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Oreninc index lower as average offer rises

Commentaries & Views

Last Week: 47.22 (Updated)

This week: 46.37

The Oreninc Index decreased in the trading week ending September 10th, 2021 to 46.37 from 47.22 a week ago as the average offer rises to $4.7m.   

On to the money: the aggregate financings announced decreased to $61.6 million, a 3-week low, with 5 new brokered financings and 1 new bought-deal financings announced. The average offer size increased to $4.7 million, a 3-week low, and the number of financings decreased to 13.

Gold closed the week down at $1,792/oz from $1,833/oz a week ago. The US dollar index closed up at 92.64 from 92.04 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week lower at $41.60 from $43.98 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week lower at 243.23 from 258.13 last week. The SPDR GLD ETF inventory closed the week lower at 998.17 tonnes, or 32.09 million ounces, from 998.52 tonnes last week.

In other commodities, Silver closed the week lower at $23.90/oz from $24.80/oz a week ago. Copper closed higher at $4.45/lb from $4.34/lb a week ago. Oil went higher as WTI closed higher at $69.72 a barrel from $69.29 a barrel a week ago.

The Dow Jones Industrial Average closed lower at 34,607 from 35,369 a week ago. Canada’s S&P/TSX Composite Index closed lower at 20,633 from 20,821 the previous week. The S&P/TSX Venture Composite Index closed higher at 903.35 from 923.22 a week ago.

Summary:

  • Number of financings decreased to 13.

  • Five brokered financing were announced this week for $39m, a 2-week high.

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

  • Total dollars lessened to $61.6m, a 4-week low.

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

Major Financing Openings:

  • Pure Gold Mining Inc. (TSX-V:PGM) opened a $20 million offering underwritten by a syndicate led by National Bank Financial Inc. 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 September 28, 2021.

  • Garibaldi Resources Corp. (TSX-V:GGI) opened a $12 million offering underwritten by a syndicate led by Alumina Partners (Ontario) Ltd. on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months.

  • Skeena Resources Limited (TSX-V:SKE) opened a $7 million offering on a best efforts basis.    The deal is expected to close on or about September 17, 2021.

  • Fission 3.0 Corp. (TSX-V:FUU) opened a $7 million offering underwritten by a syndicate led by Red Cloud Securities Inc. on a best efforts basis.    The deal is expected to close on or about September 29, 2021.

Major Financing Closings:

  • UEX Corp. (TSX-V:UEX) closed a $21.16 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 36 months. The deal is expected to close on or about September 7, 2021.

  • First Cobalt Corp. (TSX-V:FCC) closed a $9.5 million offering underwritten by a syndicate led by BMO Capital Markets on a best efforts basis.    The deal is expected to close on or about September 1st, 2021.

  • St James Gold Corp. (TSX-V:LORD) closed a $4.02 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a best efforts basis.  Each unit includes 1 warrant that expires in 36 months. The deal is expected to close on or about September 9, 2021.

  • Lucky Minerals Inc. (TSX-V:LJ) closed a $3.5 million offering on a best efforts basis.
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