(BRWM) BlackRock World Mining

apols - just read the other postings .

The unaudited net asset values for BlackRock World Mining Trust plc at close of
business on 29 December 2011 was:

726.20p Capital only (undiluted)
739.71p Including current year income (undiluted)

so the shares are trading at £1 below their NAv .... why don't the Baord buy th shares back
in the markey. This will boost the quoted price price and shave off some of the discount. Easy

Interesting . For us less informed chappies , just what / who the City of London Investment Group are ?
Thanks.

I like the fact they remain positive about this share.
If you look ahow much its gaine dover 3 years you cant fail to be impressed, but I its ensuring those rises continue - tho in the current climate thats very difficult.
I have sold a few of my small holding reecently , but will happily buy more when the steady climb starts again.

BlackRock World Mining Trust*
Oriel Securities comment Investment Funds BlackRock World Mining
Trust PLC* - POSITIVE 15 December 2011

Open letter from City of London Investment Group to BlackRock World Mining
highlighting their disappointment with the current NAV discount.


POSITIVE

Price: 603p BRWM LN Connected research*
BlackRock World Mining Trust PLC* - POSITIVE - Open letter from City of London Investment Group to BlackRock World Mining highlighting their disappointment with the current NAV discount.
Key Data
14.12.11
Price (p) 603
NAV dil. (p) 736
Discount (%) 18
Market Cap (£m) 1068
Yield 0.9
Next News Finals – Feb
All sources unless otherwise stated: Company data, Factset,
Oriel Securities


Oriel View: City of London Investment Group have made public a letter to the board of
BlackRock World Mining. They are calling on the board to come up with proposals to
reduce the discount. The trust is currently on a 16% discount, so there is some scope
for the discount to narrow. However, we think that given the volatility of the underlying
assets, with mining stocks often seeing intra-day price swings of at least 5%, that the
marketmaking system is likely to continue to build a relatively high structural discount
into this trust.


We also think that one of the attractions of the trust is size and relative liquidity. Whilst
we believe the level of discount on this trust is frustrating for the managers, board and
shareholders, we actually take the view that discount volatility can be more of a
problem than the absolute level of discount. We think that if the discount is fairly
steady over a period of time, then shareholders are not disadvantaged in the way they
would be if they have bought shares on a narrow discount, only to see it widen
significantly. BlackRock World Mining has traded on a relatively consistent discount
range over the last two years as shown in Chart 1 below.


The board do have buyback authority and have been buying-in shares on a high-teen
discount in recent months. We think that going forward, a stronger indication from the
board that it will be prepared to buy-in shares with the intention of keeping the discount
at no greater than a low-teen to mid-teen level, may help reduce discount volatility
further and be helpful for shareholders.


At this stage shareholders should wait for the board’s response. We maintain a
POSITIVE recommendation as we think the trust provides investors with exposure to a
very experienced management team in a relatively specialist sector, and the 16%
discount offers good value.


City of London Investment Group have written an open letter to the directors of
Blackrock World Mining. Key points from the letter are as follows:

Shareholding: City of London (CoL) currently holds 7.1% of BlackRock World
Mining (12.6m shares).

Performance: City of London congratulate the investment manager on the 3 year
performance of the trust outperforming the index, but go on to say that they are
disappointed that this good investment record is not more fully reflected in the
share price, which in their view, ‘remains at an unreasonable discount to NAV’.


Discount: CoL state that they find the current level of discount unacceptable and
call on the board to formulate a policy to reduce significantly the discount to NAV.
Continuation vote: CoL go on to say, ‘We have written to you previously on this issue
in April 2010 and in June 2011and we consider that the time for action is long overdue.
We have decided to publish this latest letter in order to encourage other shareholders
to join us in requesting that the board adopt best practice in respect of discount
control. City of London intends to oppose continuation at the next AGM unless the
board brings forward acceptable proposals.’