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Oreninc Index Falls to Four-Week Low

The Oreninc Index fell to a four-week low for the week ending September 11, 2014. Total dollars fell to $58.3m, a four-week low. Two brokered deals were announced for $5.5m, a four-week low; no bought deals were announced for the second time in six weeks. 

Deals for the week were stronger, with Agnico-Eagle Mines (TSX: AEM) agreeing to buy Cayden Resources (TSX-V: CYD) for $205m. Taseko Mines (TSX: TKO) agreed to buy Curis Resources (TSX: CUV) in an all-stock deal valued at $80m. Both deals are still subject to shareholder approval. 

Junior financing activity is down, but it appears that majors are at least out and trying to make things happen. While too early to tell if this is just a summer hang-over or a real issue, it is not a good sign that a high number of deals with a low number of overall dollars were announced. Juniors may be out trying to raise money, but it seems they just aren’t able to find investment appetite.

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 Benjamin discusses the silver lining present in any recession, even one as tough as this, and suggests not focusing on long-term pain in order to take advantage of what opportunities exist.

Oreninc Index Climbs to Highest Level Since July

The Oreninc Index rose to its highest levels since July for the holiday-shortened week ending September 4, 2014. Numbers were up across the board, with the most impressive number coming with average deal size, which had a YTD-high of $9.5m. Total dollars announced jumped to $199m, a seven-week high. Three brokered deals were announced for $80.1m, a seven-week high; one bought deal was announced for $60.1m, a ten-week high. This week was not carried by just one deal -- the strength of deals across the line was up, which is fairly impressive in light of previous weeks’ performances.


Despite the strong financing numbers, this week marked another light dealmaking week, with Integra Gold Corp’s (CVE:ICG) purchase of the bankrupt Sigma-Lamaque property -- adjacent to its Lamaque project in Val-d’Or, Quebec with a milling plant included -- maybe the biggest of the week. Canadian major Goldcorp (TSE: G) announced that they would likely hit the bottom end of this year’s output forecast range due to the stoppage of operations at two of its mines this year. Although deals were light, this week’s activity was something of a breath of fresh air after the feeling of being underwater for the past month and a half.

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Oreninc Index Goes Nowhere

The Oreninc Index remained stagnant for the week ending August 28, 2014. The five-week moving average also fell to its lowest level in over a year. Total dollars announced dropped to $84.4m, a two-week low. One brokered deal was announced for $10m, a two-week low; no bought deals were announced, also a two-week low.

Deals were quiet, as one would expect going into Labour Day weekend and the unofficial end of summer. Commodity prices were all over the place, with palladium hitting a 13-year high even as platinum continues its summer downfall. Iron ore also fell, continuing its horrid 2014. In a sentiment that has been repeated many times over the past couple of months, this truly was a week the industry would like to forget.

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 Catch Benjamin on Kitco News discussing why rhodium is better than gold and how he sees gold playing out for the remainder of the year. Keep an eye out in the future for more interviews from Kitco News featuring Benjamin Cox!

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