Blackrock World Mining Trust PLC Fund Data

March was characterised by a broad-based selloff across global equity markets, with the mining sector experiencing particularly acute weakness amidst the U.S. and Israel conflict with Iran. The selloff was driven primarily by a flight to liquidity and expectations of higher interest rates, rather than a deterioration in underlying fundamentals. Commodity performance diverged meaningfully during the period. Precious metals experienced significant liquidation, with gold and silver declining 12.0% and 19.2%, respectively. Gold fell from US$5,254/oz to US$4,623/oz, as escalating geopolitical tensions and a broader risk off move early in the period weighed on prices. Stronger than expected U.S. economic data, elevated oil prices and a more hawkish Federal Reserve outlook pushed gold below US$5,000/oz, with a stronger dollar and reduced expectations for near term rate cuts further pressuring sentiment. Prices stabilised and partially recovered toward month end as geopolitical tensions eased modestly, and broader market sentiment improved. Meanwhile, copper prices fell 7.8% over the month to US$12,257 per tonne, as fears of a broader economic slowdown weighed on the demand outlook for the industrial metal. Certain commodities proved more resilient from the evolving geopolitical backdrop. Aluminium prices rose 12.6%, supported by supply disruptions and the energy-intensive nature of production, while thermal coal also moved higher amid tightening energy markets. Bulk commodities posted gains, with iron ore (62% Fe) rising by 8.8% to US$106, supported by improving sentiment around China's steel sector after Beijing reiterated policy support and efforts to address overcapacity. Industrial activity in China contracted, as the Caixin Manufacturing PMI fell from 52.1 in February to 51.8 in March. Our outlook for the mining sector is constructive, particularly relative to broader equity markets. A more fragmented geopolitical world order increases the need for diversification and reinforces the strategic importance of mined commodities. Governments are increasingly weaponising commodities and prioritising supply security, particularly in critical minerals, which is driving greater investment across the value chain and encouraging the reshoring of refining and processing capacity. At the same time, accelerating hyperscaler spending on Al infrastructure, alongside electrification, grid expansion and the broader energy transition, is driving demand for both power and materials. Copper sits at the centre of this theme, given its critical role in electrification and power intensive infrastructure. We are also positive on aluminium, where recent conflict related disruptions and export restrictions have further tightened supply. More broadly, the Al revolution supports the H.A.L.O. trade (Heavy Asset, Low Obsolescence) which involves capital rotating towards companies pairing long life heavy assets with limited obsolescence risk. We would expect the H.A.L.O. trade to re-emerge once the U.S.-Israel conflict with Iran stabilises. Supply remains constrained across many mined commodities following years of underinvestment, permitting challenges, operational disruptions and long lead times for new projects. Mining companies generally remain focused on capital discipline, prioritising cost control, free cash flow generation and shareholder returns over aggressive production growth. Lastly, we are constructive on gold equities, which represent our largest sub sector exposure today. We expect the challenging global government debt backdrop to continue to drive fiat currency aversion and to support gold. Meanwhile, we are excited by the free cash flow outlook for producers relative to what appears to being priced in by markets.

March was characterised by a broad-based selloff across global equity markets, with the mining sector experiencing particularly acute weakness amidst the U.S. and Israel conflict with Iran. The selloff was driven primarily by a flight to liquidity and expectations of higher interest rates, rather than a deterioration in underlying fundamentals. Commodity performance diverged meaningfully during the period. Precious metals experienced significant liquidation, with gold and silver declining 12.0% and 19.2%, respectively. Gold fell from US$5,254/oz to US$4,623/oz, as escalating geopolitical tensions and a broader risk off move early in the period weighed on prices. Stronger than expected U.S. economic data, elevated oil prices and a more hawkish Federal Reserve outlook pushed gold below US$5,000/oz, with a stronger dollar and reduced expectations for near term rate cuts further pressuring sentiment. Prices stabilised and partially recovered toward month end as geopolitical tensions eased modestly, and broader market sentiment improved. Meanwhile, copper prices fell 7.8% over the month to US$12,257 per tonne, as fears of a broader economic slowdown weighed on the demand outlook for the industrial metal. Certain commodities proved more resilient from the evolving geopolitical backdrop. Aluminium prices rose 12.6%, supported by supply disruptions and the energy-intensive nature of production, while thermal coal also moved higher amid tightening energy markets. Bulk commodities posted gains, with iron ore (62% Fe) rising by 8.8% to US$106, supported by improving sentiment around China's steel sector after Beijing reiterated policy support and efforts to address overcapacity. Industrial activity in China contracted, as the Caixin Manufacturing PMI fell from 52.1 in February to 51.8 in March. Our outlook for the mining sector is constructive, particularly relative to broader equity markets. A more fragmented geopolitical world order increases the need for diversification and reinforces the strategic importance of mined commodities. Governments are increasingly weaponising commodities and prioritising supply security, particularly in critical minerals, which is driving greater investment across the value chain and encouraging the reshoring of refining and processing capacity. At the same time, accelerating hyperscaler spending on Al infrastructure, alongside electrification, grid expansion and the broader energy transition, is driving demand for both power and materials. Copper sits at the centre of this theme, given its critical role in electrification and power intensive infrastructure. We are also positive on aluminium, where recent conflict related disruptions and export restrictions have further tightened supply. More broadly, the Al revolution supports the H.A.L.O. trade (Heavy Asset, Low Obsolescence) which involves capital rotating towards companies pairing long life heavy assets with limited obsolescence risk. We would expect the H.A.L.O. trade to re-emerge once the U.S.-Israel conflict with Iran stabilises. Supply remains constrained across many mined commodities following years of underinvestment, permitting challenges, operational disruptions and long lead times for new projects. Mining companies generally remain focused on capital discipline, prioritising cost control, free cash flow generation and shareholder returns over aggressive production growth. Lastly, we are constructive on gold equities, which represent our largest sub sector exposure today. We expect the challenging global government debt backdrop to continue to drive fiat currency aversion and to support gold. Meanwhile, we are excited by the free cash flow outlook for producers relative to what appears to being priced in by markets.