Final Results
20 January 2011
BLACKROCK COMMODITIES INCOME INVESTMENT TRUST plc
Announcement of results in respect of the year ended
30 November 2010
Financial Highlights
As at As at
30 November 30 November Change
2010 2009 %
Assets
Net assets (£'000)* 125,848 90,260 39.4
Net asset value per ordinary
share 139.05p 120.63p 15.3
- with income reinvested - - 21.8
Ordinary share price
(mid-market) 143.00p 119.75p 19.4
- with income reinvested - - 26.1
Year Year
ended ended
30 November 30 November Change
2010 2009 %
Revenue
Net revenue after taxation
(£'000) 4,480 4,230 5.9
Revenue return per ordinary
share 5.85p 5.74p 1.9
Interim dividends
1st interim 1.375p 1.35p 1.9
2nd interim 1.375p 1.35p 1.9
3rd interim 1.375p 1.35p 1.9
4th interim 1.475p 1.45p 1.7
------ ----- -----
5.60p 5.50p 1.8
Special dividends
1st special 1.00p - 100.0
2nd special 0.52p - 100.0
------ ----- -----
1.52p - 100.0
Total dividends paid and
payable 7.12p 5.50p 29.5
*The change in net assets reflects the additional £20 million raised through
the C share issue, £1 million raised through the sale of shares from treasury
and market movements in the year.
Chairman's Statement
The year to 30 November 2010 was characterised by further positive performance
for commodity markets within a volatile market environment.
It is encouraging to report that the Company again performed well. The net
asset value ("NAV") per share increased by 21.8% and the share price rose by
26.1%. Since the launch of the Company in December 2005 the NAV has increased
by 76.1% and the share price by 77.2% (all percentages calculated in sterling
terms with income reinvested).
Since the year end, the Company's NAV has increased by a further 11.6% and the
share price by 13.1%.
Revenue return and dividends
Revenue return per share for the year was 5.85 pence (2009: 5.74 pence). As set
out in the Company's prospectus dated 22 November 2005, it is the Company's
intention to pay four quarterly dividends, details of which are set out in note
8. It was the Company's aim to pay dividends amounting to at least 5.50 pence
for the year ended 30 November 2010 and we are pleased to have exceeded this
target by paying quarterly dividends amounting to 5.60 pence per share in total
in respect of the year (2009: 5.50 pence).
It is the Company's aim to pay dividends amounting to at least 5.60 pence per
share for the year ending 30 November 2011. This is a target and should not be
interpreted as a profit forecast. This represents a yield of 3.9% based on the
share price as at the close of business on 30 November 2010.
The Board also determined to pay two special dividends during the year reflecting
the accumulated revenue reserves at the time of the C share issue. These amounted
to 1.52 pence in total.
Share capital
C Share issue
At a general meeting held on 28 September 2010, shareholders approved:
- proposals for a placing and offer for subscription of C shares; and
- a continuation resolution.
The placing and offer was proposed by the Board in response to demand from
existing shareholders and potential new investors. The Board considered that it
was an appropriate time to expand the Company's capital base.
Subscriptions for 1,383,545 and 18,616,455 C shares were received via the offer
for subscription and placing respectively. On 30 September 2010, 20,000,000 C
shares were admitted to the Official List and to trading on the London Stock
Exchange. The C shares were converted into ordinary shares on 2 November 2010
at the rate of 0.7454 ordinary shares for every C share and 14,908,000 new
ordinary shares were admitted to the Official List and to trading on the London
Stock Exchange.
At the general meeting the Board also took the opportunity to propose that the
Company continues as an investment company. The Continuation Resolution would
otherwise have been proposed at the Annual General Meeting ("AGM") in 2011. The
Company will now continue indefinitely and no such further resolution will be
proposed automatically.
Tender Offer
The Directors of the Company have the discretion to make semi-annual tender
offers at the prevailing NAV, less 2% for up to 20% of the issued share capital
in August and February of each year.
The Board announced on 21 June 2010 that it had decided not to proceed with the
tender offer in August 2010.
On 9 December 2010 the Board announced that the semi-annual tender offer in
February 2011 would not be implemented as its ordinary shares had traded at an
average premium to NAV of 2% during the six months to 30 November 2010. Given
that this is better than a discount of 2% to NAV, the price at which any tender
offer would be made, the Board concluded that it would not be in the interests
of shareholders to implement the tender offer as at 28 February 2011.
A resolution for the renewal of the Company's tender authorities will be put to
shareholders at the forthcoming AGM.
Discount and share buy backs
The Directors recognise the importance to investors of ensuring that any
discount of the Company's share price to its underlying NAV is as small as
possible. Accordingly, the Directors monitor the discount closely and will
consider share repurchases in the market if the discount to NAV widens
significantly.
The Directors have the authority from shareholders to buy back up to 14.99% of
the Company's issued share capital. This authority, which has not so far been
utilised, expires on the conclusion of the 2011 AGM, when a resolution will be
put to shareholders to renew it.
Gearing
The Company operates a flexible gearing policy which depends on prevailing
conditions. The maximum gearing used during the year was 4.3% and at 30
November 2010 the Company was not geared.
AGM
The AGM will be held at 10.30 a.m. on Tuesday 15 March 2011 at the offices of
BlackRock at 33 King William Street, London EC4R 9AS. Following the AGM there
will be a presentation by Richard Davis, the Portfolio Manager, on the outlook
for the year ahead. All shareholders are encouraged to attend.
Outlook
We are a little cautious about the near term outlook for commodity markets as
western economies recover from the financial crisis. Longer term, our positive
outlook on the sector continues unchanged.
Alan Hodson
Chairman
20 January 2011
Principal risks
The key risks faced by the Company are set out below. The Board regularly
reviews and agrees policies for managing each risk, as summarised below.
Performance risk - The Board is responsible for deciding the investment policy
to fulfil the Company's objectives and monitoring the performance of the
Investment Manager. An inappropriate strategy may lead to poor performance. To
manage this risk the Investment Manager provides an explanation of significant
stock selection decisions and the rationale for the composition of the
investment portfolio. The Board monitors and maintains an adequate spread of
investments in order to minimise the risks associated with particular countries
(including the risk of government intervention and confiscation of assets) or
factors specific to particular sectors, based on the diversification
requirements inherent in the Company's investment policy.
Income/dividend risk - The amount of dividends and future dividend growth will
depend on the Company's underlying portfolio. Any change in the tax treatment
of the dividends or interest received by the Company (including as a result of
withholding taxes or exchange controls imposed by jurisdictions in which the
Company invests) may reduce the level of dividends received by shareholders.
The Board monitors this risk through the receipt of detailed income forecasts
and considers the level of income at each meeting.
Regulatory risk - The Company operates as an investment trust in accordance
with the requirements of Chapter 4 of Part 24 of the Corporation Tax Act 2010.
