‍

BlackRock World Mining Trust has reported their largest one-year gain for 2025 delivering a return of +74.2%*. In fact, if you look back at the last 12 months it has soared by +127%*, in part due to the demand for copper as the world transitions into new energy sources as oil prices become higher and more volatile. Copper is essential to wind turbines, solar panels and electric vehicles as well as data centres for AI and the expansion of power grids.

‍

In the short term there has been some volatility in commodity prices because of the war in Iran and higher fuel costs will weigh on miner’s profitability if it is sustained. As a  result  the discount has widened slightly to the Net Asset Value (NAV) to 4%**, but that is still very modest. Gold miners also did well for the trust largely due to relentless buying by central banks. Gold now makes up around 40% of the NAV.

‍

The managers, Evy Hambro and Olivia Markham are bullish on the core demand for base metals and expect global spend on infrastructure to be three times the amount it was over the last fifteen years. Additionally, they note the rapid development of emerging markets, ex China, with a growing middle class in places like India and Latin America foreshadowing greater capital intensity in their consumption that draws parallels with the rise of China in the early 2000’s which was accompanied by a commodity super-cycle.

‍

The trust usually has around a 10% gearing to enhance returns which works well for the long-term investor. It has also offered a reasonable dividend that hovers around the 3.5% mark. This income is made up from both dividends in the underlying companies as well as some royalties. They received a windfall recently from the sale of their BHP royalty earning over +842% since they acquired it in 2015. This is equivalent to an internal rate of return of 40% p.a.

‍

Historically elevated levels of inflation have favoured commodities and as I have written before, the trust is our preferred way to access Gold as the trust pays an income.

‍

*

**

Comments from James Scott-Hopkins, Founder, EXE Capital Management.

The views are those of the author only. The above does not constitute a recommendation to buy the fund and advice should be sought from your financial advisor as to the appropriateness of this fund in your portfolio. The value of investments can fall as well as rise. Past performance is no guarantee of future returns.‍

‍