Richmont Mines: 4 Different Insiders Have Purchased Shares This Month

Apr.28.14 | About: Richmont Mines, (RIC)

Summary

Four insiders, including the CEO and CFO, purchased Richmont Mines stock within the last 30 days.

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

All four of these insiders increased their holdings by more than 10%.

Richmont Mines (NYSEMKT:RIC) is engaged in the mining, exploration, and development of mining properties, primarily gold in Canada.

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Insider buying during the last 30 days

Here is a table of Richmont Mines' insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Paul Carmel CEO April 23 70,000 Yes 133,000 shares +111.1%
James Gill Director April 23 200,000 Yes 200,000 shares from 0 to 200,000
Michael Pesner Director April 23 10,000 Yes 10,000 shares from 0 to 10,000
Pierre Rougeau CFO April 23 40,000 Yes 40,000 shares from 0 to 40,000
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There have been 320,000 shares purchased by insiders during the last 30 days. All these shares were purchased pursuant to a bought deal financing.

Insider buying by calendar month

Here is a table of Richmont Mines' insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
April 2014 320,000 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 24,900
November 2013 22,900 0
October 2013 0 0
September 2013 0 0
August 2013 0 41,600
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 20,000 0
February 2013 0 0
January 2013 3,000 0
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There have been 365,900 shares purchased, and there have been 66,500 shares sold by insiders since January 2013. The month of April 2014 has seen the most insider buying.

Financials

Richmont Mines reported the full-year 2013 financial results on February 20 with the following highlights:

Revenue 90.2 million CAD
Net loss 33.2 million CAD
Cash 17.6 million CAD
Debt 6.0 million CAD
Gold production 63,443 ounces
Cash cost $1,095 per ounce
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On April 23, Richmont Mines closed a 11.7 million CAD financing.

Outlook

Richmont Mines' 2014 production forecast is 70,000 to 80,000 ounces of gold.

Competition

Richmont Mines' competitors include St Andrew Goldfields (OTCQX:STADF) and Lake Shore Gold (NYSEMKT:LSG). Here is a table comparing these companies.

Company RIC STADF LSG
Market Cap: 51.47M 110.49M 327.11M
Employees: 442 N/A N/A
Qtrly Rev Growth (yoy): 0.12 -0.29 0.94
Revenue: 91.94M 129.72M 196.33M
Gross Margin: 0.15 0.46 N/A
EBITDA: 3.89M 33.43M 72.71M
Operating Margin: -0.27 -0.00 -1.11
Net Income: -33.80M -4.55M -233.55M
EPS: -0.88 -0.01 -0.57
P/S: 0.55 0.85 1.60
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Richmont Mines has the lowest P/S ratio among these three companies.

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

Company Insider buying / shares Insider selling / shares
STADF 231,500 52,849
LSG 0 0
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Only Richmont Mines has seen intensive insider buying during the last 30 days.

Conclusion

There have been four different insiders buying Richmont Mines, and there have not been any insiders selling Richmont Mines during the last 30 days. All four of these insiders increased their holdings by more than 10%. Richmont Mines has an insider ownership of 9.14%.

The four insiders purchased their shares at $1.32 (1.45 CAD). I believe Richmont Mines could be a good pick below $1.32 based on the intensive insider buying.

Disclosure: I am long RIC, STADF, LSG. 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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