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Since my last article titled "4 Gold Miners With Recent Insider Buying" the stocks that I featured in the article have performed as follows:

CompanyPrice 12/6Price 12/14Change %
OSK.TO$7.51$7.44-1
RIO.TO$5.11$5.130
TC$3.09$3.4712%
PGLC$0.34$0.4121%

In this article I will feature three mining companies that have seen insider buying during the last 30 days.

1. Gold Resource Corporation (GORO) is a mining company focused on production and pursuing development of select, high-grade gold and silver projects that feature low operation costs and produce high returns on capital. The company has 100% interest in six high-grade gold and silver properties in Mexico's southern state of Oaxaca.

The company's flagship property, its El Aguila project, commenced commercial production July 1, 2010. The company began processing ore from its longevity of operations, its Arista Underground Polymetallic Deposit, in March 2011.

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Insider buys

  • William Reid purchased 6,188 shares on November 21 and currently beneficially ownes 2,745,669 shares or 5.1% of the company. William Reid is the CEO and Chairman of the Board.
  • Jason Reid purchased 7,326 shares on November 15 and currently holds 423,394 shares or 0.8% of the company. Jason Reid is President & Director of the company.

Financials

The company reported the third-quarter financial results on November 15 with the following highlights:

Revenue$36.5 million
Net income$7.3 million
Cash$36.2 million
Gold production (gold equivalent)22,336 ounces
Monthly dividend$0.06 per share

Outlook

The company is targeting 85,000 - 100,000 gold equivalent ounces of production for 2012. The company's total cash costs are currently $396 per ounce and the company is targeting total cash costs of $200 - $300 per ounce.

Competition

Gold Resource Corporation's competitors include Goldcorp (GG), Barrick Gold (ABX) and Kinross Gold (KGC). Here is a table comparing these companies.

CompanyGOROGGABXKGC
Market Cap:849.29M30.10B34.39B11.12B
Employees:31214,50018,4008,230
Qtrly Rev Growth (yoy):-0.030.18-0.140.07
Revenue:138.84M5.52B14.20B4.15B
Gross Margin:0.620.580.490.57
EBITDA:59.15M2.99B6.83B1.80B
Operating Margin:0.410.410.350.29
Net Income:62.48M1.65B3.36B-2.33B
EPS:1.101.883.35-2.03
P/E:14.6419.7610.25N/A
PEG (5 yr expected):N/A1.0352.822.10
P/S:6.085.442.422.68
Dividend %4.491.462.331.64

Gold Resource Corporation has the highest dividend yield among these four companies.

My analysis

The stock is currently down 26.1% for the year. The stock has a $5 price target from the Point and Figure chart. There have been two insider buy transactions and there have not been any insider sell transactions this year. The stock is trading at a P/E ratio of 14.64 and a forward P/E ratio of 24.27. The stock has a 4.49% dividend yield. I have a cautiously bullish bias for the stock currently based on the fundamental picture.

2. Revett Minerals (RVM) is an established Silver-Copper producer that owns and operates the producing Troy Mine and a development stage Rock Creek project (containing inferred and historical resource estimates of 300 million ounces of silver and 2.5 billion pounds of copper); both properties are located in northwestern Montana.

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Insider buys

  • Timothy Lindsey purchased 20,994 shares on November 21 - December 3 and currently holds 494,601 shares or 1.4% of the company. Timothy Lindsey is the Chairman of the Board.
  • John Shanahan purchased 10,000 shares on September 11 and currently holds 411,482 shares or 1.1% of the company. Mr. Shanahan was named the company's President and CEO in October 2008.

Financials

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

Revenue$19.4 million
Net income$4.4 million
Cash$32.6 million
Silver production348,194 ounces

Outlook

On December 3 Revett Minerals provided an update on silver and copper production through the end of November 2012 from its Troy Mine located in northwest Montana.

Year to date production through November 30 was 1,115,000 ounces of silver and 7,550,000 pounds of copper. The company anticipates production during December 2012 to be at a rate of approximately 3,500tpd. As a result the company now expects to produce 1.2 to 1.25 million ounces of silver and 8.0 to 8.5 million pounds of copper in 2012.

Competition

Revett Minerals' competitors include Coeur d'Alene Mines Corporation (CDE), Newmont Mining (NEM) and Pan American Silver (PAAS). Here is a table comparing these companies.

CompanyRVMCDENEMPAAS
Market Cap:108.97M2.10B21.82B2.86B
Employees:1931,90317,1005,400
Qtrly Rev Growth (yoy):0.16-0.33-0.100.14
Revenue:73.89M936.47M10.16B893.62M
Gross Margin:0.350.510.580.46
EBITDA:15.52M361.49M4.60B370.94M
Operating Margin:0.180.140.350.30
Net Income:11.43M22.49M212.00M211.77M
EPS:0.320.240.221.63
P/E:10.0397.62202.5311.49
PEG (5 yr expected):N/A0.86-3.531.65
P/S:1.472.222.163.20

Revett Minerals has the lowest P/S- and P/E ratio among these four companies.

My analysis

The stock is currently down 34.7% for the year. The stock has a $2.5 price target from the Point and Figure chart. There have been three insider buy transactions and there have not been any insider sell transactions this year. The stock is trading at a P/E ratio of 10.03 and the company has a book value of $2.63 per share. I have a bullish bias for the stock currently based on the fundamental picture.

