December 2021, the NAV
of the Company
behind this later in the report but, in summary, the huge moves early in the year
were met with a softening in demand, especially for iron ore in China, as well as
profit taking in other commodities.
NAV return
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
17.4%
2.8%
18.9%
-1.2%
H1 2021
NAV total return
Source: BlackRock.
H2 2021
NAV total return
H1 2021
Share price
total return
H2 2021
Share price
total return
Peruvian copper miner Sociedad Minera Cerro Verde was the largest contributor to
performance in 2021. It operates the world’s largest copper concentrating facility,
pictured here.
PHOTO COURTESY OF SOCIEDAD MINERA CERRO VERDE
Evy Hambro Olivia Markham
10
BlackRock World Mining Trust plc
2021 was a very eventful year. Ongoing
present with waves of, at first, the Delta
variant and then the Omicron variant
as the year drew to a close. In addition,
the global economy was impacted
by supply chain issues, especially for
semi-conductor chips, which pulled
back Gross Domestic Product (GDP)
growth from the elevated levels seen
at the start of the year. Despite these
challenges, the resources sector
benefited from margin expansion as
commodity prices rose faster than
inflation. Capital discipline by and large
remained in place, aside from a handful
of new projects, leaving shareholders to
benefit from record levels of dividends
and share buy backs.
For the year as a whole, the NAV total
return of the Company was up by
with dividends reinvested and the share
price total return was up by
compares to the FTSE 100 Index total
return which was up by
Consumer Price Index (CPI) increase
of 5.4% and the Company’s Reference
Index, the MSCI ACWI Metals & Mining
30% Buffer 10/40 Index (net total
return), which was up by 15.1% (all
numbers are in British Pound Sterling
terms).
Ongoing recovery
economic impacts seen in 2020, this
year was a reversal from those lows.
Economic growth around the world
bounced back sharply on the back of
accommodative financial policies put
in place by Governments during the
prior year. Business support packages
covered disruption, lowered tax rates
and for some people there was wage
protection. These were combined with
record low interest rates and increased
access to government backed finance
schemes. The end result was a huge
increase in liquidity across the world
which muted the worst of the economic
These measures have played out in a
whole range of ways. One has been the
repricing of assets such as property,
commodities, equities, art and other
tangible investments that should
preserve purchasing power through
time. The shortage of income has led
to investors paying higher prices for
securities that offer income as well as
premiums for growth businesses. The
prospect of inflation on the back of
loose monetary policy also saw a huge
rally in index linked bonds and this
even flowed through into the crypto
currency space with bitcoin and other
virtual assets moving to record high
prices. At the other end of the scale,
government bonds seem to have ended
a multi decade bull market as the
prospect of interest rate increases loom
in 2022 and beyond.
Price performance during the year ended 31 December 2021
(in US Dollar terms)
0%
10%
20%
30%
40%
50%
60%
70%
40%
16%
61%
9%
Source: Datastream.
* latest 12 months to third quarter of 2021
Property prices (Knight
Frank Global Property
price index*)
BitcoinDow Jones
World Index
S&P Goldman Sachs
Commodity Index
The resources
sector beneted
from margin
expansion as
commodity prices
rose faster than
ination.
11
The moves in financial assets have
masked other consequences from
demand as economic activity collapsed
only added to the existing Environment
Social and Governance (ESG) related
pressure for producers to reduce
investment in future supply. This
tightened up the market to such an
extent that when demand recovered
in 2021 prices soared due to the lack
of spare capacity in the market. Many
commodities are now out of balance,
with deficits commonplace across
the market and prices reflecting the
situation.
ESG integration and the
social licence to operate
During the last two years we have made
specific mention of the way in which
the Company manages risks related to
ESG and the social licence to operate.
These have been covered in other parts
of the Annual Report but for reference
the text below sets the framework for
how this is done:
“As part of BlackRock’s structured
investment process, ESG risks and
opportunities (including sustainability/
climate risk) are considered within our
fundamental analysis of companies
and industries and we work closely
with BlackRock’s Investment
Stewardship team (BIS) to assess the
governance quality of companies and
investigate any potential issues, risks or
opportunities.
As part of our approach to ESG
integration, we use ESG information
when conducting research and due
diligence on new investments and again
when monitoring investments in the
portfolio.
As an extractive industry the mining
sector naturally faces a number of
ESG challenges. However, we feel the
sector can also provide benefits to
society through the provision of critical
infrastructure, taxes and employment
to local communities, and enabling
the carbon transition through the
production of sustainable metals.”
As part of our commitment to
consideration of ESG information
and risks as being integral to our
investment process to build and
manage the portfolio:
• As a general approach, the Company
will not invest in companies which
have high ESG risks and which we
consider to have no plans to address
existing deficiencies.
• We are also challenging the
executives of the portfolio companies
in which we invest to set out how
their current business plans are
carbon emissions economy by 2050.
• There will be cases where a serious
event has occurred and, in that case,
we will assess whether the
investee
company is taking appropriate action
to resolve matters before deciding
what to do.
• There will be companies which have
derated on the back of an ESG event
or generally poor ESG practices and
there may be opportunities to invest
at a discounted price. However, we
will only invest in these value-based
opportunities if we are satisfied that
there is evidence that the company’s
culture has changed and that better
operating practices have been put in
place.
During the year the main areas of focus
remained on ESG issues relating to
Rio Tinto, Norilsk Nickel and Vale. The
Investment Manager engages with
these portfolio companies and the
Board receives regular updates at its
meetings. By way of an update:
31 December 2021 % Change in 2021
% Change average
prices 2021 vs 2020
Commodity
Gold US$/ounce
Silver US$/ounce 23
22.5Platinum US$/ounce 959
23.3Palladium US$/ounce
9.4Copper US$/pound 4.42
50.6Nickel US$/pound
26.1
Aluminium US$/pound 45.1
42.2Zinc US$/pound 1.63 31.5 32.5
Lead US$/pound 1.06
20.5Tin US$/pound
91.6
Iron Ore (China 62% fines) US$/tonne 215.5
Thermal Coal (fob Newcastle) US$/tonne
101.3
Metallurgical Coal US$/tonne 342.0
Lithium (Battery Grade China) US$/kilogram 35.95 453.1
West Texas Intermediate Oil (Cushing) US$/barrel
Sources: Datastream and Bloomberg.
12
BlackRock World Mining Trust plc
Rio Tinto – during the year the
company made progress on
announcing new CEO and CFO
positions, as well as adding heritage
expertise to the board. In December
2021, Dominic Barton was appointed
as Chairman and he is expected
to start in the second quarter of
2022. The company also published
a comprehensive external review of
its workplace culture, commissioned
as part of its commitment to ensure
sustained cultural change across its
global operations.
Norilsk Nickel – the company had a
number of new environmental issues
and fatalities. The Company exited its
holding in March 2021 despite the
strong outlook for the commodities
that the company produces.
Vale – the company has continued
its journey to raise its ESG profile
following the tragic tailings related
events from the last decade. On the
Governance front, a new Board was
elected including the appointment
of Ollie Olivera who left the Board of
the Company to join Vale as a non-
executive director.
Stand out year
At the half year stage we wrote about
the clean sweep of price rises and,
despite some falls in the second half,
the average prices for the year, the
most important thing for earnings,
have been stunning across the board.
This year we have seen new highs in
nine commodities: iron ore US$233/
tonne, thermal coal US
Newcastle, copper US$11,300/tonne,
tin US
US$63/tonne, palladium US
lithium spodumene US$1,525/tonne,
hard coking coal US$346/tonne fob
and U.S. hot-rolled coil steel US$1,960/
tonne. Iron ore has subsequently fallen
back and is now lower than in 2020.
Within the commodities suite, base
metals have seen huge rises with
copper the standout for the Company’s
portfolio given the large weighting to
First Quantum Minerals and Sociedad
Minera Cerro Verde. However, other
commodities have been equally strong,
unexciting metals such as aluminium
delivered significant increases. All
of these moves should feed through
into the full year earnings and, as
mentioned earlier, if they hold up
in 2022 should help to mitigate the
impact of lower iron ore prices when it
comes to dividends.
Precious metals were generally a lot
weaker in the second half of 2021,
continuing the downtrend from the
peaks that were reached during the
prior twelve months. In particular, gold
has failed to regain ground despite
the supportive macro backdrop of
rising inflation and low interest rates.
In the Platinum Group Metals (PGM)
space, prices softened as automotive
producers had to cut output on the
back of the semi-conductor chip
shortages.
As mentioned in the Interim Report,
steel is a key exposure for the Company
with large holdings in European and
US steel producers. Record prices were
reached over the summer months
and the associated huge margins
caused share prices to move higher.
It is pleasing to see most of the steel
manufacturing companies in the
portfolio continue to be disciplined in
allocating capital despite some peers
reverting back to old ways. It is our
hope that this trend continues, as the
value accretion from share buybacks is
enormous given where the shares are
trading.
Income, income and more
income
In last year’s Annual Report and again
in the Interim Report we flagged the
prospect that the Company was well
placed to receive record levels of
income given the excellent pay-outs
being made by the underlying holdings.
We are delighted to report that this has
Income Breakdown
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
Ordinary dividends
Source: BlackRock.
Special dividends
Fixed income securities Royalty
Option premium and
other income
2014
2015
2016
2017
2018
2019
2020
2021
13
played out even better than expected.
The chart on page 12 highlights the
121.5% growth in income received
this year versus prior years, as well
as showing how it has changed by
each source. Not only has there
been tremendous growth in ordinary
dividends, but special dividends also
increased substantially.
The key reason for the income growth
has been dividends from the large
diversified mining companies which
benefited from much higher iron ore
prices than expected. Given that prices
today are lower than the average
realisations received during 2021, it is
likely that they will not be able to match
the dividends paid last year. However,
the outlook is bright for other parts of
the portfolio such as copper names.
Copper miners who have spent years
paying down debt or spending on new
mines now seem to have dealt with
these cash consuming constraints
leaving them free to boost shareholder
returns in 2022. One example is
dividends in 2021, raised them at the
end of the year and announced a new
policy which gives it flexibility to boost
them should prices remain at levels
in excess of its needs. We hope that
other base metal producers which have
historically shied away from dividends
follow this lead and reward their
shareholders now that producers are
benefiting from these windfalls.
Decarbonisation, a multi
decade driver for the sector
Decarbonising power, industrial
manufacturing, transportation and
food is a key structural trend that will
persist for decades to come. Over the
twelve months in the lead up to COP26
we saw announcements from major
economies, most notably China and
the United States of America (USA),
regarding their commitment to reach
required to meet this goal is enormous,
with commodities playing a key role in
this transition.
From a mining sector perspective,
we look at decarbonisation from two
angles. The first looks at the impact on
demand for the various commodities
and which commodity markets will
see significant change once carbon is
appropriately priced. The second area
is how the mining sector is reducing
emissions from their own operations
(scope 1 & 2 emissions), as well as their
customers’ emissions (scope 3).
In our view, the market is
underestimating the impact that
the energy transition will have on
commodity markets, particularly on
the supply side. Copper, battery related
materials (lithium, cobalt, nickel)
and rare earths are key beneficiaries.
Each of these commodities will
see significant demand growth as
renewable energy investment is
increased, the grid is upgraded,
electric vehicle penetration grows and
the requirement for battery storage
increases. Another interesting dynamic
is the structural change we expect to
see in various commodity markets once
carbon is appropriately priced. This
is most prevalent for the aluminium
and steel industries given their energy
intensity. China’s steel industry
alone accounts for 5% of global
greenhouse gas (GHG) emissions so
it is imperative for these upstream
sectors to be addressed. As part of
this transition, we expect older more
pollutive capacity to be curtailed which
ArcelorMittal decarbonisation technology converts industrial gases captured during the steelmaking process into
sustainable ethanol.
PHOTO COURTESY OF ARCELORMITTAL
* Portfolio positions are shown as at 31 December 2021.
14
BlackRock World Mining Trust plc
should improve industry structure and
margins. As carbon taxes are rolled out
globally there will be clear winners and
losers where those companies with
existing access to low carbon power
such as Norsk Hydro (1.6% of the
portfolio)* or companies with superior
decarbonisation technology will
benefit. Not only will these companies
face less carbon taxes, but they may
also be able to charge premiums for
their products given the demand for
low energy and sustainable materials
by customers.
Over the last year we have seen
mining companies articulate how
they will reduce their own emissions,
with companies generally looking to
reduce emissions by 30% by 2030,
Over the next decade, the reduction of
emissions will be largely achieved by
switching to a renewable power source
for mining fleets, transportation and
parts of the processing circuit. Beyond
this it becomes more challenging to
require advancement in technology
in areas such as green hydrogen for
the hard to abate emissions. We are
actively engaged with management
teams on these goals and the capital
and returns associated with it. Amongst
the Company’s holdings, we view
Australian based iron ore producer
Fortescue Metals Group and diversified
miner Anglo American as leading in
this area.
Base metals
It was an exceptional year for the base
metal complex with average prices
increasing by 20% to 50% and a new
all-time high set for the copper price.
This year saw the strongest metal
demand increase
in history as global
industrial activity recovered, broad
based supply issues, energy shortages
and low inventories kept physical
markets tight with each of the base
metals finishing the year in a deficit
market position. This is a feature of
the market not seen for a number
of
years and supports our conviction
that commodity prices will remain
above market expectations for many
years to come due to structural supply
constraints and global decarbonisation
spending.
The first half of the year saw a very
rapid increase in prices as China’s
the real economy via the property
market and broad-based infrastructure
spending. The acceleration in Chinese
demand was not sustainable and
during the second half of the year,
the Chinese Government put in a
number of measures linked to the
property sector, carbon emissions and
energy usage to slow activity down.
As discussed further below, this had a
significant impact on the steel industry
and in turn the iron ore price. However,
the base metal prices proved largely
resilient with average prices further
increasing in the second half of the
year. Part of this resilience has been
due to a pick-up in demand from the
rest of the world, namely the USA and
Europe, creating a more diversified
and robust demand outlook in our
view. Given the dominance of China on
commodity markets for much of the
last two decades, as we look forwards
towards the multi trillion-dollar
targets, we expect to see more stable
and resilient commodity demand which
has the potential to create a global
capex cycle akin to what we saw in the
early 2000s.
Copper was the standout commodity
for the Company in 2021 finishing the
price 50% higher. After a very strong
first half, the copper price proved
largely resilient despite weakness in
China’s property market highlighting
tightness in the physical market
with London Metal Exchange (LME)
inventories dropping to the lowest
level on record towards the end of the
year. Copper is a clear beneficiary of
the energy transition with more than
65% of copper used for applications
that deliver electricity, whilst at the
same time the industry is facing
mine supply challenges resulting in a
material deficit in the market longer
term. We have consistently seen mine
supply disappoint relative to market
expectations and to the best of our
knowledge there were no new major
greenfield copper developments
sanctioned in 2021 despite record high
prices. The challenges to mine supply
are further exacerbated by increased
This year saw the
strongest metal
demand increase
in history as global
industrial activity
recovered.
15
resource nationalism, ESG issues
and permit requirements. Whilst we
expect to see some mine supply growth
in 2022 through projects that the
Company has exposure to, including
in the Democratic Republic of Congo
(DRC), Anglo American’s Quellaveco
project and Teck Resources Quebrada
Blanca Phase 2 (QB2) project, both
in Chile, looking beyond that it is
challenging for us to see how future
supply meets anticipated growth.
As at 31 December 2021, the Company
had 21.4% of the portfolio exposed to
copper producing companies which
significantly aided performance
for the year. The Company’s largest
(6.2% of the portfolio), continued to
deliver operationally at Grasberg. This
combined with high copper prices
deleverage faster than anticipated with
the company increasing dividends and
announcing a US$3 billion buyback in
November. Among our other copper
producers, Sociedad Minera Cerro
Company’s largest contributor to
performance in 2021 with the shares
volumes and earnings at Sociedad
Minera Cerro Verde recovered during
the year leaving it in a strong position
to pay higher dividends going forward.
We continue to be impressed with the
operational performance of Ivanhoe
Mines (2.4% of the portfolio), which
has surpassed the market’s expectation
of both the timing and production level
This underpins our confidence in the
management team’s ability to deliver
value from its other assets including
the Western Forelands in the future.
Among our smaller holdings, Solaris
Resources (1.5% of the portfolio)
had an exceptional year increasing
report exceptional drilling results at
we believe has the potential to attract
significant mergers and acquisition
(M&A) interest from the majors if it
starts to show Tier 1 characteristics.
Amongst the other base metals, the
aluminium price was up by 42.2%
benefiting from strong demand,
production caps in China and global
smelter curtailments due to rising
energy costs. Aluminium, long
regarded as the laggard amongst
the base metals, is going through a
period of structural change we believe
with China reducing exports due to
its greater focus on emissions and
the incorporation of carbon prices
benefiting producers with renewable
power sources. The Company has
direct exposure to this theme via
its holding in Norsk Hydro (1.6%
portfolio) and Rio Tinto (4.2% of the
portfolio) which all have hydro based
aluminium production and are poised
to benefit in an environment of market-
based carbon pricing. The nickel
market continued to tighten driven
by strong stainless-steel demand
which
nickel demand), as well as improving
Electric Vehicle (EV) battery demand.
We continue to see a tight market for
battery grade nickel given increasing
EV demand and persistent supply
challenges to bring on battery grade
has exposure to via Teck Resources
and Glencore, is likely to see the largest
metal deficit in 2022 as inventories
have further declined on energy-linked
European smelter cuts.
Bulk commodities and steel
It was very much a year of two halves
for the iron ore market with record
demand and prices translating into
a new all-time high price for iron ore
of US$239/tonne in the first half as
steel producers scrambled to access
material. However, it was a very
different picture in the second half,
Source: Jefferies.
Actuals vs forecast difference as % of actual supply
-1,600
-1,400
-1,200
-1,000
-800
-600
-400
-200
0
200
400
Global copper supply: actual versus beginning of year forecast
2013 2014 2015 2016 2017 2018 2019 2020 2021 Estimate
-8.0%
-7.0%
-6.0%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
(in kilo tonnes)
16
BlackRock World Mining Trust plc
as the Chinese Government put in
place a number of measures ranging
from direct output caps, emissions
controls and energy restrictions to
cool the economy and ensure that
steel production did not exceed 2020
levels. Weakness in the Chinese
property market and fears around the
fallout from Evergrande exacerbated
the situation which ultimately saw
the iron ore price fall by US$120/
tonne in the third quarter of 2021,
with steel production finishing the
year at levels not seen since the lows
of 2016. In response, major producer
Vale cut production of higher cost
material which helped to stabilise the
market which, combined with weaker
production from Rio Tinto, saw the iron
ore market finish in a less than feared
surplus.
Recent commentary
,
focused on
stabilising steel demand via property,
infrastructure and credit availability, is
encouraging and our expectation is that
we will see a pick-up in steel demand
post Chinese New Year and the Beijing
Winter Olympics. We believe the steel
industry is on the cusp of structural
change with increased focus on carbon
emissions from which, over the next
two decades, we expect to see reduced
production from pollutive blast furnace
capacity transitioning towards lower
carbon production (electric arc furnaces
and hydrogen-based production)
which will reduce overcapacity,
improve margins and better position
the industry once carbon taxes are
introduced. The Company is invested in
those steel companies that are already
well positioned for this shift such as
Nucor Corp
(0.9% of the portfolio) and
Steel Dynamics (1.6% of the portfolio).
The Company is also invested in
companies which have a first mover
advantage such as ArcelorMittal (5.2%
of the portfolio) through its investment
in decarbonisation technology over
recent years.
Coal markets have been some of the
most interesting commodity markets
over the last couple of years, with
record prices being achieved for both
metallurgical and thermal coal during
the year. Tightness across coal markets
has been driven by significant supply
side distortion with China banning
imports of Australian metallurgical
and thermal coal, along with the
spike in energy prices which saw the
benchmark Australian thermal coal
Whilst coal (in particular thermal coal)
faces longer-term demand headwinds
linked to decarbonisation of steel and
power in the near term, both markets
face supply side shortages and a lack
of investment particularly for thermal
coal, and with producers focused on
responsible run-off, may very well see
the price exceed market expectations
for a period of time. The Company
has no exposure to pure play thermal
coal producers, with thermal coal
Quarterly change in iron ore prices (US$/tonne)
-120
-80
-40
0
40
80
Q1 2012
Q3 2012
Q1 2013
Q3 2013
Q1 2014
Q3 2014
Q1 2015
Q3 2015
Q1 2016
Q3 2016
Q1 2017
Q3 2017
Q1 2018
Q3 2018
Q1 2019
Q3 2019
Q1 2020
Q3 2020
Q1 2021
Q3 2021
QTD Q1 2022
$ / tonne change
Source: Datastream.
of the portfolio) which is focused on
a managed decline of their thermal
coal asset base over time. Teck
Resources (3.6% of the portfolio) is
the Company’s primary exposure to
metallurgical coal, which has been
able to take advantage of the higher
Chinese coking coal prices during the
year given their Canadian asset base.
Precious metals
Unlike the recovery fuelled
performance of the industrial metals,
the precious metals have remained
largely rangebound in 2021, with the
last year. The gold price continues
to be driven by two opposing forces:
concerns over rising inflation and
excessive government debt, and on
the other hand the impact of rate hikes
with the US Federal Reserve indicating
in December that it will begin raising
rates in March 2022 in an effort to
stem rising inflation. This is likely to
see a strengthening US$ headwind to
gold, but the key determinant of the
gold price this year will be whether rate
hikes prove sufficient to cool inflation.
If this is not the case and inflation is
more “persistent” and less “transitory”,
we would expect real rates to decline
further creating a constructive
backdrop for gold. Typically, gold
underperforms equities and the US
Dollar heading into a rate hike cycle,
but outperforms thereafter giving
us confidence in the medium-term
outlook for gold. While the silver price
underperformed gold on a year-to-
average price year-on-year was higher
have seen a solid recovery in silver’s
industrial demand over the last year,
with longer-term upside potential
from greater solar penetration and
increasing usage of semi-conductors.
An encouraging feature of the gold
equity market over recent years
has been the increased focus on
shareholder returns, with higher
gold prices translating into higher
margins, free cash flow and dividends.
This trend has generally continued
through 2021, albeit margins have
been compressed through rising
cost inflation. The portfolio finished
the year with 16.4% exposure to
gold equities, roughly half the peak
exposure to gold equities in the first
half of 2020. The underperformance
of the gold equities has been notable
maintained our strategy of focusing
on high-quality producers which we
see as best positioned to weather cost
inflation and maintain production
levels. Amongst our gold companies,
Newmont Corporation’s (3.5% of the
portfolio) performance continues to
stand out in the sector, a reflection of
its solid operational performance and
cash return.
