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Oreninc Index Jumps to Five-Week High

The Oreninc Index jumped to a five-week high for the week ending May 14, 2015. Total dollars announced exploded to $243.7m, a 30-week high. Five brokered financings were announced for $106.1m, a five-week high; Two bought deals were announced for $69m, also a five-week high.

Deal-making was relatively quiet this week, with Crocodile Gold (TSX:CRK) and Newmarket Gold Inc. (TSX-V:NGN) agreeing to merge to form a new mid-tier gold producer being the largest of note. Crocodile and Newmarket shareholders will own 80% and 12% stakes in NewCo respectively (the remaining 8% will be sold in a corresponding private placement). Iron ore continued its rise, and gold had a fantastic week, ending the period well above the $1,200 level.

Although deal-making dropped off a bit this week, the Index’s solid performance over the previous three weeks, mixed with gold and iron ore prices, is a positive way to head into the generally quieter summer months.

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 Oreninc Index Stays Level

The Oreninc Index stayed level for the week ending May 7, 2015. Total dollars announced increased to $92.7m, a four-week high. Four brokered deals were announced for $76.9m, a four-week low; three bought deals were announced for $26.9m, a two-week low.

The most significant deal-making news of the week was already expected, with BHP Billton Ltd. (NYSE:BBL) shareholders voting in favor of a proposed spin-out of a portion of the Australian miner’s assets into a new BHP shareholder-owned company, South32, which will be listed in Austalia, South America and London later this month. Iron ore continued its rise, reaching above $60 per tonne for the first time in nine weeks.

Easily the most encouraging part of the week was iron ore’s continued rise after such a rough period for the base metal. Obviously, seeing the increased Index level and continued broker support is also nice, but it will take a couple more weeks of good financing numbers before any real optimism can really be gleaned from it.

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Oreninc Index Leaps to Three-Week High

The Oreninc Index leapt to a three-week high for the week ending April 30, 2015. Total dollars announced increased to $74.9m, a three-week high. Twelve brokered financings were announced for $56.5m, a three-week high; four bought-deal financings were announced for $35m, a three-week high.

Deal-making slowed for the week, the only real deal of note being Newmont Mining Corporation’s (NYSE:NEM) sale of their Waihi gold mining operation in New Zealand to OceanaGold Corporation (TSX:OGC) for USD $106m. Commodities for the week were mixed, with iron ore having yet another strong week and gold fluctuating wildly but ending the week well below the all-important $1,200 level.

It’s nice to see the Index have a good performance after a couple of disappointing weeks, especially with summer approaching quickly and with it the end of the financing season. 

 

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On April 27th, Benjamin Cox discussed the role of junior exploration companies in a changing market. Mr. Cox focused on the current state of the fundraising market (including data from Q1 2015), why traditional structures no longer work, and what changes management teams should consider in order to survive. 

Please click on the image below to view the presentation.

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