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Oreninc index higher as financing appetite picks up

Commentaries & Views

Last Week: 63.64

This week: 84.75

The Oreninc Index increased in the trading week ending June 11th, 2021 to 84.75 from 63.64 a week ago as financing appetite picks up.

On to the money: the aggregate financings announced increased to $176 million, a 2-week high, with 15 new brokered financings and 11 new bought-deal financing announced. The average offer size increased to $4.8 million, a 2-week high, and the number of financings remained unchanged at 37.

Gold closed the week lower at $1,879/oz from $1,892/oz a week ago. The US dollar index closed higher at 90.56 from 90.14 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week lower at $53.21 from $53.68 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week lower at 307.37 from 313.18 last week.The SPDR GLD ETF inventory closed the week lower at 1,043.16 tonnes, or 33.53 million ounces, from 1,043.21 tonnes last week.

In other commodities, Silver closed the week higher at $28.14/oz from $27.89/oz a week ago. Copper closed down at $4.52/lb from $4.53/lb a week ago. Oil went higher as WTI closed higher at $70.21 a barrel from $69.72 a barrel a week ago.

The Dow Jones Industrial Average closed lower at 34,479 from 34,756 a week ago. Canada’s S&P/TSX Composite Index closed up at 20,029 from 20,138 the previous week. The S&P/TSX Venture Composite Index closed higher at 979.70 from 978.01 a week ago.

Summary:

  • Number of financings remain as 37.

  • Fifteen brokered financings were announced this week for $136m, a 12-week high.

  • Eleven bought-deal financing were announced this week for $87m, a 12-week high.

  • Total dollars increased to $176m, a 2-week high.

  • Average offer heightened to $4.8m, a 2-week high.

Major Financing Openings:

  • Apollo Gold Corp. (TSX-V:APGO) opened a $40 million offering underwritten by a syndicate led by Eight Capital on a best efforts basis.

  • Troilus Gold Corp. (TSX-V:TLG) opened a $35 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis.  Each unit includes a 1/2 warrant that expires in 24 months.

  • Nighthawk Gold Corp. (TSX-V:NHK) opened a $20 million offering underwritten by a syndicate led by Sprott Capital Partners 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 July 7, 2021.

  • Thesis Gold Inc. (TSX-V:TAU) opened a $12 million offering on a best efforts basis.    The deal is expected to close on or about June 29, 2021.

Major Financing Closings:

  • Rupert Resources Ltd. (TSX-V:RUP) closed a $48.65 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 June 4, 2021.

  • Saturn Oil & Gas Inc. (TSX-V:SOIL) closed a $32.2 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months. The deal is expected to close on or about May 31, 2021.

  • Alexco Resource Corp. (TSX:AXR) closed a $28.75 million offering underwritten by a syndicate on a bought deal basis.    The deal is expected to close on or about June 10, 2021.

  • Royal Helium Ltd. (TSXV: RHC) closed a $17.25 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis. The deal is expected to close on or about June 8, 2021.
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