BlackRock World Mining Trust offloads BHP royalty contract
Mining investor BlackRock World Mining Trust Plc has announced a sale of its royalty contract with BHP Brazil for $70m.
The company, which primarily holds equity stakes in mining companies worldwide, said it has sold the royalty to Gold Royalty Corp for a 105% premium to its current holding value $34.1m.
BWMT first acquired the royalty contract back in 2014 for $12m, having received $38.5m through to the end of June 2025.
The gross proceeds of the sale, royalty income and unpaid royalty revenues owed on production this year total around $113m - equal to nine times the original investment.
The deal will increase the trust's net asset value by 1.8%.
"The sale is part of usual portfolio management in accordance with the company's published investment policy of investing principally in quoted securities combined with up to 20% of gross assets in unquoted investments. The manager is currently engaged in a number of processes that could result in the deployment of capital into new unquoted investments," BWMT said in a statement.
BWMT's portfolio is diversified across the globe, though Latin America is its second-largest region, accounting for 9.9% of all investments.
Shares were up 1.0% at 742.33p in early deals on Monday.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
