Insider buying typically means insiders are bullish on shares of a company's stock and think it will rise. I discuss whether or not investors should join insiders and purchase shares of the three gold companies mentioned. I continue to look for good deals in the gold, silver and copper mining sector. It's becoming harder and harder given the recent run-up in precious metals prices.
TMX | Market Insights - TMX Datalinx - Insider Trade Marker Information
To date, the price of gold NYSEARCA: Still, I have been able to find some good deals despite this. One strategy I've used to locate undervalued gold and silver stocks is to continually scan through insider activity reports.
This is all public information by scanning through SEDI reports, which is the electronic system used for filing and publicly sharing insider trading reports on the Toronto Stock Exchange, where many gold and silver companies are mainly listed.
Investors can also use CanadianInsider. As mentioned in my last article on insider buying in gold stocks, when key insiders and executives of a company are purchasing shares of their own company's stock, it generally means that the insiders are bullish on think the share price will rise.
And it could also mean that a takeover of the company is imminent. The strategy has definitely worked in the past for me. Insiders were buying shares of St. STADF hand over fist before the company was bought out last year at a huge premium by Kirkland Lake Gold OTCPK: KGILF ; investors buying shares of St.
Another example is True Gold OTCQX: RVREF , which was bought out at a big premium earlier this year by Endeavor Mining OTCQX: EDVMF ; this takeover came a little over a year after the company's chairman bought a huge amount of shares in the open market.
Insiders have been picking up shares at three mining companies lately: WLDVF , Asanko Gold NYSEMKT: AKG and Taseko Mines NYSEMKT: Here, I break down the investment case for each company. WLDVF data by YCharts. Arizona Mining is a company that was formally called Wildcat Silver. However, the company is planning on updating the resource estimate at Taylor later this year, and plans on releasing a preliminary economic assessment in Q2 and a feasibility study by Q4 This deposit was just discovered in and is a potential game-changer for the company, as it contains a significant high-grade lead-zinc-copper-silver resource base Taylor is an important deposit because it obviously can be included in the mine plan at Hermosa and significantly reduce cash costs, increase production and improve the mine's economics; the PEA and feasibility study should be a great one for Arizona Mining as a result.
Insiders at Arizona Mining have absolutely been buying shares hand over fist over the last few months. This could mean that Arizona Mining is on the verge or a takeover, or it may just mean that insiders are bullish on the company due to its strong drill results at Taylor, and think the share price is going to rise in the near future.
Parikh is vice president and corporate secretary of Arizona Mining. I like that insiders have a lot of skin in the game, so I am keeping a close eye on Arizona Mining and may purchase shares in the future.
AKG data by YCharts. Asanko Gold is an emerging mid-tier gold producer that owns the Asanko Gold mine in Ghana.
The company just declared commercial production at the mine on April 1, , within budget and ahead of schedule. This is a huge asset that contains 5.
Rising gold prices would also make a stronger case for this expansion. Insiders have been buying shares following the announcement of commercial production:. Steyn is on the board of directors and has over 30 years experience in the resource sector developing mines in Southern Africa, according to Asanko's website.
Breese also bought , shares of stock on Feb. Breese is director, president and CEO of Asanko and has over 25 years of experience in the mining industry.
This makes shares a buy here in my opinion. TGB data by YCharts.
Taseko is mainly a copper producer today but has the potential to produce a significant amount of gold from its New Prosperity project at some point in the future. The company operates the Gibraltrar copper mine, which is producing million pounds of copper and 2.
I like Taseko mainly for its development assets, which I feel give the company huge long-term upside if copper and gold prices rise. My favorite development project of Taseko's is Florence, which contains a million ton reserve base and a year mine life, and an estimated 75 million pounds of copper production annually. I think there's a strong likelihood this mine gets built as a result. The New Prosperity mine is more of a long-term option for Taseko; I don't expect this mine to get to production anytime soon, but if it ever does, it would be a huge boost to Taseko.
The deposit contains 5. The issue is the Canadian government has decided the project will not move forward as planned as there are concerns over the mine's potential adverse effects on the environment.
Junior mining stocks see record insider buying - The Globe and Mail
Taseko is currently suing the federal government over its decision that blocked development of the mine. Again, it's a long-term option for Taseko, and may never get built, but offers big upside.
Insiders have been buying shares hand over fist dating back to January of this year.
Here's the full insider trading activity. Hallbauer then bought 1. While he sold 60, shares on May 25, he still owns a significant amount of shares. Hallbauer is President and CEO of Taseko. Ireland was on the board of directors but then resigned on Feb. Battison is VP of corporate affairs at Taseko. Dickinson is on the board of directors at Taseko. One concern I do have over Taseko is its debt: I think the company is highly leveraged and will obviously benefit from higher copper prices, but I think there's a little too much risk here for me personally given the debt compared to Taseko market cap.
So, I'm on the sidelines for now, but I will keep a close eye on shares. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article. Please be aware of the risks associated with these stocks.
Insider Buying Reported At These 3 Mining Stocks: Summary Insiders have been buying shares at Arizona Mining, Asanko Gold and Taseko Mining. Insiders are Buying Arizona Mining, Asanko Gold and Taseko Mining I continue to look for good deals in the gold, silver and copper mining sector.
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