ORENINC INDEX - Monday, July 13th 2020
North America’s leading junior mining finance data provider
Last Week: 78.20
This week: 118.91
The Oreninc Index increased in the week ending July 10th, 2020 to 118.91 from 78.20 a week ago as financings surged.
The COVID-19 virus global death toll has passed 560,000 and almost 12.5 million cases reported worldwide.
US initial weekly jobless claims continued above the million mark although they decreased by 99,000 to 1.3 million in according to the US Labor Department, beating expectations. The four-week moving average for new claims fell to 1.4 million. Continuing jobless claims fell by 698,000 to 18.1 million. However, the surge in COVID-19 cases in many states leads many observers to believe stay-at-home measures may be implemented again and result in job losses. With the daily count of new infections in the USA still rising the Trump administration began the process of leaving the World Health Organization.
The USA is not the only country seeing a surge in COVID-19 cases: Australia and much of Latin America are also experiencing a growing number of cases, with the president of Brazil, interim leader of Bolivia and the second in command in Venezuela all stating they have contracted the virus.
In Europe, the European Commission again cut its growth projections as it now predicts an 8.7% contraction in 2020.
The gold spot price broke through the $1,800/oz level for the first time since September 2011 as safe haven demand remains strong and flows into bullion-backed exchange traded funds beat records from 2009.
On to the money: financings leapt to an almost three-year high as the total raises announced more than doubled to $246.8 million, a 135-week high, which included nine brokered financings for $138.9 million, an eight-week high, and six bought deal financings for $88.7 million, a seven-week high. The average offer size increased to $3.5 million, a seven-week high, while the number of financings shot up to 70.
The Gold spot price finally broke through $1,800/ before pulling back as the week ended to close up at $1,798/oz from $1,772/oz a week ago. The yellow metal is up 18.55% so far this year. The US dollar index continued its losing streak as it closed down at 96.65 from 97.17 last week. The VanEck managed GDXJ continues on a tear as it closed up at $53.03 from $49.13 a week ago. The index is now up 25.49% so far in 2020. The US Global Go Gold ETF also closed up at $22.28 from $20.98 a week ago. It is up 26.88% so far in 2020. The HUI Arca Gold BUGS Index closed up at 311.54 from 291.59 last week. The SPDR GLD ETF inventory continued to increase, closing the week up at 1,200.46 tonnes, or 38.6 million ounces from 1,191.47 tonnes last week.
In other commodities, Silver continued to grow as the spot price closed up at $18.72/oz from $18.02/oz a week ago. Copper had one of its best weeks for a long time as it closed up at $2.89/lb from $2.72/lb a week ago. Oil was flat as WTI closed up a tad at $40.55 a barrel from $40.32 a barrel a week ago.
The Dow Jones Industrial Average closed up at 26,075 from 25,827 a week ago. Canada’s S&P/TSX Composite Index closed up at 15,713 from 15,596 the previous week. The S&P/TSX Venture Composite Index closed up at 684.71 from 633.02 last week.
Summary
- Number of financings increased to 70.
- Nine brokered financings were announced this week for $138.9 million, an eight-week high.
- Six bought-deal financings were announced this week for $88.7 million, a seven-week high.
- Total dollars increased to $246.8 million, a 135-week high.
- Average offer increased to $3.5 million, a seven-week high.
Financing Highlights
Northern Dynasty Minerals (TSX:NDM) opened a US$30.7 million bought deal financing.
- 17.1 million shares @ US$1.46 subsequently upsized to 21 million shares.
- Proceeds to fund advancement of the development of the Pebble polymetallic project in Alaska, USA.
- Non-brokered private placement of 5.1 million shares to raise US$7.5 million on the same terms.
Freegold Ventures (TSX:FVL) opened a best efforts brokered private placement to raise $30 million @ $1.10.
- Each unit comprises one share and half a warrant exercisable @ $1.65 for two years.
- Eric Sprott agreed to invest up to $20 million to increase his interest to about 35%.
- Proceeds will fund ongoing exploration at its projects in Alaska, USA.
Major Financing Openings
- Northern Dynasty Minerals (TSX:NDM) opened a $44.08 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada on a bought deal basis. The deal is expected to close on or about July 15th.
- Freegold Ventures (TSX:FVL) opened a $30 million offering underwritten by a syndicate led by Paradigm Capital on a best efforts basis. Each unit includes half a warrant that expires in two years.
- Vizsla Resources (TSXV:VZLA) opened a $25 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis. Each unit includes a warrant that expires in two years. The deal is expected to close on or about July 30th.
- Rupert Resources (TSXV:RUP) opened a $22.26 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.
Major Financing Closings
- Treasury Metals (TSX:TML) closed a $11.52 million offering underwritten by a syndicate led by Haywood Securities on a bought deal basis. Each unit included half a warrant that expires in two years.
- Tudor Gold (TSXV:TUD) closed a $9.3 million offering on a best efforts basis.
- Soma Gold (TSXV:SOMA) closed a $8.88 million offering on a best efforts basis. Each unit included a warrant that expires in two years.
- Pacton Gold (TSXV:PAC) closed a $5.62 million offering on a best efforts basis.