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

Dec. 3.13 | About: Trevali Mining (TREVF)

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.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Daniel Marinov VP Nov 28 5,000 Yes 18,500 shares +37.0%
Steve Stakiw VP Nov 28 10,000 Yes 152,000 shares +7.0%
Mark Cruise CEO Nov 28 72,300 Yes 562,300 shares +14.8%
David Huberman Director Nov 19 100,000 No 200,000 shares +100%
Alan Hughes VP Nov 19 3,000 No 8,000 shares +60%
Peter Meredith Director Nov 28 25,000 Yes 75,000 shares +50%
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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.

Month Insider buying / shares Insider selling / shares
November 2013 215,300 0
October 2013 0 400,000
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 55,000 0
May 2013 55,000 0
April 2013 119,000 0
March 2013 5,000 0
February 2013 0 0
January 2013 0 0
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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
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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.

Company TREVF GLCNF VDNRF TCK
Market Cap: 169.61M 65.24B 4.02B 13.84B
Employees: N/A N/A N/A 10,500
Qtrly Rev Growth (yoy): N/A 0.04 -0.17 0.01
Revenue: N/A 218.51B 13.70B 9.92B
Gross Margin: N/A N/A N/A 0.24
EBITDA: -4.03M 5.08B 4.49B 3.08B
Operating Margin: N/A 0.01 0.16 0.19
Net Income: -6.97M -10.19B -233.20M 684.86M
EPS: -0.03 -1.29 -0.85 1.18
P/E: N/A N/A N/A 20.44
PEG (5 yr expected): N/A N/A N/A 4.61
P/S: N/A 0.31 0.29 1.41
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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%.

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(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.

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(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.

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(Source: November presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCQX:TREVF over the next 72 hours. 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.