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Since my January 26 article titled "3 Commodity Stocks With Recent Intensive Insider Buying", the stocks that I featured in the article have performed as follows:

CompanyPrice 1/24Price 3/1Change
AETUF.PK$24.10$26.06+8.1%
FCGYF.PK$12.76$12.97+1.6%
SXCP$19.19$19.90+3.7%

In this article, I will feature three additional commodity 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%.

1. IAMGOLD Corporation (NYSE:IAG) is a mid-tier gold producer with five operating gold mines (including current joint ventures) on three continents. In the Canadian province of Québec, the company also operates Niobec Inc., one of the world's top three producers of niobium, and owns a rare earth element resource close to its niobium mine.

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Insider buying by insider (last 30 days)

  • Robert Tait purchased 4,000 shares on February 28 and currently holds 4,000 shares or less than 0.1% of the company. Robert Tait is a senior officer at IAMGOLD.
  • Jeffery Snow purchased 59,658 shares on February 27 and currently holds 81,067 shares or less than 0.1% of the company. 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.
  • Craig MacDougall purchased 1,430 shares on February 26 and currently holds 7,870 shares or less than 0.1% of the company. Craig MacDougall is Senior Vice President, Exploration.
  • Benjamin Little purchased 2,000 shares on March 1 and currently holds 4,813 shares or less than 0.1% of the company. Benjamin Little is Senior Vice President, Corporate Affairs.
  • Robert Dengler purchased 20,000 shares on February 25-26 and currently controls 47,934 shares or less than 0.1% of the company. Robert Dengler serves as a director of the company.

Insider buying by calendar month

Here is a table of IAMGOLD's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
March 20132,0000
February 201385,0880
January 201303,050
December 201222,9070
November 201218,7000
October 201200
September 201230,000149,807

The month of February 2013 has seen the most insider buying since September 2012.

Financials

The company reported the full year 2012 financial results on February 20 with the following highlights:

Revenue$1.7 billion
Net income$371.2 million
Cash$1.0 billion
Debt$638.8 million
Gold production830,000 ounces
Proven & Probable gold reserves11.3 million ounces

Outlook

The company's outlook for 2013 is as follows:

Gold production875,000 - 950,000 ounces
Cash costs$850-$925 per ounce

Competition

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

CompanyIAGABXNEMGOLDIndustry Average [Gold]
Market Cap:2.47B29.43B19.68B7.50B519.03M
Employees:N/AN/A16,400N/A94.00
Qtrly Rev Growth (yoy):-0.030.11-0.110.241.32
Revenue:1.67B14.55B9.87B1.33B791.30M
Gross Margin:0.430.480.560.560.57
EBITDA:710.10M6.20B4.34B704.62M62.56M
Operating Margin:0.33-0.060.330.430.27
Net Income:334.70M-665.00M1.88B431.80MN/A
EPS:0.89-0.663.634.650.00
P/E:7.36N/A10.9217.5120.57
PEG (5 yr expected):-1.811.62-5.121.500.94
P/S:1.522.082.035.755.48

IAMGOLD is trading below the industry average P/S and P/E ratios, which could explain some of the insider buying.

My analysis

There have been five different insiders buying and there have not been any insiders selling the shares during the past 30 days. There are three analyst buy ratings, five neutral ratings and one sell rating with an average target price of $15.93. The stock is trading at a P/E ratio of 7.36 and a forward P/E ratio of 6.24. The company has a book value of $9.90 per share and the stock has a 3.82% dividend yield. I believe the stock could be a good pick below the book value.

2. Centerra Gold (OTCPK:CAGDF) is a Canadian-based gold mining and exploration company engaged in the operation, exploration, development and acquisition of gold properties in Asia, the former Soviet Union and other emerging markets worldwide.

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Insider buying by insider (last 30 days)

  • Rajeev Hampole purchased 1,000 shares on February 25 and currently holds 6,273 shares or less than 0.1% of the company. Rajeev Hampole is an insider of the company.
  • Anthony Meade purchased 13,706 shares on February 20 and currently holds 16,616 shares or less than 0.1% of the company. Anthony Meade is Vice President, Human Resources and Administration.
  • Gordon Reid purchased 2,000 shares on February 25 and currently controls 8,350 shares or less than 0.1% of the company. Gordon Reid is Vice President and Chief Operating Officer.

Insider buying by calendar month

Here is a table of Centerra Gold's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
March 201300
February 201316,7060
January 201300
December 201200
November 201200
October 201200
September 20122,0000

The month of February 2013 has seen the most insider buying since September 2012.

Financials

The company reported the full year 2012 financial results on February 20 with the following highlights:

Revenue$660.7 million
Net loss$184.0 million
Cash$382.1 million
Debt$76 million
Gold production387,076 ounces
Proven & Probable gold reserves11.1 million ounces

For the full year, the company reported an adjusted net loss of $3.3 million or $0.01 per share before recognizing a one-time accounting charge of $180.7 million for the de-recognition of the underground assets at Kumtor, which results in the company recording a net loss of $184.0 million or $0.78 per share, compared to net earnings of $370.9 million or $1.57 per share in 2011.

