Oreninc Index Shows Signs of Life
The Oreninc Index feigned life for the week ending October 29, 2015. Total dollars announced rose to $42.4m. Two brokered financings were announced for $33.7m, a six-week high; one bought deal financing was announced for $33.2m, also a six-week high. However total deals announced dropped to a 12-week low
Deal making was very light for the week, with Cyprium Mining Corp. (TSX-V:CUG) closing an acquisition of a 53% controlling interest in a joint venture in the Potosi silver mine in Mexico. The joint venture will have a term of 20 years and will be carried out through Cypval Mining SAPI de CV, a Mexico-based private company. The gold price fell sharply for the week on news that the US federal reserve intends to keep interest rates the same and are more likely to raise rates in December. Iron ore also had a rough week, falling below $50 a tonne.
While the Index was up for the week, the drop in the price of key commodities and the lack of any substantial deals continue the narrative that this has been a rough fall in the natural resources space. Still, it is good to see broker participation, although more is needed before we can really feel like they are back with any force.
