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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 increased their holdings by more than 10%.

Trevali Mining (OTCQX:TREVF) is a zinc-focused base metals development company with active operations in Canada and Peru.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedProspectusCurrent OwnershipIncrease In Shares
Daniel MarinovVPNov 285,000Yes18,500 shares+37.0%
Steve StakiwVPNov 2810,000Yes152,000 shares+7.0%
Mark CruiseCEONov 2872,300Yes562,300 shares+14.8%
David HubermanDirectorNov 19100,000No200,000 shares+100%
Alan HughesVPNov 193,000No8,000 shares+60%
Peter MeredithDirectorNov 2825,000Yes75,000 shares+50%

There have been 215,300 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

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

MonthInsider buying / sharesInsider selling / shares
November 2013215,3000
October 20130400,000
September 201300
August 201300
July 201300
June 201355,0000
May 201355,0000
April 2013119,0000
March 20135,0000
February 201300
January 201300

There have been 449,300 shares purchased and there have been 400,000 shares sold by insiders this year. The month of November has seen the most insider buying.

Financials

Trevali reported the third-quarter financial results on November 13 with the following highlights:

Revenue$0
Net loss$2.6 million
Cash$2.8 million
Debt$52.0 million

On November 28, Trevali closed a $46.0 million financing.

Outlook

In Peru, Trevali expects to declare commercial production at its Santander mine by year-end. In Canada, Trevali's New Brunswick operations are scheduled to commence production during the next 12-24 months.

Competition

Trevali's competitors include Glencore Xstrata (OTCPK:GLCNF), Vedanta Resources (OTCPK:VDNRF), and Teck Resources (NYSE:TCK). Here is a table comparing these companies.

CompanyTREVFGLCNFVDNRFTCK
Market Cap:169.61M65.24B4.02B13.84B
Employees:N/AN/AN/A10,500
Qtrly Rev Growth (yoy):N/A0.04-0.170.01
Revenue:N/A218.51B13.70B9.92B
Gross Margin:N/AN/AN/A0.24
EBITDA:-4.03M5.08B4.49B3.08B
Operating Margin:N/A0.010.160.19
Net Income:-6.97M-10.19B-233.20M684.86M
EPS:-0.03-1.29-0.851.18
P/E:N/AN/AN/A20.44
PEG (5 yr expected):N/AN/AN/A4.61
P/S:N/A0.310.291.41

Trevali doesn't have any revenues yet. In Teck Resources, there have been zero shares purchased and there have been 3,000 shares sold by insiders during the last 30 days.

Conclusion

There have been six different insiders buying Trevali and there have not been any insiders selling Trevali during the last 30 days. Five of these six insiders increased their holdings by more than 10%. Trevali has an insider ownership of 3%.

(click to enlarge)

(Source: November presentation)

Trevali has indicated resources of 2.7 billion lbs Zn, 1 billion lbs Pb, 34.5 million ounces Ag, and 109 million lbs Cu.

(click to enlarge)

(Source: November presentation)

Trevali has a book value of $0.99 per share. I believe the stock could be a good pick below the book value based on the intensive insider buying.

(click to enlarge)

(Source: November presentation)

Source: Trevali Mining: 6 Different Insiders Have Purchased Shares Since November 19