In this article, I will feature one gold miner that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
The stock is purchased by three or more insiders within one month.
The stock is sold by no insiders in the month of intensive purchasing.
At least two purchasers increase their holdings by more than 10%.
Agnico-Eagle Mines (NYSE:AEM) engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico.
Insider buying during the last 30 days
Here is a table of Agnico-Eagle Mines' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Ownership Plan||Current Ownership||Increase In Shares|
|Don Allan||SVP||Sep 30||631||Yes||12,825 shares||+5.2%|
|Alain Blackburn||SVP||Sep 30||631||Yes||4,361 shares||+16.9%|
|Lino Cafazzo||VP||Sep 30||342||Yes||2,155 shares||+18.9%|
|Brian Christie||VP||Sep 30||453||Yes||2,245 shares||+25.3%|
|Mathew Cook||VP||Sep 30||274||Yes||869 shares||+46.1%|
|Paul Cousin||VP||Sep 30||342||Yes||6,484 shares||+5.6%|
|Picklu Datta||SVP||Sep 30||357||Yes||3,665 shares||+10.8%|
|Patrice Gilbert||VP||Sep 30||441||Yes||5,525 shares||+8.7%|
|Guy Gosselin||VP||Sep 30||342||Yes||6,343 shares||+5.7%|
|Louise Grondin||SVP||Sep 30||480||Yes||6,571 shares||+7.9%|
|Ingmar Haga||VP||Sep 30||496||Yes||8,180 shares||+6.5%|
|Tim Haldane||SVP||Sep 30||579||Yes||10,768 shares||+5.7%|
|Gregory Laing||SVP||Sep 30||616||Yes||13,360 shares||+4.8%|
|Michel Leclerc||VP||Sep 30||370||Yes||2,443 shares||+17.8%|
|Marc Legault||SVP||Sep 30||493||Yes||15,036 shares||+3.4%|
|Luis Medina||VP||Sep 30||352||Yes||2,925 shares||+13.7%|
|Jeanluk Pellerin||SVP||Sep 30||480||Yes||2,459 shares||+24.3%|
|Christian Provencher||VP||Sep 30||370||Yes||3,232 shares||+12.9%|
|Jean Robitaille||SVP||Sep 30||600||Yes||37,476 shares||+1.6%|
|David Smith||SVP||Sep 30||616||Yes||13,051 shares||+5.0%|
|Yvon Sylvestre||SVP||Sep 30||576||Yes||5,185 shares||+12.5%|
There have been 9,841 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Agnico-Eagle Mines' insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 34,309 shares purchased and there have been zero shares sold by insiders since March 2013. The month of September has seen the most insider buying since March 2013.
Agnico-Eagle Mines reported the second-quarter financial results on July 24 with the following highlights:
|Net loss||$24.4 million|
|Gold production||224,089 ounces|
|Total cash costs||$785 per ounce|
Production is expected to be stronger in the second half of 2013 due to resumption of production at Kittila, increased production at Creston Mascota, the ongoing ramp up of production from the deeper and richer levels of LaRonde, higher expected grades at Meadowbank, and the planned start of production at Goldex.
Agnico-Eagle's production guidance for 2013 is 970,000 to 1,010,000 ounces of gold. Expected total cash costs per ounce are $735 to $785. For the full year 2013, expected all-in sustaining costs are approximately $1,100 per ounce.
In 2014, Agnico-Eagle expects to have significant production growth from LaRonde (due to anticipated improvement in grades), Goldex (due to a planned full year of operations) and La India (due to the expected start of commercial production in 2014). Agnico-Eagle expects payable gold production to be in the range of 1,100,000 ounces to 1,140,000 ounces in 2014.
In 2015, further production growth is expected from LaRonde (due to higher grades) and Pinos Altos (due to anticipated mill optimization) with payable gold production expected to exceed 1,200,000 ounces.
|Qtrly Rev Growth (yoy):||-0.27||-0.01||-0.04||-0.11|
|PEG (5 yr expected):||-3.42||3.34||-0.81||-0.68|
Agnico-Eagle is the only one of these companies with net profit for the trailing 12-month period.
Here is a table of these competitors' insider-trading activities during the last six months.
|Company||Insider buying / shares||Insider selling / shares|
Kinross Gold has also seen intensive insider buying during the past 30 days.
There have been 21 different insiders buying Agnico-Eagle and there have not been any insiders selling Agnico-Eagle during the last 30 days. Ten of these 21 insiders increased their holdings by more than 10%.
There are five analyst buy ratings, 14 neutral ratings and two sell ratings with an average price target of $32.52. The stock is trading at a P/E ratio of 21.98 and a forward P/E ratio of 37.00. Agnico-Eagle has a book value of $19.80 per share and the stock has a dividend yield of 3.66%.
Agnico-Eagle's gold reserves stand at 18.7 million ounces. Agnico-Eagle Mines also has approximately 96 million ounces of silver, 220,000 tonnes of zinc and 73,000 tonnes of copper in reserves. Over the next three years, Agnico-Eagle expects to grow its gold production by 20% to over 1,200,000 ounces.
I believe the stock could be a good pick at the current price level based on the intensive insider buying.
Disclosure: I am long NUGT. 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.