It has been a volatile year for the
Platinum Group Metals (PGMs) with
record pricing for the PGM basket
during the first half, to then face a
downturn in demand as the global chip
shortage hit auto production towards
of PGM end-use linked to the auto
industry, prices came under significant
pressure with the platinum price
to see improved demand for PGMs
during the first half of 2022 as chip
shortages ease and auto producers
begin re-stocking raw materials. Whilst
a lack of supply growth and increased
PGM loadings on auto catalysts to
meet rising emissions standards bodes
well for the PGMs, the industry faces
the structural headwind of the shift
in demand from internal combustion
engine vehicles to electric vehicles.
The Company’s exposure to PGMs
is via Impala Platinum (1.1% of the
portfolio), Northam Platinum (1.2%
of the portfolio), Sibanye Stillwater
5% of the portfolio)
Anglo Platinum. During the second
half of the year, we saw a step-up in
mergers & acquisitions (M&A) activity
amongst the group with Sibanye
Stillwater looking to further move into
the battery materials space with the
acquisition of a historically challenged
whilst Northam Platinum and Impala
Platinum entered into a bidding war for
Royal Bafokeng Platinum. These are
worrying trends as investors had hoped
that strengthened balance sheets and
improved free cash flow across the
sector would allow the producers to
deliver on their commitment to return
cash to shareholders.
Sustainable metals
The shift towards electric vehicles (EVs)
continues to be one of the strongest
trends in global markets. The market
is anticipated to grow more than
ten-fold by 2030 from 2020 levels,
which creates opportunities for those
companies supplying the materials that
enable the transition. The Company is
well placed to benefit from this given its
exposure to the raw materials that go
into EV batteries and the e-motor.
Transportation was significantly
with global passenger car sales falling
car sales have been constrained
by supply chain semiconductor
shortages, although there is evidence
of significant demand with price
increases and shortages seen in the
second-hand market.
The level of demand and price action
in lithium surprised even the most
optimistic of forecasters in 2021, with
the Chinese Lithium Carbonate price
ending the year at US
up by 429% year-on-year. 2021 saw
153% growth in China for Battery
Europe. We ended 2021 with the EV
share of new car sales standing at
19.3% in China and 31.1% in Europe.
The US market remains a significant
growth opportunity, with sales lagging
other markets like Europe and China
and penetration rates at 6.2%. The
Company has exposure to lithium
via its holding in Sociedad Química
y Minera de Chile ADR (SQM) (1.0%
of the portfolio) which is expected to
achieve higher pricing in 2022 due
to the lagged nature of its contract
pricing structure, along with Sigma
Lithium (0.4% of the portfolio), which
is developing a spodumene project
BlackRock World Mining Trust plc
agreements including to LG Chem, the
world’s no. 2 battery maker.
A critical component of the electric car
is the e-motor, which most commonly
(NdPr) magnet, an alloy of two rare
earth elements (REE). The increased
demand for EVs has resulted in
increasing demand for NdPr, with the
price up by 101% during 2021. REEs
are commonly mined and processed
in China and have been deemed
of strategic importance by both
Europe and the USA. The Company
has exposure to REE through Lynas
Corporation (1.4% of the portfolio),
a REE miner and processor crucially
based in Malaysia and Australia. In
2021 Lynas Corporation’s equity
returned 154%.
EV battery raw materials include
cobalt, where LME prices were up by
119% in 2021 as demand recovered
driven by battery demand, particularly
EV batteries. Significantly, Glencore
announced the 2022 restart of the
Mutanda mine in the DRC, which
will most likely be ramped-up in a
way that keeps the market balanced.
66.9% during 2021, and is a globally
significant cobalt producer which
produced 22% of mine production
in 2020 which is set to increase with
Mutanda’s ramp-up.
2021 has seen growing excitement
about the potential for hydrogen to
disrupt the commercial vehicle market.
Compared to batteries, hydrogen and
fuel cells offer better energy density,
improved range and faster refuelling,
giving them an inherent advantage in
efforts to decarbonise high utilisation
transport like industrial trucks. That
said, there are substantial hurdles
to overcome, with costs needing to
fall dramatically for the switch to be
economic. We see the technology’s
long-term potential but believe that
we are still in the early stages of its
development. Technologies involving
platinum are crucial to the adoption of
the hydrogen fuel cell; the Company
has exposure to this theme via its
PGM exposure.
Royalty and unquoted
investments
At 31 December 2021 the Company
has two unquoted investments, the
1.5% of
the portfolio), as well as an investment
of the portfolio). The Company
has an additional quoted royalty
investment, Vale Debentures (3.3%
of the portfolio), with total royalty
investments amounting to
% of the Company’s portfolio. These, and any
future investments, will be managed
in line with the guidelines set by the
Board as outlined to shareholders in
the Strategic Report.
OZ Minerals Brazil royalty
contract (1.5%)
In July 2014 the Company signed a
binding royalty agreement with Avanco
Minerals. The Company provided
US$12 million 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 produced
from mines built on Avanco’s Antas
North and Pedra Branca licenses. In
addition, there is a flat 2% royalty over
all metals produced from any other
discoveries within Avanco’s licence area
as at the time of the agreement.
Jul-15
Nov-15
Mar-15
Jun-15
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-02
Dec-20
Mar-21
Jun-21
Sep-01
Dec-21
Royalty Drawdown Royalty Payment
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
19
Minerals, an Australian based copper
with the royalty now assumed by OZ
Minerals. Since our initial US$12
million investment was made, we have
received US$19.2 million in royalty
payments with the royalty achieving
full payback on the initial investment.
As at 31 December 2021, the royalty
was valued at £
million (1.5% of NAV) which equates to a 265.3% total
return since our investment.
It has been a challenging operating
As expected, the Antas Mine ceased
production in the middle of the year,
with Pedra Branca steadily ramping-
up during the second half with
ore processed through the Antas
processing facility. OZ Minerals had
flagged the risk of not meeting the
than-expected copper price and our
conservative production assumption
this year, it has had minimal impact
on income, and we have confidence
in production returning to planned
levels during 2022. We continue to
remain optimistic on the longer-term
optionality provided by the royalty via
the development of Pedra Branca West,
as well as greenfield exploration over
the licence area.
Vale debentures (3.3% of
the portfolio)
At the beginning of 2019, the Company
completed a significant transaction to
increase its holding in Vale Debentures.
The
D
revenue royalty over Vale’s Northern
System and Southeastern System iron
royalty over the Sossego copper mine.
The iron ore assets are world class given
their grade, cost position, infrastructure
and resource life which is well in excess
of 50 years. As at 31 December 2021
the Company’s exposure to the Vale
Debentures was 3.3%.
It has been a remarkable environment
for the iron ore market since the
Company acquired the Debentures at
the beginning of 2019. From a supply
perspective, the iron ore market was
significantly tightened following Vale’s
tragic tailings dam collapse at the
beginning of 2019 which has been
further intensified as Vale has failed to
meet its annual production guidance
in 2020 and 2021. These supply issues
combined with record steel demand
in China has seen the iron ore price
beginning of 2019, a notable increase
at the beginning of 2019 when the
Company acquired the Debentures.
Despite the strong rally in the
Debentures, we continue to see
value with the current yield on the
investment in excess of 10% which is
attractive for a royalty instrument. This
value opportunity has been recognised
by other listed royalty producers
Franco
Nevada and Sandstorm Gold royalties which have both acquired
PHOTO COURTESY OF ANGLO AMERICAN
20
BlackRock World Mining Trust plc
stakes in the Debentures since the sell-
down occurred in 2021.
Whilst the Vale Debentures are a
royalty, they are also a listed security
System. As we have highlighted in
previous reports, shareholders should
be aware that historically there has
been a low level of liquidity in the
Debentures and price volatility is to
be expected. However, we expect this
to be improved following the recent
sell-down in April 2021.
We continue to actively look for
opportunities to grow royalty exposure
given it is a key differentiator of the
Company and an effective mechanism
to lock-in long-term income which
further diversifies the Company’s
revenues.
Ivanhoe Electric
/I-Pulse
(1.2% of the portfolio)
In early August the Company made
a US$20 million investment into
Ivanhoe Electric
, an exploration and mining business focused on
identifying and developing “electric
metals” (copper, nickel, gold and silver)
required for the energy transition.
The exploration portfolio is focused
in the USA where it has developed a
proprietary exploration technology
that has the ability to identify
mineral resources at greater depths
than existing methods. The team is
led by Robert Friedland who has a
successful track record of identifying
and developing world class mineral
deposits such as Voisey’s Bay, Oyu
The Company’s investment consists of
an investment into the common shares
of Ivanhoe Electric
, as well as convertible notes which convert at a
discount to the initial public offering
(IPO) price into Ivanhoe Electric shares.
The company is targeting an IPO over
the next six to twelve months and the
exploration potential of this asset
base is encouraging. Since making
the investment, Ivanhoe Electric
has successfully secured an option
deposit, a historic high-grade copper
spend is approximately US$100
million over the next three years with
the management team focused on
verifying the historic drilling to produce
of IPO in 2022. We believe this has
potential to add significant value to our
August 2021 entry price.
Jetti Resources
We are pleased to report that
subsequent to the year-end the
Company has made an investment
into copper technology company Jetti
Resources. Jetti Resources, alongside
the University of British Colombia,
has developed a new catalyst that
improves copper recovery from
primary copper sulphides (specifically
from chalcopyrite, which is often
uneconomic under conventional leach
conditions). Jetti is currently testing at
23 projects at various stages, including
five active pilots where they will look
to integrate their catalyst into existing
recoveries at a low capital cost. The
technology has been demonstrated
to work at scale at the Pinto Valley
copper mine, with further deployments
at different copper assets planned for
this year. If industry adoption of Jetti’s
technology continues to accelerate
and is proven to work at scale, we see
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2H12
Source: Vale.
1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20
Per debenture (R$)
Distribution on Vale shareholders’ debentures
2H20 1H21
material valuation upside, with Jetti
sharing in the economics of additional
copper volumes recovered through the
application of their catalyst.
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 and are
subject to strict Board guidelines on
the use of derivatives which limit the
exposure to an aggregate 10% of
gross assets of the Group. In 2021
income generated from options was
the prior year as volatility levels made
option writing less value accretive
to the Company but nonetheless a
number of opportunities presented
themselves allowing healthy levels
of income to be earned. At the end of
the period the Company had 2.4% of
net assets exposed to derivatives and
the average exposure to derivatives
during the period was once again less
than 5%.
Gearing
At 31 December 2021, the Company
had £113.3 million of net debt, with a
gearing level of 9.9% of net assets. The
debt is held principally in US Dollar
rolling short-term loans and managed
against the value of the debt securities
and the high yielding royalty positions
held by the Company. During the year,
the Company sought to maximise
the use of gearing against the equity
holdings rather than debt securities.
This was driven by the risk adjusted
relative value available in shares where
dividend yields were mostly in excess
of the coupons being paid on the
bonds. Since the investee companies
also have strong balance sheets, it
was opportune to gear up the equity
portfolio of the Company since we were
not adding debt to holdings that were
already heavily leveraged themselves.
Shareholders should note that the total
gearing available to the Company has
increased during the year due to the
rise in net assets but remains within
the 25% of net assets limit set by the
Board. On the back of this, facilities
were refreshed with our lenders and
and £0.4 million for the overdraft. The
cost of debt for the Company remains
very low at 1.10% for US Dollar loans
these are now linked to SOFR/SONIA
following the demise of LIBOR.
Outlook
2022 seems to have started well for the
global economy with fears around the
Omicron variant starting to wane as its
impact seems to be less damaging than
initially feared. With global growth still
strong and inflation numbers higher
than desired, it is likely that Central
Banks will become less accommodative
and start raising rates. Transitions
The portfolio has exposure to rare earth elements (REE) through Lynas Rare Earths, a REE miner and processor based in Malaysia
and Australia. In 2021 Lynas Corporation’s equity returned 154%.
PHOTO COURTESY OF LYNAS RARE EARTHS
22
BlackRock World Mining Trust plc
such as this are always associated with
higher periods of volatility as investors
rotate portfolios to reflect the new
environment.
Looking more closely at the commodity
sector, the outlook remains as bright as
it has been for the last few years. Prices
for almost all metals are well supported
by ongoing demand strength and
limited new supply growth. In addition,
current price levels generate margins
that are high by historical standards
meaning that the companies should
continue to enjoy excellent levels
of cash flow generation. If current
capital allocation trends and tighter
cost containment measures continue,
shareholders should see further years
of strong income but probably not the
records seen in 2021, especially if the
focus moves to share buy backs rather
than dividends.
Evy Hambro and Olivia Markham
BlackRock Investment Management
(UK) Limited
March 2022
25
Portfolio
We continue to be impressed with the operational performance of copper miner
Ivanhoe Mines. The company has surpassed market expectations of both the
26
BlackRock World Mining Trust plc
10
7
4
1
9
6
3
8
5
2
.
Section 2: Portfolio
27
Ten largest
investments
1
Vale
1, 2,3
Diversified mining group
Market value: £106,625,000
Share of investments: 8.5%
largest producer of nickel. The group also produces
2
BHP
3
Diversified mining group
Market value:
£96,883,000
Share of investments: 7.7
%
capitalisation. The group is an important global player in a
and liquefied natural gas but has signed a binding share sale
agreement for the merger of the oil and gas business with
Woodside.
3
Glencore
Diversified mining group
Market value:
£96,651,000
Share of investments:
7.7%
coal
BlackRock World Mining Trust plc
Ten largest investments
continued
4
Anglo American
Diversified mining group
Market value:
£93,608,000
Share of investments: 7.5
%
and precious metals and minerals including platinum and
5
Freeport-McMoRan
Copper producer
Market value:
£77,970,000
Share of investments:
6.2%
geographically diverse assets with significant proven and
6
ArcelorMittal
1
Steel producer
Market value:
£65,024,000
Share of investments:
5.2%
on producing safe sustainable steel. The company has
operations across the world and is the largest steel
7
Rio Tinto
Diversified mining group
Market value:
£52,315,000
Share of investments: 4.2
%
products.
8
Teck Resources
Diversified mining group
Market value:
£45,543,000
Share of investments:
3.6%
group is engaged in mining and mineral development with
and energy.
9
Newmont Corporation
Gold producer
Market value:
£43,489,000
Share of investments: 3.5
%
producer by market capitalisation. The group has gold and
10
First Quantum Minerals
1
Copper producer
Market value: £36,575,000
Share of investments: 2.9%
2
aggregated.
Section 2: Portfolio
Investments
Main
geographical
exposure
Market
value
£’000
% of
investments
Diversified
7.7
–
7.7
7.5
Trident
495,680 39.5
Copper
6.2
Ivanhoe Mines
OZ Minerals
269,095 21.5
Gold
Wheaton Precious Metals
2.7
2.2
Polyus
Polymetal International
204,893 16.4
BlackRock World Mining Trust plc
Main
geographical
exposure
Market
value
£’000
% of
investments
Steel
5.2
96,335 7.7
Industrial Minerals
53,562 4.1
Aluminium
41,136 3.3
Platinum Group Metals
Impala Platinum
39,694 3.1
Iron Ore
2.2
–
–
35,412 2.8
Nickel
Indonesia
–
17,807 1.4
Zinc
2,520 0.2
1,256,134 100.0
Investments
continued
Section 2: Portfolio
Main
geographical
exposure
Market
value
£’000
% of
investments
Comprising
– Investments
– Options
1,256,134 100.0
56
BlackRock World Mining Trust plc
Portfolio analysis
Commodity Exposure
1
Nickel
Steel
Copper
# Represents exposure at 31 December 2020.
Other
&
Silver & Diamonds
Zinc
Iron Ore
Platinum Group Metals
Aluminium
Gold
•
2021 portfolio
•
2020
#
portfolio
•
2021 Reference Index*
0 10 20 30 40
50
Industrial Minerals
Diversied
0.0%
0.0%
0.4%
0.0%
0.3%
1.1%
0.2%
0.3%
0.4%
1.4%
2.7%
1.9%
3.0%
2.8%
3.1%
6.0%
3.0%
4.7%
3.3%
3.5%
0.1%
4.1%
1.8%
1.0%
7.7%
3.4%
18.6%
16.4%
24.3%
21.7%
21.5%
19.2%
11.1%
39.5%
37.2%
34.3%
* MSCI ACWI Metals & Mining 30% Buffer 10/40 Index (net total return).
&
Represents a very small exposure.
1
Based on index classications.
Geographic Exposure
1
1
2
3
•
Global 69.9%
•
Latin America 8.0%
•
Other
2
7.4%
•
Australasia 6.3%
•
South Africa 3.1%
•
Other Africa
•
Canada 2.2%
2021
2020
•
Global 64.9%
•
Australasia 9.4%
•
Latin America 7.3%
•
Other
3
6.5%
•
South Africa 5.2%
•
Other Africa
•
Canada 5.1%
Governance
Section 3: Governance
35
Within the aluminium and steel industries, once carbon taxes are rolled out globally,
PHOTO COURTESY OF NORSK HYDRO
Governance structure
framework of the Company reflects the fact that as an investment
company the Company has no employees, the Directors are all
non‑executive and investment management and administration
functions are outsourced to the Manager and other external service
The Board
5 scheduled meetings per annum
Five non-executive Directors (NEDs), all independent of the Manager
Chairman
: David Cheyne (since 2 May 2019)
Objectives:
• To determine the Company’s investment policy, strategy, and parameters;
• To provide leadership within a framework of prudent and effective controls
which enable risk to be assessed and managed and the Company’s assets to be
safeguarded;
• To challenge constructively and scrutinise performance of all outsourced
activities; and
Audit Committee
2 scheduled meetings per annum
Membership:
All NEDs excluding the Chairman of the Board
Chairman:
Russell Edey (since 1 May 2020)
Key objectives:
• To oversee financial reporting;
• To consider the adequacy of the control environment and review the Company’s
risk registers;
• To review and form an opinion on the effectiveness of the external audit process;
and
Management
Engagement Committee
1 scheduled meeting per annum
Membership:
All NEDs
Chairman:
Russell Edey (since 1 May 2020)
Key objectives:
• To ensure that the provisions of the investment management agreement
follow industry practice, remain competitive and are in the best interests of
shareholders;
• To review the performance of the Manager and Investment Manager; and
Nomination Committee
1 scheduled meeting per annum
Membership:
All NEDs
Key objectives:
• To regularly review the Board’s structure and composition;
• To be responsible for Board succession planning; and
36
BlackRock World Mining Trust plc
37
Directors’ biographies
Russell Edey
Chairman of the Audit Committee,
Management Engagement Committee
and Senior Independent Director
Appointed 8 May 2014
Russell Edey is a non‑executive
director of Fidelity Emerging Markets
Limited and a co‑opted committee
member of the Essex Community
of Avocet Mining PLC in March 2018
having been on the board since 2010,
served as a non‑executive director of
Old Mutual PLC from June 2004 to
May 2013 and retired as chairman
of AngloGold Ashanti Limited in May
2010 having been a member of that
2014 he retired as a non‑executive
director of several companies in the
Rothschild Group which he joined in
American Corporation of South Africa
Attendance record:
Board: 5/5
Audit Committee & Management
Engagement Committee*: 2/2
David Cheyne
Chairman
Appointed 1 June 2012
David Cheyne is a senior adviser to
Akira Partners LLP and a trustee of
the RAF Benevolent Fund and Stowe
consultant at Linklaters on 31 July
2015 where he was senior partner from
Throughout his career at Linklaters, he
played a central role in a wide range
of corporate transactions, including
M&A deals, joint ventures, flotations
particular, he advised on a number of
vice chairman of Europe, Middle East
and Africa at Moelis & Company from
Attendance record:
Board: 5/5
Jane Lewis
Appointed 28 April 2016
Jane Lewis is an investment trust
specialist who, until August 2013, was
a director of corporate finance and
broking at Winterflood Investment
Henderson Global Investors and
Gartmore Investment Management
Limited in investment trust business
development and at West LB Panmure
is chairman of Invesco Perpetual UK
Smaller Companies Investment Trust
plc and a non‑executive director of
BMO Capital and Income Investment
Trust plc, The Scottish Investment Trust
Attendance record:
Board: 5/5
Audit Committee & Management
Engagement Committee*: 2/2
38
BlackRock World Mining Trust plc
Judith Mosely
Appointed 19 August 2014
Judith Mosely is a non‑executive
was previously Business Development
Director for Rand Merchant Bank and
head of the mining finance team at
Attendance record:
Board: 5/5
Audit Committee & Management
Engagement Committee*: 2/2
Srinivasan Venkatakrishnan
Appointed 1 August 2021
Srinivasan Venkatakrishnan is a non‑
executive director of the Weir Group
He brings a wealth of mining and
financial experience to the Board
gained through his vast experience of
leading global mining businesses, in a
career that spans across six continents
served as CEO of Vedanta Resources
plc from 2018 to 2020 and was CEO
of AngloGold Ashanti Limited between
2013 to 2018, having previously been
Chief Financial Officer of the business
from 2005, and of Ashanti Goldfields
career was as an accountant and
restructuring specialist with Deloitte &
Attendance record:
Board: 2/2
Audit & Management Engagement
Committee*: 1/1
Directors’ biographies
continued
39
Strategic report
The Directors present the Strategic Report of the Company
for the year ended 31 December 2021. The aim of the
Strategic Report is to provide shareholders with the
information to assess how the Directors have performed
their duty to promote the success of the Company for the
collective benefit of shareholders.
The Chairman’s Statement together with the Investment
Manager’s Report form part of this Strategic Report. The
Strategic Report was approved by the Board at its meeting on
7
March 2022.
Principal activities
and this is the 28th Annual Report.
Investment trusts are pooled investment vehicles which allow
exposure to a diversified range of assets through a single
investment, thus spreading investment risk.
Objective
The Company’s objective is to maximise total returns to
shareholders through a worldwide portfolio of mining and
metal securities.
The Board recognises the importance of dividends to
shareholders in achieving that objective, in addition to
capital returns.
Strategy, business model and investment
policy
Strategy
The Company invests in accordance with the objective given
above. The Board is collectively responsible to shareholders
for the long‑term success of the Company and is its
governing body. There is a clear division of responsibility
between the Board and BlackRock Fund Managers Limited
(the Manager). Matters reserved for the Board include setting
the Company’s strategy, including its investment objective
and policy, setting limits on gearing (both bank borrowings
and the effect of derivatives), capital structure, governance
and appointing and monitoring of the performance of service
providers, including the Manager.
