Ivanhoe Mines: 3 Different Insiders Have Purchased Shares This Month

Jun.18.14 | About: Ivanhoe Mines (IVPAF)

Summary

3 insiders purchased Ivanhoe Mines' stock within one month.

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

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

Ivanhoe Mines (OTCPK:IVPAF) explores and develops mineral properties. It primarily explores for copper, nickel, gold, zinc, germanium, lead, and platinum-group elements.

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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Ian Cockerill Director June 10 66,700 Yes 66,700 shares from 0 to 66,700
Robert Friedland Executive Chairman June 10 16,666,667 Yes 164,633,422
shares
+11.3%
Lars-Eric Johansson CEO June 10 133,400 Yes 3,181,786
shares
+4.4%
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There have been 16,866,767 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 Ivanhoe Mines' insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
June 2014 16,866,767 0
May 2014 0 0
April 2014 0 14,000
March 2014 0 0
February 2014 0 34,000
January 2014 0 0
December 2013 0 100,000
November 2013 14,000 55,998
October 2013 12,500,000 0
September 2013 0 5,000
August 2013 0 0
July 2013 0 90,000
June 2013 0 283,000
May 2013 0 33,000
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 2,000 0
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There have been 29,382,767 shares purchased and there have been 614,998 shares sold by insiders since January 2013. The month of June 2014 has seen the most insider buying.

Financials

Ivanhoe Mines reported the first-quarter financial results on May 15 with the following highlights:

Revenue $0
Net loss $48.8 million
Cash $170.2 million
Debt $24.1 million
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The three insiders purchased their shares after these results.

On June 10, Ivanhoe Mines closed a $138 million financing.

Upcoming milestones

Ivanhoe Mines' main objectives for 2014 are the following:

1. Bulk sample shaft development at the Platreef project.
2. Commencement of the underground mine-access decline at the Kamoa project.
3. Underground drilling program at the Kipushi project.
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(Source: Investor presentation)

Competition

Ivanhoe Mines' competitors in South Africa include Impala Platinum (OTCQX:IMPUY) and Lonmin (OTCPK:LNMIY). Here is a table comparing these companies.

Company IVPAF IMPUY LNMIY
Market Cap: 692.71M 6.35B 2.45B
Qtrly Rev Growth (yoy): N/A 0.10 -0.21
Revenue: N/A 2.94B 1.36B
EBITDA: -225.86M 540.28M 250.00M
Net Income: -376.82M 101.63M -102.00M
EPS: -0.68 0.17 -0.18
P/E: N/A 62.66 N/A
P/S: N/A 2.14 1.76
P/B: 2.52 1.27 0.75
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Ivanhoe Mines doesn't have any revenues yet.

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(Source: Investor presentation)

Conclusion

There have been three different insiders buying Ivanhoe Mines shares, and there have not been any insiders selling Ivanhoe Mines shares during the last 30 days. Two of these three insiders increased their holdings by more than 10%.

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(Source: Investor presentation)

The three insiders purchased their shares at prices ranging from $1.24 (C$1.35) to $1.38 (C$1.50). I believe Ivanhoe Mines could be a good pick below $1.38 based on the intensive insider buying.

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(Source: Investor presentation)

Disclosure: The author is long IVPAF. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

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