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%.
Kinross (KGC) is a Canadian-based gold mining company with mines and projects in Brazil, Chile, Ghana, Mauritania, Russia and the United States, employing approximately 9,000 people worldwide.
Insider buying during the last 30 days
Here is a table of Kinross's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Ownership Plan||Current Ownership||Increase In Shares|
|Rick Baker||SVP||Oct 3||2,186||Yes||40,923 shares||+5.6%|
|Thomas Elliott||Officer||Oct 3||2,254||Yes||36,892 shares||+6.5%|
|Gregory Etter||Officer||Oct 3||2,754||Yes||12,474 shares||+28.3%|
|James Fowler||Officer||Oct 3||1,218||Yes||8,093 shares||+17.7%|
|Patrick Hickey||Officer||Oct 3||2,118||Yes||20,453 shares||+11.6%|
|Glen Masterman||Officer||Oct 3||2,728||Yes||35,068 shares||+8.4%|
|Warwick Morley-Jepson||Officer||Oct 3||2,150||Yes||42,480 shares||+5.3%|
|Paul Rollinson||CEO||Oct 3||8,859||Yes||155,082 shares||+6.1%|
There have been 24,267 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Kinross's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 97,794 shares purchased and there have been 4,102 shares sold by insiders since March.
Kinross reported the second-quarter financial results on July 31, with the following highlights:
|Adjusted net earnings||$119.5 million|
|Reported net loss||$2.5 billion|
|Gold production||655,381 gold equivalent ounces|
|Production cost of sales||$737 per gold equivalent ounce|
|All-in sustaining cost||$1,072 per gold equivalent ounce|
Reported net loss was $2,481.9 million, or $2.17 per share, for Q2 2013, compared with earnings of $113.9 million, or $0.10 per share, in Q2 2012. Reported net loss included an after-tax non-cash impairment charge of $2,289.3 million.
Kinross expects to be within its 2013 forecast guidance for production (2.4-2.6 million attributable Au eq. oz.), production cost of sales ($740-$790 per Au eq. oz.), and all-in sustaining cost ($1,100-$1,200 per Au oz. sold). The company has reduced its 2013 capital expenditure forecast to approximately $1.45 billion from $1.6 billion.
Kinross has the lowest EV/EBITDA ratio among these six companies.
Here is a table of these competitors' insider-trading activities during the last six months.
|Company||Insider buying / shares||Insider selling / shares|
Agnico-Eagle Mines has also seen intensive insider buying during the past 30 days.
There have been eight different insiders buying Kinross and there have not been any insiders selling Kinross during the last 30 days. Three of these eight insiders increased their holdings by more than 10%.
Kinross's gold reserves are 59.6 million ounces and the company has a book value of $5.86 per share. I believe the stock could be a good pick below the book value based on the intensive insider buying.