ORENINC INDEX – Monday, January 4^th, 2021

North America’s leading junior mining finance data provider

Last Week: 49.38

This week: 30.90

The Oreninc Index decreased in the week ending December 31st, 2020 to 30.90 from 49.38 a week ago as the year 2020 ended.

The sharp drop in the Oreninc Index of the last two weeks is mainly due to vacation period around Christmas and New Year, which is historically a quiet period. Precious metals started the new year with a bang with gold currently trading at $1,934/oz and Silver at $27.44/oz.

The COVID-19 virus global death toll is approaching 1.84 million with almost 85 million cases reported worldwide. More and more countries are announcing a hard lockdown with increasing cases.

On to the money: the aggregate financings announced decreased to $19 million, an 38-week low, with no new brokered financings and no new bought-deal financings announced. The average offer size decreased to $0.8 million, a 38-week low, while the number of financings decreased to 24.

Gold closed the year lower at $1,895/oz from $1,883/oz a week ago. The US dollar index closed higher at 89.94 from 90.32 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week higher at $54.24 from $53.35 a week ago. The index is now up 31.21% YTD. The HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week lower at 299.64 from 301.02 last week. The SPDR GLD ETF inventory closed the week up at 1,170.74 tonnes, or 37.64 million ounces, from 1,167.53 tonnes last week.

In other commodities, Silver closed the week lower at $26.41/oz from $25.91/oz a week ago. Copper closed the week at $3.51/lb from $3.56/lb a week ago. Oil went down as WTI closed up at $48.52 a barrel from $48.23 a barrel a week ago.

The Dow Jones Industrial Average closed up at 30,606 from 30,199 a week ago. Canada’s S&P/TSX Composite Index closed up at 17,433 from 17,623 the previous week. The S&P/TSX Venture Composite Index closed up at 875.36 from 845.78 a week ago.

Summary:

• Number of financings decreased to 24.
• No brokered financing was announced this week.
• No bought-deal financing was announced this week.
• Total dollars decreased to $19m, a 38-week low.
• Average offer decreased to $0.8m, a 38-week low.

Major Financing Openings:

• Blue Sky Uranium Corp. (TSX-V:BSK) opened a $51 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.
• Star Diamond Corp. (TSX-V:DIAM) opened a $3 million offering on a best efforts Each unit includes 1 warrant that expires in 24 months.
• Nexco Resources Inc. (CSE:NXU) opened a $86 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
• Mexican Gold Mining Corp. (TSX-V:MEX) opened a $4 million offering on a best efforts basis.

Major Financing Closings:

• Solaris Resources Inc. (TSX-V:SLS) closed a $6 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
• Osisko Development Corp. (TSX-V:ODV) closed a $3 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis. The deal is expected to close on or about December 30, 2020.
• McEwen Mining Inc. (TSX:MUX) closed a $5 million offering on a best efforts basis.   The deal is expected to close on or about December 30, 2020.
• Maple Gold Mines Ltd. (TSX-V:MGM) closed a $10 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal The deal is expected to close on or about December 30, 2020.