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Since my December 7, 2012 article, dealing with four gold stocks, the stocks that I featured in the article have performed as follows:

CompanyPrice 12/6Price 1/28Change
OSK.TO$7.51$6.86-8.7%
RIO.TO$5.11$5.29+3.5%
TC$3.09$4.07+31.7%
PGLC$0.34$0.60+76.5%

In this article I will feature three gold stocks that have seen intensive insider buying during the last 30 days.

Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10 percent.

1. Kinross (NYSE:KGC) is a Canadian-based gold mining company with mines and projects in Brazil, Canada, Chile, Ecuador, Ghana, Mauritania, Russia and United States, employing approximately 8,000 people worldwide.

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Insider buys

  • Gregory Etter purchased 1,094 shares on December 31, pursuant to a purchase/ownership plan. Gregory Etter currently holds 4,102 shares or less than 0.1% of the company. Gregory Etter is a senior officer of the company.
  • Rick Baker purchased 994 shares on December 31, pursuant to a purchase/ownership plan. Rick Baker currently holds 31,129 shares or less than 0.1% of the company. Rick Baker is a senior officer of the company.
  • Paul Rollinson purchased 2,227 shares on December 31, pursuant to a purchase/ownership plan. Paul Rollinson currently holds 89,043 shares or less than 0.1% of the company. Paul Rollinson was appointed to the Kinross Board and as Chief Executive Officer on August 1, 2012.
  • Glen Masterman purchased 1,297 shares on December 31, pursuant to a purchase/ownership plan. Glen Masterman currently holds 28,230 shares or less than 0.1% of the company. Glen Masterman is a senior officer of the company.
  • Geoffrey Gold purchased 1,953 shares on December 31, pursuant to a purchase/ownership plan. Geoffrey Gold currently holds 122,710 shares or less than 0.1% of the company. Geoffrey Gold was appointed Executive Vice-President, Corporate Development, and Chief Legal Officer on August 9, 2012.
  • James Fowler purchased 507 shares on December 31, pursuant to a purchase/ownership plan. James Fowler currently holds 1,939 shares or less than 0.1% of the company. James Fowler is a senior officer of the company.
  • Thomas Elliott purchased 1,058 shares on December 31, pursuant to a purchase/ownership plan. Thomas Elliott currently holds 26,471 shares or less than 0.1% of the company. Thomas Elliott is a senior officer of the company.
  • James Crossland purchased 937 shares on December 31, pursuant to a purchase/ownership plan. James Crossland currently holds 63,914 shares or less than 0.1% of the company. James Crossland was appointed Executive Vice-President, Corporate Affairs on August 9, 2012.
  • Lisa Colnett purchased 750 shares on December 31, pursuant to a purchase/ownership plan. Lisa Colnett currently holds 28,443 shares or less than 0.1% of the company. Lisa Colnett was appointed Senior Vice-President, Human Resources and Corporate Services, in November 2008.
  • Aquino Humberto purchased 1,592 shares on December 31, pursuant to a purchase/ownership plan. Aquino Humberto currently holds 9,272 shares or less than 0.1% of the company. Aquino Humberto is a senior officer of the company.

Financials

The company reported the third-quarter financial results on November 7, with the following highlights:

Revenue$1.1 billion
Net income$224.9 million
Cash$2.1 billion
Debt$2.6 billion
Gold production672,173 gold equivalent ounces
Production cost of sales$677 per gold equivalent ounce

Outlook

The company remains on track to meet its 2012 production forecast of approximately 2.5-2.6 million gold equivalent ounces from its continuing operations, and its cost of sales forecast of $690-$725 per gold equivalent ounce. As a result of the cost reduction initiative announced in Q2 2012, Kinross has identified approximately $200 million in capital expenditure reductions for 2012, and has reduced its full-year capital expenditure forecast to $2.0 billion from the previous forecast of $2.2 billion.

Competition

Kinross' competitors include Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG) and Newmont Mining (NYSE:NEM). Here is a table comparing these companies.

CompanyKGCABXGGNEMIndustry
Market Cap:9.41B32.55B28.77B21.18B20.64M
Employees:8,23018,40014,50017,100127.00
Qtrly Rev Growth (yoy):0.07-0.140.18-0.100.66
Revenue:4.15B14.20B5.52B10.16B32.75M
Gross Margin:0.570.490.580.580.59
EBITDA:1.80B6.83B2.99B4.60B-897.76K
Operating Margin:0.290.350.410.350.01
Net Income:-2.33B3.36B1.65B212.00MN/A
EPS:-2.033.351.880.22N/A
P/E:N/A9.7018.88196.6414.10
PEG (5 yr expected):1.782.151.52-3.020.69
P/S:2.352.315.232.128.91

Kinross is trading below the industry average P/S ratio.