Business model
The Company’s business model follows that of an externally
managed investment trust. Therefore, the Company does
not have any employees and outsources its activities to
third party service providers including the Manager who
is the principal service provider. In accordance with the
Alternative Investment Fund Managers’ Directive (AIFMD), as
implemented, retained and onshored in the UK, the Company
is an Alternative Investment Fund (AIF). BlackRock Fund
Managers Limited is the Company’s Alternative Investment
Fund Manager.
The management of the investment portfolio and the
administration of the Company have been contractually
delegated to the Manager who in turn (with the permission
of the Company) has delegated certain investment
management and other ancillary services to BlackRock
Investment Management (UK) Limited (the Investment
Manager). The Manager, operating under guidelines
determined by the Board, has direct responsibility for the
decisions relating to the day‑to‑day running of the Company
and is accountable to the Board for the investment, financial
and operating performance of the Company.
The Company delegates fund accounting services to the
Manager, which in turn sub‑delegates these services to The
Bank of New York Mellon (International) Limited (BNYM)
(the Fund Accountant) and also sub‑delegates registration
services to the Registrar, Computershare Investor Services
PLC. Other service providers include the Depositary (also
BNYM). Details of the contractual terms with these service
providers and more details of sub‑delegation arrangements
in place governing custody services are set out in the
Directors’ Report.
Investment policy
The Company’s investment policy is to provide a diversified
investment in mining and metal securities worldwide actively
managed with the objective of maximising total returns
.
While the policy is to invest principally in quoted securities,
the Company’s investment policy includes investing in
royalties derived from the production of metals and minerals
as well as physical metals. Up to 10% of gross assets may be
held in physical metals.
In order to achieve its objective, it is intended that the Group
will normally be fully invested, which means at least 90%
of the gross assets of the Company and its subsidiary will
be invested in stocks, shares, royalties and physical metals.
However, if such investments are deemed to be overvalued,
or if the Manager finds it difficult to identify attractively
priced opportunities for investment, then up to 25% of the
Group’s assets may be held in cash or cash equivalents.
Risk is spread by investing in a number of holdings, many of
which themselves are diversified businesses.
The Group may occasionally utilise derivative instruments
such as options, futures and contracts for difference, if it is
deemed that these will, at a particular time or for a particular
period, enhance the performance of the Group in the pursuit
of its objectives. The Company is also permitted to enter into
stock lending arrangements.
As approved by shareholders in August 2013, the Group
may invest in any single holding of quoted or unquoted
investments that would represent up to 20% of gross
assets at the time of acquisition. Although investments
are principally in companies listed on recognised stock
40
BlackRock World Mining Trust plc
Group’s gross assets in investments other than quoted
flexibility of obtaining exposure to metal and mining related
royalties, it is possible that, in order to diversify risk, all or
part of such exposure may be obtained directly or indirectly
through a holding company, a fund or another investment or
The Board will seek the prior approval of shareholders to any
unquoted investment in a single company, fund or special
purpose vehicle or any single royalty which represents more
In March 2015 the Board refined the guidelines associated
with the Company’s royalty strategy and proposed to
royalty/unquoted portfolio should itself deliver diversification
investments into individual royalties/unquoted investments
other issued securities such as debt and/or equity, where
mine over which the royalty lies, must also not be greater
require that the Investment Manager must, at the time of
investment, manage total exposure to a single operator, via
reducing exposure to listed securities if they are also held in
the portfolio, in a timely manner where royalties/unquoted
statutory royalties are possible (in countries where mineral
rights are privately owned) these will be preferred and in
respect of contractual royalties (a contractual obligation
entered into by the operator and typically unsecured) the
valuation must take into account the higher credit risk
While the Company may hold shares in other listed
investment companies (including investment trusts), the
Although many investments are denominated and quoted in
currencies other than Sterling, the Board does not intend to
employ a hedging strategy against fluctuations in exchange
No material change will be made to the investment policy
Gearing
The Investment Manager believes that tactical use of gearing
the form of an overdraft or short‑term loan facility, which
benefit of gearing is discussed and agreed with the Board
net gearing (calculated as borrowings less cash and cash
borrowings refer to note 14 in the Financial Statements and
Portfolio analysis
Information regarding the Company’s investment exposures
is contained within Section 2 (Portfolio), with information
on the ten largest investments on pages 27 and 28, the
investments listed on pages 29 to 31 and portfolio analysis
on pages 32 and 33
investment risk and activity throughout the year can be
As at 31 December 2021, the Level 3 unquoted investments
(see note 18 in the Financial Statements) in the OZ Minerals
Brazil Royalty and convertible bonds and equity shares of
representing a total of £33,412,000 (US$45,255,000) (2020:
£19,753,000 (US$27,002,000))
Continuation vote
As agreed by shareholders in 1998, an ordinary resolution for
the continuation of the Company is proposed at each Annual
companies continuing down the path of capital discipline,
balance sheets in strong shape and earnings and dividends
in the sector and therefore recommend that shareholders
Performance
Details of the Company’s performance for the year are given
Report includes a review of the main developments during
the year, together with information on investment activity
Results and dividends
The results for the Company are set out in the Consolidated
year, after taxation, was £192,470,000 (2020: £216,515,000)
It is the Board’s intention to distribute substantially all of
the payment of a final dividend as set out in the Chairman’s
31 December 2021 amounted to £78,263,000 (2020:
£35,612
Strategic report
continued
41
Future prospects
The Board’s main focus is to maximise total returns over
the longer term through investment in mining and metal
Employees, social, community and human
rights issues
As an investment trust with no employees, the Company
has no direct social or community responsibilities or impact
on the environment and the Company has not adopted an
ESG investment strategy or exclusionary screens
the Company believes that it is in shareholders’ interests to
consider human rights issues and environmental, social and
Details of the Board’s approach to ESG are set out on page
51
and details of the Manager’s approach to ESG integration are
set out on pages 5
2
to 55
Modern Slavery Act
As an investment vehicle the Company does not provide
goods or services in the normal course of business and does
the Company is not required to make any slavery or human
any event, the Board considers the Company’s supply chains,
dealing predominantly with professional advisers and service
providers in the financial services industry, to be low risk in
Directors, gender representation and
employees
The Directors of the Company are set out in the Directors’
Biographies on pages
37
and 38
Key performance indicators
At each Board meeting, the Directors consider a number of
performance measures to assess the Company’s success
(KPIs) used to measure the progress and performance
of the Company over time and which are comparable to
the footnote to the table, some of these KPIs fall within the
definition of ‘Alternative Performance Measures’ under
guidance issued by the European Securities and Markets
Authority (ESMA) and additional information explaining
how these are calculated is set out in the Glossary on pages
14
0
14 to
3
Additionally, the Board regularly reviews the
performance of the portfolio, as well as the net asset
value and share price of the Company and compares this
the Company’s performance is given in the Chairman’s
Year ended
31 December
2021
Year ended
31 December
2020
Net asset value total return
1, 2
7
Share price total return
1, 2
Discount to net asset value
2
3
Revenue earnings per share
Total dividends per share
p
Ongoing charges
Ongoing charges on gross assets
1
2
3
4
charges based on gross assets are considered to be an appropriate performance measure as management fees are payable on gross assets
Principal risks
The Company is exposed to a variety of risks and
Governance Code (the UK Code), the Board has put in
place a robust ongoing process to identify, assess and
element of this process is the Company’s risk register which
identifies the risks facing the Company and assesses the
likelihood and potential impact of each risk and the quality
then calculated for each risk based on the outcome of the
The risk register, its method of preparation and the operation
of key controls in BlackRock’s and other third party service
providers’ systems of internal control, are reviewed on a
42
BlackRock World Mining Trust plc
comprehensive understanding of BlackRock’s and other third
party service providers’ risk management processes and how
these apply to the Company’s business, BlackRock’s internal
audit department provides an annual presentation to the
Audit Committee Chairs of the BlackRock investment trusts
setting out the results of testing performed in relation to
also periodically receives and reviews internal control reports
The Board has undertaken a robust assessment of both
the principal and emerging risks facing the Company,
including those that would threaten its business model,
pandemic has given rise to unprecedented challenges for
businesses across the globe and the Board has taken into
consideration the risks posed to the Company by the crisis
The threat of climate change has also reinforced the
importance of more sustainable practices and environmental
responsibility for investee companies
Emerging risks are considered by the Board as they come
into view and are incorporated into the existing review of the
considers emerging risks in numerous forums and the
BlackRock Risk and Quantitative Analysis team produces
to the Company through the annual risk survey will be
The Board will continue to assess these risks on an ongoing
that the procedures that the Company has put in place are
sufficient to ensure that the necessary monitoring of risks
and controls has been carried out throughout the reporting
Strategic report
continued
The principal risks and uncertainties faced by the Company during the financial year, together with the potential effects,
Principal Risk Mitigation/Control
Counterparty
The potential loss that the Company could incur if a counterparty
Due diligence is undertaken before contracts are entered into and
The Depositary is liable for restitution for the loss of financial
instruments held in custody unless able to demonstrate the loss
Investment performance
The returns achieved are reliant primarily upon the performance
The Board is responsible for:
• deciding the investment strategy to fulfil the Company’s
objective; and
• monitoring the performance of the Investment Manager and
An inappropriate investment policy may lead to:
• underperformance compared to the reference index;
• a reduction or permanent loss of capital; and
To manage this risk the Board:
• regularly reviews the Company’s investment mandate and long‑
term strategy;
• has set investment restrictions and guidelines which the
Investment Manager monitors and regularly reports on;
• receives from the Investment Manager a regular explanation of
stock selection decisions, portfolio exposure, gearing and any
changes in gearing, and the rationale for the composition of the
investment portfolio;
• monitors and maintains an adequate spread of investments
in order to minimise the risks associated with particular
countries or factors specific to particular sectors, based on the
diversification requirements inherent in the investment policy;
• receives and reviews regular reports showing an analysis of the
Company’s performance against other indices, including the
performance of major companies in the sector; and
• has been assured that the Investment Manager has training
and development programmes in place for its employees and its
recruitment and remuneration packages are developed in order
43
Principal Risk Mitigation/Control
Legal and regulatory compliance
The Company has been approved by HM Revenue & Customs as
an investment trust, subject to continuing to meet the relevant
eligibility conditions, and operates as an investment trust in
accordance with Chapter 4 of Part 24 of the Corporation Tax Act
Any breach of the relevant eligibility conditions could lead to the
Company losing investment trust status and being subject to
corporation tax on capital gains realised within the Company’s
Any serious breach could result in the Company and/or the
Directors being fined or the subject of criminal proceedings or
the suspension of the Company’s shares which would in turn
Amongst other relevant laws, the Company is required to comply
with the provisions of the Companies Act 2006, the Alternative
Investment Fund Managers’ Directive as implemented,
retained and onshored in the UK (AIFMD), the UK Listing Rules,
Disclosure Guidance and Transparency Rules and the Market
Abuse Regulation (as retained and onshored in the UK)
The Investment Manager monitors investment movements, the
level and type of forecast income and expenditure and the amount
of proposed dividends to ensure that the provisions of Chapter 4
Compliance with the accounting rules affecting investment trusts
The Company Secretary, Manager and the Company’s
professional advisers provide regular reports to the Board in
The Board and the Manager also monitor changes in government
Market
Market risk arises from volatility in the prices of the Company’s
suffer through realising investments in the face of negative
Changes in general economic and market conditions, such
as currency exchange rates, interest rates, rates of inflation,
industry conditions, tax laws, political events and trends, can
also substantially and adversely affect the securities and, as a
Market risk includes the potential impact of events which are
Companies operating in the sectors in which the Company
invests may be impacted by new legislation governing climate
change and environmental issues, which may have a negative
The Board considers the diversification of the portfolio, asset
allocation, stock selection and levels of gearing on a regular basis
and has set investment restrictions and guidelines which are
The Board monitors the implementation and results of the
The Board also recognises the benefits of a closed‑end fund
structure in extremely volatile markets such as those experienced
closed‑end funds are not obliged to sell‑down portfolio holdings
During times of elevated volatility and market stress, the ability
of a closed‑end fund structure to remain invested for the long
term enables the Investment Manager to adhere to disciplined
fundamental analysis from a bottom‑up perspective and be ready
to respond to dislocations in the market as opportunities present
The Investment Manager considers the Environmental, Social
and Governance (ESG) risks and opportunities facing companies
conducting research and due diligence on new investments and
Further
information on BlackRock’s approach to ESG integration can be
found on pages 52 to 55
44
BlackRock World Mining Trust plc
Principal Risk Mitigation/Control
Operational
In common with most other investment trust companies, the
the services provided by third parties and is dependent on the
control systems of the Manager and BNYM (the Depositary,
Custodian and Fund Accountant) which maintain the Company’s
The security of the Company’s assets, dealing procedures,
accounting records and adherence to regulatory and legal
requirements depend on the effective operation of the systems
disaster, such as floods, fire, a global pandemic, or terrorist
activity, renders the Company’s service providers unable to
Failure by any service provider to carry out its obligations to the
Company could have a material adverse effect on the Company’s
custody records (including cyber security risk) could prevent the
accurate reporting and monitoring of the Company’s financial
Due diligence is undertaken before contracts are entered into with
The Board reviews on a regular basis an assessment of the fraud
risks that the Company could potentially be exposed to and also a
summary of the controls put in place by the Manager, Depositary,
Custodian, Fund Accountant and Registrar specifically to mitigate
Most third‑party service providers produce internal control
reports to provide assurance regarding the effective operation of
The Committee would seek further representations from service
providers if not satisfied with the effectiveness of their control
The Company’s financial instruments held in custody are subject
to a strict liability regime and, in the event of a loss of such
financial instruments, the Depositary must return financial
assets of an identical type or the corresponding amount, unless
able to demonstrate the loss was a result of an event beyond its
The Board reviews the overall performance of the Manager,
Investment Manager and all other third‑party service providers on
a regular basis and compliance with the Investment Management
The Board also considers the business continuity arrangements
of the Company’s key service providers on an ongoing basis and
of the ability of service providers to function effectively, the Board
has received reports from key service providers setting out the
measures that they have put in place to address the crisis, in
considered these arrangements and reviewed service levels since
the crisis has evolved, the Board is confident that a good level of
service has been
Financial
The Company’s investment activities expose it to a variety of
financial risks which include market risk, counterparty credit risk,
Details of these risks are disclosed in note 18 to the Financial
Statements, together with a summary of the policies for managing
Strategic report
continued
45
In the view of the Board, there have not been any changes
to the fundamental nature of these risks and these principal
risks and uncertainties are equally applicable for the current
Viability statement
In accordance with provision 31 of the 2018 UK Corporate
Governance Code, the Directors have assessed the prospects
of the Company over a longer period than the twelve months
is an investment trust with the objective of providing an
attractive level of income return together with capital
The Directors expect the Company to continue for the
foreseeable future and have therefore conducted this review
Directors assess viability over a rolling three‑year period
as they believe it best balances the Company’s long‑term
objective, its financial flexibility and scope, with the difficulty
in forecasting economic conditions which could affect
undertakes a continuation vote every year with the next one
In making an assessment on the viability of the Company, the
Board has considered the following:
• the impact of a significant fall in commodity markets on
the value of the Company’s investment portfolio;
• the ongoing relevance of the Company’s investment
objective, business model and investment policy in the
prevailing market;
• the principal and emerging risks and uncertainties, as set
out above, and their potential impact;
• the level of ongoing demand for the Company’s shares;
• the Company’s share price discount/premium to NAV;
• the liquidity of the Company’s portfolio; and
• the level of income generated by the Company and future
The Directors have concluded that there is a reasonable
expectation that the Company will continue in operation and
meet its liabilities as they fall due over the period of their
assessment based on the following considerations:
• the Investment Manager’s compliance with the investment
objective and policy, its investment strategy and asset
allocation;
• the portfolio mainly comprises readily realisable assets
which can be sold to meet funding requirements if
2 March 2022,
estimated as being capable of being liquidated within three
days;
• the operational resilience of the Company and its key
service providers and their ability to continue to provide a
good level of service for the foreseeable future;
• the effectiveness of business continuity plans in place for
the Company and its key service providers;
• the ongoing processes for monitoring operating costs
and income which are considered to be reasonable in
comparison to the Company’s total assets;
• the Board’s discount management policy; and
• the Company is a closed‑end investment company and
therefore does not suffer from the liquidity issues arising
In addition, the Board’s assessment of the Company’s ability
to operate in the foreseeable future is included in the Going
Concern Statement which can be found in the Directors’
46
BlackRock World Mining Trust plc
Section 172 statement: Promoting the success of the Company
The Companies (Miscellaneous Reporting) Regulations 2018 require directors of large companies to explain more fully
how they have discharged their duties under Section 172(1) of the Companies Act 2006 in promoting the success of their
The disclosure that follows covers how the Board has engaged with and understands the views of stakeholders and how
stakeholders’ needs have been taken into account, the outcome of this engagement and the impact that it has had on the
stakeholders; the latter comprise the Company’s Depositary, Registrar, Fund Accountants and Brokers
Stakeholders
Shareholders
Manager and Investment
Manager Other key service providers Investee companies
Continued shareholder support
and engagement are critical to
the continued existence of the
Company and the successful
delivery of its long‑term
on fostering good working
relationships with shareholders
and on understanding the
views of shareholders in order
to incorporate them into the
Board’s strategy and objective
in maximising total returns
to shareholders through a
worldwide portfolio of mining
The Board’s main working
relationship is with the
Manager, who is responsible
for the Company’s portfolio
management (including
asset allocation, stock and
sector selection) and risk
management, as well as
ancillary functions such as
administration, secretarial,
accounting and marketing
sub‑delegated portfolio
management to the Investment
management of shareholders’
assets by the Investment
Manager is critical for the
Company to successfully
deliver its investment strategy
Company is also reliant on the
Manager as AIFM to provide
support in meeting relevant
regulatory obligations under
the AIFMD and other relevant
In order for the Company to
function as an investment trust
with a listing on the premium
segment of the official list
of the Financial Conduct
Authority (FCA) and trade on
the London Stock Exchange’s
(LSE) main market for listed
securities, the Board relies on
a diverse range of advisors for
support in meeting relevant
obligations and safeguarding
reason, the Board considers
the Company’s Depositary,
Registrar, Fund Accountants
and Brokers
The Board maintains regular
contact with its key external
service providers and receives
regular reporting from them
through the Board and
Committee meetings, as well as
outside of the regular meeting
Portfolio holdings are
ultimately shareholders’
assets and the Board
recognises the importance
of good stewardship and
communication with investee
companies in meeting the
Company’s investment
Board monitors the Manager’s
stewardship arrangements
and receives regular feedback
from the Manager in respect of
meetings with the management
Area of Engagement Issue Engagement Impact
Investment mandate
and objective
The Board has responsibility to
shareholders to ensure that the
Company’s portfolio of assets is
invested in line with the stated
investment objective and in a way
that ensures an appropriate balance
between spread of risk and portfolio
The Board worked closely with the
Investment Manager throughout
the year in further developing
investment strategy and
underlying policies, not simply
for the purpose of achieving
the Company’s investment
objective but in the interests of
The portfolio activities undertaken
by the Investment Manager can
Investment Manager continues to
actively look for opportunities to
grow royalty exposure given it is a
key differentiator of the Company
and an effective mechanism to
lock‑in long‑term income which
further diversifies the Company’s
Strategic report
continued
47
Area of Engagement Issue Engagement Impact
Responsible
ownership
More than ever, the importance of
good governance and sustainability
practices are key factors in making
change is becoming a defining
factor in companies’ long‑term
prospects across the investment
spectrum with significant and
lasting implications for economic
industries in which the Company’s
investment universe operate are
facing ethical and sustainability
issues that cannot be ignored by
asset managers and investment
The Board believes that
responsible investment and
sustainability are integral to
the longer‑term delivery of the
works closely with the Investment
Manager to regularly review
the Company’s performance,
investment policy and strategy
to ensure that the Company’s
investment objective continues
to be met in an effective and
responsible way in the interests of
The Investment Manager’s
approach to the consideration
of ESG factors in respect of the
Company’s portfolio, as well
as the Investment Manager’s
engagement with investee
companies to encourage the
adoption of sustainable business
practices which support long‑term
value creation, are kept under
also expects to be informed by
the Investment Manager of any
sensitive voting issues involving
Environmental issues were
prominent in the engagement,
as was executive pay and the re‑
election of directors in portfolio
The Investment Manager reports
to the Board in respect of its
approach to ESG integration;
a summary of BlackRock’s
approach to ESG integration is
set out on pages 52 to 55
Investment Manager’s approach
to engagement with investee
companies and voting guidelines
is summarised on pages 57 and
58 and further detail is available
The Board and the Investment
Manager believe there is likely
to be a positive correlation
between strong ESG practices
and investment performance
This is especially
important in mining given the
long investment cycle and the
impact of ESG practices on the
ability of a mining company to
maintain its social licence to
factors that we look at and site
visits to companies’ operations
(when circumstances permit)
provide valuable insights into their
The Investment
Manager has continued to
engage with investee companies
virtually and has, where necessary,
BlackRock has stated that,
as part of its commitment to
sustainability, it will divest any
investment in companies that
from thermal coal production from
all discretionary active investment
review, the Company has had no
exposure to companies whose
principal activity is the extraction
Within the parameters of the
Company’s existing investment
policy, the Investment Manager
is continuing to look for
opportunities to deploy capital in
growth investments that should
benefit from the demand for
this area will become a more
48
BlackRock World Mining Trust plc
Area of Engagement Issue Engagement Impact
Shareholders
Continued shareholder support
and engagement are critical to
the continued existence of the
Company and the successful
The Board is committed to
maintaining open channels of
communication and to engage
welcomes and encourages
attendance and participation
from shareholders at its Annual