As such, the Company is exempt from capital gains tax on the profits realised
from the sale of its investments. The Investment Manager monitors investment
movements, the level and type of forecast income and expenditure and the amount
of quarterly dividends to ensure that the provisions of Chapter 4 of Part 24 of
the Corporation Tax Act 2010 are not breached and the results are reported to
the Board at each meeting.
Operational risk - In common with most other investment trust companies, the
Company has no employees. The Company therefore relies upon the services
provided by third parties and is dependent on the control systems of the
Investment Manager and the Company's other service providers. The security, for
example, of the Company's assets, dealing procedures, accounting records and
maintenance of regulatory and legal requirements, depend on the effective
operation of these systems. These are regularly tested and monitored and an
internal control report, which includes an assessment of risks together with
procedures to mitigate such risks, is prepared by the Investment Manager and
reviewed by the Audit and Management Engagement Committee at least twice a
year. The custodian, Bank of New York Mellon ("BNYM") and the Investment
Manager also produce annual internal controls reports which are reviewed by
their respective auditors and give assurance regarding the effective operation
of controls.
Market risk - Market risk arises from volatility in the prices of the Company's
investments. It represents the potential loss the Company might suffer through
holding investments in the face of negative market movements. The Board
considers asset allocation, stock selection, unquoted investments and levels of
gearing on a regular basis and has set investment restrictions and guidelines
which are monitored and reported on by the Investment Manager. The Board
monitors the implementation and results of the investment process with the
Investment Manager.
Financial risks - The Company's investment activities expose it to a variety of
financial risks that include foreign currency risk and interest rate risk. In
addition, it should be noted that investments in the Company's portfolio are
subject to liquidity risk, particularly any unquoted investments. This is taken
into consideration by the Directors when determining the valuation of unquoted
holdings. Further details are disclosed in note 19 in the annual report,
together with a summary of the policies for managing these risks and liquidity
and credit risks.
Related party transactions
The Investment Manager is regarded as a related party and details of the
investment management fees payable are set out in note 4.
The Board consists of five non-executive Directors, all of whom, with the
exception of Mr Ruck Keene who is an employee of the Investment Manager, are
considered to be independent by the Board. None of the Directors has a service
contract with the Company. For the year ended 30 November 2010, the Chairman
received an annual fee of £26,000, the Chairman of the Audit and Management Engagement
Committee received an annual fee of £20,000 and each other Director received an annual
fee of £17,000. With effect from 1 December 2010 the annual remuneration of the Chairman was
increased to £28,000, the Chairman of the Audit and Management Engagement Committee to £21,000
and the other Directors to £18,000. Mr Ruck Keene waived the entitlement to his fees.
Four members of the Board hold shares in the Company. Alan Hodson holds 150,000
ordinary shares, David Gibbs holds 22,454 ordinary shares, Humphrey van der
Klugt holds 28,727 ordinary shares and Jonathan Ruck Keene holds 14,000
ordinary shares. Michael Merton does not hold any shares in the Company at this
time.
Statement of Director's Responsibilities
In accordance with Disclosure and Transparency Rule 4.1.12, the Directors also
confirm to the best of their knowledge and belief that:
* the financial statements, prepared in accordance with IFRS as adopted by
the European Union, give a true and fair view of the assets, liabilities,
financial position and profit/(loss) of the Company and the Group; and
* this Annual Report includes a fair review of the development and
performance of the business and the position of the Company and the Group,
together with a description of the principal risks and uncertainties that
it faces.
For and on behalf of the Board of Directors
Alan Hodson
Chairman
20 January 2011
Investment Manager's Report:
The Investment Manager is pleased to report that for the year to 30 November
2010, the Company's NAV increased by 21.8% and the share price rose by 26.1%.
Over the same period, the HSBC Global Mining and MSCI World Energy indices gained
25.2% and 9.0% respectively, while the FTSE All Share Index was up 11.5%.
(All data are in sterling with income reinvested).
Commodity market overview
"Two steps forward, one step back" is the phrase that best describes this
twelve month period in the commodity markets. The year started strongly, adding
to the strong returns made in 2009. Global demand was showing signs of
improvement while investors' fears of a double-dip recession were receding. The
markets then suffered a sharp decline from their mid-April peaks as investors
fretted about the Eurozone debt crisis and the implications of austerity
measures on longer term consumption growth. By June, base metals had retreated
22% (all data in sterling terms, capital only unless otherwise stated) while
oil had fallen from US$87/Bbl to US$67/Bbl. The market turned positive once
again as the fundamentals showed ongoing signs of improvement. Consumption
growth, for example, was well above trend for many commodities. The move was
aided when the US Federal Reserve announced a further round of quantitative
easing, earmarking an additional US$600 billion worth of liquidity. From their
summer lows, the MG Base Metals Price Index and oil had rallied 23% and 17%
respectively, while mining and energy shares were respectively up 31% and 19%
off their lows.
30 30
November November %
Commodity 2009 2010 Change
Base Metals (US$/tonne)
Aluminium 2,029 2,255 11.1
Copper 6,903 8,418 21.9
Lead 2,316 2,214 -4.4
Nickel 16,335 22,998 40.8
Tin 15,183 24,497 61.3
Zinc 2,293 2,105 -8.2
Precious Metals (US$/oz)
Gold 1,177.7 1,358.2 17.6
Silver (USc/oz) 1,814.0 2,713.0 49.6
Platinum 1,442.0 1,658.0 15.0
Palladium 360.5 697.0 93.3
Energy
Oil (WTI) (US$/Bbl) (1) 77.28 84.1 8.8
Natural Gas(US$/MMBTU) (2) 4.40 4.15 -5.8
Uranium (US$/lb) (3) 43.0 59.9 39.3
Bulk Commodities (US$/tonne)
Iron ore (4) 101.6 167.8 65.2
Coking coal (5) 162.5 228.0 40.3
Thermal coal (6) 81.0 108.5 34.0
Potash (US$/st) (7) 467.0 473.0 1.3
Equity Indices
HSBC Global Mining Index (US$) 583.1 682.5 17.0
HSBC Global Mining Index (£) 355.3 438.2 23.3
MSCI World Energy Index (US$) 221.0 222.6 0.7
MSCI World Energy Index (£) 134.7 142.9 6.1
(1). West Texas Intermediate
(2). Henry Hub
(3). Nuexco Restricted, U3O8
(4). CFR China (Bloomberg)
(5). HCC, CFR China (Macquarie)
(6). FOB Newcastle (Macquarie)
(7). Standard Muriate, Saskatchewan
Source: Datastream. Data are on a capital basis only.
