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Oreninc index flat as financings increase

Commentaries & Views

Last Week: 61.43

This week: 58.76

The Oreninc Index decreased in the trading week ending April 23rd, 2021 to 58.76 from 61.43 a week ago as the number of financings increased.

On to the money: the aggregate financings announced decreased to $129 million, a 2-week low, with 3 new brokered financings and 1 new bought-deal financings announced. The average offer size decreased to $3.8 million, a 7-week low, and the number of financings increased to 34.

Gold closed the week lower at $1,777/oz from $1,779/oz a week ago. The US dollar index closed lower at 91.56 from 90.86 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week lower at $49.69 from $50.32 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week lower at 292.05 from 290.34 last week.The SPDR GLD ETF inventory closed the week down at 1,019.66 tonnes, or 32.78 million ounces, from 1,026.07 tonnes last week.

In other commodities, Silver closed the week lower at $26.07/oz from $26.10/oz a week ago. Copper closed up at $4.34/lb from $4.16/lb a week ago. Oil went higher as WTI closed down at $62.14 a barrel from $63.13 a barrel a week ago.

The Dow Jones Industrial Average closed down at 34,043 from 34,200 a week ago. Canada’s S&P/TSX Composite Index closed down at 19,102 from 19,351 the previous week. The S&P/TSX Venture Composite Index closed lower at 930.63 from 944.46 a week ago.

Summary:

  • Number of financings increased to 34.

  • Three brokered financings were announced this week for $33.5m, a 12-week low.

  • One bought-deal financing was announced this week for $25m, a 2-week high.

  • Total dollars decreased to $129m, a 2-week low.

  • Average offer lowered to $3.8m, a 7-week low.

Major Financing Openings:

  • GoGold Resources Inc. (TSX:GGD) opened a $25 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 May 7, 2021.

  • Gold Springs Resource Corp. (TSX:GRC) opened a $24.9 million offering on a best efforts basis.    

  • Luminex Resources Corp. (TSX-V:LR) opened a $10 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 May 12, 2021.

  • Labrador Gold Corp. (TSX-V:LAB) opened a $9.8 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.

Major Financing Closings:

  • Josemaria Resources Inc. (TSX:JOSE) closed a $52 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 19, 2021.

  • Arizona Metals Corp. (TSX-V:AMC) closed a $21 million offering underwritten by a syndicate led by Stifel GMP on a bought deal basis.  Each unit includes a 1/2 warrant that expires in 12 months. The deal is expected to close on or about April 22, 2021.

  • Ascot Resources Ltd. (TSX-V:AOT) closed a $20.64 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 20, 2021.

  • Oro X Mining Corp. (TSX-V:OROX) closed a $14.19 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.