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Gold prices have made their highest monthly gains during the winter months (November - February) and the slowest growth have occurred in the Spring/Summer months (March - August) since 2002.

Based on this observation I screened for gold mining companies with insider buying during the month of November. Here is a look at four companies that I found.

1. IAMGOLD (IAG) is a leading mid-tier gold mining company producing approximately one million ounces annually from five gold mines (including current joint ventures) on three continents. In the Canadian province of Québec, the company also operates Niobec Inc., which produces more than 4.5 million kilograms of niobium annually, and owns a rare earth element resource close to its niobium mine. IAMGOLD is uniquely positioned with a strong financial position and extensive management and operational expertise. To grow from this strong base, IAMGOLD has a pipeline of development and exploration projects and continues to assess accretive acquisition opportunities. IAMGOLD's growth plans are strategically focused in certain regions in Canada, select countries in South America and Africa.

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Insider buys

  • Jeffery Snow purchased 15,000 shares on November 16. Jeffery Snow joined IAMGOLD in November 2009 and is currently Senior Vice President and General Counsel in addition to being member of the Executive Leadership Team.
  • Benjamin Little purchased 2,000 shares on November 16. Benjamin Little is Senior Vice President, Corporate Affairs. In addition to leading the company's Global Corporate Affairs Program, he is a member of the Executive Leadership Team.
  • Stephen Letwin purchased 65,000 shares on September 20-24. Stephen Letwin was appointed President and Chief Executive Officer of IAMGOLD on November 1, 2010. He has been a member of the Board of Directors since joining the company.
  • Robert Carreau purchased 3,400 shares on June 22-26. Robert Carreau is Senior Vice President, Health, Safety & Sustainability.
  • Richard Hall purchased 3,200 shares on June 11. Mr. Hall was newly appointed a director of IAMGOLD on March 22, 2012.
  • Robert Dengler purchased 5,000 shares on June 8. Mr. Dengler has been a director of IAMGOLD since 2005.

Financials

The company reported the third-quarter financial results on November 13 with the following highlights:

Revenue$386.8 million
Net income$78.0 million
Cash$1.1 billion
Debt$638.3 million
Gold production0.2 million ounces

Outlook

President and CEO Steve Letwin commented on November 13:

"We have the capital available to fund a robust portfolio of projects with attractive rates of return. With gold production commencing at our Westwood project in the first quarter of next year, a pre-feasibility study at Côté Gold underway and expansion projects in West Africa, South America and Canada, we expect to nearly double production within five years."

Competition

IAMGOLD's competitors include Barrick Gold (ABX), Newmont Mining (NEM) and Rangold Resources (GOLD). Here is a table comparing these companies.

CompanyIAGABXNEMGOLDIndustry
Market Cap:4.41B33.74B22.90B9.37B20.01M
Employees:5,26918,40017,1001,699135.00
Qtrly Rev Growth (yoy):-0.10-0.14-0.100.030.66
Revenue [TTM]:1.68B14.20B10.16B1.25B34.70M
Gross Margin :0.430.490.580.500.58
EBITDA :751.29M6.83B4.60B666.25M-960.80K
Operating Margin :0.340.350.350.450.04
Net Income :383.74M3.36B212.00M425.74MN/A
EPS :-0.093.350.224.61N/A
P/E :N/A10.05212.5322.0613.75
PEG (5 yr expected):-6.3849.53-9.39-5.800.44
P/S :2.642.352.237.486.96

IAMGOLD is currently trading below the industry average P/S ratio.

My analysis

The stock has a $29 price target from the Point and Figure chart. There have been 12 insider buy transactions and three insider sell transactions during the past six months. There are four analyst buy ratings, four neutral ratings and one sell rating with a average target price of $23.00. The stock is trading at a P/E ratio of 12.48 and a forward P/E ratio of 7.77. The stock has a 2.13% dividend yield. The company has a book value of $9.58 per share. I have a bullish bias for the stock currently.

2. Gold Standard Ventures (GSV) is a Canadian-based company focused on the acquisition and exploration of district-scale and other gold-bearing mineral properties exclusively in the State of Nevada, United States. The company's flagship property is the Railroad Project, located in Elko County, Nevada. The Railroad Project is a prospective gold exploration target comprising approximately 15,636 acres (24.4 square miles) as geographically defined in the Railroad NI 43-101 within the Carlin Trend of north-central Nevada.

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Insider buys

  • Jonathan Awde purchased 7,500 shares on November 13, 8,500 shares on October 19-23, 11,900 shares on October 1-15, 18,000 shares on September 5-27 and 24,000 shares on August 15. Jonathan Awde is President & CEO and a director of the company.
  • David Mathewson purchased 10,000 shares on August 16. David Mathewson is Vice President, Exploration and a director of the company.
  • FCMI purchased 1,150,000 shares on June 27 pursuant to a secondary offering. FCMI is a 16.5% owner of Gold Standard Ventures. FCMI is a private investment corporation controlled by Albert Friedberg.

