Make Kitco Your Homepage

Oreninc index up with precious metals rising

Commentaries & Views

Last Week: 55.07

This week: 65.45

The Oreninc Index increased in the trading week ending April 9th, 2021 to 65.45 from 55.07 a week ago with gold & silver on the rise.

On to the money: the aggregate financings announced decreased to $108 million, a 5-week low, with 6 new brokered financings and 4 new bought-deal financings announced. The average offer size decreased to $4.7 million, a 2-week high, and the number of financings decreased to 20.

Gold closed the week higher at $1,743/oz from $1,726/oz a week ago. The US dollar index closed lower at 92.18 from 92.93 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week higher at $48.65 from $46.72 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week higher at 283.08 from 276.39 last week. The SPDR GLD ETF inventory closed the week down at 1,026.07 tonnes, or 32.98 million ounces, from 1,032.83 tonnes last week.

In other commodities, Silver closed the week higher at $25.32/oz from $24.94/oz a week ago. Copper closed up at $4.04/lb from $3.99/lb a week ago. Oil went higher as WTI closed down at $59.32 a barrel from $61.45 a barrel a week ago.

The Dow Jones Industrial Average closed up at 33,800 from 33,152 a week ago. Canada’s S&P/TSX Composite Index closed up at 19,288 from 18,990 the previous week. The S&P/TSX Venture Composite Index closed lower at 959.37 from 960.84 a week ago.

Summary:

  • Number of financings increased to 23.

  • Six brokered financings were announced this week for $64.5m, a 5-week low.

  • Four bought-deal financing were announced this week for $58m, a 1-week high.

  • Total dollars decreased to $108m, a 5-week low.

  • Average offer lowered to $4.7m, a 2-week low.

Major Financing Openings:

  • Prime Mining crop. (TSX.V: PRYM) opened a $25 million offering underwritten by a syndicate led by Desjardins Capital Markets on a bought deal basis.  Each unit includes a 1/2 warrant that expires in 36 months. The deal is expected to close on or about April 27, 2021.

  • P2 Gold Inc. (TSX-V:PGLD) opened a $16 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months.

  • Arizona Metals Corp. (TSX-V:AMC) opened a $15.02 million offering underwritten by a syndicate led by Stifel GMP on a bought deal basis. The deal is expected to close on or about April 22, 2021.

  • Pure Gold Mining Inc. (TSX-V:PGM) opened a $10 million offering underwritten by a syndicate led by Clarus Securities Inc. on a bought deal basis. The deal is expected to close on or about May 5, 2021.

Major Financing Closings:

  • Bonterra Resources Inc. (TSX-V:BTR) closed a $17.47 million offering underwritten by a syndicate led by Cormark Securities Inc. on a best efforts basis.    

  • FPX Nickel Corp. (TSX-V:FPX) closed a $16.1 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 April 7, 2021.

  • Roscan Gold Corp. (TSX-V:ROS) closed 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) closed a $15 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.