ORENINC INDEX - Monday, August 3rd 2020

North America’s leading junior mining finance data provider

Last Week: 113.36 (Updated)

This week: 94.76

Another exceptional week for Canadian junior mining financings as the Oreninc Index increased in the week ending July 31st, 2020 to 94.76 from an updated 113.36 a week ago as brokered actions stayed strong.

Gold started the week strongly, powering past the US$1,921/oz high posted in September 2011 to more than $1,950/oz in a volatile week which saw profit taking by investors.

The COVID-19 virus global death toll has reached almost 700,000 with almost 18 million cases reported worldwide, as partial lockdowns return to parts of Europe and the USA. The US has seen a spike in deaths in Texas, Florida, Arizona and California, leading president Donald Trump to suggest delaying the November presidential election.

On the economic front, the US economy posted its worst quarter since World War II as GDP shrank by 32.9% between April and June, and 1.43 million people filed for unemployment benefits according to the Department of Labor. The four-week moving average for new claims was 1.36 million. Meanwhile, continuing jobless claims increased rose to 17.1 million.

But the US was not alone as Spain’s economy shrank 18.5%, France and Italy contracted 14% and 12%, and Germany slumped 10.1%, its biggest decline since 1970. 

Earlier in the week, the US Federal Reserve Open Market Committee made no change to interest rates or monetary policy, indicating future action will depend upon how the CVID-19 pandemic plays.

On to the money: aggregates financings announced pulled back to $159.7 million, a two-week low, which included twelve brokered financings for $66.9 million, a two-week low, and four bought-deal financings for $22 million, a four-week low. The average offer size fell to $2.5 million, a five-week low, while the number of financings increased to 63.

The Gold spot price had another strong week, powering to record highs in US dollar terms, as it closed up at $19,75/oz from $19,02/oz a week ago. The yellow metal is up 30.22% so far this year. The US dollar index continued its losing streak as it closed down at 93.34 from 94.43 last week. The VanEck managed GDXJ continued higher as it closed up at $60.44 from $59.16 a week ago. The index is now up 43.02% so far this year. The US Global Go Gold ETF also closed up at $24.90 from $24.61 a week ago. It is up 41.86% so far this year. The HUI Arca Gold BUGS Index closed up at 350.70 from 341.60 311.54 last week. The SPDR GLD ETF inventory continued to increase, closing the week up at 1,241.96 tonnes or 39.9 million ounces from 1,228.81 tonnes last week.

In other commodities, Silver continued on a tear as the spot price closed the week up at $24.39/oz from $22.77/oz a week ago. Copper continued to pull back as it closed the week down at $286/lb from $2.89/lb a week ago. Oil also pulled back as WTI closed down at $40.27 a barrel from $41.34 a barrel a week ago.

The Dow Jones Industrial Average closed down again at 26,428 from 26,469 a week ago. Canada’s S&P/TSX Composite Index closed up at 16,169 from 15,997 the previous week. The S&P/TSX Venture Composite Index increased to 721.24 from 691.41 last week.


Financing Highlights

Josemaria Resources (TSX:JOSE) announced a C$25 million raise

Major Financing Openings

Major Financing Closings