Citywire Selection

Commodities

BlackRock World Mining Trust

Citywire Selection Verdict: This popular trust has managed to stay ahead of the declining world mining index over last year.  The supply side continues to be challenged by both short term factors (ie weather) and long term factors (ie labour shortages and grade declines). These structural issues help commodity prices especially when demand remains strong. Mining companies are trading at historically low valuations but the trust focuses on companies with high asset quality and balance sheet. Predominantly invested in large diversified miners, it also has stakes in gold and silver miners.

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