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Oreninc index down as average offer increases to 8-week highs

Commentaries & Views

Last Week: 67.84

This week: 61.34

The Oreninc Index decreased in the trading week ending July 9th, 2021 to 61.34 from 67.84 a week ago as the average offer increased to 8-week highs.

On to the money: the aggregate financings announced increased to $191 million, a 6-week high, with 6 new brokered financings and 2 new bought-deal financings announced. The average offer size increased to $6.8 million, a 8-week high, and the number of financings decreased to 28.

Gold closed the week higher at $1,810/oz from $1,783/oz a week ago. The US dollar index closed lower at 92.13 from 92.23 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week down at $46.62 from $47.76 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week lower at 268.95 from 270.43 last week.The SPDR GLD ETF inventory closed the week lower at 1,040.19 tonnes, or 33.44 million ounces, from 1,042.58 tonnes last week.

In other commodities, Silver closed the week lower at $26.23/oz from $26.50/oz a week ago. Copper closed higher at $4.35/lb from $4.28/lb a week ago. Oil went higher as WTI closed higher at $74.65 a barrel from $74.16 a barrel a week ago.

The Dow Jones Industrial Average closed higher at 34,870 from 34,786 a week ago. Canada’s S&P/TSX Composite Index closed higher at 20,257 from 20,226 the previous week. The S&P/TSX Venture Composite Index closed lower at 938.47 from 968.39 a week ago.

Summary:

  • Number of financings decreased to 28.

  • Six brokered financings were announced this week for $42m, a 2-week high.

  • Two bought-deal financing were announced this week for $20m, a 2-week high.

  • Total dollars increased to $191m, a 6-week high.

  • Average offer heightened to $6.8m, a 8-week high.

Major Financing Openings:

  • McEwen Mining Inc. (TSX:MUX) opened a $98.57 million offering on a best efforts basis.    The deal is expected to close on or about July 30, 2021.

  • Focus Graphite Inc. (TSX-V:FMS) opened a $12 million offering on a best efforts basis.    Canada Nickel Company Inc. (TSX-V:CNC) opened a $10 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada Corp. on a bought deal basis. The deal is expected to close on or about July 27, 2021.

  • Black Iron Inc. (TSX:BKI) opened a $10 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a best efforts basis. The deal is expected to close on or about July 20, 2021.

Major Financing Closings:

  • Apollo Gold Corp. (TSX-V:APGO) closed a $52.9 million offering underwritten by a syndicate led by Eight Capital on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about June 25, 2021.

  • Nighthawk Gold Corp. (TSX-V:NHK) closed a $27.01 million offering underwritten by a syndicate led by Sprott Capital Partners on a bought deal basis.    The deal is expected to close on or about July 7, 2021.

  • Cabral Gold Inc. (TSX-V:CBR) closed a $11.5 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. The deal is expected to close on or about June 29, 2021.

  • Major Precious Metals Corp. (CSE:SIZE) closed a $8.5 million offering on a best efforts basis.
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