ORENINC INDEX - Monday, August 24th 2020

North America’s leading junior mining finance data provider

Last Week: 59.31 (Updated)

This week: 72.68

The Oreninc Index increased in the week ending August 21st, 2020 to 72.68 from an updated 59.31 a week ago as brokered action increased.

The COVID-19 virus global death toll has topped 800,000 with more than 23 million cases reported worldwide. 

Another volatile week of broad swings for the gold price as the publication of the US Federal Reserve Open Market Committee minutes saw gold weaken by suggesting the yield control is not on the horizon on the grounds that it sees little benefit from doing so.

As the US saw stronger than expected home sales data in July, according to the National Association of Realtors, which reported that existing home sales increased 24.7% to a seasonally adjusted and annualized rate of 5.86 million units up from 4.72 million in June. National median home prices broke the US$300,000 level for the first time.

Real estate may be improving in the US, but the initial weekly jobless claims rose again by 135,000 to 1.106 million in the week to Saturday. The four-week moving average declined to 1.2 million according to US Labor Department data. Continuing jobless claims fell by 636,000 to 14.8 million.

On the international front, US president Donald Trump has declined to engage in trade talks with China which were supposed to occur six months following their February agreement on tariffs. 

Japan’s economy experienced its sharpest contraction sine 1980 in the quarter to June 30 as gross domestic product fell 7.8%.

In the European Union, leaders are trying to protect the economy by maintaining open borders despite spikes in COVID-19 cases in various countries. EU negotiators also think it increasingly unlikely that a trade deal will be signed with the UK as the two sides continue to not see eye-to-eye on issues such as access to UK fishing waters and level playing field requirements conditions to maintain fair competition. Without a deal, trade relations with the UK will be governed by WTO trade principles and tariffs.

On to the money: aggregate financings announced increased to $124 million, a two-week high, which included eight brokered financings for $72.4 million, a four-week high, and three bought deal financings for $32.4 million, a four-week high. The average offer size increased to $3.2 million, a two-week high, while the number of financings fell to 39.

The Gold spot price experienced another volatile week as it climbed over $2,000/oz before pulling back to close the week down at $1,940/oz from $1,945/oz a week ago. The yellow metal is up 27.89% so far this year. The US dollar index ended its losing streak as it closed up at 93.24 from 93.09 week. The VanEck managed GDXJ continued to pull back and closed down at $57.20 from $57.98 a week ago. The index is now up 35.35% so far this year. The US Global Go Gold ETF saw a smidgen of growth as it closed up at $23.42 from $23.39 a week ago. It is up 33.37% so far this year. The HUI Arca Gold BUGS Index also closed up at 336.87 from 330.32 last week. The SPDR GLD ETF inventory increased, closing the week up at 1,252.38 tonnes or 40.2 million ounces from 1,248.29 tonnes last week.

In other commodities, Silver also saw big swings before closing the week up at $26.79/oz from $26.44/oz a week ago. Copper briefly broke through US$3/lb before closing the week up at $2.93/lb from $2.88/lb a week ago. Oil improved as WTI closed up at $42.34 a barrel from $41.01 a barrel a week ago.

The Dow Jones Industrial Average closed up again at 27,931 from 27,433 a week ago. Canada’s S&P/TSX Composite Index closed down at 16,514 from 16,544 the previous week. The S&P/TSX Venture Composite Index fell a smidge to 737.65 from 739.98 last week.



Financing Highlights

Benchmark Metals opened a $21 million best efforts private placement


Aya Gold & Silver (TSXV:AYA) opened a bought deal to raise $20 million.


Major Financing Openings

Major Financing Closings