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Oreninc Index Update: January 28, 2016

The Oreninc Index stayed low for the week ending January 28, 2016. Total dollars dropped to $21.2m, a two-week low. One brokered and bought deal financing was announced for $8.4m, three and two-week lows respectively.

Aston Bay Holdings Ltd. (TSX-V:BAY) led the way with deal making news, signing an LOI with BHP Billiton Ltd. (NYSE:BHP). Gold had an excellent week, hitting a 12-week high.

Not much movement is not much of a surprise at this point in this market. Entering what is generally considered one of the stronger times in the year for fundraising, the trend of continuously poor numbers make one think that maybe we may truly have hit a “market bottom”.  

 

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Oreninc Index Update: January 21, 2016

 

Oreninc Index Falls to 21-Week Low

The Oreninc Index fell to a 21-week low for the week ending January 21, 2015. Total dollars announced jumped to $58.4m, a two-week high. One brokered and bought deal financing was announced for $15m, seven-week and nine-week highs respectively.

The biggest deal-making news of the week came from Suncor Energy (TSX:SU) increasing its friendly takeover bid of Canadian Oil Sands (TSX:COS) to $6.6bn, which is now backed by both companies. Gold had a moderately good week, increasing slightly. Oil had a tumultuous week, reaching an almost 13-year low on Wednesday before recovery slightly to end the week.

Despite the horrible index performance, some metrics such as total dollars announced did raise significantly. Part of the reason for the awful performance so far this year has been because here have not been many deals announced yet. Let’s see if that is the start of a trend as companies are finding it more and more difficult to raise money, or if they are merely saving the announcements for conference season to enhance their ability to market their deals.

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Oreninc Index Update: January 14, 2016

Oreninc Index Rises Marginally

The Oreninc Index rose marginally for the week ending January 14, 2016. Total dollars announced rose to $13.4m, a 53-week low. One brokered financing was announced for $10m, tied for a six-week high; No bought deal financings were announced for the seventh time in eight weeks.

After a couple of holiday-filled weeks, deal-making activity has picked up a bit, with reports that South32 (ASX:S32) is considering an offer for Anglo American plc’s (LON:AAL) Brazilian niobium and phosphate business being the biggest news. Oil had a brutal week, with iron ore and copper not faring much better. Gold had a volatile week, but ended mostly where it started.

While the index numbers did rise this week, key numbers did go down. The increased performance is mostly due to an increase in broker dollars, which have been hard to come by recently. Still, seeing companies mull over acquisitions again brings some movement to the space as commodities continue to fall and money continues to be difficult to raise.

 

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Oreninc Index Update: January 7, 2016

Oreninc Index Falls to Four-Month Low

 

The Oreninc Index fell to a four-month low for the holiday shortened week ending January 7, 2016. Total dollars announced jumped to $60.8m, a two-week high. No brokered financings were announced, a six-week low. No bought deal financings were announced for the sixth time in seven weeks.

Gold had a fantastic week, hitting a seven-week high on the back of geopolitical tensions in the Middle East and North Korea. Copper and Oil, on the other hand, both had horrendous weeks on the back of concerns over the Chinese economy.

While it is never great to see the index as low as it is this week, the first week of the year is historically a slow week in the financing markets. With falling commodity prices, however, it would not be surprising if we had a slow start to the new year.

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Oreninc Index Update: December 31, 2015

Oreninc Index Stays Level in Holiday Shortened Week

The Oreninc Index stayed level for the holiday shortened week ending December 31, 2015. Total dollars fell to $29.4m, a three-week low. No brokered financings were announced, a five-week low. No bought deals were announced, for the fifth time in six weeks.

No major deal-making news was announced, which is no surprise given the Christmas and Boxing Day holidays. Gold was down for the week and the year, as 2015 marked the third straight year that gold prices ended lower than they started.

Given the holiday, the mostly-level performance is a nice surprise. As we enter the new year, let’s hope that financing levels, and with it the industry as a whole, are headed for a better 2016 than 2015.

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