Insiders Are Buying Romarco Minerals

Nov 18 2013, 10:53

In this article, I will feature one gold mining company that has seenintensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

1. The stock is purchased by three or more insiders within one month.
2. The stock is sold by no insiders in the month of intensive purchasing.
3. At least two purchasers increased their holdings by more than 10%.

Romarco Minerals (OTC:RTRAF) engages in the acquisition, exploration, and development of precious metals mineral properties in the United States.

(Click to enlarge)

Insider buying during the last 30 days

Here is a table of Romarco Minerals' insider-trading activity during the last 30 days by insider.

There have been 942,857 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Romarco Minerals' insider-trading activity by calendar month.

There have been 1,017,857 shares purchased and there have been zero shares sold by insiders since June 2013. The month of November has seen the most insider buying.

Financials

Romarco Minerals reported the third-quarter financial results on November 6 with the following highlights:

On November 13, 2013, Romarco Minerals closed a $25 million financing.

Outlook

Romarco Minerals' Haile Gold project has the following upcoming milestones:

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(Source: Investor presentation)

Competition

Romarco Minerals' competitors include Brigus Gold (BRD), andParamount Gold and Silver (PZG). Here is a table comparing these companies.

Only Brigus Gold is currently producing gold.

Here is a table of these competitors' insider-trading activities during the last six months.

Only Romarco Minerals has seen intensive insider buying during the last 30 days.

Conclusion

There have been five different insiders buying Romarco Minerals and there have not been any insiders selling Romarco Minerals during the last 30 days. All five of these insiders increased their holdings by more than 10%.

(Click to enlarge)

(Source: Investor presentation)

Romarco Minerals' Haile Gold project has a pre-tax NPV (5%) of $693 million at $1,300 gold price. There are four analyst buy ratings, two neutral ratings, and zero sell ratings with an average price target of $0.86. I believe the stock could be a good pick from the current price level based on the intensive insider buying.

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(Source: Investor presentation)