Another issue, specific to the Australian mining sector, which negatively
impacted equity valuations was the proposed introduction of a Resource Super
Profits Tax ("RSPT"). This followed an extensive review of the tax system, led
by Ken Henry of the Treasury Department, which was initiated by the Australian
government in 2008. The new tax structure included a 40% tax on EBIT (earnings
before interest and tax) to be levied in addition to existing royalties and
corporation taxes, thereby lifting the effective tax rate of the mining
industry from around 43% to around 57%. Not surprisingly companies that operate
in Australia, including Rio Tinto and BHP Billiton, strongly opposed the
proposal.
On 24 June, in an historic moment for Australia, Prime Minister Kevin Rudd
stepped down and was replaced by Julia Gillard. This was seen as a positive
development for the mining sector as Ms. Gillard had always been an advocate of
consultation with the industry. In July, it was then announced that the new tax
had been radically altered in favour of the mining sector. The renamed Mineral
Resources Rent Tax (MRRT) is less onerous on the producers and now only applies
to iron ore and coal extraction. The MRRT is not set in stone - the government
will now undertake further industry consultation. The government plans to draw
up draft legislation by mid 2011 with the changes introduced in July 2012.
Looking at the individual commodities, the base metals were a mixed bag. Tin
and nickel were the strongest performers during the period. The nickel market
has been underpinned by strong stainless steel demand and disrupted supply.
While copper demand is set to grow by 10% in 2010, the fact that prices have
risen to US$4/lb is largely a (lack of new) supply-side story. With falling
head grades and few big projects coming into production, mine supply growth is
insufficient to feed the demand from smelters and refiners. Meanwhile, London
Metal Exchange ("LME") copper inventories have been steadily declining all
year. Aluminium has enjoyed double digit consumption growth this year, as
sectors such as transport, construction and packaging, all sensitive to
economic activity, post decent year-on-year growth numbers. LME inventory
levels in aluminium have recently been in decline, albeit from record levels.
Zinc has been the worst performing base metal. Fundamentals remain poor, with a
supply-side surplus resulting in a steady accumulation of metal inventory. The
price of lead has fallen for similar reasons, although its fundamentals are not
quite as poor. In the bulk commodity markets, iron ore prices have been driven
by growth in Chinese steel production. One of the features of the bulk
commodity market this year has been the move by producers away from the
traditional annual contracts towards shorter term pricing systems.
In the precious metals sector, the strong uptrend in gold continued during the
period with the metal reaching a new all-time high of US$1,409/oz in November.
The key driver remains investment demand, which itself has been fuelled by
several factors including the debt crisis in the Eurozone and a general loss of
faith in fiat currencies. 2010 will be the ninth consecutive year of higher
prices for the yellow metal. Platinum prices made modest gains on the back of a
recovery in demand from the auto sector. Palladium has significantly
outperformed platinum amid persistent rumours that the Russian stockpile has
been depleted. Palladium demand has also benefitted from the rebound in the
auto sector.
Oil prices made modest gains on signs of improvement in the global economy.
Towards the latter part of the period, weakness in the US dollar pushed oil
above the US$60-80/Bbl trading range. Gas prices fell during the period. Strong
supply growth from unconventional sources such as shale gas has pushed North
American gas prices lower.
In the energy sector, the newsflow has been dominated by the oil spill in the
Gulf of Mexico. In April 2010, a tragic explosion on the Deepwater Horizon rig
resulted in a leak of oil from the Macondo well. BP is the operator of the
well, while Anadarko owns a 25% non-operating position. The other companies
involved in the incident include Mitsui (owner of a 10% interest in the well),
Transocean (the deepwater driller), Cameron International (the supplier of the
blowout preventer that failed to contain the leak) and Halliburton (responsible
for cementing the well). Finally in September, after intense media scrutiny and
the resignation of the chief executive, BP announced the successful intercept
and cementing of the Macondo Well. The episode's longer term implications on
deepwater drilling remain uncertain.
The Company's most significant exposure to the oil spill is through its
position in Anadarko. The Company also had a position in BP, although we did
reduce our holding in the stock following the incident. There is no exposure to
Transocean, Cameron International or Halliburton.
In terms of corporate activity, the highlight was BHP Billiton's bid for Potash
Corporation of Saskatchewan. Potash Corp is, by capacity, the world's largest
fertiliser company. The acquisition would diversify BHP's book of business and
give them exposure to a `tier one' potash asset base. BHP's bid was, however,
blocked by the Canadian government, prompting BHP to launch a share buy-back
programme instead. Elsewhere, Exxon completed its acquisition of XTO Energy and
Vedanta Resources bid for Cairn Energy's stake in Cairn India.
Portfolio review
At 30 November 2010, the portfolio held 55 investments in companies within the
mining and energy sectors. The Investment Manager's investment philosophy is
unchanged. These companies have quality assets and are highly profitable at
current commodity prices. The portfolio remains well diversified from a
geographic and commodity perspective. Around 43% of net investments are invested
in integrated oil and diversified mining companies, which themselves provide good
geographic and commodity diversification. A full breakdown of the Company's
geographic and commodity allocation can be seen in the following tables.
Asset Allocations
Geography
Global 21.4%
USA 19.5%
Canada 16.3%
Europe 11.0%
Asia 11.0%
Latin America 8.3%
South Africa 5.6%
Australia 3.3%
China 1.5%
Africa 1.3%
Russia 0.8%
Source: BlackRock.
Sector
Energy 53.4%
Mining 46.6%
Source: BlackRock.
Mining
Diversified 35.4%
Copper 20.4%
Fertilizer 8.4%
Iron Ore 8.2%
Aluminium 7.1%
Gold 4.5%
Nickel 4.5%
Zinc 3.9%
Platinum 3.8%
Tin 3.8%
Source: BlackRock.
Energy
Integrated oil 49.1%
Exploration & production 28.7%
Coal 9.7%
Oil services 8.2%
Distribution 2.8%
Oil sands 1.5%
Source: BlackRock.
Outlook
Long term commodity market fundamentals are positive. Demand growth for most
commodities, driven by economic development in emerging economies is likely to
exceed supply growth. Commodity prices will trend higher as a result. Near
term, we remain reasonably cautious. Inventory levels in some commodities are
above average, while global demand is below average. Nevertheless, commodity
producers are generally in good financial shape and have the ability to
increase cash returns to shareholders in 2011. The Investment Manager will
continue to focus on companies with quality assets that are in production. We
view any pullback in the market as a good buying opportunity.
Richard Davis
BlackRock Investment Management (UK) Limited
20 January 2011
Ten Largest Investments
BHP Billiton - 4.5% (2009: 5.4%, www.bhpbilliton.com) is the world's largest
diversified natural resources company, formed in 2001 following the merger of
UK's Billiton and Australia's BHP. The company is a major producer of
aluminium, iron ore, copper, thermal and metallurgical coal, manganese,
uranium, nickel, silver and titanium minerals. The company also has significant
interests in oil, gas, liquefied natural gas and diamonds.
