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Oreninc index up as average offer size increase

Commentaries & Views

Last Week: 54.90 (Updated)

This week: 57.04

The Oreninc Index increased in the trading week ending March 12th, 2021 to 57.04 from 54.90 a week ago as the average offer size increased.  

On to the money: the aggregate financings announced decreased to $85.6 million, a 9-week low, with 5 new brokered financings and 4 new bought-deal financings announced. The average offer size increased to $3.7 million, a 2-week high, and the number of financings decreased to 23.

Gold closed the week higher at $1,719/oz from $1,698/oz a week ago. The US dollar index closed lower at 91.68 from 91.98 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week higher at $47.10 from $45.34 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week higher at 271.11 from 261.89 last week.The SPDR GLD ETF inventory closed the week down at 1,052.07 tonnes, or 34.82 million ounces, from 1,069.26 tonnes last week.

In other commodities, Silver closed the week higher at $25.91/oz from $25.28/oz a week ago. Copper closed higher at $4.14/lb from $4.07/lb a week ago. Oil went higher as WTI closed down at $65.61 a barrel from $66.50 a barrel a week ago.

The Dow Jones Industrial Average closed up at 32,778 from 31,496 a week ago. Canada’s S&P/TSX Composite Index closed down at 18,380 from 18,380 the previous week. The S&P/TSX Venture Composite Index closed up at 918.36 from 982.23 a week ago.

Summary:

  • Number of financings decreased to 23.

  • Five brokered financings were announced this week for $63m, a 2-week high.

  • Four bought-deal financings were announced this week for $48m, a 2-week high.

  • Total dollars decreased to $85.6m, a 9-week low.

  • Average offer upped to $3.7m, a 2-week high.

Major Financing Openings:

  • Sabina Gold & Silver Corp. (TSX:SBB) opened a $35 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 March 16, 2021.

  • Battery Mineral Resources Corp. (TSX-V:BMR) opened a $15 million offering underwritten by a syndicate led by Red Cloud Securities Inc. on a best efforts basis.    The deal is expected to close on or about March 31, 2021.

  • Northwest Copper Corp. (TSX-V:NWST) opened a $13.01 million offering underwritten by a syndicate led by PI Financial Corp. on a bought deal basis.    The deal is expected to close on or about March 30, 2021.

  • Canuc Resources Corp. (TSX-V:CDA) opened a $3.07 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months.

Major Financing Closings:

  • Treasury Metals Inc. (TSX:TML) closed a $17.55 million offering underwritten by a syndicate led by Haywood Securities Inc. on a best efforts basis.    The deal is expected to close on or about March 10, 2021.

  • Vangold Mining Corp. (TSX-V:VAN) closed a $16.95 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months.

  • EnCore Energy Corp. (TSX-V:EU) closed a $15 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months. The deal is expected to close on or about March 2, 2021.

  • Skeena Resources Limited (TSX-V:SKE) closed a $12.77 million offering on a best efforts basis. The deal is expected to close on or about March 24, 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.