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Oreninc Index Update: January 1, 2018

ORENINC INDEX plummets as activity dries up at year end

 

ORENINC INDEX - Monday, January 1st 2018

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Last week index score: 67.93 (Updated)

This week: 38.59

Avrupa Minerals (AVU:TSXV) reported on progress at drilling projects in Kosovo and Portugal. 

 

The Oreninc Index plummeted in the week ending December 29th, 2017, the last trading week of 2017, to 38.59 from an updated 67.93 as the holiday season reduced the trading days and saw financings reduced to a trickle and perhaps taking time off to recharge the batteries for the New Year. That said, gold provided a late Christmas present and continue its strong end to the year closing over the US$1,300/oz mark once again. Other commodities such as silver, copper and oil also saw a strong finish to the year

Total fund raises announced plummeted to the lowest level in about two years to C$14.7 million, a 102-week low, which included np brokered financings and no bought-deal financings. The average offer size fell to a tiny C$0.6 million, a 51-week low, whilst the total number of financings halved to 23, an 18-week low.

Gold continued its recent growth spurt to close at US$1,302/oz from US$1,274/oz a week ago. Gold added about US$50/oz over the last two trading weeks of the year and had a trading range of US$1,146-1,357/oz over 2017. The van Eck managed GDXJ followed suit with a strong week and closed up at US$34.13 from US$33.53 last week, although it saw some selling off from its week high of US$343.30 as the week drew to a close. It closed 2017 up 8.2% in 2017. The US Global Go Gold ETF showed a similar chart to close at US$13.01 from US$12.83, giving it a range of 11.22-14.13 since its launch mid-year. The SPDR GLD ETF had a static week closing at the same 837 tonnes as a week ago, and up 15 tonnes on its 2016 close of 822 tonnes.

In other commodities, silver had a strong end to the year to close although failing to end north of US$17/oz, closing at US$16.93/oz from US$16.32/oz a week ago. Its 2017 range was US$15.18-18.65/oz. Copper also put in a strong close to the year to close at almost a year high of US$3.30/lb from US$3.23/lb last week. Its 2017 range was US$2.52-3.32/lb. Oil also had a strong week to break through the US$60 a barrel mark and close at a year high of US$60.42 a barrel from US$58.47 a barrel a week ago. Oil’s 2017 range was US$43.76-60.51 a barrel.

The Dow Jones Industrial Average had a rare losing week to close at 24,719 from 24,754 last week. Its 2017 range was 19,677-24,876 and posted a 28.1% gain over the course of the year, which in large part explains why precious metals price growth was subdued throughout 2017. Canada’s S&P/TSX Composite Index saw a growth week to close at 16,209 from 16,165 the previous week. It gave a 2017 return of 9.1% and a range of 14,915-16,232. The S&P/TSX Venture Composite Index saw strong growth to close at a year-high of 850.52 from 810.30 the previous week. Its 2017 range was 749.90-850.72.

Summary:

  • Number of financings dropped to 23, an 18-week low.
  • No brokered financings were announced this week, a 15-week low.
  • No bought-deal financings were announced this week, a five-week low.
  • Total dollars fell to C$14.7m, a 102-week low.
  • Average offer size also fell to C$0.6m, a 51-week low.

 

Financing Highlights

Major Financing Openings:

  • Jericho Oil (TSXV:JCO) opened a C$2.27 million offering on a best efforts basis.  Each unit includes half a warrant that expires in 24 months.
  • Giyani Metals (TSXV:WDG) opened a C$2 million offering on a best efforts basis.  Each unit includes half a warrant that expires in 18 months.
  • Metallic Minerals (TSXV:MMG) opened a C$1.38 million offering on a best efforts basis.    
  • Eagle Graphite (TSXV:EGA) opened a C$1.2 million offering on a best efforts basis. Each unit includes a warrant that expires in 60 months.

Major Financing Closings:

  • Cobalt 27 Capital (TSXV:KBLT) closed a C$97.81 million offering underwritten by a syndicate led by TD Securities on a bought deal basis.
  • Metanor Resources (TSXV:MTO) closed an C$11.35 million offering underwritten by a syndicate led by Sprott Capital Partners on a best efforts basis. Each unit included half a warrant that expires in 24 months.
  • Barkerville Gold Mines (TSXV:BGM) closed a C$10.99 million offering underwritten by a syndicate led by Haywood Securities on a bought deal basis.
  • MGX Minerals (CSE:XMG) closed a C$5.8 million offering on a best efforts basis.

Company news

Avrupa Minerals (AVU:TSXV) reported on progress at drilling projects in Kosovo and Portugal. 

  • Partners funded two drill programs during 2017. 
  • In Kosovo, Byrnecut International completed an 18-hole, 6,280m core drilling program at the Slivovo gold project, while in Portugal Blackheath Resources completed a single, exploratory test hole at the Covas tungsten project.
  • At Slivovo, the 2017 drill program was originally planned for 5,670m. and saw Byrnecut fulfil its 85% earn-in commitment. Avrupa is no longer contributing to the program and expects to be diluted to a 2% NSR in 2018.

 

Analysis

Avrupa continued to advance its exploration programs in Kosovo and Portugal through partner funding, and expects to continue to do so in 2018, and generate additional news flow from exploration results.

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