Oreninc Index: December 23, 2019

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ORENINC INDEX up as financings increase

 

ORENINC INDEX – Monday, December 23rd 2019

North America’s leading junior mining finance data provider

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Last Week: 44.85 (updated)

This week: 51.17

The Oreninc Index increased in the week ending December 20th, 2019 to 51.17 from an updated 44.85 a week ago as financings increased.

US President Donald Trump was impeached by the House of Representatives on two charges, which means he will face a Senate trial in early 2020, however with a Republican majority in the Senate, it is more than likely he will be acquitted. In the meantime, Democrats claim that his impeachment is a matter of urgent national interest and losing force given House Speaker Nancy Pelosi’s delay in handing the case to the Senate.

In the UK, riding high on his landslide election victory the previous week, prime minister Boris Johnson saw his European Union withdrawal bill pass with a majority of 124 in the House of Commons. The UK departure is now likely to happen at the end of January.

Elsewhere in Europe, Sweden’s central bank ended a decade of negative rates by increasing its key borrowing cost to 0%.

As trade tensions seemingly continue to thaw between the US and China, the Asian nation announced a one-year tariff exemption for imports from the US on six items including chemical products, lubricants and plastics.

On to the money: total fund raises announced increased to $71.6 million, a two-week high, which included one brokered financing for $6.8 million, a one-week low, and two bought-deal financings for $10.0 million, a two-week high. The average offer size increased to $1.7 million, a two-week high, while the number of financings increased to 41.

Gold continued its slow and steady increase as the spot price closed up at US$1,481/oz from $1,476/oz a week ago. The yellow metal is up 15.53% so far this year. The US dollar index closed the week up at 97.69 from 97.17 last week. The VanEck managed GDXJ closed down at US$38.31 from $39.33 a week ago. The index is now up 27.31% so far in 2019. The US Global Go Gold ETF closed down at US$15.94 from $16.31 a week ago. It is up 39.94% so far in 2019. The HUI Arca Gold BUGS Index closed down at 219.47 from 225.74 last week. The SPDR GLD ETF saw its inventory sell down early in the week and then recover to close down at 885.93 tonnes from 886.22 tonnes a week ago.

In other commodities, silver closed up at US$17.20/oz from $16.93/oz a week ago. The copper price saw growth again as it closed up at US$2.80/lb from $2.78/lb last week. The oil price also gained as WTI closed up at US$60.44 a barrel from $60.07 a barrel a week ago.

The Dow Jones Industrial Average closed up again at 28,455 from 28,135 a week ago. Canada’s S&P/TSX Composite Index also closed up at 17,118 from 17,003 the previous week. The S&P/TSX Venture Composite Index closed up again at 548.84 from 540.53 last week.

 

Summary

  • Number of financings increased to 41.
  • One brokered financing was announced this week for $6.8, a one-week low.
  • Two bought-deal financings were announced this week for $10.0 million, a two-week high.
  • Total dollars heightened to $71.6 million, a two-week high.
  • Average offer augmented to $1.7 million, a two-week high.

 

Financing Highlights

  • Tinka Resources (TSXV:TK) announced a strategic deal for C$16.0 million
  • Investment by NYSE-listed precious and base metals miner Compañia de Minas Buenaventura. Buenaventura will hold about 19.9% of Tinka.
  • 65.8 million shares @ C$0.243, an 83% premium to Tinka’s three-month VWAP. 
  • 24-month equity lock-up.
  • Proceeds will be used for the development of the Ayawilca zinc-based metals project in Peru.

Major Financing Openings

  • Tinka Resources (TSXV:TK) opened a $16.0 million offering on a strategic deal basis.    
  • Wallbridge Mining (TSX:WM) opened a $7.86 million offering on a best efforts basis.  
  • Regulus Resources (TSXV:REG) opened a $6.8 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. Each unit includes half a warrant that expires in two years. The deal is expected to close on or about December 27th.
  • Balmoral Resources (TSX:BAR) opened a $4.55 million offering on a best efforts basis. The deal is expected to close on or about December 27th.

Major Financing Closings

  • Return Energy (TSXV:RTN) closed a $25.0 million offering on a best efforts basis. Each unit included a warrant that expires in five years.
  • Skeena Resources (TSXV:SKE) closed a $16.0 million offering on a best efforts basis. 
  • Luminex Resources (TSXV:LR) closed a $10.0 million offering on a best efforts basis.
  • Lumina Gold (TSXV:LUM) closed a $9.0 million offering on a best efforts basis.

 

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