BRWM : BlackRock World Mining writes off London Mining exposure
With apologies for not picking this up yesterday, BlackRock World Mining, in its usual NAV announcement, disclosed that it had written off its £52m exposure to London Mining. This is a big blow to the net asset value – taking about 30p off the net asset value (announced as £4 today, after the provision).
BlackRock World Mining had a royalty contract on London Mining’s Marampa mine valued at £47.8m and a convertible bond valued at £4.6m. The Marampa mine, in Sierra Leone, is focused on iron ore. The iron ore price has been falling which has put the viability of the mine in doubt, Ebola in the region hasn’t helped, and yesterday London Mining announced that there was little or no value left in any of its listed securities.