Freeport McMoRan Copper & Gold - 4.4% (2009: 5.7%, www.fcx.com)following the
acquisition of Phelps Dodge in 2007, Freeport became the world's largest
publicly traded copper company. The company's assets include the Grasberg mine
in Indonesia, the world's largest copper and gold mine. The company also
operates copper mines in the US, Chile and Peru. The Company has positions in
Freeport's equity and bond.
Anadarko Petroleum - 4.3% (2009: 3.2%, www.anadarko.com) is one of the largest
independent oil and gas E&P (Exploration & Production) companies in the world.
The company assets include 10 major onshore US natural gas plays. Anadarko is
the largest independent producer in the deepwater Gulf of Mexico. The company
also operates in Alaska, Algeria, Brazil, China, Ghana, Indonesia and
Mozambique.
Total - 4.1% (2009: 3.3%, www.total.com) based in France, Total is one of the
world's largest international oil and gas companies with operations covering
the entire energy chain, from oil exploration and production to trading,
shipping and refining and marketing of petroleum products.
ExxonMobil - 3.9% (2009: 2.7%, www.exxonmobil.com) is the world's largest
publicly traded international oil and gas company and the largest refiner and
marketer of petroleum products.
Kumba Iron Ore - 3.8% (2009: 3.3%, www.kumba.co.za) is the world's fourth
largest supplier of sea-borne iron ore. Based in South Africa, the company
accounts for over 80% of the country's iron ore production, most of which is
exported to Europe and Asia. Anglo American plc owns 65% of the outstanding
shares in Kumba.
Occidental Petroleum - 3.5% (2009: 2.6%, www.oxy.com) is the fourth largest US
exploration and production company engaging in oil and gas exploration,
production, transportation and marketing. It operates in three core regions of
the world: the US, Middle East/North Africa and Latin America. The company is
also a major producer of a variety of chemicals, petrochemicals, polymers and
plastics.
Vale - 3.4% (2009: 6.0%, www.vale.com) based in Brazil, the company is the
second largest mining company in the world and the largest producer of iron
ore. The company has significant interests in other commodities including
aluminium, coal, copper and gold. Since the 2006 acquisition of Inco, Vale is
also a leading producer of nickel. In addition to its mining interests, Vale
owns and operates transport infrastructure.
Rio Tinto - 3.4% (2009: 4.1%, www.riotinto.com) is one of the world's leading
mining companies. The company produces aluminium, copper, diamonds, gold,
industrial minerals, iron ore and energy products.
Schlumberger - 3.1% (2009: 1.6%, www.slb.com) is the world's leading oilfield
services company supplying technology, information solutions and integrated
project management to the oil and gas industry.
All percentages reflect the value of the holding as a percentage of total
investments.
Investments
as at 30 November 2010
Main Market
geographic value % of
exposure £'000 Investments
Integrated Oil
Total Global 5,146 4.1
ExxonMobil Global 4,870 3.9
Occidental Petroleum USA 4,473 3.5
Statoil Europe 3,437 2.7
Chevron Global 2,912 2.3
Conocophillips USA 2,666 2.1
Eni Europe 2,588 2.0
BP Global 2,436 1.9
Repsol Europe 2,018 1.6
Marathon Oil USA 1,482 1.2
Hess USA 1,124 0.9
------- -----
33,152 26.2
------- -----
Diversified
BHP Billiton Global 5,690 4.5
Vale†Latin
America 4,372 3.4
Rio Tinto Global 3,505 2.8
Teck Resources Canada 1,986 1.6
Teck Resources 10.75% 15/05/19 Canada 1,669 1.3
Xstrata Global 1,615 1.3
Vedanta Resources Asia 794 0.6
Rio Tinto Finance 8.95%
01/05/14 Global 786 0.6
Sterlite Industries Asia 645 0.5
Vale call option 22/01/11 Latin
America (27) 0.0
Vedanta Resources put option
18/03/11 Asia (59) 0.0
Teck Resources put option Canada
22/01/11 (74) (0.1)
------- -----
20,902 16.5
------- -----
Exploration & Production
Anadarko Petroleum USA 5,438 4.3
Peyto Energy Trust Canada 3,212 2.5
Niko Resources Asia 2,794 2.2
Crescent Point Energy Trust
Units Canada 2,344 1.9
Vermillion Energy Canada 1,828 1.5
Nexen Canada 1,666 1.3
Denbury Resources USA 1,050 0.8
Encana Canada 976 0.8
Anadarko Petroleum call option
22/01/11 USA (49) (0.0)
------- -----
19,259 15.3
------- -----
Copper
Freeport McMoRan Copper
& Gold†Asia 5,528 4.4
Southern Copper Latin
America 3,904 3.1
Norddeutsche Affinerie Europe 1,875 1.5
Katanga Mining 14% S/Nts
30/11/13 Africa 694 0.5
Southern Copper call option Latin
46 22/01/11 America (19) (0.0)
Southern Copper call option Latin
45 22/01/11 America (25) (0.0)
------- -----
11,957 9.5
------- -----
Coal
Coal & Allied Australia 2,360 1.9
Straits Asia Resources Asia 2,330 1.8
China Shenhua Energy China 1,925 1.5
------- -----
6,615 5.2
------- -----
Oil Services
Schlumberger USA 3,921 3.1
SBM Offshore Europe 1,053 0.8
Precision Drilling Trust Canada 549 0.5
------- -----
5,523 4.4
------- -----
Fertilizers
Potash Corporation of
Saskatchewan Canada 2,537 2.0
Agrium USA 2,163 1.7
Mosaic Canada 347 0.2
Potash Corporation of
Saskatchewan call option
22/01/11 Canada (47) (0.0)
------- -----
5,000 3.9
------- -----
Iron Ore
Kumba Iron Ore South
Africa 4,748 3.8
------- -----
4,748 3.8
------- -----
Aluminium
Alcoa USA 2,435 1.9
Alumina Australia 1,768 1.4
------- -----
4,203 3.3
------- -----
Nickel
International Nickel Indonesia Asia 1,908 1.5
Eramet Europe 774 0.6
------- -----
2,682 2.1
------- -----
Gold
Petropavlovsk Russia 935 0.8
Kinross Canada 782 0.6
IAMGOLD Africa 736 0.6
High River Gold 8% Convertible
Bonds 31/12/11* Africa 344 0.3
IAMGOLD put option 22/01/11 Africa (82) (0.1)
Kinross put option 22/01/11 Canada (84) (0.1)
------- -----
2,631 2.1
------- -----
Zinc
Nyrstar Europe 2,266 1.8
------- -----
2,266 1.8
------- -----
Platinum
Impala Platinum South
Africa 2,236 1.8
------- -----
2,236 1.8
------- -----
Tin
Minsur Latin
America 2,233 1.8
------- -----
2,233 1.8
------- -----
Distribution
Enbridge Income Fund Trust Canada 1,844 1.5
------- -----
1,844 1.5
------- -----
Oil Sands
Cenovus Energy Canada 1,034 0.8
------- -----
1,034 0.8
------- -----
Total investments 126,285 100.0
------- -----
†Ordinary and preference shares
* Unquoted investments at Directors' valuation
All investments are in equity shares unless otherwise stated. The total number
of holdings as at 30 November 2010 was 55 (2009: 49).
