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Oreninc Index: May 28, 2018

ORENINC INDEX falls as brokered action faltered

ORENINC INDEX - Monday, May 28th 2018

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Last week index score: 52.74

This week: 30.90

 

The Oreninc Index fell in the week ending May 25th, 2018 to 30.90 from 52.74 a week ago despite gold recovering from the prior weeks’ fall below US$1,300/oz.

Gold recovered from a brief sojourn below the US$1,300/oz level as risk returned with US president Donald Trump calling off a landmark summit with North Korean leader Kim Jong Un. The yield on the US ten-year treasury fell below 3% as suggestions from the US Federal Reserve about a temporary rise in inflation raised questions over whether there will be multiple interest rate increases this year. All good news for gold. All eyes will be on the US Federal Reserve Open Market Committee meeting on June 12-13.

On to the money: total fund raises announced fell to C$38.8 million, an eleven-week low, which included two brokered financings for C$10.8 million, a two-week low and one bought deal financing for C$7.0 million, a two-week low. The average offer size fell to C$2.9 million, a three-week low and the number of financings fell to 13, an eleven-week low.

Gold closed at US$1,309/oz from US$1,293/oz a week ago. Gold is now down 0.04% this year. The US dollar index continued to increase and closed up at 94.25 from 93.63 a week ago. The van Eck managed GDXJ made a slight gain after a volatile week closing up at US$32.89 from US$32.84 last week. The index is down 3.63% so far in 2018. The US Global Go Gold ETF fell slightly to close at US$12.93 from US$12.98 a week ago. It is now down 0.61% so far in 2018. The HUI Arca Gold BUGS Index closed up at 180.20 from 177.75 last week. The SPDR GLD ETF continued to sell off and closed its inventory at 848.50 tonnes from 855.28 tonnes a week ago.

 

In other commodities, silver made a small gain on a volatile week to close up at US$16.51/oz from US$16.44/oz a week ago. Copper showed a similar pattern to close up at US$3.07/lb from US$3.06/lb last week. Oil was the main loser of the week with its price taking a dump at the end of the week to close down at US$67.88 a barrel from US$71.28 a barrel a week ago.

The Dow Jones Industrial Average returned to growth to close up at 24,753 from 24,715 last week. Canada’s S&P/TSX Composite Index showed a slight loss to close down at 16,075 from 16,162 the previous week. The S&P/TSX Venture Composite Index also closed down at 775.41 from 786.39 last week.

 

Summary:

·       Number of financings crumbled to 13, an eleven-week low.

·       Two brokered financings were announced this week for C$10.8m, a two-week low.

·       One bought-deal financing was announced this week for C$7.0m, a two-week low.

·       Total dollars plunged to C$38.8m, an eleven-week low.

·       Average offer size dropped to C$2.9m, a three-week low.

 

 

Financing Highlights

Probe Metals (TSXV:PRB) opened a C$14 million financing.

·       Bought deal with Sprott Capital Partners and a syndicate of underwriters

·       Flow through units @ C$1.90 and non flow-through units @ C$1.15

·       Each unit consists of one share and half a warrant exerciseable @ C$1.45 for two years.

·       Underwriters option to purchase C$2.1 million in units.

·       Gross proceeds will fund exploration on Probe's projects in Québec.

·       Closing is expected on June 19th.

 

 

 Major Financing Openings:

 

·       Great Bear Resources (TSXV:GBR) opened a C$ 7.83 million offering on a best efforts basis. Each unit includes half a warrant that expires in 24 months.

·       Probe Metals (TSXV:PRB) opened a C$ 7 million offering underwritten by a syndicate led by Sprott Capital Partners on a bought deal basis. Each unit includes half a warrant that expires in 24 months. The deal is expected to close on or about June 19th.

·       Probe Metals (TSXV:PRB) opened a C$ 7 million offering on a best efforts basis.    The deal is expected to close on or about June 19th.

·       Para Resources (TSXV:PBR) opened a C$ 6.4 million offering on a best efforts basis. Each unit includes a warrant that expires in 36 months.

 

Major Financing Closings:

·       SRG Graphite (TSXV:SRG) closed a C$ 8 million offering underwritten by a syndicate led by National Bank Financial on a best efforts basis. Each unit included a warrant that expires in 12 months.

·       Wealth Minerals (TSXV:WML) closed a C$ 6.25 million offering on a best efforts basis. Each unit included half a warrant that expires in 24 months.

·       Zinc One Resources (TSXV:Z) closed a C$ 3.89 million offering on a best efforts basis. Each unit included half a warrant that expires in 36 months.

·       Alexandra Capital (TSXV:AXC) closed a C$ 2.6 million offering on a best efforts basis.

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