PolyMet Mining: 3 Different Insiders Have Purchased Shares This Month

| About: PolyMet Mining (PLM)

Editors' Note: This article covers a micro-cap stock. Please be aware of the risks associated with these stocks.

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:

  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%.

PolyMet Mining (NYSEMKT:PLM) engages in the acquisition, exploration, and development of natural resource properties.

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Insider buying during the last 30 days

Here is a table of PolyMet's insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Stephanie Hunter Corporate Secretary Nov 21 5,000 5,000 shares from 0 to 5,000
Stephen Rowland Director Nov 19-20 100,000 100,000 shares from 0 to 100,000
Michael Sill Director Nov 20 100,000 251,500 shares +66.0%
Frank Sims Director Oct 22-24 15,000 1,280,195 shares +1.2%
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There have been 220,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of PolyMet's insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
November 2013 205,000 0
October 2013 40,022 0
September 2013 0 0
August 2013 0 0
July 2013 8,423,346 0
June 2013 0 0
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There have been 8,668,368 shares purchased and there have been zero shares sold by insiders since June 2013.

Financials

PolyMet reported the fiscal 2014 second-quarter, which ended July 31, financial results on September 11 with the following highlights:

Revenue $0
Net loss $1.8 million
Cash $48.8 million
Debt $34.4 million
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Outlook

PolyMet is currently funded through start of construction.

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(Source: November investor presentation)

Upcoming milestones

On November 6, 2013, PolyMet announced that the publication of a supplemental draft environmental impact statement will wait two more weeks as a result of the three-week federal government shutdown.

As a result, the document will be available for public review on December 6, 2013 when it will be published in the Federal Register. It will then be published in the Minnesota Environmental Quality Board Monitor on December 9, 2013. The original publication date was November 22, 2013.

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(Source: November investor presentation)

Competition

PolyMet's competitors include Thompson Creek Metals Company (TC), Taseko Mines (NYSEMKT:TGB), and HudBay Minerals (NYSE:HBM). Here is a table comparing these companies.

Company PLM TC TGB HBM
Market Cap: 236.47M 474.92M 394.75M 1.28B
Employees: 20 1,000 612 1,510
Qtrly Rev Growth (yoy): N/A 0.21 0.10 -0.10
Revenue: N/A 416.70M 262.96M 572.47M
Gross Margin: N/A 0.24 0.14 0.33
EBITDA: -3.77M 59.90M 23.20M 111.85M
Operating Margin: N/A 0.04 -0.04 0.05
Net Income: -6.82M -488.90M -37.83M -35.90M
EPS: -0.04 -2.87 -0.20 -0.21
P/E: N/A N/A N/A N/A
PEG (5 yr expected): N/A -5.11 N/A 4.65
P/S: N/A 1.14 1.50 2.24
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PolyMet doesn't have any revenues yet.

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

Company Insider buying / shares Insider selling / shares
TC 14,347 103,000
TGB 502,651 390,493
HBM 8,054 0
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Only PolyMet has seen intensive insider buying during the last 30 days.

Conclusion

There have been four different insiders buying PolyMet and there have not been any insiders selling PolyMet during the last 30 days. Three of these four insiders increased their holdings by more than 10%. PolyMet has an insider ownership of 25.63%.

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(Source: November investor presentation)

There is one analyst buy rating, zero neutral ratings, and zero sell ratings with an average price target of $2.62. PolyMet has a book value of $0.72 per share. The initial capital costs for the NorthMet copper-nickel-precious metals project are expected to be $312 million. I believe the stock could be a good pick at the book value based on the intensive insider buying.

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(Source: November investor presentation)

Disclosure: I am long TC, TGB. 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.