Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Last week index score: 86.47
This week: 61.25
Zinc One Resources (TSXV: Z) exercised an option to acquire the Bongará zinc oxide and Charlotte Bongará zinc oxide
Avrupa Minerals (AVU:TSXV) arranged a $500,000 private placement that it subsequently increased C$1 million.
LiCo Energy Metals (TSXV: LIC) opened an exploration & development office in Santiago, Chile
The Oreninc Index fell in the week ending June 29th, 2017 to 61.25 from 86.47 the previous week.
Total fund raises announced fell to C$97.1 million, a four-week low, which included two brokered financings for a total of C$65.0 million, a four-week low, within which there were two bought-deal financings for C$65.0 million, a 15-week high. The average offer size fell to C$3.5 million, a four-week low, whilst the total number of financings announced fell to 28, a seven-week low.
Spot gold closed at US$1,241/oz, down from US$1,256 the previous week. Signs indicating that gold could have a rebound week punctured early on when a massive sell order of 1.8 million ounces trade executed at the close of the Asian trading day. Some commentators said this must have been a fat-finger muppet trade, stating that a trade of 18,149 ounces is very typical, but a trade of 18,149 lots of a futures contract (100 times bigger) is not. Others focused on that fact that the gold market absorbed this US$2.2 billion sale in less than a minute, during a period of illiquidity and the price only fell 1%.
The van Eck managed GDXJ has been on a downward trend since its recent rebalance and is now up 5.8% so far in 2017. The inventory of the SPDR GLD ETF remained flat at 854 tonnes, the same as the previous week. This week saw US Global launch its GO GOLD and Precious Metal Miners ETF (NYSE: GOAU) that will be a quant-driven ETF fund rebalanced quarterly that will actively look at factors that separate the good from bad.
In other commodities, silver spot price had a falter week closing US$16.62/oz from US$16.71 the previous week. The Comex copper price continued its steady run up to close at US$2.71 per pound from US$2.63 the previous week. Oil had a better week, finally breaking its losing streak to close at US$46.24 per barrel from US$43.01 last week. This was its longest run of gains in six months although it is still down 10% during the second quarter, which has cut US$113 billion from the value of companies listed in the MSCI World Energy Sector Index.
The Dow Jones Industrial Average saw a rare losing week to close down at 21,349 from 21,394 the previous week. Canada’s S&P/TSX Composite Index also fell to close at 15,182 from 15,319 the previous week. The S&P/TSX Venture Composite Index continued its general downward trend to close at 766.74.
Summary:
Financial news highlights
Alio Gold (TSX: ALO) entered into a bought deal agreement with a syndicate of underwriters led by Cormark Securities and Clarus Securities
Bowmore Exploration (TSX-V:BOW) opened a C$15 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.
Major Financing Openings:
Major Financing Closings:
Company news
Avrupa Minerals (AVU:TSXV) arranged a $500,000 private placement that it subsequently increased C$1 million.
Conclusion
Having consolidated the Alvalade copper-zinc project in Portugal, Avrupa needed to top up the kitty to prepare for the next stage of drilling.
Zinc One Resources (TSXV: Z) exercised an option to acquire the Bongará zinc oxide and Charlotte Bongará zinc oxide
Conclusion
This acquisition will help Zinc One on its path to becoming a zinc producer. It now controls two high-grade zinc projects and will advance them quickly to take advantage of the growing zinc bull market.
LiCo Energy Metals (TSXV: LIC) opened an exploration & development office in Santiago, Chile
