ORENINC INDEX - Monday, June 15th 2020

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Last Week: 70.52 (Updated)

This week: 47.29

The Oreninc Index fell in the week ending June 5th, 2020 to 47.29 from an updated 70.52 a week ago as the finance surge ebbs

The COVID-19 virus global death toll is nearing 450,000 and almost 8 million cases reported worldwide, with more than 2 million of those in the US. 

People keep filing for unemployment in the US with the Labour Department reporting a seasonally adjusted 1.54 million first-time jobless claims, in the middle of consensus estimates. The four-week moving average for new claims fell by 286,250 to 2 million.

US Federal Reserve chair Jerome Powell said the institution will continue support for the US economy for "as long as it takes" and interest rates will remain near zero perhaps through to 2023. The interest rate is currently in a range between zero and 0.25%. Policymakers believe the US economy will shrink 6.5% this year with the unemployment rate hitting 9.3%.

The OECD reported the COVID-19 pandemic had caused the most severe recession in a century with the global economy possibly contracting 7.6% this year. The US Labor Department said its Consumer Price Index fell 0.1% in May following an 0.8% drop in April as falling energy prices dominate consumer inflation. 

Despite the economic doom and gloom the dramatic stock market collapse in March has been followed by one of the fastest recoveries ever, as a result of the stimulus injected into financial markets and the economy.

On to the money: brokered action continued to ease-off as the total raises announced fell again to $52.8 million, a nine-week low, which included two brokered financings for $12.5 million, a six-week low, and no bought deal financings. The average offer size increased to $1.5 million, a two-week high, although the number of financings fell to 35.

Gold recovered from the previous week’s sell-off to a close up at $1,730/oz from $1,685/oz a week ago. The yellow metal is up 14.07% so far this year. The US dollar index saw growth as it closed up at 97.31 from 96.93 last week. The VanEck managed GDXJ continued lower as it closed down at $43.84 from $44.38 a week ago. The index is now up 3.74% so far in 2020. The US Global Go Gold ETF also closed up a smidge at $18.67 from $18.59 a week ago. It is up 6.32% so far in 2020. The HUI Arca Gold BUGS Index closed up at 262.01 from 261.26 last week. The SPDR GLD ETF inventory continued to increase, closing the week up at 1,136.22 tonnes from 1,128.11 tonnes last week.

In other commodities, silver sold off to close down at $17.49/oz from $18.30/oz a week ago. Another good week for copper as the red metal closed up at $2.61/lb from $2.55/lb week ago. Oil’s recovery hit a pause as WTI closed down at $36.26 a barrel from $39.55 a barrel a week ago.

The Dow Jones Industrial Average saw another sharp sell-off as it closed down at 25,605 from 27,110 a week ago. Canada’s S&P/TSX Composite Index also closed down at 15,256 from 15,854 the previous week. The S&P/TSX Venture Composite Index closed down a tad at 554.91 from 556.91 last week.



Financing Highlights

Miramont Resources (CSE:MONT) opened a brokered private placement with Kuya to raise $10 million @ $1.65

Major Financing Openings

Major Financing Closings