Insiders Are Buying St. Andrew Goldfields

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 |  About: St Andrew Goldfields Ltd (STADF)
by: Markus Aarnio

In this article, I will feature one gold miner that has 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%.

St. Andrew Goldfields (OTCQX:STADF) is a gold mining and exploration company with an extensive land package in the Timmins mining district, northeastern Ontario, Canada. It operates the Holt, Holloway, and the Hislop mines.

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Insider buying during the last 30 days

  • Douglas Cater purchased 9,966 shares on August 30 - September 16 pursuant to a purchase/ownership plan. Douglas Cater currently holds 35,170 shares or less than 0.1% of the company. Douglas Cater is Vice-President of Exploration. Douglas Cater increased his holdings by 39.5% during the last 30 days.
  • Catherine Gignac purchased 2,338 shares on September 16 pursuant to a purchase/ownership plan. Catherine Gignac currently holds 109,604 shares or less than 0.1% of the company. Catherine Gignac serves as a director of the company. Catherine Gignac increased her holdings by 2.2% during the last 30 days.
  • Duncan Middlemiss purchased 13,794 shares on August 30 - September 16 pursuant to a purchase/ownership plan. Duncan Middlemiss currently holds 154,038 shares or less than 0.1% of the company. Duncan Middlemiss is Chief Operating Officer and Vice-President of Operations. Duncan Middlemiss increased his holdings by 9.8% during the last 30 days.
  • Jacques Perron purchased 9,466 shares on August 30 - September 16 pursuant to a purchase/ownership plan. Jacques Perron currently holds 316,874 shares or less than 0.1% of the company. Jacques Perron is President, Chief Executive Officer, and Director. Jacques Perron increased his holdings by 3.1% during the last 30 days.
  • David Petroff purchased 2,406 shares on September 16 pursuant to a purchase/ownership plan. David Petroff currently holds 14,902 shares or less than 0.1% of the company. David Petroff serves as a director of the company. David Petroff increased his holdings by 19.3% during the last 30 days.
  • Geoffrey Ramey purchased 8,711 shares on August 30 - September 16 pursuant to a purchase/ownership plan. Geoffrey Ramey currently holds 27,311 shares or less than 0.1% of the company. Geoffrey Ramey is Vice-President, Human Resources. Geoffrey Ramey increased his holdings by 46.8% during the last 30 days.
  • Pierre Rocque purchased 9,971 shares on August 30 - September 16 pursuant to a purchase/ownership plan. Pierre Rocque currently holds 103,366 shares or less than 0.1% of the company. Pierre Rocque is Vice-President of Engineering. Pierre Rocque increased his holdings by 10.7% during the last 30 days.
  • Linda Weinzettl purchased 2,836 shares on August 30 pursuant to a purchase/ownership plan. Linda Weinzettl currently holds 28,743 shares or less than 0.1% of the company. Linda Weinzettl is Corporate Secretary. Linda Weinzettl increased her holdings by 10.9% during the last 30 days.

Insider buying by calendar month

Here is a table of St. Andrew Goldfields' insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
September 2013 29,476 0
August 2013 30,012 0
July 2013 31,992 0
June 2013 30,521 0
May 2013 25,038 0
April 2013 21,706 0
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There have been 168,745 shares purchased and there have been zero shares sold by insiders since April 2013.

Financials

St. Andrew Goldfields reported the second-quarter financial results on August 13 with the following highlights:

Revenue $36.7 million
Net loss $1.1 million
Cash $31.5 million
Debt $17.1 million
Gold production 25,353 ounces
Mine cash costs $780 per ounce
Total cash costs (including royalty costs) $897 per ounce
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Outlook

St. Andrew Goldfields reiterated 2013 production guidance of between 95,000 - 105,000 ounces of gold, an increase over 2012 with similar mine cash cost guidance of between $800-$850 per ounce.

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The all-in cash cost estimate for 2013 is $1,210 per ounce.

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Competition

St. Andrew Goldfields' competitors include Barrick Gold (NYSE:ABX), New Gold (NYSEMKT:NGD), Kinross Gold (NYSE:KGC), Agnico-Eagle Mines (NYSE:AEM), AuRico Gold (NYSE:AUQ), IAMGOLD (NYSE:IAG), Lake Shore Gold (NYSEMKT:LSG), Goldcorp (NYSE:GG), Brigus Gold (BRD), and Newmont Mining (NYSE:NEM). Here is a table comparing the second quarter all-in cash costs between these 11 companies.

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St. Andrew Goldfields' all-in cash costs are slightly above the peer average.

Here is a table of these competitors' insider-trading activities during the last six months.

Company Insider buying / shares Insider selling / shares
ABX 375,487 103,399
NGD 0 45,250
KGC 73,527 14,554
AEM 21,156 0
AUQ 75,124 0
IAG 207,734 42,800
LSG 0 0
GG 50 62,546
BRD 162,084 0
NEM 3,000 41,163
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Only St. Andrew Goldfields has seen intensive insider buying during the past 30 days.

Conclusion

There have been eight different insiders buying St. Andrew Goldfields and there have not been any insiders selling St. Andrew Goldfields during the past 30 days. Five of these eight insiders increased their holdings by more than 10%.

The three producing mines have 562,000 gold ounces in reserves.

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St. Andrew Goldfields is currently trading at a P/E ratio of 6.30 and the company has a book value of $0.45 per share. I believe the stock could be a good pick below the book value.

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Disclosure: I am long BRD, IAG, LSG. 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.