will have the opportunity to meet
the Directors and Investment
Manager and to address
Investment Manager will also
provide a presentation on the
Company’s performance and the
The Annual Report and Half Yearly
Financial Report are available on
the BlackRock website and are
also circulated to shareholders
either in printed copy or via
addition, regular updates on
performance, monthly factsheets,
the daily NAV and other
information are also published
Unlike trading companies, one‑
to‑one shareholder meetings
normally take the form of a
meeting with the Investment
Manager as opposed to members
willingness to enter into
discussions with institutional
shareholders is also demonstrated
by the programmes of institutional
presentations by the Investment
to raise issues or concerns with
the Board, they are welcome to
is available to meet directly
with shareholders periodically
to understand their views on
governance and the Company’s
performance where they wish to
Company Secretary whose details
are given on page 137
The Board values any feedback
and questions from shareholders
ahead of and during Annual
General Meetings in order to
gain an understanding of their
views and will take action when
and questions will also help the
Company evolve its reporting,
aiming to make reports more
Feedback from all substantive
meetings between the Investment
Manager and shareholders will
Directors will also receive updates
from the Company’s broker and
Kepler, marketing consultants, on
any feedback from shareholders,
as well as share trading activity,
share price performance and
an update from the Investment
Portfolio holdings are ultimately
shareholders’ assets and the
Board recognises the importance
of good stewardship and
communication with investee
companies in meeting the
Company’s investment objective
the Manager’s stewardship
arrangements and receives
regular feedback from the
Investment Manager in respect of
meetings with the management of
Strategic report
continued
49
Area of Engagement Issue Engagement Impact
Discount
management
The Board recognises the
importance to shareholders that
the market price of the Company’s
shares should not trade at either
a significant discount or premium
believes this may be achieved by the
use of share buyback powers and
The Board monitors the
Company’s discount on an
ongoing basis and receives
regular updates from the
Manager and the Company’s
Brokers regarding the level of
the best way of maintaining the
share rating at an optimal level
over the long term is to create
demand for the shares in the
Investment Manager is devoting
considerable effort to broadening
the awareness of the Company,
particularly to wealth managers
In addition, the Board has worked
closely with the Manager to
develop the Company’s marketing
strategy, with the aim of ensuring
effective communication with
existing shareholders and to
attract new shareholders to the
Company in order to improve
liquidity in the Company’s shares
and to sustain the share rating of
The Board continues to monitor
the Company’s discount to NAV
and will look to buy back shares if
it is deemed to be in the interests
The Company participates in a
focused investment trust sales
and marketing initiative operated
by the Manager on behalf of
the investment trusts under its
set out on page 57
During the first quarter the
Company’s shares generally
traded at a discount but over the
year as a whole the Company’s
shares traded at an average
Service levels
of third party
providers
The Board acknowledges the
importance of ensuring that the
Company’s principal suppliers
are providing a suitable level of
service, including the Investment
Manager in respect of investment
performance and delivering on the
Company’s investment mandate;
the Custodian and Depositary in
respect of their duties towards
safeguarding the Company’s assets;
the Registrar in its maintenance of
the Company’s share register and
dealing with investor queries; and
the Company’s Brokers in respect
of the provision of advice and
acting as a market maker for the
The Manager reports to the Board
on the Company’s performance on
out a robust annual evaluation
of the Manager’s performance,
their commitment and available
The Board performs an annual
review of the service levels of all
third‑party service providers and
concludes on their suitability to
receives regular updates from the
AIFM, Depositary, Registrar and
In light of the challenges
pandemic to the operation of
businesses across the globe, the
Board has worked closely with
the Manager to gain comfort
that relevant business continuity
plans are operating effectively for
all of the Company’s key service
All performance evaluations were
performed on a timely basis and
the Board concluded that all
including the Manager and
Investment Manager, were
operating effectively and
The Board has received updates
in respect of business continuity
planning from the Company’s
Manager, Custodian, Depositary,
Fund Accountant, Registrar and
Printer and is confident that
arrangements are in place to
ensure a good level of service will
continue to be provided despite
50
BlackRock World Mining Trust plc
Area of Engagement Issue Engagement Impact
Board composition
The Board is committed to ensuring
that its own composition brings an
appropriate balance of knowledge,
experience and skills, and that it
is compliant with best corporate
governance practice under the UK
Code, including guidance on tenure
and the composition of the Board’s
All Directors are subject to a
formal evaluation process on
an annual basis (more details
and the conclusions of the 2021
evaluation process are given
on page 70
for re‑election by shareholders
Shareholders may attend the
Annual General Meeting and
raise any queries in respect of
Board composition or individual
Directors in person or may
contact the Company Secretary
or the Chairman using the details
provided on page 137 with any
The Board undertook a review
of succession planning
arrangements and identified the
need for a new Director following
Nomination Committee agreed
the selection criteria and the
method of selection, recruitment
and appointment, Board diversity,
including gender, were carefully
considered when establishing
of contacts, were used to identify
As at the date of this report, the
Board was comprised of three
has a tenure in excess of nine
Director’s
contribution to the success and
promotion of the Company are
set out in the Directors’ Report on
pages 60 and 61 and details of
the Directors’ biographies can be
found on pages 37 and 38
The Directors are not aware of
any issues that have been raised
directly by shareholders in respect
of Board composition in the year
The Board appointed Srinivasan
Venkatakrishnan as a Director
of the Company with effect from
retired as a Director on 31 July
Strategic report
continued
51
77%
39%
86%
Governance Social Environmental
48%
32%
32%
25%
30%
32%
Board Composition & Effectiveness
Business Oversight/Risk Mangement
Corporate Strategy
Executive Management
Governance Structure
Remuneration
57%
32%
55%
Environmental engagement topics
Climate Risk Management
Environmental Impact Management
Operational Sustainability
18%
32%
Human Capital Management
Social Risks and Opportunities
Engagement themes
Social engagement topics
Governance engagement topics
Environmental, Social and Governance approach
The Board’s approach
Environmental, Social and Governance (ESG) issues can present both opportunities and threats to long term investment
Your Board is committed to ensuring that we have appointed a Manager that integrates ESG considerations into its investment
process
The Board believes effective engagement with company management is, in most cases, the most effective way of driving
While the Company does not have an ESG or impact
focused investment strategy or apply exclusionary screens, as a general approach the Company will not invest in companies
company is taking steps to address matters of an ESG nature, it may discuss with the Manager how this situation might be
ESG integration does not change the Company’s investment objective or constrain the Investment Manager’s investable
universe, and does not mean that an ESG or impact focused investment strategy or any exclusionary screens have been or will
More information on BlackRock’s global approach to ESG integration, as well as activity specific to the
BlackRock World Mining Trust plc – engagement with portfolio companies in 2021
Given the Board’s belief in the importance of engagement and communication with portfolio companies, they receive regular
Year ended
31 December
2021
Number of engagements held 56
Number of companies met 27
71
Shareholder meetings voted at 57
Number of proposals voted on 630
Number of votes against management 39
52
BlackRock World Mining Trust plc
The importance and challenges of considering ESG when investing
in the Natural Resources Sector and BlackRock’s approach to ESG
Integration
Environmental Social Corporate governance
Impact
As well as the longer‑term contribution to
carbon emissions and the impact on the
environment, the activities undertaken
by many companies in the portfolio such
as digging mines will inevitably have
important how companies manage this
process and ensure that an appropriate
risk oversight framework is in place, with
The significant fall in the market
cap of companies like Vale, after the
Brumadinho dam collapse, highlights
the key role that ESG has on share price
Climate change and other sustainability
factors pose some of the greatest risks
to the operating models of companies in
the mining sector as the world transitions
companies manage these risks and
evolve their operating models through
this transition will be a defining feature
of their ability to generate long‑term
order to unlock the full potential of the
energy transition these companies must
be prepared to adapt, innovate and pivot
BlackRock believes it is vital that
natural resources companies maintain
BlackRock means that companies
maintain broad acceptance from their
key stakeholders, including business
partners (such as suppliers and
distributors), clients and consumers,
national governments, and the
Considering the interests of key
stakeholders recognises the collective
nature of long‑term value creation and
the extent to which each company’s
prospects for growth are tied to its
ability to foster strong sustainable
relationships with and support from
As with all companies, good corporate
governance is especially critical for
performance and effectiveness of
the board is critical to the success
of a company, the protection of
shareholders’ interests, and long‑term
issues, including the management
of material sustainability issues that
have a significant impact for natural
resources companies, all require
effective leadership and oversight
with engaged, diverse and experienced
board directors who actively advise and
oversee management have a competitive
Strategic report
continued
53
Environmental Social Corporate governance
BlackRock Approach
BlackRock prefers direct dialogue with
companies on complex issues such as
climate risk and other environmental
addressed by engagements, BlackRock
may vote against management, including
against corporate directors (and in favour
of certain types of shareholder proposals)
should companies fail to demonstrate
material progress against specific
Specifically, BlackRock asks companies
to articulate how their business model
is aligned to a scenario in which
global warming is limited to well below
2°C, moving towards global net zero
emissions by 2050, and to disclose a
business plan for how they intend to
deliver long‑term financial performance
through this transition to global net zero,
consistent with their business model and
how BlackRock assesses how companies
are delivering on these plans can be
corporate/literature/publication/blk‑
commentary‑climate‑risk‑and‑energy‑
Where corporate disclosures are
insufficient to make a thorough
assessment, or a company has not
provided a credible plan to transition
its business model to a low‑carbon
economy, the BlackRock Investment
Stewardship (BIS) team may vote against
the directors it considers responsible
support shareholder proposals that it
believes address gaps in a company’s
approach to climate risk and the energy
In normal operating conditions (and
when not prevented by travel restrictions
management team’s site visits to
companies’ assets provide them with
valuable insight into these issues which
often cannot be properly understood
BIS advocates for improved disclosures
to understand how companies are
making prudent decisions considering
asks companies to demonstrate how
they have put in place appropriate
board oversight, due diligence, and
remediation mechanisms relating to
adverse impacts on people arising
from their business operations —
including those indirectly employed or
communities that could be harmed or
displaced by a company’s expanding
Sustainability Accounting Standards
Board (SASB) standards materiality
framework to be a helpful tool for
companies considering enhancing their
disclosures on industry‑specific human
Given continuing advances in
sustainability reporting standards, in
addition to BlackRock’s request that all
companies report in alignment with the
recommendations of the Task Force on
Climate‑related Financial Disclosures
(TCFD), BlackRock is evolving its
perspective on sustainability reporting
to recognise that companies may use
standards other than those of the SASB,
and reiterate its request for metrics
More information on BlackRock’s
fact‑sheet/blk‑responsible‑investment‑
In conjunction with BIS, the portfolio
management team actively engages
with companies on a wide range of
governance issues including board
independence, executive compensation,
shareholder protection and timely and
BIS may also vote against the re‑
election of directors when they do not
seem to be acting in the economic
effectiveness of voting against directors
is well documented in BlackRock’s, as
well as independent third party, research
which indicated that across the FTSE
350 companies where BIS voted against
directors over remuneration concerns,
within twelve months
1,2
1
2
54
BlackRock World Mining Trust plc
Environmental Social Corporate governance
BIS - examples of approach to voting and engagement across ESG
categories (year ended 30 June 2021)
1,2
BIS has created a climate focus universe
of over 1,000 carbon‑intensive public
global scope 1 and 2 GHG emissions of
its clients’ public equity holdings with
universe represents companies where
climate change and other sustainability
factors pose the greatest risk to clients’
literature/publication/blk‑climate‑
engagements with nearly 670 of the
companies in this climate focus universe
BIS held 2,330 company engagements
BIS voted against management on
climate risk concerns at approximately
voted on at energy/utilities companies
BIS voted against 255 directors and
against management at 319 companies
BIS held 1,350 engagements related
to engaging and voting on company
This year, BIS supported 35 out of 100
During the 2021 proxy year, BIS did not
support 2,222 directors at 1,327 unique
companies globally over concerns about
BIS voted against 1,862 directors at 975
unique companies globally for concerns
BIS voted against 758 directors globally
at 639 unique companies for being
BIS voted against the re‑election of
931 directors at 453 companies due to
1
2
BlackRock’s approach to ESG integration
BlackRock believes that sustainability risk – and climate
risk in particular – now equates to investment risk, and this
will drive a profound reassessment of risk and asset values
as investors seek to react to the impact of climate policy
a significant reallocation of capital away from traditional
believes that carbon‑intensive companies will play an
integral role in unlocking the full potential of the energy
transition, and to do this, they must be prepared to adapt,
innovate and pivot their strategies towards a low carbon
As part of BlackRock’s structured investment process, ESG
risks and opportunities (including sustainability/climate
risk) are considered within the portfolio management team’s
fundamental analysis of companies and industries and the
Company’s portfolio managers work closely with BlackRock’s
Investment Stewardship team (BIS) to assess the governance
quality of companies and investigate any potential issues,
As part of their approach to ESG integration, portfolio
managers use ESG information when conducting research
and due diligence on new investments and again when
portfolio managers now have access to 1,200 key ESG
performance indicators in Aladdin (BlackRock’s proprietary
internal sustainability research framework scoring is also
available alongside third‑party ESG scores in core portfolio
access to company management allows it to engage on
issues that are identified through questioning management
portfolio management team, BIS meets with boards of
companies frequently to evaluate how they are strategically
managing their longer‑term issues, including those
surrounding ESG and the potential impact these may have
team’s understanding of ESG issues is further supported by
advance ESG research and integration, active engagement
and the development of sustainable investment solutions
Investment stewardship
As a fiduciary to its clients, BlackRock has built its business
fiduciary duty to its clients, BIS is committed to promoting
sound corporate governance through engagement with
investee companies, development of proxy voting policies
that support best governance practices and also through
Strategic report
continued
55
Global Principles
BlackRock’s approach to corporate governance and
high‑level Principles are the framework for BlackRock’s
more detailed, market‑specific voting guidelines, all of which
describe BlackRock’s philosophy on stewardship (including
how it monitors and engages with companies), its policy
on voting, its integrated approach to stewardship matters
across relevant asset classes and products as permitted
Principles annually and updates them as necessary to reflect
market standards, evolving governance practice and insights
Global Principles are available on its website at https://
Market-specific proxy voting guidelines
BlackRock’s voting guidelines are intended to help clients
and companies understand its thinking on key governance
company’s approach to corporate governance and the items
BlackRock applies its guidelines pragmatically, taking into
BlackRock informs voting decisions through research
and engages
guidelines annually and updates them as necessary to reflect
changes in market standards, evolving governance practice
BlackRock’s market‑specific voting guidelines are available
about‑us/investment‑stewardship#principles‑and‑
guidelines
In 2021, BIS explicitly asked that all companies disclose
a business plan aligned with the goal of limiting global
warming to well below 2ºC, consistent with achieving net zero
viewed these disclosures as essential to helping investors
assess a company’s ability to transition its business to a low
carbon world and to capture value‑creation opportunities
that companies align their disclosures to the Task Force on
Climate‑related Financial Disclosures (TCFD) framework and
on sustainability reporting to recognise that companies may
use standards other than that of the SASB and reiterates its
request
BIS is also encouraging companies to demonstrate that their
plans are resilient under likely decarbonisation pathways,
is also asking companies to disclose how considerations
related to having a reliable energy supply and just transition
investment stewardship approach to sustainable investing
literature/publication/blk‑commentary‑climate‑risk‑and‑
BlackRock has been a member of Climate Action 100+ since
2020 and has aligned its engagement and stewardship
priorities to UN Sustainable Development Goals (including
how BIS’s engagement priorities align to the UN Sustainable
BlackRock is committed to transparency in terms of
disclosure on its engagement with companies and voting
rationales and is committed to voting against management
to the extent that they have not demonstrated sufficient
or withheld votes from 6,560 directors globally at 3,400
different companies driven by concerns regarding director
independence, executive compensation, insufficient progress
on board diversity and overcommitted directors, reflecting
2021 proxy year, BlackRock voted against 255 directors and
against 319 companies for climate‑related concerns that
detail in respect of BIS’s engagement and voting history can
BIS also publishes voting bulletins explaining its vote
decision and the engagement and analysis underpinning it,
on certain high‑profile proposals at company shareholder
stewardship#vote‑bulletins
BlackRock’s reporting and disclosures
In terms of its own reporting, BlackRock believes that
the SASB provides a clear set of standards for reporting
sustainability information across a wide range of issues,
evaluating and reporting climate‑related risks, as well as the
related governance issues that are essential to managing
recognises that reporting to these standards requires
corporate/literature/continuous‑disclosure‑and‑important‑
By order of the Board
CAROLINE DRISCOLL
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
7 March 2022
56
BlackRock World Mining Trust plc
GDPR
Shareholder Rights Directive II
Dividends
Investment management and
administration
Directors’ report
Status of the Company
The Company is domiciled in the
United Kingdom
Cpublic
ompany is a
company limited
by shares
Facilitating retail investments
The Common Reporting Standard
57
Appointment of the Manager
Depositary and Custodian
Registrar
Change of control
Exercise of voting rights in investee
companies
BlackRock World Mining Trust plc
Continuation vote
Principal risks
Going concern
Directors
65
7
Directors’ report
Directors’ indemnity
Conflicts of interest
Directors’ remuneration report
6
65
Notifiable interests in the Company’s voting
rights
Foreign exchange
Derivative transactions
Share capital
Share repurchases
BlackRock World Mining Trust plc
6
Share issues
6
Treasury shares
Streamlined Energy and Carbon Reporting
(SECR) statement: Greenhouse gas (GHG)
emissions and energy Consumption
disclosure
Articles of Association
Annual General Meeting
The following information to be discussed at the
forthcoming Annual General Meeting is important and
requires your immediate attention. If you are in any doubt
about the action you should take, you should seek advice
from your stockbroker, bank manager, solicitor, accountant
or other financial adviser authorised under the Financial
Services and Markets Act 2000 (as amended).
If you have sold or transferred all of your ordinary shares
in the Company, you should pass this document, together
with any other accompanying documents (but not the
personalised Form of Proxy) as soon as possible to the
purchaser or transferee, or to the stockbroker, bank
or other agent through whom the sale or transfer was
effected, for onward transmission to the purchaser or
transferee.
Resolution 1 – Approval of the annual report and
financial statements
Resolution 2 – Approval of the Directors’
remuneration report
66
7
Resolution 3 – Approval of the dividend
Resolutions 4 to 8 – Re-election/election of
Directors
Directors’ report
Resolutions 9 and 10 – Re-appointment of the
external auditors and auditors’ remuneration
77
Resolution 11 – Continuation of the Company as
an investment trust
Resolution 12 – Authority to allot shares
BlackRock World Mining Trust plc
Resolution 13 – Authority to disapply
pre-emption rights
Resolution 14 – Authority to buy back shares
6
Recommendation
Corporate governance
Audit information
Independent auditors
7
CAROLINE DRISCOLL
7
Directors’ report
Statement by the Chairman
66
67
Remuneration Committee
Remuneration implementation report
Year ended 31 December 2021 Year ended 31 December 2020
Directors
Base
salary
Taxable
benefits
1
Total
Base
salary
Taxable
benefits
1
Total
£ £ £ £ £ £
–
–
–
–
–
–
–
–
–
–
–
5
–
Total 175,835 – 175,835 179,713 2,862 182,575
Directors’ remuneration report
BlackRock World Mining Trust plc
Relative importance of spend on remuneration
2021 2020 Change
£’000 £’000 £’000
–
Annual percentage change in Directors’ remuneration
31 December 31 December 31 December 31 December 31 December
2017 2018 2019 2020 2021
Directors’ remuneration report
65
Performance
Performance 1 January 2011 to
31 December 2021
0
50
100
150
200
Total return performance record, rebased to 100 at 31 December 2011.
Sources: BlackRock and Datastream.
•
MSCI ACWI Metals and Mining 30% Buffer 10/40 Index
•
Share price (mid-market)
•
Net asset value per share
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Shareholdings
31 December
2021
Ordinary
shares
31 December
2020
Ordinary
shares
Implementation of the remuneration policy
in 2022 financial year
66
67
66
67
Retirement of Directors
5
DAVID CHEYNE
7
66
BlackRock World Mining Trust plc
Directors’ remuneration policy
Consideration of shareholders’ views
Shareholder voting
Directors’ remuneration policy
67
Policy table
Purpose and link
to strategy
Fees Discretionary fees Benefits
Description
Maximum levels
BlackRock World Mining Trust plc
Chairman’s introduction
Compliance
The Board
Board structure and management
Board independence and tenure
Corporate governance statement
Diversity
Directors’ appointment, retirement and
rotation
5
Directors’ induction, training and
development
Directors’ liability insurance
BlackRock World Mining Trust plc
The Board’s responsibilities
Performance evaluation
Delegation of responsibilities
Management and administration
56
57
57
5
The Company Secretary
Corporate governance statement
Committees of the Board
Nomination Committee
Audit Committee
7
77
Management Engagement Committee
Remuneration Committee
6
67
Internal controls
BlackRock World Mining Trust plc
Financial reporting
7
5
Socially responsible investment
5
55
Bribery prevention policy
Criminal Finances Act 2017
Communications with shareholders
Packaged Retail and Insurance-Based
Investment Products (PRIIPS) Regulation
(The Regulation)
Corporate governance statement
Disclosure Guidance and Transparency
Rules
56
6
DAVID CHEYNE
7
BlackRock World Mining Trust plc
Composition
Performance evaluation
7
Role and responsibilities
Internal controls, financial reporting and risk
management systems
Narrative reporting
External audit
Reporting responsibilities
Internal audit
6
7
Report of the audit committee
75
Whistleblowing policy
Internal audit
Non-audit services
Significant issues considered regarding the
Annual Report and Financial Statements
76
76
BlackRock World Mining Trust plc
Significant issue How the issue was addressed
The accuracy of the valuation of the investment portfolio
The risk of misappropriation of assets and unsecured
ownership of investments
The accuracy of the calculation of management fees
The risk that income is overstated, incomplete or inaccurate
through failure to recognise proper income entitlements or to
apply the appropriate accounting treatment for recognition of
income
Auditors and audit tenure
Assessment of the effectiveness of the
external audit process
Report of the audit committee
Section 3: Governance
77
Conclusions in respect of the Annual Report
and Financial Statements
RUSSELL EDEY
7
BlackRock World Mining Trust plc
7
77
DAVID CHEYNE
7
Statement of directors’ responsibilities in
respect of the annual report and nancial
statements
Financial
statements
81
Copper miner Solaris Resources had an exceptional year, reporting
impressive drilling results at its Warwintz deposit in Ecuador. Its shares
rose 178.6% in value.
PHOTO COURTESY OF SOLARIS RESOURCES
82
BlackRock World Mining Trust plc
Report on the audit of the financial
statements
Opinion
In our opinion, BlackRock World Mining Trust plc’s Group
financial statements and Company financial statements (the
“financial statements”):
• give a true and fair view of the state of the Group’s and of
Group’s profit and the Group’s and Company’s cash flows
for the year then ended;
adopted international accounting standards; and
We have audited the financial statements, included within
the Annual Report and Financial Statements (the “Annual
Report”), which comprise: the Consolidated and parent
Consolidated and parent company cash flow statements
for the year then ended; and the notes to the financial
statements, which include a description of the significant
accounting policies.
