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Oreninc index falls as precious metals continue to decline

Commentaries & Views

Last Week: 117.52

This week: 52.14

The Oreninc Index decreased in the trading week ending March 5th, 2021 to 52.14 from 117.52 a week ago as precious metals continue to decline.  

On to the money: the aggregate financings announced decreased to $95.9 million, a 5-week low, with 3 new brokered financings and 2 new bought-deal financings announced. The average offer size decreased to $3.4 million, a 4-week low, and the number of financings decreased to 28.

Gold closed the week lower at $1,698/oz from $1,728/oz a week ago. The US dollar index closed higher at 91.98 from 90.88 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week down at $45.34 from $45.76 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week higher at 261.89 from 250.16 last week.The SPDR GLD ETF inventory closed the week down at 1,069.26 tonnes, or 34.33 million ounces, from 1,093.54 tonnes last week.

In other commodities, Silver closed the week lower at $25.28/oz from $26.44/oz a week ago. Copper closed flat at $4.07/lb from $4.07/lb a week ago. Oil went higher as WTI closed down at $66.50 a barrel from $61.50 a barrel a week ago.

The Dow Jones Industrial Average closed up at 31,496 from 30,392 a week ago. Canada’s S&P/TSX Composite Index closed down at 18,380 from 18,060 the previous week. The S&P/TSX Venture Composite Index closed down at 918.36 from 1098.56 a week ago.

Summary:

  • Number of financings decreased to 28.

  • Three brokered financings were announced this week for $36.9m, a 4-week low.

  • Two bought-deal financings were announced this week for $22.9m, a 9-week low.

  • Total dollars decreased to $95.9m, a 5-week low.

  • Average offer lowered to $3.4m, a 4-week low.

Major Financing Openings:

  • Serabi Gold PLC (TSX:SBI) opened a $22.33 million offering on a best efforts basis.    

  • Oro X Mining Corp. (TSX-V:OROX) opened a $14 million offering underwritten by a syndicate led by Mines and Metals Trading (Peru) PLC on a best efforts basis. The deal is expected to close on or about March 31, 2021.

  • Eloro Resources Ltd. (TSX-V:ELO) opened a $12.9 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 March 26, 2021.

  • Santacruz Silver Mining Ltd. (TSX-V:SCZ) opened a $12 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 36 months. The deal is expected to close on or about March 22, 2021.

Major Financing Closings:

  • Marimaca Copper Corp. (TSX:MARI) closed 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.

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

  • Silver Tiger Metals Inc. (TSXV:SLVR) closed a $23 million offering underwritten by a syndicate led by Echelon Wealth Partners Inc. on a bought deal basis. The deal is expected to close on or about February 3, 2021.

  • Serabi Gold PLC (TSX:SBI) closed a $22.33 million offering on a best efforts basis.
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