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Evy Hambro: It's the 1990s all over again for miners

Just like the sector's tough patch two decades ago, the manager of the BlackRock World Mining Trust said resources firms are still trying to restore investors' faith.

Evy Hambro: It's the 1990s all over again for miners

BlackRock natural resources chief Evy Hambro has said the mining sector's current difficulties are reminiscent of the 1990s.

Just like the sector's tough patch two decades ago, the manager of the BlackRock World Mining Trust said resources firms are still trying to restore investors' faith and believes this is partly behind the sector's immediate struggles.

With resources companies missing out on the recent rally, Hambro said it was hard to see a near-term catalyst for a change.

He said: 'I've seen many difficult cycles like back in the early 1990s which was a very difficult time for this space, and actually some of the characteristics we see today are reminiscent of that.

'We were working through excess supply in many commodities and there was under-investment, management teams were changed and balance sheets [showed they] needed to pay down debt.'

Hambro explained that it took firms a long time to recover, but added his £803 million trust is well positioned to cope with the challenges.

Over three years it has avoided the full extent of the losses seen by the HSBC Global Mining Index, which has dropped close to 32% over 36 months to the end of April.

Shares in BlackRock World Mining Trust have fallen by 19% over the same stretch, and thanks to its income drive its discount has narrowed close to 6%.

Hambro is also manager of the BlackRock Gold and General fund , a Citywire Selection Star Pick.

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