ORENINC INDEX – Monday, October 26th 2020
North America’s leading junior mining finance data provider
Last Week: 68.25 (Updated)
This week: 51.30
The Oreninc Index fell in the week ending October 23rd, 2020 to 51.30 from an updated 68.25 a week ago as deal size shrunk.
The COVID-19 virus global death toll has exceeded 1.1 million with almost 43 million cases reported worldwide, with Europe and other parts of the world experiencing a second wave of contagion.
The past week saw the final debate between the US presidential election candidates, incumbent Donald Trump and former vice president Joe Biden. With two short weeks to go before the polls open, some 40 million people have already submitted postal ballots. The proximity of the election also means it is increasingly unlikely that another stimulus package or COVID-19 relief deal will be agreed and passed, even though the Democrats and Republicans are reportedly closing-in on agreeing terms.
Gold meanwhile continues to fluctuate above and below the US$1,900/oz level. However, US investment bank Goldman Sachs now says commodities are on the cusp of entering a structural bull market due in part to a weakening US dollar and rising inflation risk.
The US Labor Department said 787,000 million people filed first-time jobless claims, a fall of 55,000 from the previous week’s revised level, the lowest level of new claims since the COVID-19 pandemic struck in March. The four-week moving average for new claims fell 21,500 to 811,250. Continuing jobless claims fell to 8.373 million.
With time running out for the UK and European Union to agree the terms of their new trade relationship, political posturing finally seems to be being set aside with both parties keen to reach a deal.
On to the money: the aggregate financings announced decreased to $78 million, a two-week low, which included four brokered financings for $12 million, a ten-week low, and one bought deal financing for $6 million, a three-week low. The average offer size fell to $2.1 million, an eight-week low, while the number of financings increased to 38.
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.
Euro Manganese (TSX-V:EMN) opened a private placement financing for $11.4 million
Major Financing Openings:
Major Financing Closings
Collective Mining Ltd. (TSX-V: CNL) (OTCQX: CNLMF) is pleased to ... READ MORE
Ultra Lithium Inc. (TSX-V:ULT) (OTCQB: ULTXF) (Frankfurt: QFB) is... READ MORE
Discovery Silver Corp. (TSX: DSV) (OTCQX: DSVSF) is pleased to an... READ MORE
SKRR Exploration Inc. (TSX-V: SKRR) (FSE: B04Q) is pleased to an... READ MORE
Robex Resources Inc. (TSX-V: RBX) (FRA: RB4) is pleased to announ... READ MORE
We acknowledge the [financial] support of the Government of Canada.