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Oreninc index back to healthy levels as metals continue to grind higher

Commentaries & Views

Last Week: 74.80

This week: 101.92

The Oreninc Index increased in the trading week ending May 28th, 2021 to 101.92 from 74.80 a week ago moving back to healthy levels as metals continue to grind higher.

On to the money: the aggregate financings announced increased to $249 million, a 2-week high, with 8 new brokered financings and 4 new bought-deal financing announced. The average offer size increased to $6.7 million, a 2-week high, and the number of financings remained unchanged at 37.

Gold closed the week higher at $1,906/oz from $1,881/oz a week ago. The US dollar index closed higher at 90.09 from 90.02 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week higher at $54.71 from $53.87 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week lower at 318.83 from 320.20 last week.The SPDR GLD ETF inventory closed the week lower at 1,043.21 tonnes, or 33.54 million ounces, from 1,044.08 tonnes last week.

In other commodities, Silver closed the week higher at $28.14/oz from $27.48/oz a week ago. Copper closed up at $4.67/lb from $4.48/lb a week ago. Oil went higher as WTI closed higher at $66.32 a barrel from $63.58 a barrel a week ago.

The Dow Jones Industrial Average closed higher at 34,529 from 34,207 a week ago. Canada’s S&P/TSX Composite Index closed up at 19,774 from 19,527 the previous week. The S&P/TSX Venture Composite Index closed higher at 966.39 from 957.20 a week ago.

Summary:

  • Number of financings remain as 37.

  • Eight brokered financings were announced this week for $99m, a 2-week high.

  • Four bought-deal financing were announced this week for $85m, a 2-week high.

  • Total dollars increased to $249m, a 2-week high.

  • Average offer heightened to $6.7m, a 2-week high.

Major Financing Openings:

  • Foran Mining Corp. (TSX-V:FOM) opened a $100 million offering on a best efforts basis.    

  • Vizsla Resources Corp. (TSX-V:VZLA) opened a $60 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis.  Each unit includes a 1/2 warrant that expires in 18 months. The deal is expected to close on or about June 6, 2021.

  • Sable Resources Ltd (TSX:SAE) opened a $10 million offering underwritten by a syndicate led by Sprott Capital Partners LP on a bought deal basis.    The deal is expected to close on or about June 15, 2021.

  • Southern Silver Exploration Corp. (TSX-V:SSV) opened a $9 million offering underwritten by a syndicate led by Red Cloud Securities Inc. on a bought deal basis.  Each unit includes a 1/2 warrant that expires in 24 months.

Major Financing Closings:

  • Artemis Gold Inc. (TSX-V:ARTG) closed a $56.12 million offering on a best efforts basis.    The deal is expected to close on or about May 31, 2021.

  • Marathon Gold Corp. (TSX:MOZ) closed a $50.37 million offering on a best efforts basis.    The deal is expected to close on or about May 27, 2021.

  • Reconnaissance Energy Africa Ltd. (TSX-V:RECO) closed a $41.4 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 36 months. The deal is expected to close on or about May 26, 2021.

  • Copaur Minerals Inc. (TSX-V:CPAU) closed a $4.04 million offering on a best efforts basis.
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