ORENINC INDEX – Monday, May 25th 2020
North America’s leading junior mining finance data provider
Last Week: 95.67 (updated)
This week: 116.74
The Oreninc Index increased in the week ending May 15th, 2020 to 116.74 from an update 95.67 a week ago in a shortened week due to the Victoria Day celebrations, as bought deals rule. This marks just the third time the Oreninc Index has exceeded 100!
The COVID-19 virus global death toll is nearing 350,000 and more than 5 million cases reported worldwide.
Parts of Europe and the US begin to ease travel restrictions as the summer holiday season approaches, bringing a mix of relief related to economic restart and apprehension about the possibility of a resurgence in virus cases.
On the geopolitical front, US President Donald Trump continues to bristle at China over the COVID-19 virus and he was given another focal point as China turned the screw on the remaining freedoms in Kong Kong.
US unemployment continues to increase as another 2.44 million people filed first-time jobless claims according to the Labor Department, meaning new claims have been above 2 million per week since March 21st, totalling some 38.64 million people. Despite this, IHS Markit reported that the US manufacturing Purchasing Managers Index for May rose to 39.8 from 36.1 in April.
In Europe, German chancellor Angela Merkel and French President Emmanuel Macron agreed a 500 billion-euro aid package for the European Union. It now requires the agreement of all European Union member states to be implemented.
On to the money: brokered action continued thick and fast as the total raises announced increased to $226 million, a 128-week high, which included eight brokered financings for $104.9 million, a one-week low, and eight bought-deal financings for $104.9 million, a one-week low. The average offer size increased to $4.3 million, a three-week high, while the number of financings increased to 52.
Gold had an up-and-down week with some profit-taking as the spot price closed down at $1,734/oz from $1,743/oz a week ago. The yellow metal is up 14.33% so far this year. The US dollar index fell to 99.86 from 100.40 last week. The VanEck managed GDXJ continued its growth trajectory to close up at $46.43 from $45.92 a week ago. The index is now up 9.87% so far in 2020. The US Global Go Gold ETF continued to see growth as it closed up at $20.21 from $20.17 a week ago. It is up 15.09% so far in 2020. The HUI Arca Gold BUGS Index closed down at 285.13 from 296.92 last week. The SPDR GLD ETF inventory continued to increase as it closed up at 1,116.71 tonnes from 1,1113.78 tonnes last week.
In other commodities, silver continued its surge as the spot price closed up at $17.21/oz from $16.61/oz a week ago. Copper also gained as it closed up at $2.38/lb from $2.33/lb week ago. Oil continued to recover as WTI closed up at $33.25 a barrel from $29.43 a barrel a week ago.
The Dow Jones Industrial Average returned to growth as it closed up at 24,465 from 23,685 a week ago. Canada’s S&P/TSX Composite Index closed up at 14,913 from 14,638 the previous week. The S&P/TSX Venture Composite Index closed up at 536.94 from 509.01 last week.
Sabina Gold & Silver (TSX:SBB) announced a bought deal to raise $49 million.
Discovery Metals (TSX-V:DSV) opened a non-brokered private placement to raise up to $25 million.
Major Financing Openings
Major Financing Closings
Altius Minerals Corporation (TSX: ALS) (OTCQX: ATUSF) is pleased... READ MORE
Midland Exploration Inc. (TSX-V: MD) is pleased to announce that ... READ MORE
Chibougamau Independent Mines Inc. (TSX-V:CBG) (FRA:CLL1) (OTC:... READ MORE
Silver Mineralization Continues to Expand Beneath Current Resourc... READ MORE
Orezone Gold Corporation (TSX: ORE) (OTCQX: ORZCF) is pleased t... READ MORE
We acknowledge the [financial] support of the Government of Canada.