BlackRock World Mining beats benchmarks as gold, copper plays pay off

(Sharecast News) - BlackRock World Mining Trust smashed its comparative benchmark with returns over 2025 after a "very strong year", and noted a "supportive" backdrop for the mining sector despite current macro uncertainty and geopolitical volatility. Net asset value per share (NAV) total return for the year was 74.2%, compared with returns from the reference index (MSCI ACWI Metals & Mining) of 64.2% and the FTSE All-Share Index total return of 24.0%.

The strong performance was helped by the trust's exposure to "positive demand trends from AI infrastructure build out and energy transition, supply side disruption, and exceptional demand for precious metals", it said.

In particular, the trust's decision to raise its exposure to gold equities paid off, as the gold price hit new highs towards the end of the period, as to did its overweight position in copper miners as copper also hit records.

Total profits after tax were £688.6m, compared with a £119.9m loss in 2024, of which £45.9m is revenue profit, up 3.9% from the year before.

As a result, the trust declared a final dividend of 7.5p per share which, after the three interim dividends of 5.5p each, takes the full-year payout to 24p per share, up from 23p paid out for 2024.

"The company's performance through 2025 is a clear illustration of our value as a nimble 'virtual mining company', without the constraints that come with the development of fixed mining assets, and the excellent use of the investment trust structure," said chair Chip Goodyear.

"Our portfolio manager's ability to flex exposure to the appropriate commodities and precious metals, their effective use of gearing to enhance returns, options strategy to boost income, and our exposure to unquoted assets all offers a unique investment opportunity for investors."

Looking ahead, BRWM noted the current volatility affecting commodity and energy markets, but highlighted increasing investments by major economics in technology, energy infrastructure and defence.

"These initiatives continue to drive structural demand for many mined commodities, such as copper, lithium and rare earth elements that are essential to electrification, renewable energy and the growing AI and data centre ecosystem. With supply growth limited and producers currently signalling maintaining capital discipline and strong balance sheets, the backdrop for the sector remains supportive," the company said.

BRWM shares were up 1.9% at 897p by 0936 GMT.

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