Roxgold: 3 Different Insiders Have Purchased Shares During The Last 30 Days

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 |  About: Roxgold Inc. (ROGFF)
by: Markus Aarnio

Summary

Three insiders purchased Roxgold stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

Two of these three insiders increased their holdings by more than 10%.

Roxgold (OTC:ROGFF) acquires, explores, and evaluates mineral properties in Burkina Faso, West Africa.

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Insider buying during the last 30 days

Here is a table of Roxgold's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Sarl Anrh 10% Owner March 28 1,216,500 No 25,079,825 shares +5.1%
Richard Colterjohn Director March 24 500,000 Yes 3,757,143 shares +15.4%
Oliver Lennox-King Chairman March 25 802,000 Yes 7,439,708 shares +12.1%
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There have been 2,518,500 shares purchased by insiders during the last 30 days. Richard Colterjohn and Oliver Lennox-King purchased their shares pursuant to a public offering.

Insider buying by calendar month

Here is a table of Roxgold's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
March 2014 2,518,500 0
February 2014 0 0
January 2014 225,000 0
December 2013 726,565 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 2,250,000 0
July 2013 100,000 0
June 2013 2,500 0
May 2013 5,000 0
April 2013 0 0
March 2013 210,357 0
February 2013 1,326,429 0
January 2013 0 0
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There have been 7,364,351 shares purchased, and there have been zero shares sold by insiders since January 2013. The month of March 2014 has seen the most insider buying.

Financials

Roxgold reported the third-quarter financial results on November 25 with the following highlights:

Revenue $0
Net loss C$1.8 million
Cash C$14.4 million
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On March 25, Roxgold closed a C$29 million financing.

Outlook

During the last quarter of 2013, Roxgold anticipates exploration expenditures will be below first nine month period levels while expenditures on technical and other consultants will increase. As the company's business is mineral exploration, it does not have any revenues and will remain dependent on equity offerings or other sources of funds until such time that it does have significant revenues.

Upcoming milestones

Roxgold commenced work on the Feasibility Study at the end of the third quarter of 2013. SRK (Toronto) and Mintrex (Perth) were appointed to lead the study which is planned for completion in the second quarter of 2014. In addition, critical path field works such as geotechnical and hydrology drilling were commenced on site in September 2013.

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(Source: Investor presentation)

Competition

Roxgold's competitors in Burkina Faso include Semafo (OTCPK:SEMFF), and True Gold (OTCQX:RVREF). Here is a table comparing these companies.

Company ROGFF SEMFF RVREF
Market Cap: 141.22M 998.28M 130.48M
Employees: N/A N/A 68
EBITDA: -10.52M 77.53M -5.97M
Net Income: -26.70M -6.96M -13.10M
EPS: -0.23 -0.32 -0.11
P/B: 1.06 2.00 1.83
Insider Ownership: 6% N/A 10%
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Roxgold has the lowest P/B ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
SEMFF 0 239,950
RVREF 39,324,811 87,000
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Only Roxgold has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Roxgold, and there have not been any insiders selling Roxgold during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Roxgold has an insider ownership of 6%.

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(Source: Investor presentation)

The three insiders purchased their shares at prices ranging from $0.53 (C$0.58) to $0.55 (C$0.6035). I believe Roxgold could be a good pick below $0.55 based on the intensive insider buying.

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(Source: Investor presentation)

Disclosure: I am long RVREF. 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.

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