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Orenthink

CSE Sponsored General Market Update

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Oreninc Index Stumbles

The Oreninc Index stumbled for the week ending November 20, 2014. Total dollars fell to $60.3m, a two-week low. One bought deal was announced for $15.1m and was also the only brokered deal, two-week lows for both categories.

By far the biggest deal of the week was Osisko Gold Royalties Ltd.’s (TSX:OR) acquisition of Virginia Mines Inc. (TSX:VGQ) for $479m. The all-stock deal combines two companies that are focused on gold royalties in Quebec. Metal prices for the week were positive, with gold having a fantastic week, almost reaching $1,200/oz. Nickel also had a price increase, reaching its highest this month on news the Indonesian government would continue their ban on unprocessed ore. Nothing changed for iron ore, as the metal continued its horrific slide downwards for 2014.

While not as bad as many weeks this autumn, one hopes something would have been built off of last week’s increased performance. Due to the US Thanksgiving Holiday this Thursday, the release of the November 27th Index will be delayed until Tuesday, December 2nd.

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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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