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.
- Number of financings decreased to 35.
- Two brokered financings were announced this week for $12.5 million, a six-week low.
- No bought-deal financings were announced this week.
- Total dollars decreased to $52.8 million, a nine-week low.
- Average offer increased to $1.5 million, a two-week high.
Miramont Resources (CSE:MONT) opened a brokered private placement with Kuya to raise $10 million @ $1.65
- A syndicate of agents led by Cormark Securities and including Canaccord Genuity, PI Financial and Red Cloud Securities.
- Each subscription receipt will be deemed to be exchanged upon satisfaction of the release conditions on or before 180 days following closing for a share of Kuya.
- Proceeds to be used to fund exploration and engineering costs for the development of the Bethania project in Peru, as well as to complete its obligations to acquire an 80% interest in S&L Andes Export, the entity that holds Bethania.
- Financing is related to the acquisition by Miramont of Kuya Silver.
Major Financing Openings
- Miramont Resources (CSE:MONT) opened a $10 million offering underwritten by a syndicate led by Cormark Securities on a best efforts basis. The deal is expected to close on or about August 31st.
- G2 Goldfields (TSXV:GTWO) opened a $10 million offering on a best efforts basis. Each unit includes half a warrant that expires in 18 months.
- Monarch Gold (TSX:MQR) opened a $5.42 million offering on a strategic deal basis. Each unit includes a warrant that expires in three years.
- Auramex Resource (TSXV:AUX) opened a $4 million offering on a best efforts basis. Each unit includes half a warrant that expires in two years.
Major Financing Closings
- Discovery Metals (TSXV:DSV.H) closed a $25 million offering on a best efforts basis. Each unit included half a warrant that expires in two years.
- Fengro Industries (TSXV:FGR) closed a $23.97 million offering underwritten by a syndicate led by Canaccord Genuity on a best efforts basis.
- Seabridge Gold (TSX:SEA) closed a $11.36 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada on a bought deal basis.
- Dolly Varden Silver (TSXV:DV) closed a $6.8 million offering on a strategic deal basis.