Our opinion is consistent with our reporting to the Audit
Committee.
Basis for opinion
We conducted our audit in accordance with International
Independence
We remained independent of the Group in accordance
interest entities, and we have fulfilled our other ethical
not provided.
Other than those disclosed in Note 5, we have provided
undertakings in the period under audit.
Our audit approach
Context
The Group comprises BlackRock World Mining Trust plc
(the “Parent Company”) and BlackRock World Mining
Investment Company Limited. The Group engages BlackRock
Fund Managers Limited (the “Manager”) to manage its
assets. We conducted our audit of the financial statements
using information from The Bank of New York Mellon
(International) Limited (the “Fund Accountant”) to whom the
the provision of certain administrative functions.
Overview
Audit scope
• We tailored the scope of our audit taking into account the
types of investments within the Group, the involvement
of the third parties referred to in the Context section, the
accounting processes and controls, and the industry in
which the Group operates.
and Manager to understand the extent of the potential
impact of climate change on the Group’s financial
statements.
material impact on the financial statements. Our evaluation
of this conclusion included challenging key judgements
and estimates in areas where we considered that there
was greatest potential for climate change impact. This was
principally in relation to the valuation of unlisted investments
as explained in our key audit matter on Valuation and
existence of investments.
We also considered the consistency of the climate change
disclosures included in the Strategic Report and Investment
Manager Report with the financial statements and our
knowledge from our audit.
Key audit matters
• Valuation and existence of investments (Group and Parent)
• Accuracy, completeness and occurrence of income (Group
and Parent)
(Parent)
Materiality
Group materiality.
Independent auditors’ report
Section 4: Financial statements
(Company).
The scope of our audit
As part of designing our audit, we determined materiality and
assessed the risks of material misstatement in the financial
statements.
Key audit matters
professional judgement, were of most significance in the
audit of the financial statements of the current period and
include the most significant assessed risks of material
auditors, including those which had the greatest effect on:
the overall audit strategy; the allocation of resources in the
audit; and directing the efforts of the engagement team.
These matters, and any comments we make on the results of
our procedures thereon, were addressed in the context of our
audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate
opinion on these matters.
markets and economies continue to recover. Otherwise, the
Key audit matter How our audit addressed the key audit matter
Valuation and existence of investments (Group and Parent)
Refer to the Report of the Audit Committee (page 76),
Accounting policies (page
) and Notes to the Financial Statements (page 124).
We focused on the valuation and existence of listed
element of the net asset value as disclosed on the Statement
of financial position in the Annual Report and Financial
Statements.
For unlisted investments, we focused on the valuation of OZ
Minerals Brazil Royalty and Ivanhoe Electric as the valuation
the estimates and/or judgements can result, either on an
valuation of the investments.
Our audit work on the valuation and existence of the listed
investments included the following:
agreeing the valuation to independent third party
sources; and,
• We tested the existence of all of the investments
which we audited.
For Oz Minerals Brazil Royalty, we performed the following
audit procedures:
the external expert;
• We held discussions with the external expert throughout
an understanding of changes in the assumptions
since last year;
on the operation and supply chain of the mine; and,
– the impact of climate change on the valuation.
• We involved PwC specialists to evaluate the valuation
(IPEV);
84
BlackRock World Mining Trust plc
Independent auditors’ report
continued
Key audit matter How our audit addressed the key audit matter
Valuation and existence of investments (Group and Parent)
(continued)
in determining the fair value of Oz Minerals Brazil Royalty;
valuation;
price forecasts;
• We performed an analysis of discount rates used,
including determining the sensitivity of key assumptions
to changes; and,
• We also agreed the royalty rate to the royalty agreement
and agreed inputs in the discounted cash flow calculation
the operator of the mine.
For the Ivanhoe Electric investment, we performed the
following audit procedures:
the external expert;
• We involved PwC specialists to evaluate the valuation
(IPEV);
common shares;
conversion scenario; and,
price forecasts.
We have no matters to report as a result of this testing.
85
Key audit matter How our audit addressed the key audit matter
Accuracy, completeness and occurrence of income (Group and
Parent)
Refer to the Report of the Audit Committee (page 76),
Accounting policies (page
) and Notes to the Financial Statements (page
).Income from investments consists primarily of dividend
income.
Within dividend income there is a risk of incomplete or
inaccurate recognition of income through the failure
to recognise proper income entitlements or to apply an
inappropriate accounting treatment.
in the Statement of comprehensive income.
procedures:
controls around income recognition and classification
reports of the Fund Accountant; and,
• We assessed the appropriateness of the classification of
audit procedures through the use of our proprietary testing
tool Halo:
• Halo tested the accuracy of dividend
the dividend rates from investments to independent
market data;
declared in the market; and,
• To test for completeness, Halo investigated that the
reference to independent data of dividends declared for
all investment holdings held within the year.
we tested the allocation and presentation of dividend income
facts
and circumstances
We have no matters to report as a result of this testing.
Ability to continue as a going concern (Continuation Vote)
(Parent)
A continuation vote is due to take place at the next Annual
Parent Company to continue as an investment trust for a
Company to continue as a going concern.
and discussions with key investors, that the Parent
from the date of approval of the financial statements.
including the continuation vote. We also challenged the
limited to, the following in support of the vote:
range of private wealth managers and retail investors;
• The financial performance of the Parent Company has
significant votes against.
The procedures we performed and our conclusions on going
concern are included in the Conclusions relating to going
86
BlackRock World Mining Trust plc
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed
statements as a whole, taking into account the structure of
the Group and the Company, the accounting processes and
controls, and the industry in which they operate.
As part of designing our audit, we determined materiality
and assessed the risks of material misstatement in the
financial statements. In particular, we looked at where the
respect of significant accounting estimates that involved
making assumptions and considering future events that are
inherently uncertain.
Materiality
helped us to determine the scope of our audit and the nature,
timing and extent of our audit procedures on the individual
financial statement line items and disclosures and in
in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined
materiality for the financial statements as a whole as follows:
Financial statements – Group Financial statements – Company
Overall materiality
£11.44 million
How we determined it
1% of net assets
Group materiality
Rationale for benchmark applied
generally accepted auditing practice for
investment trust audits.
generally accepted auditing practice
for investment trust audits. The Parent
Group materiality.
For each component in the scope of our Group audit, we
allocated a materiality that is less than our overall Group
materiality. The range of materiality allocated across
components were audited to a local statutory audit materiality
that was also less than our overall Group materiality.
We use performance materiality to reduce to an appropriately
and undetected misstatements exceeds overall materiality.
Specifically, we use performance materiality in determining
the scope of our audit and the nature and extent of our testing
for example in determining sample sizes. Our performance
for the Company financial statements.
In determining the performance materiality, we considered
assessment and aggregation risk and the effectiveness of
our normal range was appropriate.
We agreed with the Audit Committee that we would report to
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the Group’s
considering whether it addressed the relevant threats
operational impacts, considering their consistency with
financial statements;
future expected operating expenses, their assessment
service providers;
• assessing the implication of significant reductions in NAV
Group to operate; and,
relation to the passing of the continuation vote.
Independent auditors’ report
continued
87
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions
concern for a period of at least twelve months from when the
financial statements are authorised for issue.
In auditing the financial statements, we have concluded that
the preparation of the financial statements is appropriate.
concern.
In relation to the directors’ reporting on how they have
nothing material to add or draw attention to in relation to
whether the directors considered it appropriate to adopt the
sections of this report.
Reporting on other information
The other information comprises all of the information in
the Annual Report other than the financial statements and
for the other information. Our opinion on the financial
statements does not cover the other information and,
accordingly, we do not express an audit opinion or, except to
the extent otherwise explicitly stated in this report, any form
of assurance thereon.
In connection with our audit of the financial statements,
in doing so, consider whether the other information is
materially inconsistent with the financial statements or our
perform procedures to conclude whether there is a material
misstatement of the financial statements or a material
we have performed, we conclude that there is a material
Based on our work undertaken in the course of the audit,
Strategic report and Directors’ report
of the audit, the information given in the Strategic report
In light of the knowledge and understanding of the Group
of the audit, we did not identify any material misstatements
Directors’ Remuneration
Corporate governance statement
and that part of the corporate governance statement relating
Corporate Governance Code specified for our review. Our
the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we
have concluded that each of the following elements of the
corporate governance statement is materially consistent with
the audit, and we have nothing material to add or draw
attention to in relation to:
• The directors’ confirmation that they have carried out a
principal risks, what procedures are in place to identify
managed or mitigated;
• The directors’ statement in the financial statements
and their identification of any material uncertainties to
over a period of at least twelve months from the date of
approval of the financial statements;
• The directors’ explanation as to their assessment of
the Group’s and Company’s prospects, the period this
assessment covers and why the period is appropriate;
and
• The directors’ statement as to whether they have a
88
BlackRock World Mining Trust plc
fall due over the period of its assessment, including any
related disclosures drawing attention to any necessary
and considering the directors’ process supporting their
statement; checking that the statement is in alignment with
Code; and considering whether the statement is consistent
with the financial statements and our knowledge and
understanding of the Group and Company and their
audit, we have concluded that each of the following elements
of the corporate governance statement is materially
consistent with the financial statements and our knowledge
• The directors’ statement that they consider the
review of effectiveness of risk management and internal
control systems; and
the Audit Committee.
to report when the directors’ statement relating to the
Company’s compliance with the Code does not properly
disclose a departure from a relevant provision of the Code
Responsibilities for the financial statements
and the audit
Responsibilities of the directors for the financial
statements
As explained more fully in the Statement of directors’
the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are
Auditors’ responsibilities for the audit of the financial
statements
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditors’ report that includes our opinion.
not a guarantee that an audit conducted in accordance with
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
statements.
compliance with laws and regulations. We design procedures
material misstatements in respect of irregularities, including
Based on our understanding of the Group and industry, we
on the financial statements. We also considered those laws
and regulations that have a direct impact on the financial
management’s incentives and opportunities for fraudulent
manipulation of the financial statements (including the risk
of override of controls), and determined that the principal
risks were related to posting inappropriate journal entries to
engagement team included:
• held discussions with the Audit Committee, including
compliance with laws and regulation and fraud;
and the Fund Accountant designed to prevent and detect
irregularities;
including recalculation of numerical aspects of the
Independent auditors’ report
continued
• identified and tested journal entries, in particular year
during the preparation of the financial statements;
• designed audit procedures to incorporate
of our testing for example, targeting transactions that
• reviewed relevant meeting minutes, including those of
the Audit Committee.
There are inherent limitations in the audit procedures
are not closely related to events and transactions reflected
in the financial statements. Also, the risk of not detecting a
material misstatement due to fraud is higher than the risk of
not detecting one resulting from error, as fraud may involve
misrepresentations, or through collusion.
Our audit testing might include testing complete populations
complete populations. We will often seek to target particular
selected.
forms part of our auditors’ report.
Use of this report
purpose or to any other person to whom this report is shown
or into whose hands it may come save where expressly
Other required reporting
Companies Act 2006 exception reporting
you if, in our opinion:
• certain disclosures of directors’ remuneration specified
• the Company financial statements and the part of the
agreement with the accounting records and returns.
We have no exceptions to report arising from this
Appointment
Following the recommendation of the Audit Committee, we
uninterrupted engagement is 6 years, covering the years
Other matter
annual financial report filed on the National Storage
Mechanism of the Financial Conduct Authority in accordance
This auditors’ report provides no assurance over whether
electronic format specified in the ESEF RTS.
GILLIAN ALEXANDER
(Senior Statutory Auditor)
Chartered Accountants and Statutory Auditors
7
90
BlackRock World Mining Trust plc
l Annual Report and Financial Statements 31 December 2021
Consolidated statement of
comprehensive income
for the year ended 31 December 2021
Revenue Capital Total
Notes 2021
2020
(Restated)
1
2021 2020 2021
2020
(Restated)
1
£’000 £’000 £’000 £’000 £’000 £’000
Income from investments held at fair value
through profit or loss – – 80,558 31,613
3 80,558 31,613
Other income 7,118 7,964 – – 7,118 7,964
3
Total revenue 87,676 39,577 – – 87,676 39,577
Net profit on investments held at fair value
through profit or loss – – 122,374 183,667 122,374 183,667
10
Net (loss)/profit on foreign exchange – –
(1,696 ) 2,431 (1,696 ) 2,431
Total 87,676 39,577 120,678 186,098 208,354 225,675
Expenses
Investment management fee 4 (2,252 ) (1,546 )
(6,978 ) (4,859 ) (9,230 ) (6,405 )
Other operating expenses 5 18 ) 1,121 )
(1,034 ) (1,103 ) (9 )
((1,043 )
(Total operating expenses (3,286 ) (2,649 ) (6,987 ) (4,877 ) (10,273 ) (7,526 )
Net profit on ordinary activities before finance
costs and taxation 84,390 36,928 113,691 181,221 198,081 218,149
Finance costs 6 424 ) (1,117 ) (1,272 )
(374 )
((1,491 ) (1,696 )
Net profit on ordinary activities before
taxation 84,016 36,504 112,574 179,949 196,590 216,453
Taxation (charge)/credit 7 1,115 62
(5,106 ) (1,053 ) 986
(4,120 )
Net profit on ordinary activities after taxation 78,910 35,451 113,560 181,064 192,470 216,515
Earnings per ordinary share (pence) – basic
and diluted 9 43.59 20.40 62.73 104.22 106.32 124.62
1
for further details.
The total column of this statement represents the Group’s Statement of Comprehensive Income, prepared in accordance
with UK-adopted International Accounting Standards. The supplementary revenue and capital accounts 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 the Group.
The Group does not have any other comprehensive income. The net profit for the year disclosed above represents the Group’s
total comprehensive income.
The notes on pages
95 to 129
form part of these financial statements.
91
Consolidated statement of changes
in equity
for the year ended 31 December 2021
The notes on pages
95 to 129
form part of these financial statements.Group Notes
Called
up share
capital
Share
premium
account
Capital
redemption
reserve
Special
reserve
Capital
reserves
Revenue
reserve Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
For the year ended 31 December 2021
At 31 December 2020 9,651 127,155 22,779 103,992 628,870 38,378 930,825
Total comprehensive income:
Net profit for the year – – – – 113,560 78,910 192,470
Transactions with owners, recorded directly
to equity:
Ordinary shares reissued from treasury 11,663 – 51,651 – – 63,314
16,17 –
Share reissue costs
16,17 – – – (127 ) – – (127 )
Ordinary shares purchased into treasury 390 ) – – (390 )
16,17 – – –
( Share purchase costs 3 ) – – (3 )
16,17 – – –
( Dividends paid
1
8 – – – – –
(43,215 ) (43,215 )
At 31 December 2021 9,651 138,818 22,779 155,123 742,430 74,073 1,142,874
For the year ended 31 December 2020
At 31 December 2019 9,651 127,155 22,779 108,601 447,806 41,118 757,110
Total comprehensive income:
Net profit for the year – – – – 181,064 35,451 216,515
Transactions with owners, recorded directly
to equity:
Ordinary shares purchased into treasury – – – (4,573 ) – – (4,573 )
Share purchase costs – – – (36 ) – – (36 )
Dividends paid
2
8 – – – – –
(38,191 ) (38,191 )
At 31 December 2020 9,651 127,155 22,779 103,992 628,870 38,378 930,825
1
per share for the year ended 31 December 2021, declared on 29 April 2021 and paid on 25 June 2021; 2nd interim dividend of 5.50 p per share for the year ended
31December 2021, declared on 19 August 2021 and paid on 24 September 2021 and 3rd interim dividend of 5.50 p per share for the year ended 31 December
2021, declared on 18 November 2021 and paid on 24 December 2021.
2
per share for the year ended 31 December 2020, declared on 30 April 2020 and paid on 26 June 2020; 2nd interim dividend of 4.00 p per share for the year ended
31 December 2020, declared on 19 August 2020 and paid on 25 September 2020 and 3rd interim dividend of 4.00 p per share for the year ended 31 December
2020, declared on 12 November 2020 and paid on 18 December 2020.
For information on the Company’s distributable reserves please refer to note 17 on pages 109 to 111
.
92
BlackRock World Mining Trust plc
l Annual Report and Financial Statements 31 December 2021
Company Notes
Called
up share
capital
Share
premium
account
Capital
redemption
reserve
Special
reserve
Capital
reserves
Revenue
reserve Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
For the year ended 31 December 2021
At 31 December 2020 9,651 103,992 634,547 32,701 930,825
127,155
22,779Total comprehensive income:
Net profit for the year 78,910 192,470
– – – –
113,560Transactions with owners, recorded directly
to equity:
Ordinary shares reissued from treasury
16,17 –
11,663– 51,651 – –
63,314 Share reissue costs
16,17 – – – (127) – – (127)
Ordinary shares purchased into treasury
16,17 – – –
(390)– –
(390) Share purchase costs
16,17 – – –
(3)– –
(3) Dividends paid
1
8 – – – – –
(43,215) (43,215)
At 31 December 2021 9,651 138,818 22,779 155,123 748,107 68,396 1,142,874
For the year ended 31 December 2020
At 31 December 2019 9,651 108,601 454,613 34,311 757,110
127,155
22,779Total comprehensive income:
Net profit for the year 36,581
– – – –
179,934216,515
Transactions with owners, recorded directly
to equity:
Ordinary shares purchased into treasury
– – –
(4,573)– –
(4,573) Share purchase costs
– – –
(36)– –
(36) Dividends paid
2
8 – – – – –
(38,191) (38,191)
At 31 December 2020 9,651 127,155 22,779 103,992 634,547 32,701 930,825
1
per share for the year ended 31 December 2021, declared on 29 April 2021 and paid on 25 June 2021; 2nd interim dividend of 5.50p per share for the year ended
31December 2021, declared on 19 August 2021 and paid on 24 September 2021 and 3rd interim dividend of 5.50p per share for the year ended 31 December
2021, declared on 18 November 2021 and paid on 24 December 2021.
2
per share for the year ended 31 December 2020, declared on 30 April 2020 and paid on 26 June 2020; 2nd interim dividend of 4.00p per share for the year ended
31 December 2020, declared on 19 August 2020 and paid on 25 September 2020 and 3rd interim dividend of 4.00p per share for the year ended 31 December
2020, declared on 12 November 2020 and paid on 18 December 2020.
For information on the Company’s distributable reserves please refer to note 17 on pages 109 to 111
.
Parent company statement of changes
in equity
for the year ended 31 December 2021
The notes on pages
95 to 129
form part of these financial statements.
93
Consolidated and parent company
statements of financial position
as at 31 December 2021
31 December 2021 31 December 2020
Notes Group Company
Group
(Restated)
1
Company
£’000 £’000 £’000 £’000
Non current assets
Investments held at fair value through profit
or loss 1,256,801 1,045,818 1,052,996
10
1,263,979
Current assets
Current tax asset 85 85 114 114
Other receivables 5,209 5,209 6,723 6,723
12
Cash collateral held with brokers 580 580 2,943 2,943
18
Cash and cash equivalents 26,332 20,222 6,419 309
18
Total current assets 32,206 26,096 16,199 10,089
Total assets 1,289,007 1,290,075 1,062,017 1,063,085
Current liabilities
Current tax liability
(427 ) (427) (511 ) (511)
Other payables 13 (5,183 ) 5,034 ) (6,102)
(6,251)
(Derivative financial liabilities held at fair value
through profit or loss 667 ) (667) (587 ) (587)
10
(Bank overdraft 14,15,18 22,427 ) (22,427)
(356 ) (356)
(Bank loans 14,15
(138,867 ) (138,867) (102,418 ) (102,418)
Total current liabilities (145,500 ) (146,568) (130,977 ) (132,045)
Total assets less current liabilities 1,143,507 1,143,507 931,040 931,040
Non current liabilities
Deferred taxation liability 633 ) (633)
7 (c)
((215 ) (215)
Net assets 1,142,874 1,142,874 930,825 930,825
Equity attributable to equity holders
Called up share capital 16 9,651 9,651 9,651 9,651
Share premium account 17 138,818 138,818 127,155 127,155
Capital redemption reserve 17 22,779 22,779 22,779 22,779
Special reserve 17 155,123 155,123 103,992 103,992
Capital reserves:
At 1 January 628,870 634,547 447,806 454,613
Net profit for the year 113,560 113,560 181,064 179,934
At 31 December 742,430 748,107 628,870 634,547
17
Revenue reserve:
At 1 January 38,378 32,701 41,118 34,311
Net profit for the year 78,910 78,910 35,451 36,581
Dividends paid (43,215 ) (43,215) (38,191 ) (38,191)
At 31 December 74,073 68,396 38,378 32,701
17
Total equity 1,142,874 1,142,874 930,825 930,825
Net asset value per ordinary share (pence) 9 622.21 622.21 536.34 536.34
1
for further details.
The financial statements on pages
90 to 129 were approved and authorised for issue by the Board of Directors on
7 March 2022 and signed on its behalf by Mr David Cheyne, Chairman.
BlackRock World Mining Trust plc
Registered in England and Wales, No.2868209
The notes on pages
95 to 129
form part of these financial statements.