Financials

The company reported the third-quarter financial results on November 14 with the following highlights:

Revenue$0
Net loss$1.6 million
Cash$20.5 million

Outlook

The company's budget is $17.68 million for June 2012 through May 2013. This budget includes drilling for 40 holes.

My analysis

There have been 34 insider buy transactions and 12 insider sell transactions during the past six months. The company has a 20% insider ownership and institutions own 50% of the company. The stock had a 30% run after the company reported very encouraging drilling results on September 18 which has been now fully retraced. I have a cautiously bullish bias for the stock currently.

3. Seabridge Gold's (SA) resource base of gold, copper and silver is one of the world's largest. The company's principal projects are located in Canada. Seabridge's objective is to grow resource and reserve ownership per share. The company's risk-reducing strategy: acquire North American deposits; expand them through exploration; move them to reserves through engineering; and sell or joint venture them to established producers for mine construction and operation.

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Insider buys

  • Rudi Fronk purchased 10,000 shares on November 16. Rudi Fronk is Chairman and Chief Executive Officer of the company.
  • Jay Layman purchased 500 shares on September 13 and 500 shares on June 27. Jay Layman is Director, President and Chief Operating Officer of the company.
  • Thomas Dawson purchased 4,000 shares on June 29. Thomas Dawson serves as a director of the company.

Financials

The company reported the third-quarter financial results on November 14 with the following highlights:

Revenue$0
Net loss$5.3 million
Cash$17.4 million

Subsequent to the quarter ended September 30, 2012, the company announced that it entered into an agreement whereby the company would sell 1,100,000 flow-through common shares at an average price of $21.85 per share for gross proceeds of $24.0 million. The financing is expected to close by the end of November.

Outlook

In the near term at KSM, the company plans to complete and file an Environmental Impact Statement for the Canadian Environmental Assessment Agency and an Environmental Assessment Application for the BC Environmental Assessment Office. Filing of the application is expected to be completed in January 2013. Seabridge is also currently designing a KSM drill program for 2013 with the objective of adding to the project's measured and indicated copper and gold resources.

At Courageous Lake, recent exploration results derived from the search for a second major gold deposit along the Matthews Lake Greenstone Belt, will be followed up. The objective is to enhance the project's grade in the early years of production, shortening the payback period and improving the overall economics.

In addition to this mineral property activity, the company will continue to study strategic alternatives for its projects and the company as a whole.

My analysis

The stock has a $12 price target from the Point and Figure chart. There have been five insider buy transactions and there has been one insider sell transaction during the past six months. The company's proven and probable reserves are 44.7 million ounces of gold plus 10 billion pounds of copper. The company's enterprise value is less than $15 per ounce of gold reserves. Insiders own over 30% of the common shares and institutions own approximately 35% of the common shares. I have a bullish bias for the stock currently.

4. Klondex (OTCQX:KLNDF) is primarily engaged in the surface and underground exploration and development of its 100% owned Fire Creek gold property in North Central Nevada. Fire Creek is strategically located between the past producing Mule Canyon Mine to the north and the world-class Pipeline and Cortez gold deposits to the south. The property comprises 11,208 acres (17.5 square miles) and is readily accessible via Federal and state roads with close access to the electrical power grid.

Klondex's secondary focus is acquiring, exploring and developing other gold and silver properties in Nevada. Currently Klondex has three other gold exploration properties, and it reviews and considers other projects for inclusion.

On September 12, 2011, Klondex announced an updated Technical report and resource estimation that produced an Indicated Mineral Resource of 1.65 million ounces of gold and an Inferred Mineral Resource of 0.46 million ounces of gold identified via its deep surface drilling program at its Fire Creek Property. The resource figures, which are as of May 21, 2011, reflect a 4 grams per tonne cutoff. In late April 2011, Klondex initiated an underground program at Fire Creek including a 1,113 meter (3,650 foot) decline that will enable underground in-fill exploration drilling.

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Insider buys

  • Glenn Pountney purchased 34,700 shares on November 1-15, 255,600 shares on October 1-23, 948,500 shares on September 4-28, 656,900 shares August 1-31, 366,900 shares on July 30-31. Glenn Pountney is a 14.1% owner of the company.
  • James Haggarty purchased 8,200 shares on August 13. James Haggarty serves as a director of the company.

Financials

The company reported the third-quarter financial results on November 8 with the following highlights:

Revenue$0
Net loss$1.5 million
Cash$1.9 million
Debt$11.5 million

News

On November 1 Klondex Mines announced $20 million equity financing and $7 million debt financing by issuing up to approximately 14,815,000 non-transferable subscription receipts at a price of $1.35 per subscription receipt.

Upcoming milestones

NI 43-101 resource update is targeted for 2H 2013 according to the investor presentation dated October 2012.

My analysis

The stock is currently trading close to its 52 -week lows. There have been 81 insider buy transactions and there has been one insider sell transaction during the past six months. I have a cautiously bullish bias for the stock currently.

Source: 4 Gold Miners With Recent Insider Buying