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Oreninc index up as 2021 started volatile

Commentaries & Views

Last Week: 30.90

This week: 54.05

The Oreninc Index increased in the week ending January 8th, 2021 to 54.05 from 30.90 a week ago as 2021 started off very volatile for the precious metals.

The COVID-19 virus global death toll is approaching 1.93 million with almost 90 million cases reported worldwide. More and more countries are announcing a hard lockdown with increasing cases.

On to the money: the aggregate financings announced increased to $70.6 million, an 3-week high, with one new brokered financings and one new bought-deal financings announced. The average offer size decreased to $2.9 million, a 3-week  high, while the number of financings remained at 24.

Gold closed the week lower at $1,844/oz from $1,895/oz a week ago. The US dollar index closed higher at 90.10 from 89.94 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week down at $53.66 from $54.24 a week ago. The index is now up 0.04% YTD. The HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week higher at 302.48 from 299.64 last week. The SPDR GLD ETF inventory closed the week up at 1,182.11 tonnes, or 38.00 million ounces, from 1,170.74 tonnes last week.

In other commodities, Silver closed the week lower at $24.63/oz from $26.41/oz a week ago. Copper closed the week at $3.67/lb from $3.51/lb a week ago. Oil went down as WTI closed up at $52.24 a barrel from $48.52 a barrel a week ago.

The Dow Jones Industrial Average closed up at 31,087 from 30,606 a week ago. Canada’s S&P/TSX Composite Index closed up at 18,042 from 17,433 the previous week. The S&P/TSX Venture Composite Index closed up at 896.71 from 875.36 a week ago.

Summary:

  • Number of financings remained at 24.

  • One brokered financing was announced this week for $30m, a 4-week high.

  • One bought-deal financing was announced this week for $30m, a 4-week high.

  • Total dollars increased to $70.6m, a 3-week high.

  • Average offer heightened to $2.9m, a 3-week high.

Major Financing Openings:

  • Bear Creek Mining Corporation (TSX-V:BCM) opened a $30 million offering underwritten by a syndicate led by Stifel GMP on a bought deal basis. The deal is expected to close on or about February 15, 2021.

  • Aurcana Silver Corp. (TSX-V:AUN) opened a $15 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 36 months.

  • Rock Tech Lithium Inc. (TSX-V:RCK) opened a $8 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months.

  • Arizona Metals Corp. (TSX-V:AMC) opened a $5 million offering on a best efforts basis.    

Major Financing Closings:

  • Eloro Resources Ltd. (TSX-V:ELO) closed a $6.33 million offering underwritten by a syndicate led by Haywood Securities Inc. on a bought deal basis.  Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about December 30, 2020.

  • Rokmaster Resources Corp. (TSX-V:RKR) closed a $3.27 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months.

  • Hornby Bay Mineral Exploration Ltd. (TSX-V:HBE) closed a $3.24 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 36 months.

  • Canex Metals Inc. (TSX-V:CANX) closed a $1.7 million offering on a best efforts 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.