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Oreninc index moving upwards to healthy levels

Commentaries & Views

Last Week: 60.93

This week: 89.45

The Oreninc Index increased in the trading week ending February 12th, 2021 to 89.45 from 60.93 a week ago as financing activity picked up, and the index slowly but surely is moving back to the ‘healthy’ 100 level.

On to the money: the aggregate financings announced increased to $259.6 million, a 3-week high, with 11 new brokered financings and 10 new bought-deal financings announced. The average offer size decreased to $2.6 million, a 2-week  low, and the number of financings decreased to 35.

Gold closed the week slightly higher at $1,823/oz from $1,813/oz a week ago. The US dollar index closed lower at 90.48 from 91.54 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week down at $50.25 from $50.37 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week lower at 284.29 from 286.63 last week. The SPDR GLD ETF inventory closed the week down at 1,143.22 tonnes, or 37.72 million ounces, from 1,156.51 tonnes last week.

In other commodities, Silver closed the week higher at $27.32/oz from $27.01/oz a week ago. Copper closed the week at $3.78/lb from $3.62/lb a week ago. Oil went higher as WTI closed up at $59.47 a barrel from $56.85 a barrel a week ago.

The Dow Jones Industrial Average closed up at 31,458 from 31,148 a week ago. Canada’s S&P/TSX Composite Index closed up at 18,460 from 18,135 the previous week. The S&P/TSX Venture Composite Index closed down at 1067.44 from 1022.64 a week ago.

Summary:

  • Number of financings decreased to 35.

  • Eleven brokered financings were announced this week for $149.4m, a 3-week high.

  • Ten bought-deal financings were announced this week for $134.4m, a 3-week high.

  • Total dollars increased to $259.6m, a 3-week high.

  • Average offer upped to $7.4m, a 3-week high.

Major Financing Openings:

  • Denison Mines Corp. (TSX:DML) opened a $31.91 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada Corp. (CFCC) 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 February 19, 2021.

  • Gold Standard Ventures Corp. (TSX:GSV) opened a $30 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. The deal is expected to close on or about February 17, 2021.

  • Tanzanian Gold Corp. (TSX:TNX) opened a $27.31 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 60 months. The deal is expected to close on or about February 11, 2021.

  • Excelsior Mining Corp. (TSX-V:MIN) opened a $20 million offering underwritten by a syndicate led by Scotiabank on a bought deal basis.  Each unit includes 1 warrant that expires in 18 months. The deal is expected to close on or about February 22, 2021.

Major Financing Closings:

  • Osisko Development Corp. (TSX-V:ODV) closed a $79.73 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about January 29, 2021.

  • Millennial Lithium Corp. (TSX-V:ML) closed a $34.5 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada Corp. on a bought deal basis.    The deal is expected to close on or about February 11, 2021.

  • Neo Lithium Corp. (TSX-V:NLC) closed a $30.2 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 10, 2021.
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.