The total number of open options as at 30 November 2010 was 9 (2009: 10).
The negative valuations of £466,000 in respect of options held represent the
notional cost of repurchasing the contracts at market prices as at 30 November 2010.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 November 2010
Revenue Revenue Capital Capital Total Total
2010 2009 2010 2009 2010 2009
Notes £'000 £'000 £'000 £'000 £'000 £'000
Income from investments held at fair value
through profit or loss 3 3,610 3,412 3,610 3,412
Other income 3 2,200 2,471 - - 2,200 2,471
----- ----- ------ ------ ------ ------
Total revenue 5,810 5,883 - - 5,810 5,883
Gains on investments held at fair value
through profit or loss - - 16,773 30,023 16,773 30,023
----- ----- ------ ------ ------ ------
5,810 5,883 16,773 30,023 22,583 35,906
Expenses
Investment management fees 4 (282) (215) (848) (648) (1,130) (863)
Write back of prior years' VAT 4 - 27 - 83 - 110
Other expenses 5 (260) (251) - - (260) (251)
----- ----- ------ ------ ------ ------
Total operating expenses (542) (439) (848) (565) (1,390) (1,004)
----- ----- ------ ------ ------ ------
Profit before finance costs and taxation 5,268 5,444 15,925 29,458 21,193 34,902
----- ----- ------ ------ ------ ------
Finance costs 6 (9) (20) (27) (35) (36) (55)
----- ----- ------ ------ ------ ------
Profit before taxation 5,259 5,424 15,898 29,423 21,157 34,847
----- ----- ------ ------ ------ ------
Taxation 7 (779) (1,194) (120) 168 (899) (1,026)
----- ----- ------ ------ ------ ------
Net return for the year 4,480 4,230 15,778 29,591 20,258 33,821
===== ===== ====== ====== ====== ======
Earnings per ordinary share 9 5.85p 5.74p 20.61p 40.13p 26.46p 45.87p
===== ===== ====== ====== ====== ======
The total column of this statement represents the Group's Consolidated
Statement of Comprehensive Income, prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European Union.
The supplementary revenue and capital columns are both prepared under guidance
published by the Association of Investment Companies ("AIC").
All items in the above statement derive from continuing operations. No
operations were acquired or discontinued during the year. All income is
attributable to the equity holders of BlackRock Commodities Income Investment
Trust plc. There were no minority interests.
The net profit of the Group for the year was £20,258,000 (2009: £33,821,000).
The Group does not have any other recognised gains or losses. The net profit
disclosed above represents the Group's total comprehensive income.
STATEMENTS OF CHANGES IN EQUITY
for the year ended 30 November 2010
Ordinary Share
Share premium Special Capital Revenue
capital account reserve reserves reserve Total
Group Notes £'000 £'000 £'000 £'000 £'000 £'000
For year ended 30 November 2010
At 30 November 2009 756 1,223 70,219 14,281 3,781 90,260
Total comprehensive
income:
Net return for the
year - - - 15,778 4,480 20,258
Transactions with
owners, recorded
directly to equity:
Issue and conversion
of C shares into
ordinary shares 10 149 19,501 - - - 19,650
Proceeds of sale of
shares from treasury 10 - 24 1,004 - - 1,028
Dividends paid 8 - - - - (5,348) (5,348)
At 30 November 2010 905 20,748 71,223 30,059 2,913 125,848
For year ended 30 November 2009
At 30 November 2008 756 1,223 67,355 (15,310) 3,601 57,625
Total comprehensive
income:
Net return for the
year - - - 29,591 4,230 33,821
Transactions with
owners, recorded
directly to equity:
Proceeds of sale of
shares from treasury - - 2,865 - - 2,865
Cost of sale of
shares from treasury - - (1) - - (1)
Dividends paid 8 - - - - (4,050) (4,050)
At 30 November 2009 756 1,223 70,219 14,281 3,781 90,260
Company
For year ended 30 November 2010
At 30 November 2009 756 1,223 70,219 16,616 1,446 90,260
Total comprehensive
income:
Net return for the
year - - - 14,828 5,430 20,258
Transactions with
owners, recorded
directly to equity:
Issue and conversion
of C shares into 10 149 19,501 - - - 19,650
ordinary shares
Proceeds of sale of
shares from treasury 10 - 24 1,004 - - 1,028
Dividends paid 8 - - - - (5,348) (5,348)
At 30 November 2010 905 20,748 71,223 31,444 1,528 125,848
For year ended 30 November 2009
At 30 November 2008 756 1,223 67,355 (13,048) 1,339 57,625
Total comprehensive
income:
Net return for the
year - - - 29,664 4,157 33,821
Transactions with
owners, recorded
directly to equity:
Proceeds of sale of
shares from treasury - - 2,865 - - 2,865
Cost of sale of
shares from treasury - - (1) - - (1)
Dividends paid 8 - - - - (4,050) (4,050)
At 30 November 2009 756 1,223 70,219 16,616 1,446 90,260
STATEMENTS OF FINANCIAL POSITION
as at 30 November 2010
Group Company Group Company
2010 2010 2009 2009
Note £'000 £'000 £'000 £'000
Non current assets
Investments held at fair value through profit or loss 126,285 127,670 85,794 88,129
Current assets
Investments held at fair value through profit or loss - - 1,422 1,422
Other receivables 1,619 1,619 887 887
Cash and cash equivalents 374 60 2,931 238
------- ------- ------- -------
1,993 1,679 5,240 2,547
------- ------- ------- -------
Total assets 128,278 129,349 91,034 90,676
------- ------- ------- -------
Current liabilities
Other payables (2,430) (1,964) (763) (405)
Bank overdrafts - (1,537) (11) (11)
------- ------- ------- -------
(2,430) (3,501) (774) (416)
------- ------- ------- -------
Net assets 125,848 125,848 90,260 90,260
------- ------- ------- -------
Equity attributable to equity holders
Ordinary share capital 10 905 905 756 756
Share premium account 20,748 20,748 1,223 1,223
Special reserve 71,223 71,223 70,219 70,219
Capital reserves 30,059 31,444 14,281 16,616
Revenue reserve 2,913 1,528 3,781 1,446
------- ------- ------- -------
Total equity 125,848 125,848 90,260 90,260
------- ------- ------- -------
Net asset value per ordinary share 9 139.05p 139.05p 120.63p 120.63p
======= ======= ======= =======
CASH FLOW STATEMENTS
for the year ended 30 November 2010
Group Company Group Company
2010 2010 2009 2009
Note £'000 £'000 £'000 £'000
Operating activities
Profit before taxation 21,157 20,724 34,847 34,157
Add back interest paid 36 36 81 73
Gains on investments held at fair value
through profit or loss including transaction
costs (16,773) (15,823) (30,023) (30,096)
(Increase)/decrease in other receivables (51) (51) 125 125
Increase in other payables 959 959 64 64
Increase in amounts due from brokers (684) (684) (444) (444)
Increase in amounts due to brokers 533 533 - -
Movements in investments held at fair value
through profit or loss (23,647) (23,647) 7,593 7,593
Movements in cash fund held at fair value
through profit or loss 1,422 1,422 (1,422) (1,422)
------ ------ ------ ------
