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Oreninc Index: November 4, 2019

ORENINC INDEX down as financings dwindle

 

 

 

ORENINC INDEX - Monday, November 4th 2019
North America’s leading junior mining finance data provider
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Oreninc participated in the Silver & Gold Summit in San Francisco this past week.
Check out Oreninc.com/presentations to see the presentation we gave.

 

 

 

Last Week: 39.33

 

This week: 28.71

 

 The Oreninc Index fell again in the week ending November 1st, 2019 to 28.71 from 39.33 as financings dwindle.

 

The gold price had a positive week, strengthening slightly above the US$1,500/oz level as the US Federal Reserve Open Market Committee did indeed pare back interest rates by 25 basis points (a quarter of one percent) as was widely expected. The Fed rate spread is now 1.75-2%.

 

Gold prices threatened to soften as the week closed as the US economy created more jobs than expected in October, with the Bureau of Labor Statistics stating 128,000 jobs were created, above estimated of 90,000, while the unemployment rate held steady at 3.6%. However, gold saw off downward price pressure as news came out of lackluster manufacturing sector sentiment as the Institute for Supply Management said its nonmanufacturing index dropped to 48.3%, missing expectations of around 49%.

 

China and the US appear to have a long road ahead of them to overcome their trade impasse. China remains concerned about US President Donald Trump’s impulsive nature.

 

While the precious metals world—including Oreninc—met in San Francisco for the Silver & Gold Summit, the Bay Area was covered by a cloud of smoke as wildfires left many in the state without electricity.

 

In the UK, the European Union agreed to postpone its leaving date until January 31st, 2020 as prime minister Boris Johnson finally managed to get the nod to hold a general election on December 12th, which will effectively serve as a vote on the deal he negotiated for the nation to leave the European Union. It is by no means a given that Johnson will be returned as prime minister or that he will have a parliamentary majority if he is. One has only to look back to the June 2017 general election called by Johnson’s predecessor Teresa May in the hopes of increasing her majority to provide her with a strong base to get any deal she negotiated through Parliament. Instead, she lost her majority and had to form a coalition government which severely cramped her style.

 

 

 

Protests in Chile against social inequality continued with workers at several of the country’s (and the world’s) joining 24-hour strikes in support of the general protest. President Sebastien Pinera switched out his cabinet and promised widespread reforms to tackle social inequality.

 

On to the money: total fund raises announced fell by a third to $32.5 million, a two-week low, which included one brokered financing for $2 million, a five-week low, and one bought-deal financing for $2, a one-week low. The average offer size fell to $1.36 million, a two-week low, while the number of financings decreased to 24.

 

Spot gold closed up at US$1,514/oz from $1,504/oz a week ago. The yellow metal is up 18.08% so far this year. The US dollar index continued to slide as it closed down at 97.18 from 97.83 last week. The VanEck managed GDXJ closed up at US$39.40 from $38.14 a week ago. The index is now up 30.38% so far in 2019. The US Global Go Gold ETF closed up at US$16.55 from $16.21 a week ago. It is up 45.05% so far in 2019. The HUI Arca Gold BUGS Index closed up at 218.93 from 214.05 last week. The SPDR GLD ETF inventory continued to sell off as it closed down at 914.67 tonnes from 918.48 tonnes a week ago.

 

In other commodities, silver closed up at US$18.13/oz from $18.03/oz a week ago. Copper continues to stagnate as it closed down a cent at US$2.66/lb from $2.67/lb a week ago. Oil ceded a little ground as WTI closed down at US$56.20 a barrel from US$56.66 a barrel a week ago.

 

The Dow Jones Industrial Average continued to grow as it closed up at 27,347 from 26,958 a week ago. Canada’s S&P/TSX Composite Index also rose as it closed up again at 16,594 from 16,404 the previous week. The S&P/TSX Venture Composite Index closed down at 541.49 from 546.42 last week.

 

  

Summary

 

·       Number of financings decreased to 24.

 

·       One brokered financing announced this week for $2m, a 5-week low.

 

·       One bought-deal financing was announced this week for $2m, a 1-week low.

 

·       Total dollars lowered to $32.5m, a two-week low.

 

·       Average offer lessened to $1.36m, a two-week low.

 

 

 

Financing Highlights

 

Gran Colombia Gold (TSX:GCM) opened a C15 million non-brokered private placement.

 

·       Eric Sprott agreed to purchase 3.3 million units @ C$4.60, a 4% discount to the five-day volume weighted average price of $4.79.

 

·       Each unit consists of a share and warrant exercisable @ $5.40 for four years.

 

·       Proceeds will be used for general working capital and corporate purposes.

 

 

 

Major Financing Openings

 

·       Gran Colombia Gold (TSX:GCM) opened a $ =INT( 15,000,000.00 )/1000000 15 million offering on a strategic deal basis. Each unit includes a warrant that expires in four years.

 

·       Palladium One Mining (TSXV:PDM) opened a $ =INT( 3,200,000.00 )/1000000 3.2 million offering on a best efforts basis. Each unit includes half a warrant that expires in two years.

 

·       Noront Resources (TSXV:NOT) opened a $ =INT( 2,500,000.00 )/1000000 2.5 million offering on a best efforts basis. Each unit includes a warrant that expires in two years. The deal is expected to close on or about November 20th.

 

·       North American Nickel (TSXV:NAN) opened a $ =INT( 2,000,000.00 )/1000000 2 million offering underwritten by a syndicate led by Laurentian Bank Securities on a bought deal basis. Each unit includes half a warrant that expires in two years. The deal is expected to close on or about November 22nd.

 

Major Financing Closings

 

·       INV Metals (TSX:INV) closed a $ =INT( 15,600,000.00 )/1000000 15.6 million offering on a best efforts basis.    

 

·       Mawson Resources (TSX:MAW) closed a $ =INT( 7,900,280.00 )/1000000 7.9 million offering on a best efforts basis. Each unit included half a warrant that expires in two years.

 

·       Sun Metals (TSXV:SUNM) closed a $ =INT( 6,151,500.00 )/1000000 6.15 million offering underwritten by a syndicate led by Sprott Capital Partners on a bought deal basis.

 

·       GFG Resources (TSXV:GFG) closed a $ =INT( 3,183,353.00 )/1000000 3.18 million offering on a best efforts basis.

 

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