Outlook

The company's outlook for 2013 is as follows:

Gold production605,000 - 660,000 ounces
Operating cash cost$403 - $443 per ounce
All-in cost$1,067 - $1,164 per ounce

My analysis

There have been three different insiders buying and there have not been any insiders selling the shares during the past 30 days. There are nine analyst buy ratings, three neutral ratings and one sell rating with an average target price of $11.98. The company has a book value of $5.95 per share. The stock could be a good pick at or below the book value.

3. Twin Butte Energy (OTCPK:TBTEF) engages in the acquisition, exploration, development, and production of petroleum and natural gas properties in Western Canada.

(click to enlarge)

Insider buying by insider (last 30 days)

  • Robert Bowman purchased 1,642 shares on February 20-28 pursuant to a purchase/ownership plan. Robert Bowman currently holds 164,968 shares or less than 0.1% of the company. Robert Bowman is Vice President, Operations.
  • John Brussa purchased 18,604 shares on February 28 pursuant to a purchase/ownership plan. John Brussa currently holds 290,240 shares or 0.1% of the company. John Brussa serves as a director of the company.
  • Neil Cathcart purchased 1,302 shares on February 28 pursuant to a purchase/ownership plan. Neil Cathcart currently holds 348,909 shares or 0.1% of the company. Neil Cathcart is Vice President, Business Development.
  • David Fitzpatrick purchased 18,604 shares on February 28 pursuant to a purchase/ownership plan. David Fitzpatrick currently holds 156,071 shares or less than 0.1% of the company. David Fitzpatrick is a Director and Chairman of Twin Butte Energy.
  • Claude Gamache purchased 1,724 shares on February 28 pursuant to a purchase/ownership plan. Claude Gamache currently holds 240,959 shares or less than 0.1% of the company. Claude Gamache is Vice President, Geosciences.
  • Thomas Greschner purchased 18,604 shares on February 28 pursuant to a purchase/ownership plan. Thomas Greschner currently holds 109,466 shares or less than 0.1% of the company. Thomas Greschner serves as a director of the company.
  • Bruce Hall purchased 1,626 shares on February 28 pursuant to a purchase/ownership plan. Bruce Hall currently holds 422,301 shares or 0.2% of the company. Bruce Hall is Chief Operating Officer.
  • Gordon Howe purchased 891 shares on February 28 pursuant to a purchase/ownership plan. Gordon Howe currently holds 1,290 shares or less than 0.1% of the company. Gordon Howe is Vice President, Land.
  • Preston Kraft purchased 1,820 shares on February 20-28 pursuant to a purchase/ownership plan. Preston Kraft currently holds 110,673 shares or less than 0.1% of the company. Preston Kraft is Vice President, Engineering.
  • James Saunders purchased 2,303 shares on February 20-28 pursuant to a purchase/ownership plan. James Saunders currently holds 4,405,968 shares or 1.8% of the company. James Saunders is the founder of Twin Butte and was the company's Chairman since its recapitalization in early 2006 to November 2008 prior to becoming the company's President and C.E.O.
  • Warren Steckley purchased 1,165 shares on February 20-28 pursuant to a purchase/ownership plan. Warren Steckley currently holds 171,108 shares or less than 0.1% of the company. Warren Steckley serves as a director of the company.
  • Alan Steele purchased 2,560 shares on February 20-28 pursuant to a purchase/ownership plan. Alan Steele currently holds 917,447 shares or 0.4% of the company. Alan Steele is Vice President, Finance & Chief Financial Officer.

Insider buying by calendar month

Here is a table of Twin Butte Energy's insider trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
March 201300
February 201397,6280
January 20139,637752,010
December 2012122,951696,029
November 20128,14220,000
October 201210,5190
September 201211,1750

The month of February 2013 has been the second highest insider buying month.

Financials

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

Revenue$73.4 million
Net loss$7.4 million
Net debt$146.8 million
Oil production13,752 boe/d

Outlook

Twin Butte's strategy of moderate growth while paying a sustainable dividend has and will continue to work. With year end 2012 debt of approximately $201 million and anticipated 2013 cash flow in excess of $130 million, the company is well financed to complete its forecast 2013 capital plan of $85 million maintaining an all in payout ratio of under 100 percent. The company will continue to match its capital plan to forecast cash flow less dividends. Recent positive movement in both oil pricing and the light to heavy oil differentials, combined with the company's strong hedge position, allows Twin Butte to remain confident in the long term sustainability of the dividend and anticipates a possible expansion to its capital plan.

My analysis

The stock has a $9.13 price target from the Point and Figure chart. There have been 12 different insiders buying and there have not been any insiders selling the shares during the past 30 days. There are 12 analyst buy ratings, three neutral ratings and zero sell ratings, with an average target price of $3.14. The company is paying a monthly dividend of $0.016 per share, which gives the stock a 8.9% dividend yield. The company has a Net Asset Value of $2.98 per share. The stock could be a good pick below the Net Asset Value.

Source: 3 Commodity Producers With Recent Intensive Insider Buying