ORENINC INDEX up as brokered activity surges again


ORENINC INDEX - Monday, September 7th 2020

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Last Week: 62.90

This week: 79.69

The Oreninc Index increased in the week ending September 4th, 2020 to 79.69 from 62.90 a week ago as brokered activity surged again.

The COVID-19 virus global death toll has topped 880,000 with almost 27 million cases reported worldwide. 

A damp squib of a week for precious metals heading into the Labor Day weekend as early promise fizzled out, perhaps profits being taken prior to the long weekend.

The US Bureau of Labor Statistics report for August showed non-farm payrolls rise by 1.37 million with the employment rate fell 1.8% in August to 8.4%, while the number of unemployed people fell 2.8 million to 13.6 million. The number of permanent job losers increased from 534,000 to 3.4 million. Goldman Sachs previously reported it expects about a quarter of workers laid-off temporarily to permanently lose their jobs.

The US Labor Department said 881,000 people filed for first-time jobless claims, a fall of 130,000 from the previous week's revised level to the lowest claims level since the COVID-19 pandemic struck. The four-week moving average for new claims was down 77,500 at 991,750. Continuing jobless claims fell to 13.3 million. Earlier in the week, private payrolls processor ADP said 428,000 jobs were created in August.

Although US jobs-unemployment figures appear to be slowly improving, treasury secretary Steven Mnuchin underscored the need for fresh fiscal stimulus as talks resumed with House Speaker Nancy Pelosi.

On to the money: aggregate financings announced jumped to $135 million, a four-week high, which included nine brokered financings for $70.5 million, a two-week high, and two bought-deal financings for $52.5 million, a six-week high. The average offer size increased to $2.9 million, a two-week high, while the number of financings fell to 47.

Volatility for the Gold spot price continued with another volatile week as it closed the week down at $1,933/oz from $1,964/oz a week ago. The yellow metal is up 27.46 so far this year. The US dollar index saw some strength as it closed up at 92.71 from 92.37 a week ago. The VanEck managed GDXJ closed down at $58.34 from $59.79 a week ago. The index is now up 38.05% so far this year. The US Global Go Gold ETF also closed down at $23.56 from $24.12 a week ago. It is up 34.17% so far this year. The HUI Arca Gold BUGS Index also closed down at 339.74 from 348.72 last week. The SPDR GLD ETF inventory continued to pare back, closing the week down at 1,250.04 tonnes, or 40.19 million ounces, from 1,251.5 tonnes last week.

In other commodities, Silver continued to see big swings as it closed the week down at $26.91/oz from $27.50/oz a week ago. Copper continued to hold above the US$3/lb closing the week up at $3.06/lb from $3.01/lb a week ago. Oil’s recovery came to an abrupt end as it fell below the $40 a barrel level as WTI closed down at $39.77 a barrel from $42.97 a barrel a week ago.

The Dow Jones Industrial Average closed down at 28,133 from 28,653 a week ago. Canada’s S&P/TSX Composite Index closed down at 16,218 from 16,705 the previous week. The S&P/TSX Venture Composite Index closed down at 733.69 from 745.31 last week.



Financing Highlights

GoGold Resources (TSX:GGD) opened $30 million bought deal financing

Auryn Resources (TSX:AUG) opened a bought deal private placement of $22.5 million.


Major Financing Openings

Major Financing Closings