In this article, I will feature one mining company 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%.
MAG Silver Corp. (MVG) engages in the acquisition, exploration, and development of mineral properties in the Mexican silver belt.
Insider buying during the last 30 days
Here is a table of MAG Silver's insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Mason Hill Advisors||10% Owner||Oct 1||56,600||6,315,770 shares||+0.9%|
|George Paspalas||CEO||Nov 1||5,000||10,000 shares||+100%|
|Larry Taddei||CFO||Oct 31||700||6,200 shares||+12.7%|
There have been 62,300 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of MAG Silver's insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 845,121 shares purchased and there have been 40,000 shares sold by insiders during the last six months.
MAG Silver reported the second-quarter financial results on August 15 with the following highlights:
|Net loss||$10.2 million|
Given the prevailing market conditions and the desire to focus on and preserve cash for its core projects, MAG Silver's management determined that some of the company's non-core assets should be abandoned, and exploration and evaluation assets totaling $8,422,283 were written off in the quarter ended June 30, 2013.
MAG Silver currently has sufficient working capital to maintain all of its properties and currently planned programs extending beyond the next 12 months.
MAG Silver's main asset, the Minera Juanicipio project, is expected to reach production in 2017/2018.
Here is a table of these competitors' insider-trading activities during the last six months.
|Company||Insider buying / shares||Insider selling / shares|
Only MAG Silver has seen intensive insider buying during the past 30 days.
There have been three different insiders buying MAG Silver and there have not been any insiders selling MAG Silver during the past 30 days. Two of these three insiders increased their holdings by more than 10%. MAG Silver's management owns 3.6% of the company.
MAG Silver's main asset, Juanicipio, will be in production in 2017/2018. The Juanicipio mine has a Net Present Value of $542 million (MAG Silver's 44% interest) at $23.39 silver price. MAG Silver's current market cap is $315 million.
I believe the stock could be a good pick at the current price level based on the intensive insider buying.
(click to enlarge)