ORENINC INDEX – Monday, December 28th 2020

North America’s leading junior mining finance data provider

Last Week: 96.44

This week: 49.38

The Oreninc Index decreased in the week ending December 25th, 2020 to 49.38 from 96.44 a week as no new deals were announced.

It was a calm and short trading week with most of the exchanges closing early on December 24^th.

The COVID-19 virus global death toll is approaching 1.76 million with almost 81 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 $55 million, an 11-week low, with no new brokered financings and no new bought-deal financings announced. The average offer size decreased to $1.2 million, a 37-week low, while the number of financings decreased to 45.

Gold jumped above the $1,900 level for a brief moment after the stimulus bill was signed by President Trump, but is now back trading around $1,880. The yellow metal closed the week lower at $1,883/oz from $1,888/oz a week ago. The US dollar index closed higher at 90.32 from 90.02 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week higher at $53.35 from $54.52 a week ago. The index is now up 27.09%. The HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week lower at 301.02 from 303.38 last week. The SPDR GLD ETF inventory closed the week almost flat at 1,167.53 tonnes, or 37.54 million ounces, from 1,167.82 tonnes last week.

In other commodities, Silver closed the week lower at $25.91/oz from $26.03/oz a week ago. Copper seems to consolidate and closed the week at $3.56/lb from $3.63/lb a week ago. Oil went down as WTI closed up at $48.23 a barrel from $49.10 a barrel a week ago.

The Dow Jones Industrial Average closed up at 30,199 from 30,179 a week ago. Canada’s S&P/TSX Composite Index closed up at 17,623 from 17,534 the previous week. The S&P/TSX Venture Composite Index closed up at 845.78 from 816.20 a week ago.

Summary:

• Number of financings decreased to 45.
• No brokered financing was announced this week.
• No bought-deal financing was announced this week.
• Total dollars decreased to $55m, an 11-week low.
• Average offer decreased to $1.2m, a 37-week low.

Major Financing Openings:

• West High Yield Resources Ltd. (TSX-V:WHY) opened a $10 million offering on a best efforts The deal is expected to close on or about December 31, 2020.
• Vangold Mining Corp. (TSX-V:VAN) opened a $5 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 36 months.
• Generation Mining Ltd. (CSE:GENM) opened a $31 million offering on a best efforts basis. The deal is expected to close on or about December 31, 2020.
• Tanzanian Gold Corp. (TSX:TNX) opened a $99 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 36 months.

Major Financing Closings

:

• Eclipse Gold Mining Corp. (TSX-V:EGLD) closed a $20 million offering underwritten by a syndicate led by Stifel GMP on a best efforts Each unit includes a 1/2 warrant that expires in 24 months.
• Skeena Resources Limited (TSX-V:SKE) closed a $5 million offering on a best efforts basis.   The deal is expected to close on or about December 21, 2020.
• Rock Tech Lithium Inc. (TSX-V:RCK) closed a $5 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.
• Giyani Metals Corp. (TSX-V:EMM) closed a $48 million offering on a best efforts basis. The deal is expected to close on or about December 23, 2020.