ORENINC INDEX – Monday, December 4th 2020

North America’s leading junior mining finance data provider

Last Week: 74.34

This week: 71.54

The Oreninc Index decreased in the week ending December 4th, 2020 to 71.54 from 74.34 a week ago as average deal size fell.

November 2020 will be a month to remember. The major indexes closes at a record high while the US economy only added 245,000 jobs in the last week of November. With several prospective vaccines announced the growth outlook for next year seems to firm and bolster investor confidence.

The COVID-19 virus global death toll is approaching 1.54 million with almost 67 million cases reported worldwide. A spike in coronavirus cases and mixed monthly job report  lift the hopes of investors that the US Congress will approve another round of relief funds to help boost the weakened economy.

On to the money: the aggregate financings announced increased to $187.8 million, a 14-week high, which included ten brokered financings for $50.5 million, a three-week low, and no bought deal financings. The average offer size increased to $4.6 million, a two-week high, while the number of financings increased to 41.

Gold found a bottom early last week with the lowest price hovering around $1,767/oz. The yellow metal closed the week significantly higher at $1,840/oz from $1,787/oz a week ago. The inverse correlation between gold and the US Dollar Index seemed to strengthen last week. The US dollar index took another dive down as it closed at 90.70 from 91.79 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the weekly slightly higher at $51.62 from $49.61 a week ago. The index is now up 23.10%. The HUI Arca Gold BUGS Index, which follows the major gold miners, also closed the week higher at 292.47 from 281.22 last week. The SPDR GLD ETF inventory closed the week almost flat at 1,182.70 tonnes, or 38.02 million ounces, from 1,194.78 tonnes last week.

In other commodities, Silver also seemed to found a bottom and closed the week op at $25.24/oz from $22.57/oz a week ago. Copper continued to strengthen as more and more investors seem to realize there is no ‘Green New Deal’ without it and closed up at $3.52/lb from $3.41/lb a week ago. Oil strengthened as WTI closed up at $46.26 a barrel from $45.53 a barrel a week ago.

The Dow Jones Industrial Average it closed up at 30,218 from 29,910 a week ago. Canada’s S&P/TSX Composite Index  closed up at 17,520 from 17,396 the previous week. The S&P/TSX Venture Composite Index closed up at 769.11 from 749.20 a week ago.

Summary:

• Number of financings increased to 53.
• Four brokered financings were announced this week for $26m, a 3-week low.
• Three bought-deal financing were announced this week for $21m, a 3-week high.
• Total dollars decreased to $99.3m, a 4-week low.
• Average offer fell to $1.9m, a 14-week low.

Major Financing Openings:

• Talon Metals Corp. (TSX:TLO) opened a $10 million offering underwritten by a syndicate led by Paradigm Capital Inc. on a bought deal   The deal is expected to close on or about December 11, 2020.
• Clarity Gold Corp. (CSE:CLAR) opened a $6 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 12 months.
• Serengeti Resources Inc. (TSX-V:SIR) opened a $8 million offering underwritten by a syndicate led by PI Financial Corp. on a bought deal   
• Gabriel Resources Ltd. (TSX-V:GBU) opened a $48 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 36 months.

Major Financing Closings:

• Caldas Gold Corp. (TSX-V: CGC) closed a $85 million offering on a best efforts   The deal is expected to close on or about November 27, 2020.
• Trevali Mining Corp. (TSX:TV) closed a $51 million offering underwritten by a syndicate led by RBC Capital Markets on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about December 2, 2020.
• Troilus Gold Corp. (TSX-V:TLG) closed a $09 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis.   The deal is expected to close on or about December 1, 2020.
• Probe Metals Inc. (TSX-V:PRB) closed a $04 million offering on a best efforts basis. The deal is expected to close on or about November 25, 2020.