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Oreninc index back to healthy level amidst precious metals pullback

Commentaries & Views

Last Week: 93.72

This week: 117.52

The Oreninc Index increased in the trading week ending February 26th, 2021 to 117.52 from 93.72 a week ago as the index moved back to healthy levels amidst the precious metals pullback.

On to the money: the aggregate financings announced increased to $336.8 million, a 5-week high, with 11 new brokered financings and 6 new bought-deal financings announced. The average offer size increased to $6.5 million, a 2-week high, and the number of financings increased to 52.

Gold closed the week lower at $1,728/oz from $1,777/oz a week ago. The US dollar index closed higher at 90.88 from 90.36 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week down at $45.76 from $47.54 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week lower at 250.16 from 263.56 last week.The SPDR GLD ETF inventory closed the week down at 1,093.54 tonnes, or 35.15 million ounces, from 1,127.64 tonnes last week.

In other commodities, Silver closed the week lower at $26.44/oz from $27.25/oz a week ago. Copper closed the week at $4.09/lb from $4.07/lb a week ago. Oil went higher as WTI closed down at $61.50 a barrel from $59.24 a barrel a week ago.

The Dow Jones Industrial Average closed up at 30,932 from 31,494 a week ago. Canada’s S&P/TSX Composite Index closed down at 18,060 from 18,384 the previous week. The S&P/TSX Venture Composite Index closed up at 1098.56 from 1067.44 a week ago.

Summary:

  • Number of financings increased to 52.

  • Eleven brokered financings were announced this week for $203m, a 5-week high.

  • Six bought-deal financings were announced this week for $53.5m, a 3-week low.

  • Total dollars increased to $336.8m, a 5-week high.

  • Average offer heightened to 6.5m, a 2-week high.

Major Financing Openings:

  • Premier Gold Mines Limited (TSX:PG) opened a $88.4 million offering underwritten by a syndicate led by CIBC Capital Markets on a best efforts basis.    The deal is expected to close on or about March 15, 2021.

  • Marimaca Copper Corp. (TSX:MARI) opened a $30.95 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 21 months. The deal is expected to close on or about February 24, 2021.

  • Talon Metals Corp. (TSX:TLO) opened a $30 million offering underwritten by a syndicate led by TD Securities Inc. on a bought deal basis.  Each unit includes a 1/2 warrant that expires in 12 months. The deal is expected to close on or about March 18, 2021.

  • Sierra Madre Developments Inc. (TSX-V:SMG) opened a $25 million offering underwritten by a syndicate led by Eventus Capital Corp. on a best efforts basis.    

Major Financing Closings:

  • Great Bear Resources Ltd. (TSX-V:GBR) closed a $69.98 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis.    The deal is expected to close on or about February 18, 2021.

  • Denison Mines Corp. (TSX:DML) closed a $36.69 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.

  • O3 Mining Inc. (TSX.V:OIII) closed a $35 million offering underwritten by a syndicate led by Sprott Capital Partners LP on a bought deal basis.    The deal is expected to close on or about February 25, 2021.

  • Horizonte Minerals plc (TSX:HZM) closed a $31.7 million offering underwritten by a syndicate led by Paradigm Capital Inc. on a bought deal basis. The deal is expected to close on or about March 9, 2021.
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