ORENINC INDEX up as deals increase
ORENINC INDEX - Monday, November 16th 2020
North America’s leading junior mining finance data provider
Last Week: 70.47
This week: 72.86
The Oreninc Index increased in the week ending November 20th, 2020 to 72.86 from 70.47 a week ago as the number of deals increased.
Winter is coming and COVID-19 cases are spiking in the Northern hemisphere from Europe to Canada and the USA. The COVID-19 virus global death toll is approaching 1.4 million with almost 59 million cases reported worldwide. However, vaccine news has increased during the past week.
The victory of Democratic US presidential candidate and president elect Joe Biden becomes more certain by the day as the various legal challenges launched by the incumbent Rump administration one by one come to nothing.
Precious metals have continued to suffer at news of the advancement of COVID-19 vaccines despite the number of new cases in the USA continuing to hit new highs, and with the country having surpassed 250,000 pandemic-related deaths.
Across the Atlantic Ocean, the European Union and the UK finally seem to be making progress towards a new deal to govern their relationship. However, time is running out to put a new arrangement in place before year end.
On to the money: the aggregate financings announced decreased to $110.7 million, a two-week low, which included eleven brokered financings for $78.9 million, a two-week low, and no bought deal financings. The average offer size fell to $3 million, a four-week low, while the number of financings increased to 37.
Gold experienced another losing week as it closed down at $1,870/oz from $1,889/oz a week ago. The yellow metal is up 23.31 so far this year. The US dollar index softened as it closed down at 92.39 from 92.75 a week ago. The VanEck managed GDXJ closed down at $51.89 from $54.58 a week ago. The index is now up 22.79% so far this year. The HUI Arca Gold BUGS Index also closed down at 297.25 from 315.20 last week. The SPDR GLD ETF inventory closed the week down at 1,220.17 tonnes, or 39.23 million ounces, from 1,234.32 tonnes last week.
In other commodities, Silver also fell as it closed the week down at $24.18/oz from $24.67/oz a week ago. Copper hit a 2.5-year high as it closed up at $3.31/lb from $3.18/lb a week ago. Oil strengthened as WTI closed up at $42.42 barrel from $40.13 a barrel a week ago.
The Dow Jones Industrial Average it closed down at 29,263 from 29,479 a week ago. Canada’s S&P/TSX Composite Index closed up at 17,019 from 16,675 the previous week. The S&P/TSX Venture Composite Index closed up at 740.45 from 736.37 a week ago.
Summary
• Number of financings increased to 37.
• Eleven brokered financings were announced this week for $78.9 million, a two-week low.
• No bought-deal financings were announced this week.
• Total dollars decreased to $110.7 million, a two-week low.
• Average offer fell to $3 million, a four-week low.
Financing Highlights
Western Copper and Gold (TSX:WRN) opened an over-night marketed public offering to raise $20 million.
• Subsequently upsized to $25 million.
• 17.2 million shares @ $1.45 .
• Proceeds will be used for to fund exploration, engineering and permitting activities for its Casino copper-gold project in Yukon, Canada.
Major Financing Openings
• Western Copper and Gold (TSXV:WRN) opened a $20 million offering underwritten by a syndicate led by Cormark Securities on a best efforts basis.
• Marimaca Copper (TSX:MARI) opened a $20 million offering underwritten by a syndicate led by Canaccord Genuity on a best efforts basis. Each unit includes half a warrant that expires in two years. The deal is expected to close on or about December 2nd.
• Silver One Resources (TSXV:SVE) opened a $10 million offering underwritten by a syndicate led by Canaccord Genuity on a best efforts basis.
• Niobay Metals (TSXV:NBY) opened a $10 million offering underwritten by a syndicate led by Canaccord Genuity on a best efforts basis. Each unit includes half a warrant that expires in three years. The deal is expected to close on or about December 8th.
Major Financing Closings
• Skeena Resources (TSXV:SKE) closed a $46 million offering underwritten by a syndicate led by Raymond James on a best efforts basis.
• Taseko Mines (TSXV:TKO) closed a $30.22 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada on a bought deal basis.
• Fission Uranium (TSXV:FCU) closed a $17.07 million offering underwritten by a syndicate led by Eight Capital on a bought deal basis. Each unit included half a warrant that expires in two years.
• Canarc Resource (TSX:CCM) closed a $8.4 million offering on a best efforts basis.
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