94
BlackRock World Mining Trust plc
l Annual Report and Financial Statements 31 December 2021
Consolidated and parent company cash
flow statements
for the year ended 31 December 2021
31 December 2021 31 December 2020
Group Company
Group
(Restated)
1
Company
£’000 £’000 £’000 £’000
Operating activities
Net profit before taxation 196,590 196,590 216,453 216,453
Add back finance costs 1,491 1,491 1,696 1,696
Net profit on investments held at fair value through
profitor loss (including transaction costs) (122,374 ) (122,374) (183,667 ) (182,536)
Loss on investment dealing in the subsidiary – – 1,128 –
Net loss/(profit) on foreign exchange 1,696 1,696 (2,431 ) (2,431)
Sales of investments held at fair value through profit
orloss 354,182 354,182 360,288 359,062
Purchases of investments held at fair value through
profitor loss 377,517 ) (377,517)
(442,711 ) (442,711)
((Increase)/decrease in other receivables (1,233 ) (1,233) 618 618
Increase in other payables 2,571 2,571 268 268
Decrease/(increase) in amounts due from brokers 2,776 2,776 (2,902 ) (2,902)
(Decrease)/increase in amounts due to brokers (2,473 ) (2,473) 2,473 2,473
Net movement in cash collateral held with brokers 2,363 2,363
(2,512 ) (2,512)
Net cash (outflow)/inflow from operating activities
before taxation (7,122 ) (7,122) 13,895 12,672
Taxation paid (484 ) (484)
(1,038 ) (1,038)
Taxation on investment income included within
grossincome (3,303 ) (3,303)
(1,664 ) (1,664)
Prior years corporation tax refund – – 2,687 2,687
Net cash (outflow)/inflow from operating activities (10,909 ) (10,909) 13,880 12,657
Financing activities
Drawdown of loans 35,020 35,020 15,016 15,016
Interest paid 1,772 ) (1,772)
(1,439 ) (1,439)
(Shares purchased into treasury 5,455 ) (5,455)
(390 ) (390)
(Share purchase costs paid
(3 ) (3) (36 ) (36)
Net proceeds from ordinary shares reissued from treasury 63,187 63,187 – –
Dividends paid (43,215 ) (43,215) (38,191 ) (38,191)
Net cash inflow/(outflow) from financing activities 53,160 53,160 (30,438 ) (30,438)
Increase/(decrease) in cash and cash equivalents 42,251 42,251 (16,558 ) (17,781)
Cash and cash equivalents at start of the year (16,008 ) 1,300 (3,587)
(22,118)
Effect of foreign exchange rate changes (267 ) (267)
(750 ) (750)
Cash and cash equivalents at end of year 25,976 19,866 (16,008 ) (22,118)
Comprised of:
Cash and cash equivalents 26,332 20,222 6,419 309
Bank overdraft 22,427 ) (22,427)
(356 ) (356)
(1
for further details.
The notes on pages
95 to 129
form part of these financial statements.Section 4: Financial statements
1. Principal activity
The principal activity of the Company is that of an investment
trust company within the meaning of Section 1158 of the
Report.
Mining Investment Company Limited, is investment dealing.
2. Accounting policies
(a) Basis of preparation
International Accounting Standards, with future changes
Accounting Standards in its consolidated financial
impact or changes in accounting policies from the transition.
held at fair value through profit or loss and in accordance
(IASs). The Company has taken advantage of the exemption
and related notes. All of the Group’s operations are of a
continuing nature.
Insofar as the Statement of Recommended Practice (SORP)
for investment trust companies and venture capital trusts,
guidance set out in the SORP.
of the financial statements and therefore consider the going
and the mitigation measures which key service providers,
including the Manager, have in place to maintain operational
have reviewed compliance with the covenants associated
portfolio in making their assessment.
which is the currency of the primary economic environment
indicated.
Adoption of new and amended standards and
interpretations:
Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest
rate benchmark reform Phase 2
might affect financial reporting during the reform of an
to contractual cash flows or hedging relationships arising
companies in:
• applying IFRS Standards when changes are made to
• providing useful information to users of financial
statements.
Recognition and Measurement, IFRS 7 Financial
IFRS 16 Leases relating to:
• hedge accounting; and
• disclosures.
and hedging relationships.
adoption of these amendments did not have any significant
impact on the Group.
Notes to the financial statements
BlackRock World Mining Trust plc
2. Accounting policies
continued
Relevant International accounting standards
(IASs) that have yet to be adopted:
IAS 12 – Deferred tax related to assets and liabilities
arising from a single transaction
According to the amended guidance, a temporary difference
temporary differences. These amendments might have a
significant impact on the preparation of financial statements
The amendment of this standard is unlikely to have any
significant impact on the Group.
Restatement of 2020 comparatives
the FRC’s Corporate Reporting Review Team who had
inputs used in the valuation of OZ Minerals Brazil royalty,
FRC Corporate Reporting Review Team understand how the
addition, the Company was encouraged to make improvements
and relevant.
were given full consideration and additional disclosures
statements where material and relevant to do so.
Financial
Position and the Consolidated Cash Flow Statement with
has no impact on the Group’s net assets or the Group’s
Statement of Comprehensive Income. The Group’s cash and
The Group has restated separately the presentation of the
Financial Position.
The Group has restated the presentation of provision for
5. This change in presentation has no impact on the Group’s
net revenue earnings or the Group’s net assets.
(b) Basis of consolidation
The Group’s financial statements are made up to
which is registered and operates in England and Wales,
BlackRock World Mining Investment Company Limited
considered an investment entity. In the financial statements
company is held at fair value.
used in the preparation of the consolidated financial
profits arising therefrom, are eliminated.
(c) Presentation of the Statement of
Comprehensive Income
supplementary information which analyses the Consolidated
the Consolidated Statement of Comprehensive Income.
(d) Segmental reporting
(e) Income
the year end are treated as revenue for the year. Provision is
made for any dividends and interest income not expected to
or a revenue receipt depending on the facts or circumstances
Notes to the financial statements
continued
in the portfolio for generating or protecting capital returns,
or for generating or maintaining revenue returns. Where
the purpose of the option is the generation of income, the
premium is treated as a revenue item. Where the purpose
of the option is the maintenance of capital, the premium is
treated as a capital item.
Option premium income is recognised as revenue evenly over
the life of the option contract and included in the revenue
account of the Consolidated Statement of Comprehensive
maintenance and enhancement of the Group’s investment
portfolio and represents an incidental part of a larger capital
transaction, in which case any premia arising are allocated
to the capital account of the Consolidated Statement of
Comprehensive Income.
Royalty income from contractual rights is measured at the
pursuant to the terms of the agreement. Royalty income from
contractual rights received comprise
s
of a return of income
contract and, accordingly, the return of income element is
taken to the revenue account and the return of capital element
is taken to the capital account. These amounts are disclosed in
the Consolidated Statement of Comprehensive Income within
income from investments and
net
profit on investments held at fair value through profit or loss, respectively.
mine life on commencement of mining and the underlying
associated with the mine. The Investment Manager relies on
reserves from the operators of the mine. Amortisation
to estimates of the life of contractual rights and iron ore
reserves. These are disclosed in the Consolidated Statement
of Comprehensive Income within net profit on investments
held at fair value through profit or loss.
Where the Group has elected to receive its dividends in
the form of additional shares rather than in cash, the cash
excess in the value of the shares received over the amount of
the cash dividend is recognised in capital.
(f) Expenses
All expenses, including finance costs, are accounted for
to the revenue account of the Consolidated Statement of
Comprehensive Income, except as follows:
of an investment are charged to the capital account of
the Consolidated Statement of Comprehensive Income.
statements on page
;• expenses are treated as capital where a connection with
the maintenance or enhancement of the value of the
• the investment management fee and finance costs have
the revenue account of the Consolidated Statement of
Comprehensive Income in line with the Board’s expectations
and income, respectively, from the investment portfolio.
(g) Taxation
The tax expense represents the sum of the tax currently
net profit as reported in the Consolidated Statement of
accounts, any tax relief in respect of the expenses is allocated
using the Company’s effective rate of corporation tax for the
accounting period.
financial reporting date, where transactions or events that
right to pay less taxation in the future have occurred at the
BlackRock World Mining Trust plc
2. Accounting policies
continued
(h) Investments held at fair value through profit
or loss
at initial recognition as held at fair value through profit or
All investments, including contractual rights, are measured
Contractual rights are recognised on the completion date, where
a purchase of the rights is under a contract, and are initially
measured at fair value excluding transaction costs. Sales of
investments are recognised at the trade date of the disposal.
deduction for the estimated future selling costs. This policy
The gains and losses from changes in fair value of
contractual rights are taken to the Consolidated Statement of
Comprehensive Income and arise as a result of the revaluation
of the underlying cost of the contractual rights, changes in
commodity prices and changes in estimates of proven and
Company’s Statement of Financial Position is fair valued
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
profit or loss’. Also included within the heading are transaction
costs in relation to the purchase or sale of investments.
For all financial instruments not traded in an active market,
(i.e., using recent arm’s length market transactions adjusted
as necessary and reference to the current market value of
income approach (i.e., discounted cash flow analysis and
(i) Options
to the revenue account, an appropriate amount is shown as
capital return such that the total return reflects the overall
change in the fair value of the option. When an option is
exercised, the gain or loss is accounted for as a capital gain
or loss. Any cost on closing out an option is transferred to
the revenue account along with any remaining unamortised
premium.
(j) Other receivables and other payables
interest and are short term in nature and are accordingly
(k) Dividends payable
in the Consolidated and Parent Company Statements of
(l) Foreign currency translation
Transactions involving foreign currencies are converted
at the rate ruling at the date of the transaction. Foreign
assets held at fair value 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. For investment transactions and
investments held at the year end, denominated in a foreign
currency, the resulting gains or losses are included in the
profit/(loss) on investments held at fair value through profit
or loss in the Consolidated Statement of Comprehensive
Income.
(m) Cash and cash equivalents
of changes in value. Bank overdrafts are shown separately
on the Consolidated and Parent Company Statements of
Financial Position.
(n) Bank borrowings
Bank overdrafts and loans are recorded as the proceeds
on settlement or redemption and direct issue costs, are
Statement of Comprehensive Income using the effective
interest rate method and are added to the carrying amount
of the instrument to the extent that they are not settled in the
period in which they arise.
Notes to the financial statements
continued
(o) Offsetting
amount reported in the Consolidated and Parent Company
Statements of Financial Position if there is a currently
(p) Share repurchases and share reissues
repurchased and the capital redemption reserve is
charged to the special reserve.
Shares repurchased and held in treasury – the full cost of the
repurchase is charged to the special reserve.
• amounts received to the extent of the repurchase price are
credited to the special reserve; and
• any surplus received in excess of the repurchase price is
taken to the share premium account.
(q) Critical accounting estimates and judgements
The Group makes estimates and assumptions concerning the
future. The resulting accounting estimates and assumptions
Estimates and judgements are regularly evaluated and are
assumptions that have a significant risk of causing a material
Fair value of unquoted financial instruments
When the fair values of financial assets and financial
active markets, their fair value is determined using a variety
models.
(a) The fair value of the OZ Minerals contractual rights was
considerations of production profiles, commodity prices,
cash flows and discount rates. Changes in assumptions
of financial instruments in the Consolidated and Parent
Company Statements of Financial Position and the level
where the instruments are disclosed in the fair value
hierarchy. To assess the significance of a particular input
to the entire measurement, the external valuer performs
sensitivity analysis.
discount in an IPO modelled
option pricing model. The estimates include implicit yield
factors could affect the reported fair value of financial
instruments in the Consolidated and Parent Company
Statements of Financial Position and the level where the
instruments are disclosed in the fair value hierarchy. To
assess the significance of a particular input to the entire
measurement, the external valuer performs sensitivity
analysis.
The key assumptions used to determine the fair value of the
provided in note 18(d).
BlackRock World Mining Trust plc
3. Income
2021
2020
(Restated)
1
£’000 £’000
Investment income:
25,681
–
Overseas dividends
Overseas special dividends
Income from contractual rights (OZ Minerals Royalty) 2,562
Income from fixed income investments
80,558 31,613
Other income:
Option premium income
8,765
– 7
Interest on corporation tax refund –
Stock lending income
27
– (1,128)
7,118 7,964
Total income 87,676 39,577
for further details.
and covered call options for the purposes of revenue generation.
Option premium income is amortised evenly over the life of the option contract and, accordingly, during the year, option
Notes to the financial statements
continued
4. Investment management fee
2021 2020
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Investment management fee 2,252
1,546
Total 2,252 6,978 9,230 1,546 4,859 6,405
Quarter end
Cum income
NAV per share
(pence)
Quarterly
increase/
(decrease) %
Gearing effect
on management
fees (£’000)
– –
566.62 +5.6
+8.8 224
–
622.21 +12.2 226
Quarter end
Cum income
NAV per share
(pence)
Quarterly
increase/
(decrease) %
Gearing effect
on management
fees (£’000)
–
–
–
428.24
–
456.18 +6.5
–
+17.6
–
The fee is allocated 25% to the revenue account and 75% to the capital account of the Consolidated Statement of
Comprehensive Income.
There is no additional fee for company secretarial and administration services.
BlackRock World Mining Trust plc
5. Other operating expenses
2021
2020
(Restated)
1
£’000 £’000
Allocated to revenue:
Custody fee
Auditors’ remuneration:
– audit services 41
8
Registrar’s fee
86
176
AIC fees 21 17
Broker fees 25 24
74
FCA fee 24
14
Marketing fees
152 Stock exchange fees 26 21
Legal and professional fees 52
72
–
Printing and postage fees
41
5
– (18)
–
Other administrative costs
1,034 1,103
Allocated to capital:
Custody transaction charges
6
18
1,043 1,121
2021 2020
The Company’s ongoing charges
7
, calculated as a percentage of average daily net assets
direct transaction costs, custody transaction charges, VAT recovered, taxation and certain
direct transaction costs, custody transaction charges, VAT recovered, taxation and certain
for further details.
6
. The Company has no employees.
14
to 14
.
6. Finance costs
2021 2020
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
1,462
15
58
Total 374 1,117 1,491 424 1,272 1,696
Notes to the financial statements
continued
7. Taxation
(a) Analysis of charge/(credit) in the year
2021 2020
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Current taxation:
Corporation tax 1,448
(1,511)
(1,115)Prior years corporation tax adjustment – – –
–
–
(621) – (621)
Overseas tax
–
–
Movement in respect of Peruvian capital gains tax – – –
–Prior years overseas tax adjustment – – – 42 – 42
– – – (2,687) – (2,687)
Total current taxation charge/(credit) 5,175 (1,473) 3,702 962 (1,115) (153)
487 418 7 – 7
Prior years deferred tax adjustment – – – 84 – 84
Total taxation charge/(credit) (note 7(b)) 5,106 (986) 4,120 1,053 (1,115) (62)
(b) Factors affecting total taxation charge/(credit) for the year
2021 2020
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
112,574
41,126
Effects of:
–
–
– (462) (462)
–
–
–
–
–
–
–
– 2 2 –
–
(621) – (621)
– 556 556 – – –
– – –
–
– – – 42 – 42
– – – 84 – 84
– – – (2,687) – (2,687)
(41,188)
Total taxation charge/(credit) for the year
(note 7(a)) 5,106 (986) 4,120 1,053 (1,115) (62)
The Company is exempt from corporation tax on capital gains provided it maintains its status as an investment trust under
maintain its investment trust status, it has not provided for deferred tax on any capital gains or losses.
BlackRock World Mining Trust plc
7. Taxation
continued
(c) Deferred tax liability
Group and
Company
2021
Group and
Company
2020
£’000 £’000
(215) (124)
(7)
– (84)
Movement in Peruvian capital gains tax (518) –
Deferred tax liability carried forward (633) (215)
(d) UK corporation tax refund
Revenue and Customs (HMRC) in the period. The refund related to corporation tax paid with respect to the years ended
8. Dividends
Dividends paid on equity shares:
Record date Payment date
2021 2020
£’000 £’000
14,782
8,224
43,215 38,191
Notes to the financial statements
continued
Dividends paid, proposed or declared on equity shares relating to the year ended 31 December:
2021 2020
£’000 £’000
8,224
Final dividend of
1
14,782
78,263 35,612
1
9. Consolidated earnings and net asset value per ordinary share
2021 2020
Total profit attributable to ordinary shareholders (£’000) 192,470 216,515
Equity shareholders’ funds (£’000) 1,142,874 930,825
earnings per ordinary share was calculated was:
ordinary share was calculated was:
Earnings per share
Total earnings per share (pence) – basic and diluted 106.32 124.62
As at
31 December
2021
As at
31 December
2020
Net asset value per ordinary share (pence) 622.21
Ordinary share price (pence)
There were no dilutive securities at the year end.
BlackRock World Mining Trust plc
10. Investments held at fair value through profit or loss
Group
2021
Company
2021
Group
2020
Company
2020
£’000 £’000 £’000 £’000
profit or loss
through profit or loss
Fixed income investments held at fair value through
Contractual rights held at fair value through profit or loss
18,162 18,162
1
– 7,178 – 7,178
Total value of financial asset investments 1,256,801 1,263,979 1,045,818 1,052,996
(667) (667) (587) (587)
Total value of financial asset investments and
derivatives at 31 December 1,256,134 1,263,312 1,045,231 1,052,409
677,415
Investment and derivative holding gains
166,256
Opening fair value 1,045,231 1,052,409 845,463 851,418
Analysis of transactions made during the year:
Purchases at cost 442,711 442,711
Sales proceeds received
Contractual rights – return of capital (267) (267) (184) (184)
Closing fair value 1,256,134 1,263,312 1,045,231 1,052,409
Closing investment and derivative holding gains
Closing fair value 1,256,134 1,263,312 1,045,231 1,052,409
Comprising of:
– derivative financial instruments – written option contracts
(667) (667) (587) (587)
Total 1,256,134 1,263,312 1,045,231 1,052,409
1
2
and until they were sold any unrealised gains/losses were included in the fair value of investments. Special dividends amounting to
within the capital reserves.
Securities lending
2021 2020
£’000 £’000
Aggregate value of securities on loan at year end
26,845Maximum aggregate value of securities on loan during the year
Fee income from stock lending during the year
27
Notes to the financial statements
continued
11. Investment in subsidiary
Description of shares
Issued share capital
2021 2020
BlackRock World Mining Investment Company Limited Ordinary shares of £1
12. Other receivables
Group
2021
Company
2021
Group
2020
Company
2020
£’000 £’000 £’000 £’000
244 244
Prepayments and accrued income
5,209 5,209 6,723 6,723
13. Other payables
Group
2021
Company
2021
Group
2020
Company
2020
£’000 £’000 £’000 £’000
– –
2,561 2,561
–
–
5,183 6,251 5,034 6,102
14. Interest bearing loans and borrowings
Group
2021
Company
2021
Group
2020
(Restated)
1
Company
2020
£’000 £’000 £’000 £’000
Bank loan
Bank overdraft 22,427
22,427 139,223 139,223 124,845 124,845
for further details.
BlackRock World Mining Trust plc
15. Reconciliation of liabilities arising from financing activities
Group
2021
Company
2021
Group
2020
(Restated)
1
Company
2020
£’000 £’000 £’000 £’000
124,845 124,845
Cash flows:
Movement in overdraft
Net drawdown of loan
Non cash flows:
Effects of foreign exchange loss/(gains)
Bank loan and overdraft at end of the year 139,223 139,223 124,845 124,845
for further details.
16. Called up share capital
Ordinary shares
in issue
number
Treasury shares
number
Total shares
number
Nominal
value
£’000
Allotted, called up and fully paid share capital
comprised:
Ordinary shares of 5p each
Ordinary shares reissued from treasury
– –
– –
At 31 December 2021 183,681,116 9,330,726 193,011,842 9,651
Notes to the financial statements
continued
17. Reserves
Share
premium
account
Capital
redemption
reserve
Special
reserve
Capital
reserve
arising on
investments
sold
Capital
reserve
arising on
revaluation
of
investments
held
Revenue
reserve
Group £’000 £’000 £’000 £’000 £’000 £’000
127,155
Movement during the year:
Total comprehensive income:
– – –
Transactions with owners, recorded
– 51,651 – – –
– – (127) – – –
– –
– – –
– –
– – –
– – – – –
At 31 December 2021 138,818 22,779 155,123 345,594 396,836 74,073
Distributable reserves
Share
premium
account
Capital
redemption
reserve
Special
reserve
Capital
reserve
arising on
investments
sold
Capital
reserve
arising on
revaluation
of
investments
held
Revenue
reserve
Company £’000 £’000 £’000 £’000 £’000 £’000
127,155
275,888
Movement during the year:
Total comprehensive income:
– – –
Transactions with owners, recorded
– 51,651 – – –
– – (127) – – –
– –
– – –
– –
– – –
– – – – –
At 31 December 2021 138,818 22,779 155,123 344,093 404,014 68,396
BlackRock World Mining Trust plc
17. Reserves
continued
Share
premium
account
Capital
redemption
reserve
Special
reserve
Capital
reserve
arising on
investments
sold
Capital
reserve
arising on
revaluation
of
investments
held
Revenue
reserve
Group £’000 £’000 £’000 £’000 £’000 £’000
127,155
166,256 41,118
Movement during the year:
Total comprehensive income:
– – – (4,161) 185,225
Transactions with owners, recorded
– –
– – –
– –
– – –
– – – – –
At 31 December 2020 127,155 22,779 103,992 277,389 351,481 38,378
Distributable reserves
Share
premium
account
Capital
redemption
reserve
Special
reserve
Capital
reserve
arising on
investments
sold
Capital
reserve
arising on
revaluation
of
investments
held
Revenue
reserve
Company £’000 £’000 £’000 £’000 £’000 £’000
127,155
Movement during the year:
Total comprehensive income:
– – – (4,722) 184,656
Transactions with owners, recorded
– –
– – –
– –
– – –
– – – – –
At 31 December 2020 127,155 22,779 103,992 275,888 358,659 32,701
the Company’s application to the Court for cancellation of its share premium account, the Court approval was received
Notes to the financial statements
continued
111
Parent Company’s capital gains of £
on investments sold of £
gain of
18. Risk management policies and procedures
The Group’s investment activities expose it to various types of risks which are associated with the financial instruments
Risk management framework
The following information refers to the risk management framework of the Alternative Investment Fund Manager (AIFM).
However, as disclosed in the Corporate Governance Statement on page 71
on page 78
relevant parties are discharging their duties in accordance with the terms of the relevant agreements and taking appropriate
action to the extent issues are identified.
person from the Investment Manager covering the Group’s performance and risk profile during the year. The AIFM has
are in place. This captures the risk management tools employed, how the levels of risk are controlled, ensuring risk/return is
considered in portfolio construction and reviewing outcomes.
The AIFM reports to the Audit Committee twice yearly on key risk metrics and risk management processes; in addition, the
are reported to the Board as they arise.
Risk Exposures
The risk exposures of the Group and Company are set out as follows:
(a) Market risk
interest rate movements. It represents the potential loss the Group may suffer through holding market positions in financial
instruments in the face of market movements.
112
BlackRock World Mining Trust plc
18. Risk management policies and procedures
continued
interest rate risk. VaR is a statistical risk measure that estimates the potential portfolio loss from adverse market moves in
sensitivity analysis.
limitations, and the nature of the VaR measure, mean that the Company can neither guarantee that losses will not exceed the
level) was 4.64% and 4.57% respectively.
