November 14, 2016 - 12:21 PM EST
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All information is at 31 October 2016 and unaudited.
Performance at month end with net income reinvested
One Three Six One Three Five
Month Months Months Year Years Years
Net asset value 6.1% 10.6% 26.0% 40.8% -9.2% -14.3%
Share price 7.7% 19.7% 27.9% 38.0% -9.0% -9.4%
Sources: Datastream, BlackRock
At month end
Net asset value – capital only: 81.19p
Net asset value cum income*: 81.02p
Share price: 81.75p
Premium to NAV (cum income): 0.9%
Net yield: 6.7%
Gearing - cum income: 3.8%
Total assets^^: £105.5m
Ordinary shares in issue***: 117,968,000
Gearing range (as a % of net assets): 0-20%
Ongoing charges**: 1.4%
* Includes net revenue of -0.17p.
^^ Includes current year revenue.
** Calculated as a percentage of average net assets and using expenses, excluding any interest costs and excluding taxation for the year ended 30 November 2015.
Sector Analysis % Total Assets Country Analysis % Total  Assets 
Integrated Oil 23.2 Global 49.8
Diversified Mining 20.1 USA 19.0
Exploration & Production 16.2 Canada 9.3
Gold 11.9 Latin America 5.1
Copper 8.4 Africa 3.8
Distribution 2.8 Australia 3.2
Silver 2.7 Europe 2.2
Oil Services 1.9 Sweden 1.2
Diamonds 1.8 Asia 0.4
Fertilizers 1.6 Net current assets 6.0
Steel 1.3 -----
Zinc 1.2 100.0
Agriculture Science 0.9 =====
Net current assets 6.0
Ten Largest Investments (in % of Total Assets order)
Company Region of Risk % Total Assets
First Quantum Minerals Global 7.6
Royal Dutch Shell ‘B’ Global 6.3
Exxon Mobil Global 6.1
BHP Billiton Global 5.3
Rio Tinto Global 5.0
BP Global 3.7
Vale Latin America 3.2
Enbridge Income Fund Trust Canada 2.8
Newcrest Mining Australia 2.8
Occidental Petroleum USA 2.7
Commenting on the markets Tom Holl, representing the Investment Manager noted:
The Company’s NAV rose +6.1% during the month, bringing the year to date performance to +58.0% (both in GBP terms).
The relatively benign (+0.5%) move in the mining sector during the month masked some significant moves in both the mined commodities and the underlying equities. The base metals saw mixed performance with nickel and copper declining by 0.9% and 0.1% respectively, whilst aluminium and zinc strengthened by +4.2% and +3.2% respectively. However, the real winners during the month were among the bulk commodities as thermal coal, coking coal and iron ore rallied by +38.4%, +20.8% and +16.7% respectively. This appeared to be driven by strengthening data out of China: manufacturing PMIs indicated a stabilization in activity, consistent with a further acceleration in industrial production. In addition, there looks to be little pressure on policymakers to weaken the currency as it enters the SDR basket with the current account surplus roughly matching capital account outflows.
Reporting got underway for the mining sector in October with the dominant theme being operational strength coupled with higher-than-consensus costs. Bucking this trend was copper miner, First Quantum Minerals, who reported all in sustaining costs of $1.36/lb in the third quarter versus $1.72/lb during the same period in 2015. Elsewhere, major diversified miner Rio Tinto and copper miner Antofagasta both downgraded copper production estimates for 2017, building on the supportive medium-term picture for the balance between supply and demand.
Energy equities were down over the month as oil prices came under pressure, with Brent and WTI oil prices falling by 3.0% and 2.7% respectively, both finishing at $47/bbl. As October got underway, oil prices continued to strengthen following OPEC’s announcement in late September that it planned to cut production by between 240 and 740kbpd by year-end. However, after the Brent oil price hit a one-year high of $52/bbl on the 19th of October, oil prices retreated somewhat owing to a lack of progress towards co-ordinated action as news emerged that Iraq had insisted it be exempt from any deal claiming it needed every possible resource to help in its fight against Islamic State. IEA data showed OPEC crude output had risen to a record 33.64mbpd in September as Iraq was pumping at its highest ever rate. Meanwhile, Libya reopened ports which acted as a further headwind. In addition to oil price weakness, energy shares were held back by lacklustre performance from broader equity markets as the MSCI World Index fell by 1.3%, which appeared to be driven by the equity market entering a ‘de-risking’ phase in the run-up to the US presidential election.
All data points are in US dollar terms unless otherwise specified.
14 November 2016
Latest information is available by typing on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).  Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.

Source: PR Newswire (November 14, 2016 - 12:21 PM EST)

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