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Oreninc Index Rockets As Bought Deals Drove Year-High Numbers

Commentaries & Views

Last week index score: 23.58 (updated)

This week: 64.66

The Oreninc Index rocketed in the week ending July 12th, 2019 to 64.66 from an updated 23.58 a week ago as bought deals drove year-high numbers

Gold continued to consolidate above the US$1,400/oz level as US Federal Reserve chairman Jerome Powell spoke to the US House of Representatives and cited concerns regarding the US economy.

Tensions in the Persian Gulf increased after the UK stopped an oil tanker near Gibraltar it believed was en route to deliver oil to Iran, breaking trade embargoes on the country. The UK Navy then had to stop Iranian vessels from blocking a BP oil tanker from leaving the Persian Gulf.

On to the money: total fund raises quintupled to C$118.4 million, a 20-week high, which included four brokered financings for $73.0m, 74-week high and four bought-deal financings for $73.0m, an 82-week high. The average offer size almost tripled to $3.9 million, a two-week high, while the number of financings increased to 30.

Gold’s strength surfaced again as it closed up at US$1,415/oz from US$1,399/oz a week ago. The yellow metal is up 10.39% so far this year. The US dollar index showed weakness as it closed down up at 96.81 from 97.28 last week. The Van Eck managed GDXJ grew it closed up at US$35.81 from US$34.65 a week ago. The index is now up 18.50% so far in 2019. The US Global Go Gold ETF also closed up at US$14.65 from US$14.08 as a week ago. It is up 28.40% so far in 2019. The HUI Arca Gold BUGS Index closed up at 200.67 from 193.01 last week. The SPDR GLD ETF closed at more than 800 tonnes as it closed up at 800.54 tonnes from 796.97 tonnes a week ago.

In other commodities, silver closed up at US$15.22/oz from US$15.00/oz a week ago. Copper added a few cents as it closed up at US$2.69/lb from US$2.66/lb a week ago. Oil saw growth again as WTI closed up at US$60.21 a barrel from US$57.51 a barrel a week ago.

The Dow Jones Industrial Average kept pushing up records as it closed up at 27,332 from 26,922 a week ago. Canada’s S&P/TSX Composite Index closed down slightly at 16,488 from 16,541 the previous week. The S&P/TSX Venture Composite Index closed down as well at 576.03 from 586.79 last week.

Summary

  • Number of financings increased to 30.

  • Four brokered financings were announced this week for C$73.0m, a 74-week high.

  • Four bought-deal financings were announced this week for C$73.0m, an 82-week high.

  • Total dollars increased to C$118.4m, a 20-week high.

  • Average offer up to C$3.9m, a two-week high.

Financing Highlights

Osisko Mining (TSX:OSK) announced a C$40.0 million in bought deal financings with a syndicate of underwriters led by Canaccord Genuity.

  • 5.3 million flow-through shares @ C$5.67 for C$30.0 million.

  • Proceeds will be used for Canadian exploration expenses at its projects in Québec.

  • 3.32 million shares @ C$3.15 for C$10.0 million.

K92 Mining (TSXV:KNT) announced an C$18.0 million bought deal financing with Clarus Securities as lead underwriter and sole bookrunner.

  • 9.5 million shares @ C1.90

  • Proceeds to be used for general corporate and working capital purposes.

Major Financing Openings

  • Osisko Mining (TSX:OSK) opened a C$40.02 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.

  • K92 Mining (TSXV:KNT) opened a C$18.0 million offering underwritten by a syndicate led by Clarus Securities on a bought deal basis.    

  • Gold Standard Ventures (TSX:GSV) opened a C$15.0 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.

  • Macarthur Minerals (TSXV:MMS) opened a C$7.83 million offering on a best efforts basis. 

Major Financing Closings

  • Jaguar Mining (TSX:JAG) closed a C$32.86 million offering on a strategic deal basis.    

  • Continental Gold (TSX:CNL) closed a C$32.81 million offering on a strategic deal basis.    

  • Silver One Resources (TSXV:SVE) closed a C$4.98 million offering on a best efforts basis. 

  • Terraco Gold (TSXV:TEN) closed a C$4.72 million offering on a strategic deal basis.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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