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Oreninc index down while average offer increased

Commentaries & Views

Last Week: 75.57 (Updated)

This week: 55.07

The Oreninc Index decreased in the trading week ending April 1st, 2021 to 55.07 from 75.57 a week ago while the average offer increased to $5.8m, a 2-week high.

On to the money: the aggregate financings announced decreased to $115 million, a 4-week low, with 3 new brokered financings and 1 new bought-deal financings announced. The average offer size increased to $5.8 million, a 2-week high, and the number of financings decreased to 20.

Gold closed the week lower at $1,726/oz from $1,732/oz a week ago. The US dollar index closed higher at 92.93 from 92.77 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week lower at $46.72 from $45.93 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week down at 276.39 from 268.14 last week.The SPDR GLD ETF inventory closed the week down at 1,032.83 tonnes, or 33.20 million ounces, from 1,036.62 tonnes last week.

In other commodities, Silver closed the week lower at $24.94/oz from $25.14/oz a week ago. Copper closed down at $3.99/lb from $4.06/lb a week ago. Oil went higher as WTI closed down at $61.45 a barrel from $60.97 a barrel a week ago.

The Dow Jones Industrial Average closed up at 33,152 from 33,072 a week ago. Canada’s S&P/TSX Composite Index closed up at 18,990 from 18,752 the previous week. The S&P/TSX Venture Composite Index closed higher at 960.84 from 943.29 a week ago.

Summary:

  • Number of financings decreased to 20.

  • Three brokered financings were announced this week for $71m, a 4-week low.

  • One bought-deal financing was announced this week for $55m, a 4-week low.

  • Total dollars decreased to $115m, a 4-week low.

  • Average offer increased to $5.8m, a 2-week high.

Major Financing Openings:

  • Ascot Resources Ltd. (TSX-V:AOT) opened a $55 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 April 9, 2021.

  • Argonaut Gold Inc. (TSX:AR) opened a $10 million offering on a best efforts basis.   

  • Pasofino Gold Ltd. (TSX-V:VEIN) opened a $8.5 million offering underwritten by a syndicate led by Stifel GMP on a best efforts basis.    

  • Giga Metals Corp. (TSX-V:GIGA) opened a $7.5 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada Corp. on a best efforts basis.    

Major Financing Closings:

  • Eloro Resources Ltd. (TSX-V:ELO) closed a $25.01 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.

  • Northwest Copper Corp. (TSX-V:NWST) closed 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.

  • Orca Gold Inc. (TSX-V:ORG) closed a $10.81 million offering on a best efforts basis.

  • Telson Mining Corp. (TSX-V:TSN) closed a $10.08 million offering on a best efforts basis.
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.