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Oreninc Index: December 31, 2018


ORENINC INDEX falls as financings take seasonal break

ORENINC INDEX - Monday, December 31st 2018

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Last week index score: 57.04

This week: 52.58


The Oreninc Index fell in the week ending December 27th, 2018 to 52.58 from 57.04 a week ago as the Christmas break made for a shortened trading week with less financing action.

Gold continues to gain as it closes out 2018 strongly and almost at par with where it closed 2017. 2018 is ending with a shopping list of risk including: the US government shutdown over funding, the sudden announcement by US President Donald Trump that he will pull US troops out of Syria that means the civil war against Syrian president Bashar al-Assad is effectively over, ongoing trade tensions between the US and China, and continued uncertainty over whether or how the UK will leave the European Union in three months’ time.

On to the money: total fund raises announced decreased again to C$35.4 million, an eleven-week low, that included one brokered financing for C$1.3 million, a six-week low, and no bought-deal financings. The average offer size fell to C$1.26 million, a 13-week low, whilst the number of financings fell to 28, a five-week low.

Gold continued its strong December adding more festive sparkle during Christmas week, closing up at US$1,278/oz from US$1,256/oz a week ago. It is down 1.88% this year. The US dollar index fell again to close at 96.40 from 96.95 last week. The higher gold price pushed the van Eck managed GDXJ up again at US$29.44 from US$28.94 a week ago. The index is down 13.34% so far in 2018. A similar tale at the US Global Go Gold ETF that closed up at US$11.29 from US$11.04 a week ago. It is now down 12.81% so far in 2018. The HUI Arca Gold BUGS Index closed up at 158.15 from 156.47 last week. The SPDR GLD ETF continued to add ounces to inventory to close up at 787.67 tonnes from 772.67 tonnes a week ago.

In other commodities, silver jumped to close up at US$15.38/oz from US$14.65/oz a week ago. Copper added a cent to close up at US$2.68/lb from US$2.67/lb a week ago. Oil continued to slide as WTI closed down at US$45.33 a barrel from US$45.59 a barrel a week ago.

The Dow Jones Industrial Average clawed back some ground as it closed up at 23,062 from 22,445 last week. Canada’s S&P/TSX Composite Index also saw clawback as it closed up at 14,222 from 13,935 the previous week. The S&P/TSX Venture Composite Index also closed up at 552.09 from 530.20 last week.


·       Number of financings decreased to 28, a five-week low.

·       One brokered financing was announced this week for C$1.3m, a six-week low.

·       No bought-deal financings were announced this week, a five-week low.

·       Total dollars dropped to C$35.4m, an eleven-week low.

·       Average offer size diminished to C$1.26m, a thirteen-week low.



Financing Highlights

Lithium Energi Exploration (TSXV:LEXI) entered into an agency agreement with Gravitas Securities to sell, on a best efforts basis, up to 32.5 million units @ C$0.20 for gross proceeds of $6.5 million.

·       Concurrent non-brokered private placement of up to 15.0 million units for aggregate gross proceeds of $3.0 million.

·       Each unit is comprised of one share and half a warrant exerciseable @ $0.30 for two years.

·       The offering is due to close on January 15th.

·       The net proceeds are to be used to fund exploration on its lithium holdings in Catamarca, Argentina.


Major Financing Openings

·       Lithium Energi Exploration (TSXV:LEXI) opened a C$9.5 million offering on a best efforts basis. Each unit includes half a warrant that expires in two years.

·       Rubicon Minerals (TSX:RMX) opened a C$5.75 million offering on a best efforts basis.

·       Candelaria Mining (TSXV:CXX) opened a C$4.2 million offering on a best efforts basis.  Each unit includes half a warrant that expires in three years.

·       Corvus Gold (TSX:KOR) opened a C$2.08 million offering on a best efforts basis


Major Financing Closings

·       Barkerville Gold Mines (TSXV:BGM) closed a C$29.45 million offering underwritten by a syndicate led by Haywood Securities on a bought deal basis.

·       Sabina Gold & Silver (TSX:SSB.T) closed a C$25.31 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.

·       North American Palladium (TSX:PDL) closed a C$10.0 million offering on a best efforts basis.

·       MGX Minerals (CSE:XMG) closed a C$7.16 million offering on a best efforts basis.



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