My analysis

There have been 10 different insiders buying and there have not been any insiders selling the shares during the past 30 days. There are eight analyst buy ratings, five neutral ratings and one sell rating, with an average target price of $14.79. The stock is trading at a forward P/E ratio of 8.20. The company has a book value of $11.26 per share and the stock has a 1.88% dividend yield. The company's Proven and Probable reserves are 62.6 million ounces. The current share price is below the book value, which could be a good entry point for the stock.

2. Volta Resources (OTCPK:VLTAF) has a portfolio of quality gold exploration projects in Burkina Faso and Ghana, both mining-friendly West African jurisdictions with proven world-class gold deposits. Volta will focus on fast-tracking its flagship Kiaka Gold Project (NI-43-101 compliant resources include 153.26 Mt @ 0.99 g/t Au for 4,862,000 ounces in the Measured and Indicated categories and 33.74 Mt @ 0.93g/t for 1,006,000 ounces in the Inferred category including 34.38 million tonnes @ 1.04 g/t Au for 1,145,969 ounces of gold in the Proven category and 91.70 million tonnes @ 0.93 g/t Au for 2,742,353 ounces of gold in the Probable category) toward a development decision, aiming to complete a Feasibility Study in Q3, 2013. Recent acquisition of properties around the Kiaka Gold Project has provided Volta with an extensive ground position along the highly prospective Markoye Fault Corridor in an important emerging gold province.

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Insider buys

  • Steven Poad purchased 10,000 shares on January 25, and currently holds 18,000 shares or less than 0.1% of the company. Steven Poad is Chief Financial Officer & Corporate Secretary.
  • Kevin Bullock purchased 10,000 shares on January 25, and currently holds 33,000 shares or less than 0.1% of the company. Kevin Bullock is Volta's (formerly Goldcrest Resources Ltd.) founding President and has been CEO since its inception in 2003.
  • Dylan Pillay purchased 70,000 shares on January 14, and currently holds 100,000 shares or less than 0.1% of the company. Dylan Pillay is Vice President, Finance.

Financials

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

Revenue$0
Net loss$2.9 million
Cash$25.5 million

My analysis

There have been three different insiders buying and there have not been any insiders selling the shares during the past 30 days. The initial capital costs for the Kiaka Gold project are $609.7 million. The average annual gold production at Kiaka will be 340,000 ounces for 10.3 years mine life. The production start-up at Kiaka is expected in 2016. The company's current enterprise value is less than $8 per gold ounce in the ground. I have a long position in the stock currently.

3. 49 North Resources (OTC:FNINF) is a Saskatchewan's premier opportunity to invest alongside Saskatchewan's exploration establishment at the earliest possible stage. 49 North provides excellent Saskatchewan focused exposure to oil and gas, base and precious metals, coal, diamonds, uranium and rare earth elements.

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Insider buys

  • 49 North Resources purchased 108,000 shares on January 8-25, and currently holds 108,000 shares or 0.6% of the company.
  • Andrew Davidson purchased 3,000 shares on January 21, and currently holds 8,100 shares or less than 0.1% of the company. Andrew Davidson is the CFO of 49 North Resources.
  • Tom MacNeill purchased 19,800 shares on January 11-16, and currently holds 1,667,973 shares or 10.4% of the company. Tom MacNeill is the Founder, President and CEO of 49 North Resources.

Financials

The company reported the third-quarter financial results on November 28, with the following highlights:

Revenue$6.3 million
Net loss$1.2 million
Investments$31.5 million
Debt$20.7 million

Portfolio

The company's diversified portfolio of assets includes direct project involvement as well as investments in shares and other securities of resource issuers. The company believes early stage involvement in resource development is the cornerstone of wealth creation for its shareholders. The company's asset distribution is as follows.

My analysis

There have been three different insiders buying and there have not been any insiders selling the shares during the past 30 days. The company's book value is $2.78 per share. I believe the stock could be a good pick below the book value.

Source: 3 Gold Stocks With Recent Intensive Insider Buying