(i) Market risk arising from other price risk
Exposure to other price risk
specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the
issues, recessions, or other events could have a significant impact on the Group and the market price of its investments and
could result in increased premiums or discounts to the Group’s net asset value.
of society in recent years. While there is a growing consensus in developed economies that the worst of the impact is now over,
there is an expectation that travel restrictions, enhanced health screenings at ports of entry and elsewhere, disruption of and
delays in healthcare service preparation and delivery, cancellations, supply chain disruptions, and lower consumer demand
will create ongoing challenges. While widescale vaccination programmes are now in place in many countries and are having
the Company.
The movements in the prices of these investments result in movements in the performance of the Group. Other price risk
was £
Management of other price risk
of a particular investment will have a material impact on the NAV of the Group is minimised which is in line with the investment
Use of derivatives
Notes to the financial statements
continued
contracts were written to manage price risk, there is no impact on the Group’s exposure to gearing or leverage as a result of
Management of OTC financial derivative instruments
management team. The Board also reviews the exposures regularly.
two).
exposures to market risk and credit risk implicit within the options portfolio are given
.Concentration of exposure to market price risks
An analysis of the Group’s investment portfolio is shown on pages
had significant levels of investments in United States of America, Russia, Latin America, Australasia, Africa and Canada.
Accordingly, there is a concentration of exposure to those regions, though it is recognised that an investment’s country of
(ii) Market risk arising from foreign currency risk
Exposure to foreign currency risk
risk section.
US
dollar
Canadian
dollar
Australian
dollar
Brazilian
real Others Total
2021 £’000 £’000 £’000 £’000 £’000 £’000
784 – 2,711
5,168
– 54 – – – 54
Bank loans (118,867) – – – – (118,867)
Bank overdraft – – –
–
(186) – – –
–
– – (667)
Total foreign currency exposure on net monetary items (118,439) 838 (291) 2,711 94 (115,087)
Investments at fair value through profit or loss
Total net foreign currency exposure 298,481 260,622 91,564 43,606 77,725 771,998
114
BlackRock World Mining Trust plc
US
dollar
Canadian
dollar
Australian
dollar
Brazilian
real Others Total
2020 £’000 £’000 £’000 £’000 £’000 £’000
2,528 1,877 1,144
266
– – –
Bank loans – – –
–
Bank overdrafts –
–
–
–
– – – –
Total foreign currency exposure on net monetary items (101,239) 2,571 1,874 1,144 91 (95,559)
Investments at fair value through profit or loss
111,767
767,868Total net foreign currency exposure 233,406 225,651 113,641 44,507 55,104 672,309
Management of foreign currency risk
expenses are exposed.
currency risk.
change in a manner which has an adverse effect on the value of the portion of the Group’s assets which are denominated in
currencies other than their own currencies.
(iii) Market risk arising from interest rate risk
Exposure to interest rate risk
market interest rates.
and on deposits. The effect of interest rate changes on the earnings of the companies held within the portfolio may have
analysis under the market risk section.
Interest rate exposure
– fixed interest rates – when the financial instrument is due for repayment.
Notes to the financial statements
continued
18. Risk management policies and procedures
continued
115
2021 2020
Within one
year
More than
one year Total
Within one
year
(Restated)¹
More than
one year
Total
(Restated)¹
Group £’000 £’000 £’000 £’000 £’000 £’000
Exposure to floating interest rates:
–
–
–
–
Bank loans
–
–
Bank overdraft – (22,427)
–
(22,427)Exposure to fixed interest rates:
Fixed income investments –
–
Total exposure to interest rates (112,311) 113,408 1,097 (115,483) 87,449 (28,034)
for further details.
2021 2020
Within one
year
More than
one year Total
Within one
year
More than
one year Total
Company £’000 £’000 £’000 £’000 £’000 £’000
Exposure to floating interest rates:
–
–
–
–
Bank loans
–
–
Bank overdraft – (22,427)
–
(22,427)Exposure to fixed interest rates:
Fixed income investments –
–
Total exposure to interest rates (118,421) 113,408 (5,013) (121,593) 87,449 (34,144)
Management of interest rate risk
116
BlackRock World Mining Trust plc
18. Risk management policies and procedures
continued
(b) Counterparty credit risk
into with the Group.
default. Counterparty credit risk to the Group arises from transactions to purchase or sell investments, fixed income
The major counterparties engaged with the Group and Company are all widely recognised and regulated entities.
Depositary
Securities lending
statements.
investment or other restriction.
Notes to the financial statements
continued
117
2021
Country of
establishment
Stock
lending
Collateral
received
£’000 £’000
Barclays Bank plc
Barclays Capital Securities Limited
17,561
Goldman Sachs International
UBS AG Switzerland 25,151
75,315 82,922
2020
Country of
establishment
Stock
lending
Collateral
received
£’000 £’000
5,877
HSBC Bank plc
26,845 29,381
Collateral
The Company engages in securities lending transactions for which it may hold collateral received from a counterparty.
2021
Currency
Non-cash
collateral
received
£’000
Australian dollar 147
Canadian dollar 2,686
Chinese yuan 121
Euro 15,422
Singapore dollar 615
Swiss franc 8,748
17,864
US dollar
Other 241
Total 82,922
118
BlackRock World Mining Trust plc
18. Risk management policies and procedures
continued
2020
Currency
Non-cash
collateral
received
£’000
Chinese yuan
Euro
5,154
US dollar 14,746
Other
Total 29,381
Maturity Tenor
2021
8 to 30 days
91 to 365
days
More than
365 days
Open
Transactions Total
£’000 £’000 £’000 £’000 £’000
Collateral received – securities lending
Fixed income
Investment grade – –
–
Equities
– – –
Total – – 10,844 72,078 82,922
Maturity Tenor
2020
8 to 30 days
91 to 365
days
More than
365 days
Open
Transactions Total
£’000 £’000 £’000 £’000 £’000
Collateral received–securities lending
Fixed income
Investment grade – –
–
Equities
– – –
Total – – 9,586 19,795 29,381
maturity date.
Notes to the financial statements
continued
2021
Non cash collateral issuer
Value % of the
Company’s
NAV
£’000
Rio Tinto
Nestlé
Government of France
Roche Holdings
UniCredit
Shell 1,868
LVMH
UBS Group
Other issuers
Total 82,922 7.26
2020
Non cash collateral issuer
Value % of the
Company’s
NAV
£’000
Industrial and Commercial Bank of China 2,117
China Construction Bank 2,117
Tencent 2,117
2,117
Xiaomi 2,117
2,116
Meituan 2,116
Country Garden
Avantor
Other issuers 7,715
Total 29,381 3.17
Counterparties/brokers
BlackRock World Mining Trust plc
18. Risk management policies and procedures
continued
Total number of
counterparties
Maximum
exposure
to any one
counterparty
1,3
Collateral held
1
Total exposure
to all other
counterparties
1,3
Lowest credit
rating of any one
counterparty
2
£’000 £’000 £’000
5
– 824 BBB+
4
–
A+1
2
for further details.
protected against any counterparty default.
Collateral
to reduce the counterparty credit risk associated with any trading activity in which the Group has engaged.
such as default.
Pledged collateral
Liability for
inboundcollateral
As at
31 December
2021
As at
31 December
2020
As at
31 December
2021
As at
31 December
2020
£’000 £’000 £’000 £’000
– –
Receivables
2021
2020
(Restated)
1
Group £’000 £’000
Investment in contractual rights 18,162
Fixed income investments
163,691 123,287
Notes to the financial statements
continued
121
2021 2020
Company £’000 £’000
Investment in contractual rights 18,162
Fixed income investments
157,581 117,177
1
for further details.
Management of counterparty credit risk
The counterparty/credit risk is managed as follows:
designed to reduce the risk to the Group of default;
– the creditworthiness of financial institutions with whom cash and fixed income instruments are held is reviewed regularly
where controls are reviewed and tested;
sets out any exceptions or issues noted as a result of the auditor’s review of the Custodian’s control processes;
or issues noted as a result of the auditor’s review of the Manager’s control processes; and
are identified.
Offsetting disclosures
and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or
,
or other events.
122
BlackRock World Mining Trust plc
18. Risk management policies and procedures
continued
At 31 December 2021 At 31 December 2020
Assets Liabilities Assets Liabilities
Derivatives £’000 £’000 £’000 £’000
Written option contracts – (667) – (587)
Company Statements of Financial Position – (667) – (587)
Total assets and liabilities subject to a master netting agreement – (667) – (587)
Derivative
liabilities
subject to a
master netting
agreement by a
counterparty
Derivatives
available for
offset
Non-cash
collateral given
Pledged cash
collateral
Net amount
of derivative
liabilities
Counterparty £’000 £’000 £’000 £’000 £’000
– –
–
– – –
(587) – – 587 –
Offsetting and cash pooling arrangements
for further details.
(c) Liquidity risk
the Group’s net asset value (whichever is lower)) and this covenant was complied with during the year. For details of the loan
facility, refer to note 14.
Notes to the financial statements
continued
Liquidity risk exposure
2021
3 months or
less
2020
3 months or
less
(Restated)¹
Group £’000 £’000
5,545
667 587
Bank overdraft
22,427 Bank loans
145,500 130,977
2021
3 months or
less
2020
3 months or
less
Company £’000 £’000
6,678
667 587
Bank overdraft
22,427 Bank loans
146,568 132,045
1
for further details.
Management of liquidity risk
(d) Valuation of financial instruments
Position at their fair value (investment and derivatives) or at amortised cost
measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The
page
.124
BlackRock World Mining Trust plc
18. Risk management policies and procedures
continued
value measurement of the relevant asset.
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in active markets
pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s
Level 2 – Valuation techniques using observable inputs
Level 3 – Valuation techniques using significant unobservable inputs
and these inputs could have a significant impact on the instrument’s valuation.
are actively involved in the relevant market.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the
,
Valuation process and techniques for Level 3 valuations
(a) OZ Minerals royalty
conduct a periodic valuation of the contractual rights and the fair value of the contractual rights is assessed with reference to
assumptions regarding production profiles, price realisations, cost of capital and discount rates. In determining the discount
time horizon to the commencement of production and the success or failure of projects of a similar nature. To assess the
significance of a particular input to the entire measurement, the external valuer performs a sensitivity analysis. The external
valuer has undertaken an analysis of the impact of using alternative discount rates on the fair value of contractual rights.
Notes to the financial statements
continued
125
This investment in contractual rights is reviewed regularly to ensure that the initial classification remains correct given the
asset’s characteristics and the Group’s investment policies. The contractual rights are initially recognised using the transaction
In arriving at their estimates of market values, the valuers have used their
Investment
Manager
anager will review the
valuation of the contractual rights and inputs for significant changes. A valuation of contractual rights is performed annually
(b) Ivanhoe Electric and I-Pulse convertible bonds and equity shares
conversion at a discount in an IPO modelled
l
option pricing model.
Company Statements of Financial Position and the level where the instruments are disclosed in the fair value hierarchy. To
assess the significance of a particular input to the entire measurement, the external valuer performs a sensitivity analysis.
Fair values of financial assets and financial liabilities
Financial assets/(liabilities) at fair value through profit or loss
at 31 December 2021 – Group Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Assets:
1,846
Fixed income securities
Investment in contractual rights – – 18,162 18,162
Total assets 1,173,538 49,850 33,413 1,256,801
Liabilities:
– (667) – (667)
Total 1,173,538 49,183 33,413 1,256,134
Financial assets/(liabilities) at fair value through profit or loss
at 31 December 2020 – Group Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Assets:
2,811 –
Fixed income securities –
44,676
Investment in contractual rights – –
Total assets 978,578 47,487 19,753 1,045,818
Liabilities:
– (587) – (587)
Total 978,578 46,900 19,753 1,045,231
126
BlackRock World Mining Trust plc
Financial assets/(liabilities) at fair value through profit or loss
at 31 December 2021 – Company Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Assets:
Fixed income securities
Investment in contractual rights – – 18,162 18,162
Total assets 1,173,538 49,850 40,591 1,263,979
Liabilities:
– (667) – (667)
Total 1,173,538 49,183 40,591 1,263,312
Financial assets/(liabilities) at fair value through profit or loss
31 December 2020 – Company Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Assets:
2,811 7,178
Fixed income securities –
44,676
Investment in contractual rights – –
Total assets 978,578 47,487 26,931 1,052,996
Liabilities:
– (587) – (587)
Total 978,578 46,900 26,931 1,052,409
Level 3 Financial assets at fair value through profit or loss
At 31 December – Group 2021 2020
£’000 £’000
Opening fair value
Return of capital – royalty (267) (184)
Additions at cost
–Total profit or loss included in net profit on investments in the Consolidated Statement of
Comprehensive Income:
– assets held at the end of the year 4,147
Closing balance 33,413 19,753
Level 3 Financial assets at fair value through profit or loss
At 31 December – Company 2021 2020
£’000 £’000
Opening fair value
Return of capital – royalty (267) (184)
Additions at cost
–Total profit or loss included in net profit on investments in the Consolidated Statement of
Comprehensive Income:
– assets held at the end of the year
Closing balance 40,591 26,931
Notes to the financial statements
continued
18. Risk management policies and procedures
continued
127
pages 124 and 125
124 and 125 under “valuation process and
Quantitative information of significant unobservable inputs – Level 3 – Group and Company
Description
As at
31 December
2021
Valuation
technique
Unobservable
input
Range of
weighted
average
inputs
Reasonable
possible
shift¹ +/-
Impact on
fair value
OZ Minerals Brazil Royalty 18,162
cash flows
rate–
weighted
average cost
of capital
Average
gold prices
per ounce
£1.5mAverage
copper prices
per tonne
15,251
Market
approach
and scenario
analysis for
notes Asset multiple
%
1
Description
As at
31 December
2020
Valuation
technique
Unobservable
input
Range of
weighted
average
inputs
Reasonable
possible
shift¹ +/-
Impact on
fair value
OZ Minerals Brazil Royalty
cash flows
rate –
weighted
average cost
of capital £1.1m
%Average
gold prices
per ounce
%
Average
copper prices
per tonne
%
1
128
BlackRock World Mining Trust plc
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
(e) Capital management policies and procedures
companies in the mining and metals sectors.
– the planned level of gearing, which takes into account the Investment Manager’s view on the market; and
19. Transactions with the investment manager and AIFM
BlackRock Fund Managers Limited (BFM) provides management and administration services to the Company under a
56 and 57.
The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in
Notes to the financial statements
continued
18. Risk management policies and procedures
continued
20. Related party disclosure
Directors’ emoluments
6
to 65
Significant holdings
The following investors are:
As at 31 December 2021
Total % of shares held by Related
BlackRock Funds
Total % of shares held by Significant
Investors who are not affiliates of
BlackRock Group or BlackRock, Inc.
Number of Significant Investors who
are not affiliates of BlackRock Group or
BlackRock, Inc.
1.77
n/a n/a
As at 31 December 2020
Total % of shares held by Related
BlackRock Funds
Total % of shares held by Significant
Investors who are not affiliates of
BlackRock Group or BlackRock, Inc.
Number of Significant Investors who
are not affiliates of BlackRock Group or
BlackRock, Inc.
2.45
n/a n/a
21. Contingent liabilities
22. Subsequent events
As noted in the Chairman’s Statement, since the financial year end, financial markets have fallen significantly due primarily
regulations and other measures which impaired normal trading in Russian securities. In the light of these events, BlackRock
other significant events affecting the Group since the financial year end.
131
Additional
information
The level of demand and price action in lithium surprised even the most optimistic
of forecasters in 2021. The Company has exposure to lithium via its holding in
Sociedad Química y Minera de Chile (SQM).
PHOTO COURTESY OF SQM
132
BlackRock World Mining Trust plc
Financial calendar
February/March
March
April/May
August
Half yearly figures announced and half
Dividend – 2021
The proposed final dividend in respect of the year ended
7.00p per share. The Board also
declared one quarterly interim dividend of 4.50p per share
and two quarterly interim dividends of 5.50p per share.
Ex-dividend date (shares transferred without
the dividend) 17 March 2022
Record date (last date for registering
transfers to receive the dividend) 18 March 2022
19 May 2022
Quarterly dividends
Period ending Announce Payment date
31 March
June30 June
May
Payment of dividends
confirmation statement and sending this to the Company’s
sent to shareholders at their registered address, unless other
Dividend reinvestment scheme (DRIP)
have already opted to have their dividends reinvested do not
need to reapply. The last date for registering for this service
Dividend tax allowance
The annual tax-free allowance on dividend income across
amount, individuals pay tax on their dividend income at a
circumstances.
The Company continues to provide registered shareholders
included with any other dividend income received when
Share price
quoted daily in The Financial Times and The Times under
ISIN/SEDOL numbers
Ordinary shares
0577485
Reuters Code BRWM.L
BRWM LN
BRWM
Shareholder information
133
Share dealing
or sell all or part of their existing holding may do so through a
CREST
system for uncertificated securities trading.
Private investors can continue to retain their share
certificates and remain outside the CREST system. Private
way as they did prior to the introduction of CREST, although
Risk factors
• Past performance is not necessarily a guide to future
performance.
• The value of your investment in the Company and the
income from it can fluctuate as the value of the underlying
investments fluctuate.
• The price at which the Company’s shares trade on the
performance.
Electronic communications
We encourage you to play your part in reducing our impact
This means you will receive timely, cost-effective and greener
online annual reports, half yearly financial reports and other
relevant documentation.
Shareholders who opt for this service will receive an email
share certificate or dividend confirmation statement.
You will continue to receive a printed copy of these reports
view these reports online.
Electronic proxy voting
via Computershare’s internet site at eproxyappointment.com
or give an instruction through the CREST electronic proxy
Duration of the Company
continue the life of the Company for a further twelve months.
Nominee code
Where shares are held in a nominee company name, the
• to provide the nominee company with multiple copies of
shareholder communications, so long as an indication of
• to allow investors holding shares through a nominee
company to attend general meetings, provided the correct
Nominee companies are encouraged to provide the
necessary authority to underlying shareholders to attend the
Company’s general meetings.
Publication of net asset value/portfolio
analysis
calculated daily, with details of the Company’s investments
(monthly information only).
Individual Savings Accounts (ISAs)
2022
3
of £20,000 (2021
2
either cash or shares.
Online access
in the United Kingdom governing the preparation and
dissemination of the financial statements may differ from
legislation in their jurisdiction.
134
BlackRock World Mining Trust plc
and reinvestments.
payment types.
cheque.
instead of paper communications.
online replacement service.
transfer, dividend reinvestment and change of address
forms.
Shareholder enquiries
Services PLC. Certain details relating to your holding can
statement or other electronic communications you have
previously received from Computershare. The address of the
please contact the registrar on 0370 707 1187.
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
General enquiries
The Secretary
Shareholder information
continued
135
By type of holder
Number of
shares
% of total
2021
% of total
2020
Number of
holders
% of total
2021
% of total
2020
3,297,763 1.8 2.0 1,620 51.1 50.5
Nominee companies 178,856,763 97.4 97.2 1,505 47.5 48.3
Others 1,526,590 0.8 0.8 44 1.4 1.2
183,681,116 100.0 100.0 3,169 100.0 100.0
By size of holding
Number of
shares
% of total
2021
% of total
2020
Number of
holders
% of total
2021
% of total
2020
5,368,247 2.9 3.2 2,784 87.9 88.5
7,458,266 4.1 4.1 223 7.0 6.9
37,106,706 20.2 21.9 113 3.6 3.2
86,729,814 47.2 49.6 43 1.3 1.3
Over 5,000,000 47,018,083 25.6 21.2 6 0.2 0.1
183,681,116 100.0 100.0 3,169 100.0 100.0
Excludes treasury shares of 9,330,726.
Analysis of ordinary shareholders
136
BlackRock World Mining Trust plc
Year ended
31 December
Net Assets
Undiluted
Net Asset
Value per
Ordinary
Share
Diluted
Net Asset
Value per
Ordinary
Share
1
Gearing
Ordinary
Share Price
Revenue
available
for Ordinary
Shareholders
Revenue
Earnings
per
Ordinary
Share
Dividends
per
Ordinary
Share
£’000 p p % p £’000 p p
1994 446,816 104.94 104.12 3,642 0.86 0.77
93.501995 452,762 106.27 105.23 0.1 93.00 5,637 1.32 1.00
1996 424,774 99.70 5,082 1.19 1.15
86.501997 318,494 74.75 3,894 0.91 0.85
59.501998 230,284 60.92 5,619 1.43 2.35
55.751999 223,397 116.99 100.75 2,238 1.00 1.20
11.22000 186,022 109.36 91.50 2,939 1.63 1.30
8.32001 196,726 118.48 6,434 3.82 3.15
96.502002 243,350 149.48 4,110 2.52 2.10
131.752003 389,244 239.09 217.00 2,816 1.73 1.70
8.82004
2
398,129 244.55 240.29 6.0 218.00 4,899 3.01 2.50
2005 668,202 397.03 351.50 5,642 3.39 2.80
0.72006 868,545 516.07 503.23 0.9 444.00 14,782 8.78 4.50
2007 1,268,120 804.13 752.28 13,391 8.25 5.50
655.002008 590,927 331.39 252.50 9,831 5.64 5.50
0.52009 1,176,813 662.02 550.00 8,714 4.90 4.75
3.62010 1,708,023 962.06 811.00 11,667 6.57 6.00
1.82011 1,317,004 742.86 631.50 26,099 14.71 14.00
2.52012 1,215,743 685.75 586.50 38,614 21.78 21.00
7.12013 885,346 499.39 465.00 39,633 22.36 21.00
9.62014 624,674 352.35 310.35 37,452 21.13 21.00
11.72015 377,313 212.83 181.00 32,744 18.47 21.00
12.22016 677,546 383.98 336.50 23,303 13.19 13.00
12.42017 804,647 456.01 397.75 28,093 15.92 15.60
12.22018 685,595 388.81 340.50 32,013 18.15 18.00
13.52019 757,110 433.17 383.00 39,561 22.46 22.00
11.72020 930,825 536.34 522.00 35,451 20.40 20.30
12.32021 1,142,874 622.21 9.9 589.00 78,910 43.59 42.50
1
2
Statements on pages 95 to 99.
Historical record
137
Registered Office
(Registered in England, No. 2868209)
Alternative Investment Fund Manager
Investment Manager and Company
Secretary
Depositary, Custodian, Banker and Fund
Accountant
One Canada Square
Canary Wharf
Registrar
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Independent Auditors
PricewaterhouseCoopers LLP
144 Morrison Street
Stockbrokers
Canary Wharf
London E14 5JP
Cannon Bridge
Solicitors
Exchange House
Primrose Street
Management and other service providers
138
BlackRock World Mining Trust plc
Report on remuneration
Quantitative remuneration disclosures
Leverage
accordance with its stated investment policy or investment
strategy. The Company may also employ leverage in its
investment programme through foreign exchange forward
increase the adverse impact to which the Company’s
Company may utilise a variety of exchange traded and over
the counter (OTC) derivative instruments such as covered
derivatives may expose the Company to a higher degree of
the year.
