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:
- 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%.
AuRico Gold (AUQ) operates as a gold producer with mines and projects in North America.
Insider buying during the last 30 days
Here is a table of AuRico Gold's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Purchase Plan||Current Ownership||Increase In Shares|
|Christopher Bostwick||SVP||Oct 9||3,399||Yes||35,625 shares||+10.5%|
|Robert Chausse||CFO||Sep 30-Oct 9||29,266||Yes and No||47,745 shares||+158.4%|
|Luis Chavez||Director||Oct 9||2,785||Yes||57,127 shares||+5.1%|
|Richard Colterjohn||Director||Oct 9||976||Yes||251,874 shares||+0.4%|
|Mark Daniel||Director||Oct 9||1,031||Yes||11,682 shares||+9.7%|
|Anne Day||VP||Oct 9||2,290||Yes||17,705 shares||+14.9%|
|Patrick Downey||Director||Oct 9||868||Yes||14,356 shares||+6.4%|
|Alan Edwards||Director||Oct 9||1,751||Yes||33,503 shares||+5.5%|
|Peter MacPhail||EVP||Oct 9||4,266||Yes||47,487 shares||+9.9%|
|Trent Mell||EVP||Oct 9||4,266||Yes||38,800 shares||+12.4%|
|Charlene Milner||SVP||Oct 9||2,571||Yes||12,214 shares||+26.7%|
|Chris Richter||SVP||Oct 9||2,629||Yes||28,964 shares||+10.0%|
|Chris Rockingham||VP||Oct 9||3,015||Yes||44,251 shares||+7.3%|
|Ronald Smith||Director||Oct 9||1,031||Yes||9,139 shares||+12.7%|
|Joseph Spiteri||Director||Oct 9||907||Yes||12,083 shares||+8.1%|
There have been 61,051 shares purchased by insiders during the last 30 days. Robert Chausse purchased 4,266 shares pursuant to a purchase/ownership plan and he purchased 25,000 shares without the ownership plan.
Insider buying by calendar month
Here is a table of AuRico's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 151,175 shares purchased and there have been zero shares sold by insiders since March 2013.
AuRico Gold reported the second-quarter financial results on August 8 with the following highlights:
|Adjusted net earnings||$6.1 million|
|Net loss||$103.5 million|
|Gold production||48,003 ounces|
|Cash costs||$655 per ounce|
|All-in cash costs||$1,189 per ounce|
Due to the lower metal price environment currently being experienced, AuRico's second quarter net earnings were adjusted by $104.9 million, net of taxes, for non-cash impairments and revaluations.
AuRico's guidance for full-year 2013 is as follows:
|Gold production (ounces)||190,000-220,000|
|Cash costs per ounce||$565-$645|
|All-in cash costs per ounce||$1,100-$1,200|
Other gold miners that have seen intensive insider buying during the past four months include St. Andrew Goldfields (OTCQX:STADF), Continental Gold (OTCQX:CGOOF), Kinross (KGC) and Agnico-Eagle Mines (AEM).
Here is a table of these competitors' insider-trading activities during the past six months.
|Company||Insider buying / shares||Insider selling / shares|
St. Andrew Goldfields has also seen intensive insider buying during the last 30 days.
There have been 15 different insiders buying AuRico and there have not been any insiders selling AuRico during the last 30 days. Seven of these 15 insiders increased their holdings by more than 10%.
The stock is trading at a forward P/E ratio of 24.40 and the company has a book value of $7.69 per share. AuRico pays a quarterly dividend of $0.04 per share. I believe the stock could be a good pick below the book value of $7.69 per share.