ORENINC INDEX – Monday, November 2nd 2020
North America’s leading junior mining finance data provider
Last Week: 51.30
This week: 47.52
The Oreninc Index fell in the week ending October 30th, 2020 to 47.52 from 51.30 a week ago as deal flow contracted sharply.
The COVID-19 virus global death toll approaching 1.2 million with almost 46 million cases reported worldwide, with Europe and other parts of the world experiencing a second wave of contagion.
With the US presidential election between incumbent Donald Trump and his Democratic party rival Joe Biden imminent, most markets experienced a volatile week, with many markets selling off including precious metals. Any hopes of a new stimulus package being agreed in the US prior to the election died away as senators departed for a pre-election break.
The election is likely to see one of the largest voter turnouts in recent years with some 80 million postal ballots already cast. Polls and analysts talk of the possibility of a Blue Wave, the Democrats taking the House, the Senate and the presidency. This, it is thought, would be very positive for gold as it would likely mean a large and rapid stimulus package.
On to the money: the aggregate financings announced increased to $65.2 million, a three-week low, which included two brokered financings for $46 million, a five-week high, and one bought deal financing for $15 million, a two-week high. The average offer size increased to $3.8 million, a ten-week high, while the number of financings plummeted to 17.
With less than a month to go before the US presidential election, the gold price continues to exhibit volatility around the US$1,900/oz level as the spot price closed down at $1,899/oz from $1,930/oz a week ago. The yellow metal is up 25.18 so far this year. The US dollar index strengthened as it closed up at 93.68 from 93.05 a week ago. The VanEck managed GDXJ increased as it closed down at $57.67 from $59.50 a week ago. The index is now up 36.46% so far this year. The HUI Arca Gold BUGS Index also closed down at 333.49 from 340.18 last week. The SPDR GLD ETF inventory sold down a little, closing the week up at 1,272.56 tonnes, or 40.91 million ounces, from 1,271.52 tonnes last week.
In other commodities, Silver fell as it closed the week down at $24.16/oz from $25.15/oz a week ago. Copper closed down at $3.06/lb from $3.08/lb a week ago. Oil continued to strengthen as WTI closed up at $40.88 a barrel from $40.60 a barrel a week ago.
The Dow Jones Industrial Average jumped higher as it closed down at 28,606 from 28,586 a week ago. Canada’s S&P/TSX Composite Index also moved down to close at 16,438 from 16,562 the previous week. The S&P/TSX Venture Composite Index closed down at 725.31 from 732.25 last week.
Kanadario Gold (TSX-V:KANA) is to raise $36.4 million.
Fission Uranium (TSX-V:FCU) opened a bought deal financing to raise $15 million.
Major Financing Openings
Major Financing Closings
Rock Tech Lithium Inc. (TSX-V: RCK) (OTCQX: RCKTF) (FWB: RJIB) (WKN: A1X... READ MORE
Power Metals Corp. (TSX-V: PWM) (FRANKFURT: OAA1) (OTCQB: PWRMF... READ MORE
Vox Royalty Corp. (TSX-V: VOX) (OTCQX: VOXCF) a returns focused ... READ MORE
Aldebaran Resources Inc. (TSX-V: ALDE) (OTCQX: ADBRF) is pleased ... READ MORE
Scorpio Gold Corporation (TSX-V: SGN) announces that further to i... READ MORE
We acknowledge the [financial] support of the Government of Canada.