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Oreninc index near healthy levels as financings increase

Commentaries & Views

Last Week: 57.04

This week: 99.56

The Oreninc Index increased in the trading week ending March 19th, 2021 to 99.56 from 54.90 a week ago as the number of financings increased.

On to the money: the aggregate financings announced increased to $265 million, a 3-week high, with 13 new brokered financings and 6 new bought-deal financings announced. The average offer size increased to $6.8 million, a 3-week high, and the number of financings increased to 39.

Gold closed the week higher at $1,741/oz from $1,719/oz a week ago. The US dollar index closed higher at 91.92 from 91.68 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week higher at $48.57 from $47.10 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week higher at 279.29 from 271.11 last week.The SPDR GLD ETF inventory closed the week down at 1,051.78 tonnes, or 33.81 million ounces, from 1,052.07 tonnes last week.

In other commodities, Silver closed the week higher at $26.32/oz from $25.91/oz a week ago. Copper closed down at $4.11/lb from $4.14/lb a week ago. Oil went higher as WTI closed down at $61.42 a barrel from $65.61 a barrel a week ago.

The Dow Jones Industrial Average closed down at 32,627 from 32,778 a week ago. Canada’s S&P/TSX Composite Index closed up at 18,845 from 18,380 the previous week. The S&P/TSX Venture Composite Index closed up at 995.80 from 918.36 a week ago.

Summary:

  • Number of financings increased to 39.

  • Thirteen brokered financings were announced this week for $200m, a 3-week high.

  • Six bought-deal financings were announced this week for $150m, an 8-week high.

  • Total dollars increased to $265m, a 3-week high.

  • Average offer upped to $6.8m, a 3-week high.

Major Financing Openings:

  • Denison Mines Corp. (TSX:DML) opened a $95.48 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 March 22, 2021.

  • Leucrotta Exploration Inc. (TSX-V:LXE) opened a $21.5 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.

  • Roscan Gold Corp. (TSX-V:ROS) opened a $15 million offering underwritten by a syndicate led by Clarus Securities Inc. on a best efforts basis.    

  • New Found Gold Corp. (TSX-V:NFG) opened a $15 million offering on a best efforts basis.    

Major Financing Closings:

  • Premier Gold Mines Limited (TSX:PG) closed a $80.38 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 16, 2021.

  • Spartan Delta Corp. (TSX-V:RTN) closed a $50.4 million offering on a best efforts basis.    

  • Sabina Gold & Silver Corp. (TSX:SBB) closed a $35.1 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.

  • Talon Metals Corp. (TSX:TLO) closed a $34.5 million offering underwritten by a syndicate led by TD Securities Inc. on a bought deal basis. The deal is expected to close on or about March 18, 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.