Aureus Mining: 4 Different Insiders Have Purchased Shares This Month

Apr.29.14 | About: Aureus Mining (ARSMF)

Summary

4 insiders purchased Aureus Mining stock within one month.

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

3 of these 4 insiders increased their holdings by more than 10%.

Aureus Mining (OTC:ARSMF) explores and develops gold deposits in Liberia and Cameroon.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Luis da Silva Director April 22 74,000 Yes 129,176 shares +134.1%
Jean-Guy Martin Director April 22 10,000 Yes 15,000 shares +200.0%
David Netherway Chairman April 22 37,000 Yes 213,595 shares +21.0%
David Reading CEO April 22 30,000 Yes 378,334 shares +8.6%
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There have been 151,000 shares purchased by insiders during the last 30 days. All these shares were purchased pursuant to a brokered offering.

Insider buying by calendar month

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

Month Insider buying / shares Insider selling / shares
April 2014 151,000 0
March 2014 0 60,000
February 2014 0 0
January 2014 0 0
December 2013 0 341,900
November 2013 0 1,400,000
October 2013 2,683,000 1,755,000
September 2013 0 2,900
August 2013 0 55,000
July 2013 829,059 0
June 2013 0 66,200
May 2013 0 0
April 2013 494,795 644,195
March 2013 0 0
February 2013 0 4,400
January 2013 0 50,000
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There have been 4,157,854 shares purchased, and there have been 4,379,595 shares sold by insiders since January 2013.

Financials

Aureus Mining reported the full-year 2013 financial results on March 6 with the following highlights:

Revenue $0
Net loss $7.4 million
Cash $39.4 million
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On April 22, Aureus Mining closed a $15 million offering.

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(Source: Investor presentation)

Outlook

Aureus Mining expects pouring first gold in Q1 2015.

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(Source: Investor presentation)

Competition

Aureus Mining's competitors include Banro (NYSEMKT:BAA), and Golden Star Resources (NYSEMKT:GSS). Here is a table comparing these companies.

Company ARSMF BAA GSS
Market Cap: 111.18M 116.14M 156.37M
Employees: N/A 1,358 N/A
Qtrly Rev Growth (yoy): N/A -0.20 -0.36
Revenue: N/A 111.81M 467.80M
Gross Margin: N/A 0.29 0.07
EBITDA: -5.81M 32.59M -291.89M
Operating Margin: N/A 0.06 -0.57
Net Income: -7.42M 1.63M -265.89M
EPS: -0.03 0.01 -1.03
P/E: N/A 65.81 N/A
PEG (5 yr expected): N/A N/A -6.08
P/S: N/A 1.08 0.34
P/B: 0.70 0.25 2.21
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Aureus Mining doesn't have any revenues yet.

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

Company Insider buying / shares Insider selling / shares
BAA 2,892,050 21,500
GSS 0 0
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Only Aureus Mining has seen intensive insider buying during the last 30 days.

Conclusion

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

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(Source: Investor presentation)

The four insiders purchased their shares at $0.45 (£0.27). I believe Aureus Mining could be a good pick below $0.45 based on the intensive insider buying.

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(Source: Investor presentation)

Disclosure: I am long ARSMF, BAA, GSS. 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.