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Oreninc Index Update: October 15, 2015

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Oreninc Index Jumps to Four-Week High

The Oreninc Index jumped to a four-week high for the holiday-shortened week ending October 19, 2015. Total dollars announced exploded to $129.8m, a four-week high. No brokered financings were announced for the third time in four weeks; no bought deals were announced for the fourth straight week.

The top dealmaking news of the week was reports that Mick Davis’ X2 Resources appears to be the last remaining bidder for Rio Tinto Group’s (NYSE:RIO) Australian Hunter Valley coal assets, with talk of a deal that could be around US$2.2bn. The gold price exploded for the week, hitting its highest price in almost four months.

While it is only one week, it is nice to see some activity after a couple of disappointing weeks. Still, the lack of brokered deals remains a concern, and we will see if more companies attempt to raise large amounts of cash via non-brokered deals.   

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Oreninc Index Update: October 8, 2015

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Oreninc Index Falls and Continues Lull 

The Oreninc Index fell and continued its lull for the week ending October 9, 2015. Total dollars announced fell to $45.7m, a two-week low. No brokered financings were announced for the second time in three weeks; no bought deal financings were announced for the third straight week. 

The largest deal of the week was Teck Resources' (NYSE:TCK) streaming deal with Franco-Nevada (NYSE:FNV) in which Franco-Nevada will pay Teck US$610m for its silver stream from the Antamina copper mine in Peru. The gold price was way up for the week on the back of weak US economic news. Iron ore was also up for the week. 

While we are seeing a broad slowdown in private placement opening amounts, the real issue, in terms of performance, is lack of broker involvement. Until brokerage houses feel comfortable getting back into the market in a big way, it is hard to see a path to improvement in this financing market. 

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Oreninc Index Update: October 1, 2015

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Oreninc Index Jumps to Two-Week High

The Oreninc Index jumped to a two-week high for the week ending October 1, 2015. Total dollars announced increased to $50.8m, a two-week high. One brokered deal was announced for $10m, a two-week high; no bought deal financings were announced for the second straight week. 

Deal making picked up for the week, with OceanaGold (TSX:OGC) agreeing to purchase Romarco Minerals Inc (TSX:R) for CAD$856m worth of stock the biggest news of the week. Industrial commodities continued their pounding with copper and zinc both hitting six and five-year lows respectively at points during the week. 

It appears the slump that hit the natural resource financing market during the summer has continued into the fall. On the brightside, significant deals happening in the industry is a positive, and shows that companies are actively trying to create shareholder value in the space as a whole.

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Oreninc Index Update: September 24, 2015

Oreninc Index

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Oreninc Index Falls to Three-Week Low

The Oreninc Index fell to a three-week low for the week ending September 24, 2015. Total dollars announced dropped to $26m, a three-week low. No brokered or bought deal financings were announced, 10 and three-week lows respectively.

Deal making was up a bit for the week, with the largest deal of note being Suncor Energy’s (TSX:SU) purchase of an additional 10% stake in the Fort Hills oil sands project from partner Total E&P Canada for $310m. Gold increased sharply for the week, up 5% since the US Federal Reserve's announcement last week that they would hold rates steady. Multiple industrial metals, including copper and zinc, had traumatic weeks, with zinc falling to a five-year low.

After last week’s stellar performance, it is disappointing to see the Index as low as it fell this week. The coming weeks will likely be telling in what we can expect over the coming months.

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Oreninc Index Update: September 17, 2015

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Oreninc Index Leaps to 13-Week High

The Oreninc Index jumped to a 13-week high for the week ending September 17, 2015. Total dollars announced exploded to $161.1m, an 18-week high. Two brokered and bought deal financings were announced for $85m, 18- and 23-week highs respectively.

The top dealmaking news of the week came from Glencore plc (LON:GLEN), who is said to be in talks with multiple companies to sell portions of the future production of three of its Chilean and Peruvian copper mines via streaming transactions. Gold was up on the week following news that the US Federal Reserve would not be raising interest rates quite yet. Iron ore was down slightly after the previous week’s 10-week high.

As expected, the first full week after the Labor Day holiday marks an increase to levels not seen since June. While expected, the jump in performance should be seen as a promising sign that maybe the financing market can crawl out of the depths reached over summer, even if it may not be at the levels the industry would like.

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Oreninc Index Update: September 10, 2015

Oreninc Index

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Oreninc Index Jumps to Three-Week High

The Oreninc Index jumped to a three-week high for the holiday-shortened week ending September 10, 2015. Total dollars announced rose $25.1m, a three-week high. One brokered financing was announced for $10.9m, another three-week high; and one bought deal financing was announced for $10.9m, yet another three-week high.

The biggest deal-making news of the week came from Anglo American plc (LON:AAL) and the sale of three of their platinum mines in South Africa to gold producer Sibanye Gold Ltd. (NYSE:SBGL) for $330m. Iron ore had another strong week, reaching a 10-week high. Positive US economic news led to another down week for gold, continuing its weeks long slide.

While this jump in performance is encouraging, it will be interesting to see if this trend continues as we head into what has traditionally been a more active period of the financing year.

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Oreninc Index Update: September 3, 2015

Oreninc Index

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Oreninc Index Rises Slightly

The Oreninc Index rose slightly for the week ending September 3, 2015. Total dollars jumped to $19.3m, a two-week high. One brokered financing was announced for $1m, also a two-week high; no bought deal financings were announced for the tenth time in the last 11 weeks.

The most notable deal making news of the week came from Vale (NYSE:VALE) as they completed a 36.4% stake sale of their iron ore based subsidiary Minerações Brasileiras Reunida for $1.08bn. Gold ended down for the week on the back of positive US job numbers. Iron ore had another surprisingly good week, up more than 20% from the record lows hit over the summer.

This week’s numbers, while an improvement, are still quite disappointing. Now that August is officially over, we will be able to get a better indication in the coming weeks of where the financing market stands and whether companies will be able to raise funds this fall.

 

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Oreninc Index Update: August 27, 2015

Oreninc Index
b2ap3_thumbnail_Index-Mailchimp-Header-Aug-27-2015-01.png  Oreninc Index Falls to Lowest Level of Summer The Oreninc Index fell to it’s lowest level of the summer for the week ending August 27, 2015. Total dollars fell sharply...
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Oreninc Index Update: August 20, 2015

Oreninc Index
b2ap3_thumbnail_Mailchimp-Header-20-Aug-2015-01.png Oreninc Index Rises to Respectability  The Oreninc Index improved to a respectable level for the week ending August 20, 2015. Total dollars announced jumped to $113.1m, a seven-week high. Two...
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Oreninc Index Update: August 13, 2015

Oreninc Index

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Oreninc Index Remains Frozen at Bottom

The Oreninc Index remained frozen at the bottom for the week ending August 13, 2015. Total dollars announced dropped to 41.3m, a two-week low. One brokered financing was announced for 0.3m, a four-week low; no bought deals were announced for the eighth straight week. 

The top deal-making news of the week were reports that Anglo American plc (LON:AAL) was on the verge of selling two of their Chilean copper assets to an unnamed British fund for somewhere between $500m-$1bn. Gold had a stellar week, reaching a three-week high on the back of Chinese currency concerns. Those same concerns did not seem to affect iron ore negatively, as it stayed mostly flat for the week, though that may have been somewhat offset by concerns of iron ore shipments out of China’s Tianjin port, which suffered an explosion that affected operations on Wednesday.

As we move closer to Labor Day, the low index numbers are starting to become more and more of a concern for what it could mean for fall performance.

 

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