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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.

(click to enlarge)

Insider buying during the last 30 days

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

NameTitleTrade DateShares PurchasedProspectusCurrent OwnershipIncrease In Shares
Paul CarmelCEOApril 2370,000Yes133,000 shares+111.1%
James GillDirectorApril 23200,000Yes200,000 sharesfrom 0 to 200,000
Michael PesnerDirectorApril 2310,000Yes10,000 sharesfrom 0 to 10,000
Pierre RougeauCFOApril 2340,000Yes40,000 sharesfrom 0 to 40,000

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.

MonthInsider buying / sharesInsider selling / shares
April 2014320,0000
March 201400
February 201400
January 201400
December 2013024,900
November 201322,9000
October 201300
September 201300
August 2013041,600
July 201300
June 201300
May 201300
April 201300
March 201320,0000
February 201300
January 20133,0000

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:

Revenue90.2 million CAD
Net loss33.2 million CAD
Cash17.6 million CAD
Debt6.0 million CAD
Gold production63,443 ounces
Cash cost$1,095 per ounce

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.

CompanyRICSTADFLSG
Market Cap:51.47M110.49M327.11M
Employees:442N/AN/A
Qtrly Rev Growth (yoy):0.12-0.290.94
Revenue:91.94M129.72M196.33M
Gross Margin:0.150.46N/A
EBITDA:3.89M33.43M72.71M
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:0.550.851.60

Richmont Mines has the lowest P/S ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
STADF231,50052,849
LSG00

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.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Source: Richmont Mines: 4 Different Insiders Have Purchased Shares This Month