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

Jun.19.14 | About: NGEx Resources (NGQRF)

Summary

3 insiders purchased NGEx Resources 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%.

NGEx Resources (OTCPK:NGQRF) is engaged in the acquisition, exploration, and development of mineral properties.

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Insider buying during the last 30 days

Here is a table of NGEx Resources' insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Prospectus Current Ownership Increase In Shares
Lorito Holdings 10% Owner June 17 1,750,000 Yes 18,000,000 shares +10.8%
Lukas Lundin Chairman May 22-26 150,000 No 1,651,844
shares
+10.0%
Zebra Holdings and Investments 10% Owner June 17 1,750,000 Yes 19,161,841
shares
+10.1%
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There have been 3,650,000 shares purchased by insiders during the last 30 days. Lorito Holdings and Zebra Holdings purchased their shares pursuant to a private placement.

Insider buying by calendar month

Here is a table of NGEx Resources' insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
June 2014 3,500,000 0
May 2014 150,000 0
April 2014 43,300 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 7,500 0
November 2013 17,910 0
October 2013 0 0
September 2013 4,300 0
August 2013 0 0
July 2013 0 0
June 2013 11,100 0
May 2013 0 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 2,000,000 0
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There have been 5,734,110 shares purchased and there have been zero shares sold by insiders since January 2013. The month of June 2014 has seen the most insider buying.

Financials

NGEx Resources reported the first-quarter financial results on May 5 with the following highlights:

Revenue $0
Net loss C$9.4 million ($8.7 million)
Cash C$10.8 million ($10.0 million)
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(Source: Investor presentation)

The three insiders purchased their shares after these results. On June 16, NGEx Resources closed a $32 million financing.

Upcoming milestones

NGEx Resources' upcoming milestones include a Preliminary Economic Assessment for the Los Helados project in the fourth quarter of 2014.

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(Source: Investor presentation)

Competition

NGEx Resources' competitors include Taseko Mines (NYSEMKT:TGB), and Copper Mountain Mining Corporation (OTCPK:CPPMF). Here is a table comparing these companies.

Company NGQRF TGB CPPMF
Market Cap: 346.83M 434.84M 253.92M
Qtrly Rev Growth (yoy): N/A 0.75 0.11
Revenue: N/A 308.43M 220.30M
EBITDA: -17.39M 47.20M 47.18M
Net Income: -18.99M -30.86M -12.09M
EPS: -0.11 -0.17 -0.12
P/E: N/A N/A -0.12
P/S: N/A 1.37 1.08
P/B: 23.37 1.08 1.29
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NGEx Resources doesn't have any revenues yet.

Here is a table of these competitors' insider activities during the last three months.

Company Insider buying / shares Insider selling / shares
TGB 0 532,000
CPPMF 0 0
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Only NGEx Resources has seen intensive insider buying during the last 30 days.

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(Source: Investor presentation)

Conclusion

There have been three different insiders buying NGEx Resources, and there have not been any insiders selling NGEx Resources 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 $1.78 (C$1.92) to $1.86 (C$2.01). I believe NGEx Resources could be a good pick below $1.86 based on the intensive insider buying.

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(Source: Investor presentation)

Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in NGQRF over the next 72 hours. 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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