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Gold prices are up 10% and silver prices are up 25% since the beginning of August 2012. Based on this observation I decided to screen some mining companies to see if there was any insider buying this month. I focused my search on gold and silver miners. I only found two gold and silver miners and one molybdenum mineral mining company. Here is a look at the three companies:

1. Coeur d'Alene Mines Corporation (NYSE:CDE) is the largest U.S.-based primary silver producer and a growing gold producer. The company has three new, large precious metals mines generating significantly higher production, sales and cash flow in continued strong metals markets. In 2011, Coeur realized the first full year of production and cash flow from all three of its new, 100%-owned mines: the San Bartolomé silver mine in Bolivia, the Palmarejo silver-gold mine in Mexico, and the Kensington gold mine in Alaska. In addition, the company began producing silver and gold from its long-time Rochester in Nevada in the fourth quarter of 2011. The company also owns a non-operating interest in a low-cost mine in Australia, and conducts ongoing exploration activities near its operations in Argentina, Mexico, Alaska and Nevada.

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Insider buys

  • Donald Birak purchased 500 shares on September 10 and currently holds 45,961 shares of the company. Donald Birak was appointed Senior Vice President - Exploration of Coeur in January 2004.
  • Casey Nault purchased 600 shares on August 9 and currently holds 6,350 shares of the company. Casey Nault is Vice President And General Counsel of the company.
  • Keagan Kerr purchased 1,000 shares on August 10 and currently holds 2,761 shares of the company. Keagan Kerr is Vice President Of Human Resources of the company.
  • Mitchell Krebs purchased 5,000 shares on August 9 and currently holds 61,050 shares of the company. Mitchell Krebs was named President and CEO in July, 2011.

Financials

The company reported the second-quarter financial results on August 7 with the following highlights:

Revenue$254.4 million
Net income$23.0 million
Cash$200.3 million

Outlook

The company expects to achieve the high-end of its 2012 silver and gold production guidance of 18.5 - 20.0 million silver ounces and 210,000 - 230,000 gold ounces. The company also expects to achieve the low-end of its 2012 guidance for cash operating costs per silver ounce of $6.50 - $7.50.

My analysis

The stock has a $56.5 price target from the Point and Figure chart. There have been four insider buy transactions and two insider sell transactions this year. The stock is trading at a forward P/E ratio of 10.94. I would get interested in buying the shares after a pullback towards the 200 day moving average currently at $22.43.

2. General Moly (NYSEMKT:GMO) is a U.S.-based molybdenum mineral development, exploration and mining company. The company's primary asset, the Mt. Hope project located in central Nevada, is considered one of the world's largest and highest grade molybdenum deposits. Combined with the company's second molybdenum property, the Liberty project that is also located in central Nevada, the company's goal is to become the largest primary molybdenum producer in the world.

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Insider buys

  • Bruce Hansen purchased 30,000 shares on September 10 and currently holds 1,013,435 shares of the company. Bruce Hansen has been the Chief Executive Officer of the company since January 2007.
  • David Chaput purchased 5,000 shares on September 10 and currently holds 71,000 shares of the company. David Chaput has been the Chief Financial Officer of the company since April 2007.

Financials

The company reported the second-quarter financial results on August 7 with the following highlights:

Revenue$0
Net loss$2.7 million
Cash$28.2 million

News

General Moly announced on September 5 that on Friday, August 31, the U.S. Bureau of Land Management [BLM] completed the Preliminary Final Environmental Impact Statement [PFEIS] for the Mt. Hope project, which was delivered to the cooperating agencies on Tuesday, September 4. Cooperating agencies, including the County of Eureka, the National Park Service, and the Nevada Division of Wildlife, as well as the U.S. Environmental Protection Agency [EPA], will have 15 business days to review the PFEIS.

Bruce D. Hansen, Chief Executive Officer, commented on September 5:

We continue to move forward in the Environmental Impact Statement [EIS] permitting process for our Mt. Hope project and are pleased at the diligence, focus and progress the BLM continues to demonstrate. We anticipate the BLM to finalize the EIS shortly, and we continue to expect a receipt of our Record of Decision [RoD] as well as completion of the remaining major Nevada State permits by the end of 2012, and to commence construction shortly thereafter.

My analysis

There have been three insider buy transactions and there has been only one insider sell transaction this year. The company anticipates to initiate the construction activities of Mt. Hope later this year. The construction of the mine is expected to take 20-24 months and to cost $1,284 million. The stock could be a good pick here in anticipation of the final permitting decision later this year.

3. Mines Management (NYSEMKT:MGN) is engaged in the business of acquiring and exploring, and if exploration is successful, developing mineral properties containing precious and base metals. The company's primary focus is on the advancement of the Montanore silver-copper project located in northwestern Montana. The Montanore is an advanced stage exploration project containing a Canadian NI 43-101 compliant measured resource of 4.03 million tons of material grading 1.85 ounces per ton [opt] silver and 0.74% copper, an indicated resource of 77.5 million tons grading 2.05 opt silver and 0.75% copper, and an inferred resource of 35.1 million tons grading 1.85 opt silver and 0.71% copper, and is currently undergoing the process to obtain permitting approval.

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Insider buys

Glenn Dobbs purchased 10,000 shares on September 6, and currently holds 1,667,936 shares of the company. Glenn Dobbs is the President & Chief Executive Officer of the company.

Financials

The company reported the second-quarter financial results on August 16, with the following highlights:

Revenue$0
Net loss$2.4 million
Cash$15.5 million

Outlook

The company anticipates expenditures of approximately $4.5 million for the final six months of 2012, which the company expects to consist of approximately $3.0 million for general and administrative expenses, $1.0 million for permitting, engineering, and geologic studies for the permitting for the Montanore Project and $0.5 million on exploration at La Estrella. Additional external financing, however, would be required following receipt of the Record of Decision to complete the evaluation drilling program and a bankable feasibility study at the Montanore Project and to fund increased exploration efforts at the La Estrella property in 2013. The timing and amount of additional external financing will be based on the timing of the Record of Decision and planned drilling program for Montanore and on 2012 exploration results and additional exploration plans, if any, for La Estrella.

My analysis

There has been one insider buy transaction and there has not been any insider selling this year. The permitting process of Montanore could still take 1-2 years to complete. Using metals prices as of November 17, 2010, of $25.65/oz. silver and $3.72/lb. copper, the Montanore project indicated a pre-tax NPV of $1.323 billion and IRR of 32.3%, at a 5% discount rate. The stock could be a good pick from the current levels based on the potential of Montanore project and the recent insider buying.

Source: 3 Mining Companies With Insider Buying This Month