Since my January 22, 2013 article, dealing with three commodity stocks, the stocks that I featured in the article have performed as follows:
|Company||Price 1/18||Price 2/8||Change|
In this article I will feature four commodity stocks that have seen intensive insider buying during the last 30 days.
Intensive insider buying can be defined by the following three criteria:
- The stock is purchased by three or more insiders within one month.
- The stock is sold by no insiders in the month of intensive purchasing.
- At least two purchasers increase their holdings by more than 10 percent.
1. TAG Oil (OTCQX:TAOIF) engages in the exploration, development, and production of oil and gas properties in New Zealand.
- Garth Johnson purchased 3,000 shares on February 4-5 and currently controls 3,000 shares or less than 0.1% of the company. Garth Johnson is Chief Executive Officer and Director at TAG Oil.
- Drew Cadenhead purchased 10,000 shares on January 25 and currently holds 41,300 shares or less than 0.1% of the company. Drew Cadenhead is Chief Operating Officer at TAG Oil.
- TAG Oil purchased 100,000 shares on January 14-22 and currently holds 100,000 shares or 0.2% of the company.
The company reported the second quarter fiscal year 2013, which ended September 30, 2012, financial results on November 15 with the following highlights:
|Net loss||$0.3 million|
There have been three different insiders buying and there have not been any insiders selling the shares during the last 30 days. The company's total Proved, Probable and Possible reserves are 9,103,000 boe. The company has a book value of $3.14 per share. I believe the stock could be a good pick at or below the book value.
2. Galway Gold (OTC:GWYRF) is a mineral exploration company with its primary asset in Colombia. Through its wholly owned Colombian subsidiary, Galway Gold holds an option to acquire a 100% interest in the Vetas gold project in the Vetas gold district of Colombia, comprised of the Reina de Oro and Coloro concessions. Galway Gold acquired the Vetas Project from its former parent company, Galway Resources, pursuant to the terms of a plan of arrangement which closed on December 20, 2012.
- Robert Hinchcliffe purchased 249,000 shares on January 23 - February 5 and currently holds 3,894,000 shares or 2.3% of the company. Robert Hinchcliffe is President, Chief Executive Officer & Director at Galway Gold.
- Maria Trowbridge purchased 80,000 shares on February 1-7 and currently holds 655,000 shares or 0.4% of the company. Maria Trowbridge is a senior officer of the company.
- Robert Schafer purchased 10,000 shares on January 25-28 and currently holds 239,000 shares or 0.1% of the company. Robert Schafer serves as a director of the company.
- Michael Sutton purchased 285,000 shares on January 25 and currently holds 1,365,000 shares or 0.8% of the company. Michael Sutton serves as a director of the company.
On January 18, 2013 Galway Gold announced that effective January 21, 2013, Galway Gold's common shares will become listed and commence trading on the TSX Venture Exchange under the symbol "GLW".
On December 20, 2012, Galway Gold received conditional approval to list its common shares on the TSX-V in connection with a plan of arrangement among formerly listed Galway Resources, AUX Acquisition 2, AUX Canada Acquisition 2, Galway Metals and Galway Gold that closed on December 20, 2012. Galway Gold is well capitalized with $18 million of cash and holds an option to acquire a 100% interest in the Vetas gold project in Colombia formerly held by Galway Resources.
The company reported the following financial highlights as of December 20, 2012:
The stock started trading on January 22 after the plan of arrangement. There have been four different insiders buying and there have not been any insiders selling the shares during the last 30 days. The next major catalyst for the stock will be the El Volcan NI 43-101 gold resource estimate due in the second half of this year. To date at El Volcan, 45 of the 52 underground holes that have been reported host at least one assay interval carrying in excess of 10 grams per tonne gold (g/t Au) (the average is 2.8 per hole, or 146 times in total), and all holes except hole 25 contain multiple mineralized intersections. In the first 52 underground drill holes, Galway intersected 5 g/t Au or more 237 times, 20 g/t Au or more 76 times, 30 g/t Au or more 44 times, 100 g/t Au or more 13 times and 1,000 g/t or more two times. I have a long position in the stock currently.
3. TNR Gold (OTC:TRRXF), a mineral exploration company, engages in exploring and developing mineral properties. It primarily explores for gold, copper, lithium, iron ore, and rare-earth elements.