Net cash (outflow)/inflow from operating
activities before interest and taxation (17,048) (16,531) 10,821 10,050
------ ------ ------ ------
Interest paid (36) (36) (81) (73)
Taxation paid (397) (72) (797) (160)
Taxation on investment income included within
gross income (324) (324) (258) (258)
------ ------ ------ ------
Net cash (outflow)/inflow from operating
activities (17,805) (16,963) 9,685 9,559
------ ------ ------ ------
Financing activities
Shares issued 20,678 20,678 2,864 2,864
Equity dividends paid 8 (5,348) (5,348) (4,050) (4,050)
------ ------ ------ ------
Net cash inflow/(outflow) from financing
activities 15,330 15,330 (1,186) (1,186)
------ ------ ------ ------
(Decrease)/increase in cash and cash
equivalents (2,475) (1,633) 8,499 8,373
------ ------ ------ ------
Cash and cash equivalents at start of the year 2,920 227 (5,601) (8,168)
Effect of foreign exchange rate changes (71) (71) 22 22
------ ------ ------ ------
Cash and cash equivalents at end of the
year 374 (1,477) 2,920 227
------ ------ ------ ------
Comprised of:
Cash and cash equivalents 374 60 2,931 238
Bank overdrafts - (1,537) (11) (11)
------ ------ ------ ------
374 (1,477) 2,920 227
------ ------ ------ ------
NOTES TO THE RESULTS
1. Principal activities
The principal activity of the Company is that of an investment trust company
within the meaning of section 1158 of the Corporation Tax Act 2010.
The principal activity of the subsidiary, BlackRock Commodities Securities
Income Company Limited, is investment dealing and options writing.
2. Accounting policies
The principal accounting policies adopted by the Group and the Company are set
out below.
(a) Basis of preparation
The Group and Parent Company financial statements have been prepared in
accordance with IFRS as adopted by the European Union and as applied in
accordance with the provisions of the Companies Act 2006. The Company has taken
advantage of the exemption provided under section 408 of the Companies Act 2006
not to publish its individual Statement of Comprehensive Income and related
notes. All of the Group's operations are of a continuing nature.
The Group's financial statements are presented in Sterling, which is the
currency of the primary economic environment in which the Group operates. All
values are rounded to the nearest thousand pounds (£'000) except when otherwise
stated.
Insofar as the Statement of Recommended Practice ("SORP") for investment trust
companies and venture capital trusts issued by the AIC, revised in January 2009
is compatible with IFRS, the financial statements have been prepared in
accordance with guidance set out in the SORP.
(b) Basis of consolidation
The Group's financial statements consolidate the financial statements of the
Company and its wholly owned subsidiary, which is registered and operates in
England and Wales, BlackRock Commodities Securities Income Company Limited.
(c) Presentation of the Consolidated Statement of Comprehensive Income
In order to reflect better the activities of an investment trust company and in
accordance with guidance issued by the AIC, supplementary information which
analyses the Consolidated Statement of Comprehensive Income between items of a
revenue and a capital nature has been presented alongside the Consolidated
Statement of Comprehensive Income. In accordance with the Company's status as a
UK investment company under section 833 of the Companies Act 2006 and section
1158 of the Corporation Tax Act 2010, net capital returns may not be
distributed by way of dividend.
(d) Segmental reporting
The Directors are of the opinion that the Group is engaged in a single segment
of business being investment business.
(e) Income
Dividends receivable on equity shares are recognised as revenue for the year on
an ex-dividend basis. Where no ex-dividend date is available dividends
receivable on or before the year end are treated as revenue for the year.
Provision is made for any dividends not expected to be received.
Interest income are accounted for on an accruals basis. Premia on written
options are recognised as income.
(f) Expenses
All expenses, including finance costs, are accounted for on an accruals basis.
Expenses have been charged wholly to the revenue column of the Consolidated
Statement of Comprehensive Income except as follows:
- expenses which are incidental to the acquisition of an investment are
included within the cost of the investment.
- expenses are treated as capital where a connection with the maintenance or
enhancement of the value of the investments can be demonstrated;
- the investment management fees and finance costs of borrowing borne by the
Company have been allocated 75% to the capital column and 25% to the revenue
column of the Consolidated Statement of Comprehensive Income in line with the
Board's expectations of the long term split of return, in the form of capital
gains and income respectively, from the investment portfolio.
(g) Taxation
Deferred tax is recognised in respect of all temporary differences that have
originated but not reversed at the financial reporting date, where transactions
or events that result in an obligation to pay more tax in the future or right
to pay less tax in the future have occurred at the financial reporting date.
This is subject to deferred tax assets only being recognised if it is
considered more likely than not that there will be suitable profits from which
the future reversal of the temporary differences can be deducted. Deferred tax
assets and liabilities are measured at the rates applicable to the legal
jurisdictions in which they arise.
(h) Investments held at fair value through profit or loss
The Company's investments are classified as held at fair value through profit
or loss in accordance with IAS 39 - Financial instruments: Recognition and
Measurement and are managed and evaluated on a fair value basis in accordance
with its investment strategy.
All investments are initially recognised as held at fair value through profit
and loss. Purchases of investments are recognised on a trade date basis. The
sales of investments are recognised at the trade date of the disposal. Proceeds
are measured at fair value, which is regarded as the proceeds of sale less any
transaction costs.
The fair value of financial instruments is based on their quoted bid price at
the financial reporting date, without deduction for any estimated future
selling costs. Unquoted investments are valued by the Directors at fair value
using International Private Equity and Venture Capital Association Guidelines.
This policy applies to all current and non current asset investments held by
the Group.
