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Oreninc Index: November 13, 2019

ORENINC INDEX up as gold sells off

 

ORENINC INDEX - Monday, November 11th 2019
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Last Week: 28.71

This week: 41.19

 

The Oreninc Index fell again in the week ending November 8th, 2019 to 41.19 from 28.71 as gold sold off.

The gold price took a dump, losing more than US$50/oz to its lowest level in three months. It was its biggest weekly loss in over a year, coming on the back of comments from China that the tariffs may be rolled back as trade talks with the US continue. Although US president Donald Trump quickly pooh-pooed the idea, gold had already taken a hit.

The risk-off feeling continued as the US Institute of Supply Management (ISM) data for October shows the Non-Manufacturing Purchasing Managers Index rose to 54.7%, a sign of economic growth.

Saudi Arabia is again talking up the forthcoming IPO of the Aramco oil company, which will likely have a valuation of between US$1 trillion and $2 trillion.

Turmoil in Latin America continued with Bolivia’s president Evo Morales forced to flee the country and seek asylum in Mexico after police forces around the country revolted. Protests continued to grow against his controversial first round presidential election victory in October. The final straw was the Army asking him to step aside.

Protests in Chile continue with the fluid state of things hitting the country’s currency hard. The Chilean peso fell to its lowest level against the US dollar in more than ten years.

On to the money: Total amount fundraised announced increased to $35.8 million, a two-week high. This included two brokered financings for $16.9 million, a five-week high, and two bought-deal financings for $16.9, also a five-week high. The average offer size increased to $1.56 million, a two-week high, while the number of financings decreased to 23.

Thud! Spot gold closed lost over $50/oz during the week to close down at US$1,459/oz from $1,514/oz a week ago. The yellow metal is up 13.57% so far this year. The US dollar index returned to growth as it closed up at 98.35 from 97.18 last week. The VanEck managed GDXJ closed down at US$36.33 from $39.40 a week ago. The index is now up 22.57% so far in 2019. The US Global Go Gold ETF closed down at US$15.30 from $16.55 a week ago. It is up 35.79% so far in 2019. The HUI Arca Gold BUGS Index closed down at 203.62 from 218.93 last week. The SPDR GLD ETF inventory continued to sell off as it closed down at 901.19 tonnes from 914.67 tonnes a week ago.

In other commodities, silver closed down at US$16.81/oz from $18.13/oz a week ago. Copper added a couple of cents as it closed up at US$2.68/lb from $2.66/lb a week ago. Oil sw price growth as WTI closed up at US$57.24 a barrel from $56.20 a barrel a week ago.

The Dow Jones Industrial Average continued to grow as it closed up at 27,681 from 27,347 a week ago. Canada’s S&P/TSX Composite Index also rose as it closed up again at 16,877 from 16,594 the previous week. The S&P/TSX Venture Composite Index closed down at 533.93 from 541.49 last week.

 

 

Summary

  • Number of financings decreased to 23.
  • Two brokered financings were announced this week for $16.9m, a five-week high.
  • Two bought-deal financings were announced this week for $16.9m, a five-week high.
  • Total dollars increased to $35.8m, a two-week high.
  • Average offer augmented to $1.56m, a two-week high.

 

Financing Highlights

Great Bear Resources (TSXV:GBR) entered into a bought deal private placement to raise $14.6 million.

  • Cormark Securities and Canaccord Genuity to act as co-lead underwriters of a syndicate of underwriters for a bought deal 
  • Underwriters to purchase 1.75 million flow through shares @ $8.35 
  • Proceeds will be used to incur Canadian exploration expenses related to Great Bear’s projects in Ontario. 

 

About Great Bear

Major Financing Openings

  • Great Bear Resources (TSXV:GBR) opened a $14.61 million offering underwritten by a syndicate led by Cormark Securities on a bought deal basis.    
  • Compass Gold (TSXV:CVB) opened a $5 million offering on a strategic deal basis.    
  • Aftermath Silver (TSXV:AAG) opened a $3.3 million offering on a best efforts basis.    
  • Brixton Metals (TSXV:BBB) opened a $3 million offering on a best efforts basis.    

Major Financing Closings

  • Discovery Metals (TSXV:DSV.H) closed a $19 million offering on a best efforts basis.    
  • Gran Colombia Gold (TSX:GCM) closed a $15 million offering on a strategic deal basis. Each unit included a warrant that expires in four years.
  • Amex Exploration (TSXV:AMX) closed a $8 million offering underwritten by a syndicate led by PI Financial on a bought deal basis. Each unit includes half a warrant that expires in 18 months.
  • Goldplay Exploration (TSXV:GPLY) closed a $3 million offering on a best efforts basis.

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