10th Oct 2014 11:30
LONDON (Alliance News) - BlackRock World Mining Trust PLC Friday said that it has assessed what it expects to be the impact of its holdings in London Mining PLC on its 2014 income, after the investment trust was forced to writedown its investment in the problem-stricken iron ore producer.
On Thursday, London Mining issued a statement warning its investors it thinks there will be little or no value left in its shares and other securities under the proposals currently being discussed for its refinancing.
BlackRock World Mining Trust said it took a hefty write-down of the London Mining royalty contract and convertible bond
The UK-based investment trust said Friday that it expects its revenue return for 2014 to be in the region of 19.6 pence per share.
"This estimate is based on having received in cash from London Mining, in the year to date, GBP0.5 million in respect of the royalty contract and GBP1.3 million in interest on the convertible bond and with an expectation of receiving nothing further from London Mining to contribute towards this year's revenue return," it said in the statement.
The company said that it, alongside subsidiaries, have revenue reserves brought forward of 14.5 pence per share.
"This gives a projected total revenue reserve at 31 December 2014 of 27.1 pence per share, after provision for the 2014 interim dividend of 7 pence per share," it said.
The company said it expects, in the absence of unforeseen circumstances, and by utilising part of the brought forward revenue reserves if necessary, it will recommend a final dividend for 2014 of 14 pence per share, thereby maintaining the same rate of dividend as was paid for 2013.
Shares in BlackRock World Mining Trust were trading 5.5% lower Friday afternoon at 360.70 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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