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Oreninc Index Rebounds to Modest Levels

The Oreninc Index rebounded to modest levels for the week ending November 13, 2014. Total dollars jumped to $101.6m, a four-week high. Five brokered deals were announced for $73m, a four-week high; two brokered deals were announced for $70m, also a four-week high.

There were a couple of smaller deals for the week, with the Scorpio Mining (TSX:SPM) and U.S. Silver & Gold (TSX:USA) merger being the most significant transaction. The company will retain Scorpio Mining as their name. Commodity prices for the week were mostly flat. 

After a couple weeks of truly awful performance, this week’s financing activity is a welcome reprieve. Still, it’s hard to get too excited when the best week in a while is still below our threshold for a healthy financing market.

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Oreninc Index Crashes to Lowest Level Since January

The Oreninc Index crashed to its lowest level since January for the week ending November 6, 2014. Total dollars announced fell to $11m, a YTD low. One brokered deal was announced for $0.7m, a 12-week low; no bought deals were announced for the second straight week. 

Deals for the week were a bit heavier, the largest being Antofagasta plc’s agreement to buy Duluth Metals Ltd. for C$96m, and with it the remaining 60% stake in the Twin Metals copper and nickel project in the United States. Metal prices for the week were gruesome, with iron ore falling to a 64-month low and gold falling to a four-and-a-half-year low.

There are not many ways to spin a week like this in a positive way, other than to say it can’t get that much worse.

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Oreninc Index Stays at Same Level

The Oreninc Index stayed level for the week ending October 30, 2014. Dollars announced dropped to $32.9m, a 19-week low. Three brokered deals were announced for $10.8m, a six-week low; two bought deals were announced for $10m, a three-week low.

Deals were light with no major buyouts or mergers of note. One noticeable piece of news is gold’s crash as the US Federal Reserve’s Quantitative Easing program concluded. The metal fell to a four-year low, with no real optimism in sight. This crash, mixed with the awful season oil prices have had, provides some explanation for the poor performance of this autumn’s Index. It’s hard to imagine a short-term future where those two keep falling and the natural resource financing market has any sort of recovery.

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Oreninc Index Crashes Back to Reality

The Oreninc Index crashed back down to reality for the week ending October 23, 2014. Total dollars announced dropped to $36.2m, a ten-week low. Three brokered deals were announced for $24.6m, a two-week low; two bought deals were announced for $24.1m, also a two-week low. Deals announced dropped to 16, a 41-week low.

Deals for the week were lead by Fortress Minerals Corp.’s (TSX-V:FST) purchase of Kinross Gold Corp.’s (TSX:K) Ecuadorian Fruta del Norte gold project for US$240m. Kinross took a $720m writedown on the project last year. 

After a solid performance last week, it is discouraging to see such a harsh week in the financing market. However, in a climate where the only thing holding up the Index’s performance is the large rogue deal, a week without any is bound to have an impact. With each passing week it is becoming clearer that fall 2014 is unlikely to bring any market rebound. 

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Oreninc Index Blasts Off Over Thanksgiving

The Oreninc Index rocketed forward in the Thanksgiving-shortened week ending October 16, 2014. Total dollars announced launched to $249m, the most since March. The main driver of this week’s surprising turnaround was two offerings for over $50m. Including a $100m offering by Elkwater Resources and a $75m rights offering by ShaMaran Petroleum.  This week is most likely a flash in the pan; if the large deals were excluded, it would have been merely a two-week high. However, given that holiday weeks don’t usually include such significant raises, it is a positive sign that offerings are being announced. Expect a comedown next week, but that’s the nature of a volatile Index.

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