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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%.

Agnico-Eagle Mines (AEM) engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Agnico-Eagle Mines' insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares PurchasedOwnership PlanCurrent OwnershipIncrease In Shares
Don AllanSVPSep 30631Yes12,825 shares+5.2%
Alain BlackburnSVPSep 30631Yes4,361 shares+16.9%
Lino CafazzoVPSep 30342Yes2,155 shares+18.9%
Brian ChristieVPSep 30453Yes2,245 shares+25.3%
Mathew CookVPSep 30274Yes869 shares+46.1%
Paul CousinVPSep 30342Yes6,484 shares+5.6%
Picklu DattaSVPSep 30357Yes3,665 shares+10.8%
Patrice GilbertVPSep 30441Yes5,525 shares+8.7%
Guy GosselinVPSep 30342Yes6,343 shares+5.7%
Louise GrondinSVPSep 30480Yes6,571 shares+7.9%
Ingmar HagaVPSep 30496Yes8,180 shares+6.5%
Tim HaldaneSVPSep 30579Yes10,768 shares+5.7%
Gregory LaingSVPSep 30616Yes13,360 shares+4.8%
Michel LeclercVPSep 30370Yes2,443 shares+17.8%
Marc LegaultSVPSep 30493Yes15,036 shares+3.4%
Luis MedinaVPSep 30352Yes2,925 shares+13.7%
Jeanluk PellerinSVPSep 30480Yes2,459 shares+24.3%
Christian ProvencherVPSep 30370Yes3,232 shares+12.9%
Jean RobitailleSVPSep 30600Yes37,476 shares+1.6%
David SmithSVPSep 30616Yes13,051 shares+5.0%
Yvon SylvestreSVPSep 30576Yes5,185 shares+12.5%

There have been 9,841 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Agnico-Eagle Mines' insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
September 201312,3410
August 20131,0000
July 201300
June 20139,9040
May 201300
April 20131,2000
March 20139,8640

There have been 34,309 shares purchased and there have been zero shares sold by insiders since March 2013. The month of September has seen the most insider buying since March 2013.

Financials

Agnico-Eagle Mines reported the second-quarter financial results on July 24 with the following highlights:

Revenue$336.4 million
Net loss$24.4 million
Cash$136.4 million
Debt$861.0 million
Gold production224,089 ounces
Total cash costs$785 per ounce

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Outlook

Production is expected to be stronger in the second half of 2013 due to resumption of production at Kittila, increased production at Creston Mascota, the ongoing ramp up of production from the deeper and richer levels of LaRonde, higher expected grades at Meadowbank, and the planned start of production at Goldex.

Agnico-Eagle's production guidance for 2013 is 970,000 to 1,010,000 ounces of gold. Expected total cash costs per ounce are $735 to $785. For the full year 2013, expected all-in sustaining costs are approximately $1,100 per ounce.

In 2014, Agnico-Eagle expects to have significant production growth from LaRonde (due to anticipated improvement in grades), Goldex (due to a planned full year of operations) and La India (due to the expected start of commercial production in 2014). Agnico-Eagle expects payable gold production to be in the range of 1,100,000 ounces to 1,140,000 ounces in 2014.

In 2015, further production growth is expected from LaRonde (due to higher grades) and Pinos Altos (due to anticipated mill optimization) with payable gold production expected to exceed 1,200,000 ounces.

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Competition

Agnico-Eagle Mines' competitors include Barrick Gold (ABX), Kinross Gold (KGC), and Newmont Mining (NEM). Here is a table comparing these companies.

CompanyAEMABXKGCNEM
Market Cap:4.16B18.26B5.55B13.30B
Employees:N/A28,1559,00016,400
Qtrly Rev Growth (yoy):-0.27-0.01-0.04-0.11
Revenue:1.74B14.30B4.33B9.13B
Gross Margin:0.470.450.560.51
EBITDA:627.97M7.24B3.15B3.72B
Operating Margin:0.200.380.260.28
Net Income:188.57M-9.72B-5.08B-733.00M
EPS:1.09-10.18-5.10-1.34
P/E:21.98N/AN/AN/A
PEG (5 yr expected):-3.423.34-0.81-0.68
P/S:2.391.231.241.41

Agnico-Eagle is the only one of these companies with net profit for the trailing 12-month period.

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

CompanyInsider buying / sharesInsider selling / shares
ABX375,487103,399
KGC85,4944,102
NEM3,0002,026

Kinross Gold has also seen intensive insider buying during the past 30 days.

Conclusion

There have been 21 different insiders buying Agnico-Eagle and there have not been any insiders selling Agnico-Eagle during the last 30 days. Ten of these 21 insiders increased their holdings by more than 10%.

There are five analyst buy ratings, 14 neutral ratings and two sell ratings with an average price target of $32.52. The stock is trading at a P/E ratio of 21.98 and a forward P/E ratio of 37.00. Agnico-Eagle has a book value of $19.80 per share and the stock has a dividend yield of 3.66%.

Agnico-Eagle's gold reserves stand at 18.7 million ounces. Agnico-Eagle Mines also has approximately 96 million ounces of silver, 220,000 tonnes of zinc and 73,000 tonnes of copper in reserves. Over the next three years, Agnico-Eagle expects to grow its gold production by 20% to over 1,200,000 ounces.

I believe the stock could be a good pick at the current price level based on the intensive insider buying.

Source: Intensive Insider Buying In Agnico-Eagle Mines