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Orenthink

Benjamin Cox discusses the realities of China's naturally available copper resources. 

Oreninc Index Falls to Least Active Week Since January

The Oreninc Index fell for the week ending July 25, 2014. The main culprit for the drop was the number of deals announced, 18, a 28-week low. Total dollars announced fell to $101.5m, a two-week low. Five brokered deals were announced for $77.1m, also a two-week low; one bought deal was announced for $13m, a two-week high. While total dollars are down, the decrease is dwarfed by the drop in the number of deals announced, resulting in an average deal size of $5.64m, a six-week high that ranks this week as the third highest of 2014 for deal size.

Deal making seems to have cooled along with the private placement activity, giving us the impression that golf courses and swimming pools were more active than board rooms this week. As we have been saying, this is prototypical of summer activity, but gives less credence to the idea that this summer has been better overall than last; at this point, it is becoming less and less true every week. We’ll see if the summer can finish off strong in August, giving the industry some confidence as it heads into fall, where both activity and expectations will likely be up, if not necessarily in equal amounts.

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Oreninc Index Stays Positive 

The Oreninc Index remained positive for the week ending July 17, 2014. Total dollars announced on the week rose to $175.3m, a three-week high. Four brokered deals were announced for $80.3m, a three-week high. No bought deals were announced for the first time in four weeks. 

Despite the metal falling to almost a four-week low on Tuesday, a number of gold deals occurred this week, with Barrick’s deal to Joint Venture with Saudi Arabia Mining on their Jabal Sayid copper mine near Medina, Saudi Arabia leading the way.

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Oreninc Index Remains Level

The Oreninc Index remained flat for the week ending July 10, 2014. The week included America’s Fourth of July holiday; while it did not affect the amount of trading days, deal flow slowed with less than $3m announced on four deals that day. Total dollars announced for the week were $83.4m, a three-week low. Brokered and bought dollars announced were both $44m on four deals, both two-week highs.

The run of copper deals continued this week with Boliden purchasing Altona Mining’s Kylylahti copper mine in Finland for US$95m. The activity seen this July is encouraging, given the month’s history of being one of the two worst months of the year for financing.

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