Changes in the value of investments held at fair value through profit or loss
and gains and losses on disposal are recognised in the Consolidated Statement
of Comprehensive Income as "Gains or losses on investments held at fair value
through profit or loss". Also included within this heading are transaction
costs in relation to the purchase or sale of investments.
Under IFRS, the investment in the trading subsidiary is carried at fair value
which is deemed to be the total equity of the subsidiary.
(i) Other receivables and payables
Other receivables and other payables do not carry any interest and are short
term in nature and are accordingly stated at their nominal value.
(j) Dividends payable
Under IFRS interim dividends are recognised when paid to shareholders. Final
dividends, if any, are only recognised after they have been approved by
shareholders.
(k) Foreign currency translation
Transactions involving foreign currencies are converted at the rate ruling at
the date of the transaction. Foreign currency monetary assets and liabilities
are translated into sterling at the rate ruling on the financial reporting
date. Foreign exchange differences arising on translation are recognised in the
Consolidated Statement of Comprehensive Income as a revenue or capital item
depending on the income or expense to which they relate.
(l) Cash and cash equivalents
Cash comprises cash in hand and on demand deposits. Cash equivalents are short
term, highly liquid investments that are readily convertible to known amounts
of cash and that are subject to an insignificant risk of changes in value.
(m) Bank borrowings
Bank overdrafts are recorded as the proceeds received. Finance charges are
accounted for on an accruals basis in the Consolidated Statement of
Comprehensive Income using the effective interest rate method and are added to
the carrying amount of the instruments to the extent that they are not settled
in the period in which they arise.
3. Income
2010 2009
£'000 £'000
Investment income:
Overseas listed dividends 3,037 2,462
Fixed interest 307 460
UK listed dividends 266 490
----- -----
3,610 3,412
----- -----
Other operating income:
Deposit interest 17 5
Option premium income 2,183 2,466
----- -----
2,200 2,471
----- -----
Total income 5,810 5,883
----- -----
Option premium income is stated after deducting transaction costs incurred on
the purchases and sales of investments.
4. Investment management fee
Revenue Capital Total Revenue Capital Total
2010 2010 2010 2009 2009 2009
£'000 £'000 £'000 £'000 £'000 £'000
Investment management fees 282 848 1,130 215 648 863
Write back of prior years'VAT - - - (27) (83) (110)
--- --- ----- --- --- ---
282 848 1,130 188 565 753
--- --- ----- --- --- ---
The investment management fee is levied quarterly, based on the gross assets on
the last day of each quarter, and is charged 25% to the revenue column and 75%
to the capital column of the Consolidated Statement of Comprehensive Income.
5. Other expenses
2010 2009
£'000 £'000
Custody fee 24 13
Auditor's remuneration:
- audit services 22 22
- other services 5 5
Directors' emoluments 69 63
Registrar's fee 25 31
Other administrative costs 115 117
---- ----
260 251
---- ----
The Company's total expense ratio, calculated as a percentage of average
net assets and using expenses, excluding interest costs and VAT written
back, after relief for taxation, was: 0.9% 1.1%
---- ----
Fees paid to the Auditor for other services comprise £5,000 (2009: £5,000)
relating to the review of the half yearly financial statements. Fees of £20,000
were also paid to Ernst & Young LLP in respect of non audit services provided
in relation to the C share placing and offer for subscription. These fees were
charged directly to capital reserves.
6. Finance costs
Revenue Capital Total Revenue Capital Total
2010 2010 2010 2009 2009 2009
£'000 £'000 £'000 £'000 £'000 £'000
Interest on bank overdrafts 9 27 36 20 35 55
----- ----- ----- --- ---- ----
Finance costs are charged 25% to the revenue column and 75% to the capital
column of the Consolidated Statement of Comprehensive Income.
7. Taxation
a) Analysis of charge during the year
Revenue Capital Total Revenue Capital Total
2010 2010 2010 2009 2009 2009
£'000 £'000 £'000 £'000 £'000 £'000
Current taxation:
Corporation taxation 523 (8) 515 1,172 (168) 1,004
Double taxation
relief (82) - (82) (173) - (173)
--- --- --- ----- ---- -----
441 (8) 433 999 (168) 831
Overseas taxation 312 - 312 237 - 237
Prior year adjustment 21 - 21 - - -
--- --- --- ----- ---- -----
Total current
taxation 774 (8) 766 1,236 (168) 1,068
--- --- --- ----- ---- -----
Deferred taxation 5 128 133 (42) - (42)
--- --- --- ----- ---- -----
Total taxation (note 7b) 779 120 899 1,194 (168) 1,026
--- --- --- ----- ---- -----
b) Factors affecting current taxation charge for the year
The taxation assessed for the year is lower than the standard rate of
corporation taxation in the UK for a large company of 28% (2009: 28%). The
differences are explained below:
Revenue Capital Total
2010 2010 2010
£'000 £'000 £'000
Total return on ordinary activities before 5,259 15,898 21,157
taxation
----- ------ ------
Return on ordinary activities multiplied by
standard rate of corporation taxation 28% 1,473 4,451 5,924
----- ------ ------
Effects of:
Non taxable capital gains - (4,696) (4,696)
Taxation effect of allowable expenses in
capital (178) 237 59
Prior year adjustment 25 - 25
UK dividends (75) - (75)
Non taxable overseas dividends (695) - (695)
Rate differential impact in deferred taxation - (3) (3)
Unrealised offshore income gain - 131 131
Double taxation relief (82) - (82)
Movement in double taxation relief in deferred
taxation (1) - (1)
Overseas taxation charge 312 - 312
----- ------ ------
(694) (4,331) (5,025)
----- ----- -----
Total corporation taxation charge for the year
(note 7a) 779 120 899
----- ----- -----
Revenue Capital Total
2009 2009 2009
£'000 £'000 £'000
Total return on ordinary activities before 5,424 29,423 34,847
taxation
----- ------ ------
Return on ordinary activities multiplied by
standard rate of corporation taxation 28% 1,519 8,238 9,757
----- ------ ------
Effects of:
Non taxable capital gains - (8,406) (8,406)
Non taxable UK dividends (137) - (137)
Non taxable overseas dividends (266) - (266)
Double taxation relief (173) - (173)
Movement in double taxation relief used
against taxable accrued income 14 - 14
Overseas taxation charge 237 - 237
----- ------ ------
(325) (8,406) (8,731)
----- ------ ------
Total corporation taxation charge for the year
(note 7a) 1,194 (168) 1,026
----- ------ ------
Investment trusts are exempt from corporation taxation on capital gains provided the
Company obtains agreement from HM Revenue & Customs that the tests outlined in
Chapter 4 of Part 24 of the Corporation Tax Act 2010 have been met.
Due to the Company's intention to meet the conditional requirement to obtain
approval under section 1158 of the Corporation Tax Act 2010 it has not provided
for taxation on any capital gains.