For the purposes of this disclosure, leverage is any method
methodology and the commitment methodology (as set out
such exposure.
Commitment
leverage as at
31 December
2021
Gross
leverage
as at
31 December
2021
Leverage ratio 1.13 1.13
Other risk disclosures
Financial Statements.
Pre investment disclosures
administration, management, fees, conflicts of interest and
reflected in these financial statements or previously
primary information provider) to this information requiring
Exchange through a primary information provider.
CAROLINE DRISCOLL
Company Secretary
7
March 2022
AIFMD disclosures
139
9.8.4 (1) The Company has not capitalised any interest in the period under review.
forecast or profit estimate.
9.8.4 (4) The Company does not have any long-term incentive schemes in operation.
at an average price of 619.48p per share for a total consideration of £63,187,000 excluding costs. Since the year end and up
£6,281,000.
shareholder.
9.8.4 (12) and 9.8.4 (13) There were no arrangements under which a shareholder has waived or agreed to waive any dividends
or future dividends.
CAROLINE DRISCOLL
Company Secretary
7 March 2022
Information to be disclosed in accordance
with Listing Rule 9.8.4
140
BlackRock World Mining Trust plc
Alternative performance measures (APM)
where relevant to the financial inputs used to derive them as
Closed-end company
trust, in that it pools money from investors which is then
issued or cancelled at any one time is limited, and requires
the approval of existing shareholders, investment trusts
constraints as open ended funds and can therefore invest in
less liquid investments.
Discount and premium*
622.21
5.3%
on page 105 for the audited inputs to the calculation).
Gearing and borrowings
the performance of the assets in the portfolio is poor, then
Net gearing
calculation
Page
31 December
2021
£’000
31 December
2020
(Restated)
2
£’000
Net assets 93 1,142,874 930,825
(a)
Borrowings 93 139,223 124,845
1,282,097 1,055,670 (c)
Current assets
1
93 32,206 16,199 (d)
(excluding
93 (6,277) (6,132) (e)
Cash and cash
equivalents (d + e) 25,929 10,067 (f)
Net gearing
(g = (c – f – a)/ a) 9.9% 12.3% (g)
1
2
further details.
Gross assets
Leverage
Leverage is measured in terms of ‘exposure’ and is expressed
Leverage ratio
=
Exposure
Net assets
in terms of calculating what constitutes an ‘exposure’ under
value of any cash and cash equivalents which are highly
a return no greater than the rate of a three-month high
calculations.
Glossary
141
NAV and share price return (with dividends
reinvested)*
different dividend policies. The performance measures the
9 of the financial statements for the audited inputs to the
calculations).
NAV total return –
Sterling
Page
31 December
2021
31 December
2020
share (pence) 105 622.21 536.34
and final dividends
(pence) 104 23.80 22.00
Effect of dividend
reinvestment
(pence) 1.34 12.38
647.35 570.72
(a)
share (pence) 105 536.34 433.17
NAV total return
(c = ((a - b)/b)) (%) 20.7 31.8 (c)
Share price total
return – Sterling
Page
31 December
2021
31 December
2020
Closing share
price (pence) 105 589.00 522.00
and final dividends
(pence) 104 23.80 22.00
Effect of dividend
reinvestment
(pence) 0.42 17.73
share price
(pence) 613.22 561.73
(a)
Opening share
price (pence) 105 522.00 383.00
Share price total return
(c = ((a - b)/b)) (%) 17.5 46.7 (c)
Net asset value per share (Cum income NAV)
shares in issue (excluding treasury shares). For example,
worth £1,142,874,000
were 183,681,116 ordinary shares in issue (excluding
was therefore 622.21
(please see note 9 of the financial statements for the audited
inputs to the calculations).
Net asset value per share (Capital only
NAV)*
shares in issue.
the current year net revenue return (after interim dividends)
amounted to £1,092,397,000
594.72
Equity shareholders’ funds (excluding current period
revenue) of £1,092,397,000
1,142,874,000) its current
dividends paid from revenue (£28,433,000).
Ongoing charges ratio*
Ongoing charges (%)
=
in the period
Ongoing charges are those expenses of a type which are
capital or revenue, and which relate to the operation of the
investment company as a collective fund. Ongoing charges
estimate of future costs and include the annual management
charge.
142
BlackRock World Mining Trust plc
revenue and capital expenses (excluding finance costs,
direct transaction costs, custody transaction charges,
expressed as a percentage of the average daily net assets of
Ongoing charges
calculation on
net assets
Page
31 December
2021
£’000
31 December
2020
£’000
Management fee 101 9,230 6,405
Other operating
expenses 102 1,034 997
Total management
fee and other
operating
expenses 10,264 7,402
(a)
assets in the year 1,085,438 748,853
Ongoing charges on
net assets (c = a/b) 0.95% 0.99% (c)
Ongoing charges
calculation on
gross assets
Page
31 December
2021
31 December
2020
Management fee 101 9,230 6,405
Other operating
expenses 102 1,034 997
Total management
fee and other
operating
expenses 10,264 7,402
(a)
gross assets in the
year 1,221,651 847,155
Ongoing charges on
gross assets (c = a/b) 0.84% 0.87% (c)
Options and options overwriting strategy
during a certain period of time or on a specific date (exercise
date) for a fee (the premium). The sale of call or put options
exercised, is referred to as an ‘options overwriting’ strategy.
the option and this strategy can reduce returns in a rising
options (meaning that call options are only written in respect
that, if the options are exercised, the Company does not need
derivatives for efficient portfolio management and options
apply to the Company’s direct investments.
Physical metals
Quoted securities and unquoted
investments
Securities that trade on an exchange for which there is a
securities that do not trade on an exchange for which there is
Reference index – MSCI ACWI Metals &
Mining 30% Buffer 10/40 Index (MSCI ACWI)
exposure to any single issuer to 10% of the index value,
exposures to single issuers at more than 5% of the index at
the weights of securities representing more than 3.5% (5%
Revenue profit and revenue reserves
Revenue profit is the net revenue income earned after
deduction of fees and expenses allocated to the revenue
Glossary
continued
143
the income they generate, after expenses. They may retain
supplement dividend payments to shareholders.
Royalties
Contracts that involve one party giving capital (funding) to
a mining company in return for a percentage share of the
revenues from one or more of the company’s assets.
Treasury shares
shares do not pay dividends, have no voting rights and
are not included in a company’s total issued share capital
amount for calculating percentage ownership. Treasury
shares in certain circumstances.
Yield*
The yield is the amount of cash (in percentage terms) that is
returned to the owners of the security, in the form of interest
or dividends received from it. Normally, it does not include
the price variations, distinguishing it from the total return.
Page
31 December
2021
31 December
2020
1
105 42.50 20.30
(a)
Ordinary share
price (pence) 589.00 522.00
Yield (c = a/b) (%) 7.2 3.9 (c)
1
144
BlackRock World Mining Trust plc
l Annual Report and Financial Statements 31 December 2021
145
Annual
general
meeting
The price of cobalt rose considerably, driven in part by battery demand, particularly
for electric vehicles. Signicantly, diversied miner Glencore announced the 2022
restart of the Mutanda mine in the DRC. Glencore’s shares rose 66.9% in value
during 2021.
PHOTO COURTESY OF GLENCORE
146
BlackRock World Mining Trust plc
l Annual Report and Financial Statements 31 December 2021
Notice is hereby given that the twenty eighth Annual General
Meeting of BlackRock World Mining Trust plc will be held at
the ofces of BlackRock at 12 Throgmorton Avenue, London
EC2N 2DL on Friday, 6 May 2022 at 11.30 a.m. to consider
and, if thought t, pass resolutions 1 to 12 as ordinary
resolutions and resolutions 13 and 14 as special resolutions.
More information in respect of the contribution of each
Director to support their re-election is given in the Directors’
Report on pages 60 and 6
1
.Ordinary business
1. To receive the report of the Directors and the nancial
statements for the year ended 31 December 2021,
together with the report of the auditors thereon.
2. To approve the Directors’ Remuneration Report for the
year ended 31 December 2021, excluding any content
relating to the remuneration policy of the Company.
3. To declare a nal dividend of 27.00p per ordinary share
for the year ended 31 December 2021.
4. To re-elect Mr D W Cheyne as a Director.
5. To re-elect Mr R P Edey as a Director.
6. To re-elect Ms J Lewis as a Director.
7. To re-elect Ms J Mosely as a Director.
8. To elect Mr S Venkatakrishnan as a Director.
9. To reappoint PricewaterhouseCoopers LLP as auditors
of the Company to hold ofce until the conclusion of the
next Annual General Meeting of the Company.
10. To authorise the Audit Committee to determine the
auditors’ remuneration.
Special business
Ordinary resolutions
11. That the Company shall continue in being as an
investment trust.
12. That in substitution for all existing authorities, the
Directors of the Company be and they are hereby
generally and unconditionally authorised pursuant to
section 551 of the Companies Act 2006 (the Act), to
exercise all the powers of the Company to allot relevant
securities in the Company (as described in that section)
up to an aggregate nominal amount of £922,780 (being
10% of the aggregate nominal amount of the issued
share capital, excluding treasury shares, of the Company
at the date of this notice) provided that this authority
shall (unless previously revoked) expire at the conclusion
of the Company’s Annual General Meeting to be held in
2023, but the Company shall be entitled to make offers
or agreements before the expiry of this authority which
would or might require relevant securities to be allotted
after such expiry and the Directors may allot such
securities pursuant to any such offer or agreement as if
the power conferred hereby had not expired.
Special resolutions
13. That in substitution for all existing authorities and
subject to the passing of resolution numbered 12
above, the Directors of the Company be and are hereby
empowered pursuant to sections 570 and 573 of the
Companies Act 2006 (the Act) to allot equity securities
(as dened in section 560 of the Act) and to sell equity
securities held by the Company as treasury shares (as
dened in section 724 of the Act) for cash pursuant to
the authority granted by the resolution numbered 12
above, as if section 561(1) of the Act did not apply to any
such allotments and sales of equity securities, provided
that this power:
General Meeting of the Company to be held in 2023,
except that the Company may before such expiry
make offers or agreements which would or might
require equity securities to be allotted or sold after
such expiry and notwithstanding such expiry the
Directors may allot and sell equity securities in
pursuance of such offers or agreements;
and/or the sale of equity securities held in treasury
for cash up to an aggregate nominal amount of
£922,780 (representing 10% of the aggregate
nominal amount of the issued share capital,
excluding treasury shares, of the Company at the
date of this notice); and
equity securities at a price of not less than the net
asset value per share as close as practicable to the
allotment or sale.
14. That in substitution for the Company’s existing authority
to make market purchases of ordinary shares of 5p
each in the Company (Shares), the Company be and is
hereby generally and, subject as hereinafter appears,
unconditionally authorised in accordance with section
701 of the Companies Act 2006 (the Act) to make market
purchases of Shares (within the meaning of section 693
of the Act) provided that:
Notice of annual general meeting
147
(a) the maximum number of Shares hereby authorised
to be purchased shall be 27,664,961, or if less, that
number of Shares which is equal to 14.99% of the
Company’s issued share capital (excluding treasury
shares) as at 6 May 2022;
may be paid for any such Share shall be 5p being
the nominal value per share;
may be paid for any such Share shall be the
higher of (i) 105% of the average of the middle
market quotations (as derived from the Ofcial
List) of the Shares for the ve dealing days prior
to the date on which the market purchase is made
and (ii) the higher of the price quoted for (a) the
last independent trade of and (b) the highest
independent bid for, any number of Shares on the
trading venue where the purchase is carried out;
and
shall expire at the conclusion of the next Annual
General Meeting of the Company in 2023 save
that the Company may, prior to such expiry,
enter into a contract to purchase Shares under
the authority hereby conferred and may make a
purchase of Shares pursuant to any such contract
notwithstanding such expiry.
All Shares purchased pursuant to the above authority shall
be either:
treasury shares in accordance with the provisions of
the Act; or
purchase.
By order of the Board
CAROLINE DRISCOLL
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
7
March 2022
Registered Ofce:
12 Throgmorton Avenue
London EC2N 2DL
148
BlackRock World Mining Trust plc
l Annual Report and Financial Statements 31 December 2021
Notes:
1. A member entitled to attend and vote at the meeting
convened by the above Notice is entitled to appoint one
or more proxies to exercise all or any of the rights of the
member to attend, speak and vote in his place. A proxy need
not be a member of the Company. If a member appoints more
than one proxy to attend the meeting, each proxy must be
appointed to exercise the rights attached to a different share
or shares held by the member.
2. To appoint a proxy, you may use the Form of Proxy enclosed
with this Annual Report. To be valid, the Form of Proxy,
together with the power of attorney or other authority (if any)
under which it is signed or a notarially certied or ofce copy
of the same, must be completed and returned to the ofce of
the Company’s registrar in accordance with the instructions
printed thereon as soon as possible and in any event by not
later than 11.30 a.m. on
4
May 2022. Amended instructions must also be received by the Company’s registrar by the
deadline for receipt of proxies. Alternatively, you can vote or
appoint a proxy electronically by visiting eproxyappointment.
com. You will be asked to enter the Control Number, the
Shareholder Reference Number and PIN which are printed on
the form of proxy. The latest time for the submission of proxy
votes electronically is 11.30 a.m. on
4
May 2022. 3. Completion and return of the Form of Proxy will not prevent a
member from attending the meeting and voting in person.
4. Proxymity Voting – If you are an institutional investor you
may also be able to appoint a proxy electronically via the
Proxymity platform, a process which has been agreed by
the Company and approved by the Registrar. For further
information regarding Proxymity, please go to www.
proxymity.io. Your proxy must be lodged by 11.30 a.m. on
4
May 2022 in order to be considered valid. Before you
can appoint a proxy via this process you will need to have
agreed to Proxymity’s associated terms and conditions. It is
important that you read these carefully as you will be bound
by them and they will govern the electronic appointment of
your proxy.
5. Any person receiving a copy of this Notice as a person
nominated by a member to enjoy information rights under
section 146 of the Companies Act 2006 (a Nominated
Person) should note that the provisions in Notes 1 and 2
above concerning the appointment of a proxy or proxies to
attend the meeting in place of a member, do not apply to a
Nominated Person as only shareholders have the right to
appoint a proxy. However, a Nominated Person may have a
right under an agreement between the Nominated Person
and the member by whom he or she was nominated to be
appointed, or to have someone else appointed, as proxy
for the meeting. If a Nominated Person has no such proxy
appointment right or does not wish to exercise it, he/she may
have a right under such agreement to give instructions to the
member as to the exercise of voting rights at the meeting.
6. Nominated Persons should also remember that their main
point of contact in terms of their investment in the Company
remains the member who nominated the Nominated Person
to enjoy the information rights (or perhaps the custodian
or broker who administers the investment on their behalf).
Nominated Persons should continue to contact that member,
custodian or broker (and not the Company) regarding any
changes or queries relating to the Nominated Person’s
personal details and interest in the Company (including any
administrative matter). The only exception to this is where the
Company expressly requests a response from the Nominated
Person.
7. Pursuant to regulation 41 of the Uncerticated Securities
Regulations 2001, only shareholders registered in the
register of members of the Company by not later than 6.00
p.m. two days prior to the time xed for the meeting shall be
entitled to attend and vote at the meeting in respect of the
number of shares registered in their name at such time. If the
meeting is adjourned, the time by which a person must be
entered on the register of members of the Company in order
to have the right to attend and vote at the adjourned meeting
is 6.00 p.m. two days prior to the time of the adjournment.
Changes to the register of members after the relevant times
shall be disregarded in determining the rights of any person
to attend and vote at the meeting.
8. In the case of joint holders, the vote of the senior holder
who tenders a vote whether in person or by proxy shall be
accepted to the exclusion of the votes of the other joint
holders and, for this purpose, seniority will be determined
by the order in which the names stand in the register of
members of the Company in respect of the relevant joint
holding.
9. Shareholders who hold their shares electronically may
submit their votes through CREST, by submitting the
appropriate and authenticated CREST message so as to be
received by the Company’s registrar not later than 48 hours
before the start of the meeting. Instructions on how to vote
through CREST can be found by accessing the following
website: euroclear.com/CREST. Shareholders are advised
that CREST and the internet are the only methods by which
completed proxies can be submitted electronically.
10. If you are a CREST system user (including a CREST personal
member) you can appoint one or more proxies or give an
instruction to a proxy by having an appropriate CREST
message transmitted. To appoint one or more proxies or to
give an instruction to a proxy (whether previously appointed
or otherwise) via the CREST system, CREST messages must
be received by Computershare (ID number 3RA50) not later
than 48 hours before the time appointed for holding the
meeting. For this purpose, the time of receipt will be taken
to be the time (as determined by the timestamp generated
by the CREST system) from which Computershare is able
to retrieve the message. CREST personal members or other
CREST sponsored members should contact their CREST
sponsor for assistance with appointing proxies via CREST.
For further information on CREST procedures, limitations
and system timings please refer to the CREST manual. The
Company may treat as invalid a proxy appointment sent by
CREST in the circumstances set out in Regulation 35(5)(a) of
the Uncerticated Securities Regulations 2001.
11. If the Chairman, as a result of any proxy appointments, is
given discretion as to how the votes subject of those proxies
are cast and voting rights in respect of those discretionary
proxies, when added to the interest in the Company’s
securities already held by the Chairman, result in the
Chairman holding such number of voting rights that he has
notiable obligation under the Disclosure Guidance and
Transparency Rules, the Chairman will make the necessary
notications to the Company and the Financial Conduct
Authority. As a result, any member holding 3% or more of
the voting rights in the Company, who grants the Chairman
discretionary proxy in respect of some or all of those voting
rights and so would otherwise have a notication obligation
under the Disclosure Guidance and Transparency Rules,
need not make a separate notication to the Company and
the Financial Conduct Authority.
12. Any question relevant to the business of the meeting may
be asked at the meeting by anyone permitted to speak at the
meeting. A shareholder may alternatively submit a question
in advance by a letter addressed to the Company Secretary
at the Company’s registered ofce. Under section 319A of
the Companies Act 2006, the Company must answer any
question a shareholder asks relating to the business being
dealt with at the meeting, unless (i) answering the question
would interfere unduly with the preparation for the meeting
or involve the disclosure of condential information; (ii) the
Notice of annual general meeting
continued
149
answer had already been given on a website in the form of an
answer to a question; or (iii) it is undesirable in the interests
of the Company or the good order of the meeting that the
question be answered.
13. Any corporation which is a member can appoint one or
more corporate representatives who may exercise on its
behalf all of its powers as a member provided that, if it
is appointing more than one corporate representative, it
does not do so in relation to the same shares. It is therefore
no longer necessary to nominate a designated corporate
representative. Representatives should bring to the meeting
evidence of their appointment, including any authority under
which it is signed.
14. Under section 527 of the Companies Act 2006, members
meeting the threshold requirements set out in that section
have the right to require the Company to publish on a website
a statement setting out any matter relating to:
auditors’ report and the conduct of the audit) that are laid
before the meeting; or
Company ceasing to hold ofce since the previous
meeting at which annual accounts and reports were laid
in accordance with section 437 of the Companies Act
2006.
website publication to pay its expenses in complying with
sections 527 or 528 of the Companies Act 2006. Where the
Company is required to place a statement on a website under
section 527 of the Companies Act 2006, it must forward the
statement to the Company’s auditors not later than the time
when it makes the statement available on the website. The
business which may be dealt with at the meeting includes
any statement that the Company has been required under
section 527 of the Companies Act 2006 to publish on a
website.
15. Under sections 338 and 338A of the Companies Act 2006,
members meeting the threshold requirements in those
sections have the right to require the Company:
notice of the meeting, notice of a resolution which may
properly be moved and is intended to be moved at the
meeting; and/or
any matter (other than a proposed resolution) which may
be properly included in the business.
be included in the business unless:
ineffective (whether by reason of inconsistency with any
enactment or the Company’s constitution or otherwise);
form and must identify the resolution of which notice is to
be given or the matter to be included in the business, must
be authorised by the person or persons making it, must be
received by the Company not later than 24 March 2022,
being the date six weeks clear before the meeting and (in the
case of a matter to be included in the business only) must
be accompanied by a statement setting out the grounds for
the request.
16. Further information regarding the meeting which the
Company is required by section 311A of the Companies
Act 2006 to publish on a website in advance of the
meeting (including this Notice), can be accessed at
www.blackrock.com/uk/brwm.
17. As at the date of this report, the Company’s issued share
capital comprised 184,556,116 ordinary shares of 5 pence
each, excluding shares held in treasury. Each ordinary
share carries the right to one vote and therefore the total
number of voting rights in the Company on 2 March 2022 is
184,556,116.
18. No service contracts exist between the Company and any of
the Directors, who hold ofce in accordance with letters of
appointment and the Articles of Association.
150
BlackRock World Mining Trust plc
l Annual Report and Financial Statements 31 December 2021
Be ScamSmart
In
ves
tment sc
ams
a
re de
si
gne
d
to l
ook
l
i
ke ge
n
uine invest
men
ts
Spot
t
he
w
arn
i
gnng s
is
Have you been:
• contacted out of the blue
• promised tempting returns and told the investment is safe
• called repeatedly, or
• told the offer is only available for a limited time?
If so, you might have been contacted by fraudsters.
Avoid investment fraud
Re
ject co
ld
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ls
Check the FCA Warning List
Get imp
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dvice
you hand over any money. Seek advice from someone
Report a scam
Find out more at
www.fca.org.uk/scamsmart
1
2
3
R
emem
b
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: if
i
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oun
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bab
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The FCA Warning List is a list of rms and individuals we
know are operating without our authorisation.
If you’ve received unsolicited contact about an investment
opportunity, chances are it’s a high risk investment or a
scam. You should treat the call with extreme caution.
The safest thing to do is to hang up.
If you suspect that you have been approached by
fraudsters please tell the FCA using the reporting form at
www.fca.org.uk/consumers.
You can also call the
FCA Consumer Helpline on
0800 111 6768
If you have lost money to investment fraud, you should
report it to Action Fraud on 0300 123 2040 or online at
www.actionfraud.police.uk
SGN001
Share fraud warning
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BlackRock World Mining Trust plc
Annual Report and Financial Statements 31 December 2021
www.
blackrock.com/uk/brwm