3. Luna Gold (OTCQX:LGCUF) is in the business of exploring, operating, and developing gold resource properties in Brazil. Luna Gold's proven management team has extensive experience in all facets of the mining industry. Luna anticipates that its Aurizona Gold Mine will produce between 68,000 and 70,000 ounces of gold during 2012. Following Aurizona's Phase I Expansion, annual production is targeted to increase to 100,000 ounces in 2013 and 125,000 ounces in 2015. Additionally, the company is actively exploring for new gold resources at its wholly owned Luna Greenfields area.

In December 2011, Luna Gold completed a 44,000 metre drill program that significantly increased the size of the Aurizona gold resource estimate. Measured and indicated gold resources now total 78.0 million tonnes at 1.26 grams per tonne gold or 3.17 million ounces of gold, an increase of 250% from the previous mineral resource estimate published in January 2009. Inferred gold resources now total 15.2 million tonnes at 1.47 grams per tonne gold or 0.72 million ounces gold, an increase of 79% from the January 2009 mineral resource estimate.

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Insider buys

  • Mark Halpin purchased 3,100 shares on December 13, 20,000 shares on October 3 and 37,200 shares on September 12-17. Mark Halpin currently holds 60,300 shares or less than 0.1% of the company. Mark Halpin is Vice President Corporate Development.
  • Duane Lo purchased 5,000 shares on December 5 and 10,000 shares on September 24. Duane Lo currently holds 30,000 shares or less than 0.1% of the company. Duane Lo is the Chief Financial Officer of the company.
  • Steven Krause purchased 4,000 shares on December 5 and 6,000 shares on September 12. Steven Krause currently holds 12,000 shares or less than 0.1% of the company. Steven Krause serves as a director of the company.
  • Luis Baertl purchased 3,000 shares on November 27 and currently holds 65,834 shares or less than 0.1% of the company. Luis Baertl serves as a director of the company.
  • Keith Hulley purchased 3,000 shares on November 15 and 6,500 shares on October 5. Keith Hulley currently holds 9,500 shares or less than 0.1% of the company. Keith Hulley serves as a director of the company.
  • Wayne Kirk purchased 6,000 shares on September 27 and currently holds 16,000 shares or less than 0.1% of the company. Wayne Kirk serves as a director of the company.

Financials

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

Revenue$22.2 million
Net income$3.5 million
Cash$15.8 million
Debt$20.3 million
Gold production19,391 ounces

Outlook

In October, the company announced an update to the gold production guidance for the full year of 2012, increasing the full year target from 60,000 ounces to between 68,000 and 70,000 ounces. The company expects the average unit cash cost of production for 2012 to be between $750 and $760 per ounce. Cash costs could rise slightly in the fourth quarter of 2012, as compared to the third quarter of 2012, due to drought conditions being experienced at Aurizona and the resulting purchase of additional water resources required to maintain production. With the exception of these additional water purchases, the average unit cash cost of production remains on target as originally planned at $750 per ounce.

During the third quarter 2012, the company announced that its Board of Directors had approved a planned Phase 1 expansion program at Aurizona to increase that facility''s annual production capacity to a targeted 125,000 ounces of gold.

The cost of the expansion is estimated at $43.2 million of capital expenditures as well as a $6.5 million contingency, for a total cost estimate of $49.7 million. The Phase 1 expansion is now targeted at an annual gold production rate of 100,000 ounces in 2013 and 125,000 ounces in subsequent years, which is an increase over the previous guidance of 100,000 ounces per year. The expansion is targeting low capital cost improvements to the existing Aurizona Mine process plant with minimal impact to the plant''s established footprint or current operations, while further expansion studies are being completed. This expansion project is expected to reach completion in Q4 2013. In Q1 2013, the company is targeting to publicly release a reserve update National Instrument 43-101 technical report for Aurizona.

Competition

Luna Gold's competitors include IAMGOLD (IAG), Barrick Gold and Randgold Resources (GOLD). Here is a table comparing these companies.

CompanyLGCUFIAGABXGOLD
Market Cap:339.03M4.39B34.22B9.25B
Employees:N/A5,26918,4001,699
Qtrly Rev Growth (yoy):0.40-0.10-0.140.03
Revenue:87.27M1.68B14.20B1.25B
Gross Margin:N/A0.430.490.50
EBITDA:21.27M743.36M6.83B666.25M
Operating Margin:0.110.340.350.45
Net Income:10.65M383.74M3.36B425.74M
EPS:0.101.023.354.61
P/E:33.0611.4410.2021.78
PEG (5 yr expected):N/A-3.2652.824.42
P/S:3.882.562.427.33

Luna Gold has the highest revenue growth among these four companies.

My analysis

The stock is currently up 29.1% for the year. There have been 23 insider buy transactions and there have not been any insider sell transactions during the last 6 months. The company has a 14.4% insider ownership and the company's total resources are 3,886,000 ounces of gold. The stock is trading at a P/E ratio of 33.06. I have a bullish bias for the stock currently based on the fundamental picture.

Source: 3 Gold And Silver Miners With Recent Insider Buying