8. Dividends
Under IFRS final dividends, if any, are not recognised until approved by
shareholders. They are also debited directly to reserves. The dividends
disclosed in the table below have been considered in view of the requirements
of section 1158 Corporation Tax Act 2010 and section 833 of the Companies Act
2006, and the amounts declared meet the relevant requirements. Amounts
recognised as distributions to ordinary shareholders during the year to
30 November 2010 were as follows:
2010 2009
£'000 £'000
Fourth interim dividend for the year
ended 30 November 2009 - 1.45p (2008: 1.4625p) 1,085 1,050
First interim dividend for the year ended
30 November 2010 - 1.375p (2009: 1.35p) 1,036 986
Second interim dividend for the year ended
30 November 2010 - 1.375p (2009: 1.35p) 1,039 1,004
Third interim dividend for the year ended
30 November 2010 - 1.375p (2009: 1.35p) 1,039 1,010
First special dividend for the year ended
30 November 2010 - 1.00p (2009: 0.00p) 756 -
Second special dividend for the year ended
30 November 2010 - 0.52p (2009: 0.00p) 393 -
----- -----
5,348 4,050
----- -----
For the year ended 30 November 2010, a fourth interim dividend of 1.475p
(2009: 1.45p) per ordinary share has been declared and will be paid on
21 January 2011, to shareholders on the Company's register on 24 December 2010.
The total dividends payable in respect of the year which form the basis of
section 1158 of the Corporation Tax Act 2010 are set out below:
2010 2009
£'000 £'000
First interim dividend paid on 23 April 2010 of
1.375p (2009: 1.35p) 1,036 986
Second interim dividend paid on 23 July 2010 of
1.375p (2009: 1.35p) 1,039 1,004
Third interim dividend paid on 22 October 2010
of 1.375p (2009: 1.35p) 1,039 1,010
First special dividend paid on 22 October 2010
of 1.00p (2009: 0.00p) 756 -
Second special dividend paid on 29 November
2010 of 0.52p (2009: 0.00p) 393 -
Fourth interim dividend payable on 21 January
2011 of 1.475p (2009: 1.45p) 1,335 1,085
----- -----
5,598 4,085
----- -----
9. Consolidated earnings per ordinary share and net asset value per ordinary
share
Revenue and capital returns per share are shown below and have been calculated
using the following:
2010 2009
Net revenue return attributable to ordinary shareholders (£'000) 4,480 4,230
Net capital return attributable to ordinary shareholders (£'000) 15,778 29,591
------ ------
Total earnings attributable to ordinary shareholders (£'000) 20,258 33,821
------ ------
Total equity (£'000) 125,848 90,260
------ ------
The weighted average number of ordinary shares in issue
during each period, on which
the return per ordinary share was calculated, was: 76,543,554 73,739,251
The actual number of ordinary shares in issue at the year
end, on which the net asset value was calculated, was: 90,508,000 74,825,662
The number of ordinary shares in issue including treasury 90,508,000 75,600,000
shares at the year end, was:
Revenue return per share 5.85p 5.74p
Capital return per share 20.61p 40.13p
------- -------
Total earnings per share 26.46p 45.87p
------- -------
Net asset value per share 139.05p 120.63p
Share price (mid-market) 143.00p 119.75p
------- -------
10. Share Capital
Ordinary Treasury Total Nominal
shares shares shares value
number number number £'000
Allotted, called up and
fully paid share capital
comprised:
Ordinary shares of 1p each
---------- --------- ---------- ----
Shares in issue at
30 November 2009 74,825,662 774,338 75,600,000 756
Shares transferred from
treasury 774,338 (774,338) - -
Conversion of C shares into
ordinary shares 14,908,000 - 14,908,000 149
---------- --------- ---------- ----
At 30 November 2010 90,508,000 - 90,508,000 905
---------- --------- ---------- ----
During the year 774,338 ordinary shares were sold from treasury at an average
price of 132p per share for a total consideration of £1,028,000 net of issue
costs (2009: 3,015,000 ordinary shares were sold from treasury for a
consideration of £2,864,000).
During the year the Company also issued 14,908,000 ordinary shares following
the conversion of existing C shares into ordinary shares. The C shares were
issued through a placing and offer for subscription and 20,000,000 C shares were
admitted to the Official List and to trading on the London Stock Exchange on
30 September 2010 at 100p per C share and were converted into ordinary shares on
2 November 2010 at the rate of 0.7454 ordinary shares for every C share held.
The number of ordinary shares in issue at the year end was 90,508,000
(2009: 75,600,000 (including 774,338 treasury shares)) of which none were held
in treasury (2009: 774,338). There are no C shares in issue.
The ordinary shares (including new ordinary shares issued as a result of the
conversion of the C shares) carry the right to receive any dividends and have
one voting right per ordinary share. There are no restrictions on the voting
rights of the ordinary shares or on the transfer of the ordinary shares.
11. Publication of non statutory accounts
The financial information contained in this announcement does not constitute
statutory accounts as defined in the Companies Act 2006. The 2010 annual report
and financial statements will be filed with the Registrar of Companies shortly.
The report of the Auditor for the year ended 30 November 2010 contains no
qualification or statement under section 498(2) or (3) of the Companies Act
2006.
The comparative figures are extracts from the audited financial statements of
BlackRock Commodities Income Investment Trust plc and its subsidiary for the
year ended 30 November 2009, which have been filed with the Registrar of
Companies. The report of the Auditor on those accounts contained no
qualification or statement under section 498 of the Companies Act.
This announcement was approved by the Board of Directors on 18 January 2011.
12. Annual Report
Copies of the annual report will be sent to members shortly and will be
available from the registered office, c/o The Company Secretary, BlackRock
Commodities Income Investment Trust plc, 33 King William Street, London EC4R
9AS.
13. Annual General Meeting
The Annual General Meeting of the Company will be held at 33 King William
Street, London EC4R 9AS on Tuesday, 15 March 2011 at 10:30 a.m.
ENDS
The Annual Report will also be available on the BlackRock Investment Management
website at http://www.blackrock.co.uk/content/groups/uksite/documents/
literature/emea02026847.pdf. 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.
For further information, please contact:
Jonathan Ruck Keene, Managing Director, Investment Companies, BlackRock
Investment Management (UK) Limited
Tel: 020 7743 2178
Richard Davis, Natural Resources Team, BlackRock Investment Management (UK)
Limited
Tel: 020 7743 2668
Emma Phillips, Media & Communication, BlackRock Investment Management (UK)
Limited
Tel: 020 7743 2922
20 January 2011
33 King William Street
London EC4R 9AS
Latest directors dealings
- 1 day ago Mattioli Woods
- 1 day ago Morgan Advanced Materials
- 1 day ago Capita
- 1 day ago Judges Scientific
- 1 day ago Me Group International