- Kirill Klip purchased 50,000 shares on February 7 and currently holds 23,984,500 shares or 16.2% of the company. Kirill Klip serves as a non-executive Chairman of Board.
- Gary Schellenberg purchased 60,000 shares on February 6 and currently holds 60,000 shares or less than 0.1% of the company. Gary Schellenberg is President of the company.
- Jerome Bella purchased 50,000 shares on February 6 and currently holds 167,500 shares or 0.1% of the company. Jerome Bella is Chief Financial Officer of the company.
The company reported the third-quarter financial results on November 27 with the following highlights:
|Net loss||$3.8 million|
The company's primary focus for the foreseeable future will be to concentrate its efforts on the development of Joint Venture partnerships to advance its exploration assets.
On February 05, 2013, TNR Gold announced that in follow-up to its press release of November 12, 2012, whereby TNR Gold announced that it and its wholly owned subsidiary, Solitario Argentina S.A. had reached a settlement with McEwen Mining (NYSE:MUX) with respect to the Los Azules Copper Project located in San Juan Province, Argentina, formal documentation and the details pertaining thereto have now been signed.
TNR Gold also announced that the 1 million shares of McEwen Mining that form part of the settlement have now been issued. TNR Gold expects that the delivery of the certificates representing such shares will occur upon the transfer of the mineral rights to the Escorpio IV mining tenure to McEwen Mining, which it anticipates will take place later this month. The shares will be subject to the minimum statutory hold period.
There have been three different insiders buying and there have not been any insiders selling the shares during the last 30 days. The company is 65% owned by insiders and management. The company has 14 projects worldwide. The company's 100% owned Shotgun project has 980,000 ounces of gold grading 0.93 g/t Au. I have a long position in the stock currently.
4. Latin American Minerals (OTCPK:LATNF) is a Canadian mineral exploration company whose core Paso Yobai project includes the company's Independencia Mine and satellite targets in a new large gold district. The company has identified Paraguay as a highly prospective region for mineral exploration, and continues to explore its multiple Paraguayan mineral claims for gold, diamonds, REE, niobium and phosphates.
- Richard Boulay, the chairman of the company, purchased 1.32 million units in the private placement. After giving effect to this private placement, Mr. Boulay owns or controls, directly or indirectly, a total of 5,455,682 shares, representing approximately 5.8% of the company's 93,403,504 issued and outstanding shares, together with options and warrants to acquire an additional 3,075,000 shares.
- Dr. Waldo Perez, a director of the company, purchased 200,000 units in the private placement. After giving effect to this private placement, Dr. Perez owns or controls, directly or indirectly, a total of 1,171,500 common shares, representing approximately 1.3% of the company's issued and outstanding shares, together with options and warrants to acquire an additional 1,183,750 shares.
- Paul Fornazzari, a director of the company, purchased 100,000 units in the private placement. After giving effect to this private placement, Mr. Fornazzari owns or controls, directly or indirectly, a total of 731,666 shares, representing approximately 0.8% of the company's issued and outstanding shares, together with options and warrants to acquire an additional 1,739,749 shares.
- Sheldon Inwentash with Pinetree Capital (OTCPK:PNPFF) purchased 1.5 million units in the private placement. After giving effect to this private placement, Mr. Inwentash controls a total of 18,200,000 shares, representing approximately 19.5% of the company's issued and outstanding shares, together with options and warrants to acquire an additional 3,500,000 shares.
The company reported the third-quarter financial results on November 20 with the following highlights:
|Net loss||$1.3 million|
On February 6, 2013, Latin American Minerals completed a non-brokered private placement financing for gross proceeds of $500,000. The funds received from the private placement will be used to complete detailed geophysical exploration, and to upgrade the company's pilot plant, at its Paso Yobai gold project in Paraguay.
There have been four different insiders buying and there have not been any insiders selling the shares during the last 30 days. The company has a revenue generating pilot plant in the Paso Yobai gold project in Paraguay. In August 2012, the Independencia Mine poured its first bar of gold, containing 166 ounces of gold and 47 ounces of silver. This initial gold product was sold for $286,301. The company is starting geophysical exploration and drilling in February 2013. I have a long position in the stock currently.
Disclosure: I am long OTCPK:LATNF, OTC:GWYRF, OTC:TRRXF. 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.