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Last week index score: 36.21 (updated)
This week: 52.74


New interviews from the International Mining Investment Conference last week in Vancouver are now online!


The Oreninc Index rose in the week ending May 18th, 2018 to 52.74 from an updated 36.21 a week ago despite good falling below US$1,300/oz.

Gold finally gave way and fell below the US$1,300/oz level to hit a year-to-date low as the US dollar continued to strengthen, the US ten-year treasury hit a 3% yield and economic data continued to show positive results.

US dollar strength is overpowering geopolitical risk concerns which continue to swirl around: the past week saw the US open its new embassy in Israel in Jerusalem. The ceremony was attended by president Trump’s daughter, Ivanka and provoked mass protests by Palestinians during which Israeli security forces killed dozens.

President Trump’s blunt, hard ball approach to issues also threatened to derail the possibility of talks with North Korean leader Kim Jong-Un after the US carried out extensive war air exercises with South Korea.

On to the money: total fund raises announced increased to C$81.7 million, a two-week low, which included five brokered financings for C$50.5 million, a nine-week high and two bought deal financings for C$20.0 million, a one-week high. The average offer size grew to C$3.5 million, a two-week low and the number of financings grew to 23, a two-week high.

Gold fell to US$1,293/oz from US$1,319/oz a week ago after hitting a low of US$1,285/oz. Gold is now down 0.75% this year. The US dollar index increased again and closed up at 93.63 from 92.54 a week ago. The van Eck managed GDXJ suffered as a result closing down at US$32.84 from US$33.85 last week. The index is down 3.78% so far in 2018. The US Global Go Gold ETF also fell to US$12.98 from US$13.35 a week ago. It is now down 0.23% so far in 2018. The HUI Arca Gold BUGS Index closed down at 177.75 from 182.24 last week. The SPDR GLD ETF again saw sales to close its inventory at 855.28 tonnes from 857.64 tonnes a week ago.

In other commodities, silver also gave up ground to close down at US$16.44/oz from US$16.66/oz a week ago. Likewise, copper closed down at US$3.06/lb from US$3.11/lb last week. Oil continued to post gains to close up at US$71.28 a barrel from US$70.51 a barrel a week ago.

The Dow Jones Industrial Average again saw losses to close down at 24,715 from 24,831 last week. Canada’s S&P/TSX Composite Index continued to see growth to close up at 16,162 from 15,983 the previous week. The S&P/TSX Venture Composite Index also closed up at 786.39 from 782.92 last week. 

Summary:

  • Number of financings grew to 23, a two-week high.
  • Five brokered financings were announced this week for C$50.5m, a nine-week high.
  • Two bought-deal financings were announced this week for C$20.0m, a one-week high.
  • Total dollars decreased to C$81.7m, a two-week low.
  • Average offer size tumbled to C$3.5m, a two-week low.


Financing Highlights

Canadian Zinc (TSX:CZN) entered into an equity financing agreement with RCF VI to purchase 100 million shares @ C$0.20 for gross proceeds of $20 million.

  • RCF VI will be issued 50 million warrants exercisable @ C$0.25 until December 31st 2018.
  • The proceeds will be used to repay a US$10 million bridge loan advanced by RCF VI and the ongoing development of the Prairie Creek Zn-Pb-Ag project in Northwest Territories, Canada.

Major Financing Openings:

  • Canadian Zinc (TSX:CZN) opened a C$20 million offering underwritten by a syndicate led by Resource Capital Fund VI on a best efforts basis. Each unit includes half a warrant that expires in seven months.
  • Troilus Gold (TSXV:TLG) opened a C$10.01 million offering underwritten by a syndicate led by GMP Securities on a bought deal basis. The deal is expected to close on or about June 5th.
  • Rio2 (TSXV:RIO) opened a C$10 million offering underwritten by a syndicate led by Clarus Securities on a bought deal basis. The deal is expected to close on or about June 7th.
  • Troilus Gold (TSXV:TLG) opened a C$7.01 million offering on a best efforts basis. The deal is expected to close on or about June 5th.

Major Financing Closings:

  • West African Resources (TSXV:WAF) closed a C$34.3 million offering on a best efforts basis.
  • Silvercrest Metals (TSXV:SIL) closed a C$17.25 million offering underwritten by a syndicate led by PI Financial on a bought deal basis.
  • South Star Mining (TSXV:STS) closed a C$4.19 million offering underwritten by a syndicate led by Echelon Wealth Partners on a best efforts basis. Each unit included a warrant that expires in 24 months.
  • Renaissance Gold (TSXV:REN) closed a C$3.12 million offering on a best efforts basis.