ORENINC INDEX – Monday, February 4th 2019
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Last week index score: 20.23
This week: 14.92
Nexus Gold (TSX-V:NXS) entered into a letter of intent to acquire the McKenzie gold project in the Red Lake region of north-western Ontario, Canada.
The Oreninc Index fell again in the week ending February 1st, 2019 to 14.92 from 20.23 from 28.08 despite metal prices showing growth.
Gold continued to improve, hitting an eight-month high as US Federal Reserve chairman Jerome Powell stated that the case for further rate increments had “weakened”. The US Labor Department reported that new unemployment claims increased 53,000, to 253,000 claims in January, above what economists were expecting. The unemployment rate rose to 8.1% from 7.6% a year ago. With gold having broken through the US$1,300/oz mark and held, its next resistance levels are at $1,330 and $1,350.
On the political front, US President Donald Trump said he would the pull nation out of the intermediate-range nuclear forces (INF) treaty, an important nuclear weapons treaty with Russia on the grounds that Russia has not complied with some of its provisions. In retaliation, Russian president Vladimir Putin, said he would pull his country out of INF.
On to the money: total fund raises announced increased to C$20.3 million, a two-week high, that included no brokered financings and no bought-deal financings. The average offer size increased to C$1.6 million, a two-week high, whilst the number of financings fell to 13, a three-week low.
Gold continued to build a base about the US$1,300/oz mark to close the week up at US$1,317/oz from US$1,305/oz a week ago after hitting a high of US$1.321/oz. The yellow metal is up 2.77% this year. The US dollar index continued to fall and closed down at 95.57 from 95.79 last week. The van Eck managed GDXJ put in some strong growth as it closed up at US$32.84 from US$30.60 a week ago. The index is up 8.67% so far in 2019. A similar tale at the US Global Go Gold ETF that added almost a dollar as it closed up at US$12.64 from US$11.77 a week ago. It is up 10.78% so far in 2019. The HUI Arca Gold BUGS Index also closed up at 169.25 from 154.64 last week. The SPDR GLD ETF added to its inventory and closed up at 817.4 tonnes from 809.76 tonnes a week ago. Its inventory saw its largest monthly gain since September 2017.
In other commodities, silver started to run as it briefly broke through the US$16/oz level before closing up at US$15.91/oz from US$15.77/oz a week ago. Copper continued to strengthen too and closed up at US$2.77/lb from US$2.71/lb a week ago. Oil also saw growth as WTI closed up at US$55.26 a barrel from US$53.69 a barrel a week ago.
The Dow Jones Industrial Average broke back over 25,000 again as it closed up at 25,063 from 24,737 last week. Canada’s S&P/TSX Composite Index also continued to grow as it closed up again at 15,506 from 15,366 the previous week. The S&P/TSX Venture Composite Index closed up at 622.86 from 604.56 last week.
Summary
Financing Highlights
Premier Gold Mines (TSX:PG) opened and closed a financing arrangement with Orion Mine Finance for aggregate gross proceeds of about US$18.3 million.
Major Financing Openings
Major Financing Closings
Company News
Nexus Gold (TSX-V:NXS) entered into a letter of intent to acquire the McKenzie gold project in the Red Lake region of north-western Ontario, Canada.
Analysis
McKenzie represents a continuation of the company pivoting away from Africa and into Canada and follows a similar deal with the New Pilot project in British Columbia. With numerous high-grade showings, McKenzie presents a compelling exploration opportunity.
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