In this article, I will feature one silver miner that has 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%.
Excellon Resources (OTCPK:EXLLF) is a mineral resource company operating in Durango and Zacatecas States, Mexico, and Ontario and Quebec, Canada. It produces silver, lead and zinc on its 100%-owned Platosa Property, located in the middle of the Mexican carbonate replacement deposit / silver belt.
Insider buying during the last 30 days
Here is a table of Excellon's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership (Direct+Indirect)||Increase In Shares|
|Brendan Cahill||CEO||Sep 27 - Oct 4||1,150||53,930 shares||2.2%|
|Oliver Fernandez||Director||Sep 13||7,800||7,800 shares||from 0 to 7,800 shares|
|John Sullivan||Vice-President||Sep 30||3,000||4,000 shares||300%|
There have been 11,950 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Excellon's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 44,950 shares purchased and there have been zero shares sold by insiders since May 2013.
Excellon reported the second-quarter financial results on August 14, with the following highlights:
|Net loss||$5.0 million|
|Production||401,858 silver-equivalent ounces|
|Net cash costs||$12.07 per silver ounce|
The net loss during the quarter resulted from decreased revenue from mine production, which was primarily attributable to the significant decline in silver prices and a negative revenue adjustment of approximately $3 million upon final settlement of sales of concentrate delivered at higher prices prior to the second quarter.
Excellon reported production results for the third quarter of 2013 on October 10, with the following highlights:
|Production||607,252 silver-equivalent ounces|
|Net cash costs||$7.77 per silver ounce|
|All-in costs||$10.65 per silver ounce|
Excellon expects annual net cash costs and all-in costs (currently $8.77 and $15.60, respectively) to trend lower over the remainder of the year as mining continues to access higher-grade areas. The company remains focused on cost reduction and efficiency, as well as increasing production to maximize operating cash flow.
Excellon is targeting 2013 production of 1.35 million ounces of silver, 8.2 million pounds of lead and 11.9 million pounds of zinc or 2.1 million silver equivalent ounces (based on $24 silver, $0.90 lead and $0.90 zinc) at a targeted all-in cost of $14.00 per silver equivalent ounce.
Excellon's competitors include U.S. Silver & Gold (OTCQX:USGIF), Great Panther Silver (NYSEMKT:GPL), Scorpio Mining Corporation (SMNPF.PK), Alexco Resource Corporation (NYSEMKT:AXU), SilverCrest Mines (NYSEMKT:SVLC), and Aurcana (OTCPK:AUNFF).
Excellon has the lowest net cash costs among these seven companies.
Here is a table of these competitors' insider-trading activities during the past six months.
|Company||Insider buying / shares||Insider selling / shares|
Only Excellon has seen intensive insider buying during the last 30 days.
There have been three different insiders buying Excellon and there have not been any insiders selling Excellon during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Excellon has an insider ownership of 10%.
Excellon's estimated 2013 silver production is 1.35 million ounces. The company's measured and indicated silver resources are 17.1 million ounces. I have a bullish bias for the stock currently based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCPK:EXLLF over the next 72 hours. 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.