Platinum Group Metals: 4 Different Insiders Have Purchased Shares During The Last 30 Days

| About: Platinum Group (PLG)

In this article, I will feature one mining stock 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%.

Platinum Group Metals (NYSEMKT:PLG) explores and develops mineral properties in South Africa and Canada.

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Insider buying during the last 30 days

Here is a table of Platinum Group Metals' insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Kris Begic VP Jan 15-17 10,200 93,400 shares +12.3%
Frank Hallam CFO Jan 15 5,000 1,200,764 shares +0.4%
Michael Jones CEO Jan 15 5,000 1,598,090 shares +0.3%
Liberty Metals & Mining Holdings 10% Owner Dec 31 12,711,860 93,022,411 shares +15.8%
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There have been 12,732,060 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Platinum Group Metals' insider-trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
January 2014 20,300 0
December 2013 12,711,860 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 10,000
April 2013 14,000 10,000
March 2013 0 15,000
February 2013 23,200 0
January 2013 71,776,250 0
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There have been 84,545,610 shares purchased, and there have been 35,000 shares sold by insiders since January 2013.

Financials

Platinum Group Metals reported the fiscal 2014 first-quarter, which ended November 30, financial results on January 10 with the following highlights:

Revenue $0
Net loss $3.4 million
Cash $79.9 million
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As of January 10, Platinum Group Metals had approximately $237 million in cash after receiving net proceeds of $166 million on December 31, 2013 pursuant to the closing of a bought deal financing.

Outlook

Platinum Group Metals' upcoming milestones include the following:

Milestone Timing
Close a $195 million project loan facility 2014
PEA for Waterberg JV Q1/2014
Exploration drilling at Waterberg 2014
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(Source: December presentation)

Competition

Platinum Group Metals' competitors include Impala Platinum Holdings (OTCQX:IMPUY), and Lonmin (OTC:LNMIF). Here is a table comparing these companies.

Company PLG IMPUY LNMIF
Market Cap: 483.31M 6.68B 2.73B
Employees: 54 N/A N/A
Qtrly Rev Growth (yoy): N/A 0.22 -0.09
Revenue: N/A 3.41B 1.52B
Gross Margin: N/A 0.14 0.21
EBITDA: -6.31M 645.84M 312.00M
Operating Margin: N/A 0.11 0.10
Net Income: -14.80M 116.10M 166.00M
EPS: -0.06 0.19 0.31
P/E: N/A 57.59 15.43
PEG (5 yr expected): N/A 0.38 N/A
P/S: N/A 1.91 1.80
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Platinum Group Metals doesn't have any revenues yet.

Conclusion

There have been four different insiders buying Platinum Group Metals, and there have not been any insiders selling Platinum Group Metals during the last 30 days. Two of these four insiders increased their holdings by more than 10%.

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(Source: December presentation)

There are three analyst buy ratings, zero neutral ratings, and zero sell ratings with an average price target of $1.30. I believe the stock could be a good pick from the current price level based on the intensive insider buying.

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(Source: December presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in PLG, 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.