Insider Trades: Directors are buying shares in these 14 small cap ASX explorers
Jervois Global shares tumbled more than 40% last week and that's when directors started buying.
Source: iStock
Mentioned
KEY POINTS
- Jervois Global directors step up after the stock nosedived 40% on 29 March
- Most of these stocks are down 20-30% in the past twelve months and struggling for upside
- A Leo Lithium director buys a parcel two days after the Liontown bid. The position is currently in the negatives
A summary of small cap mining director transactions valued at more than $10,000 between 28 March and 4 April.
Top small cap director buys
Code | Company | Date | Director | Type | Price | Value | Notes |
|---|---|---|---|---|---|---|---|
Jervois Global | 31/03/23 | David Issroff | Buy | $0.06 | $315,000 | On-market trade | |
Jervois Global | 31/03/23 | Peter Johnston | Buy | $0.06 | $224,560 | On-market trade | |
Jervois Global | 30/03/23 | Brian Kennedy | Buy | $0.06 | $112,000 | On-market trade | |
Stelar Metals | 29/03/23 | Stephen Biggins | Buy | $0.21 | $106,001 | On-market trade | |
Aspire Mining | 30/03/23 | Michael Avery | Buy | $0.60 | $99,933 | On-market trade | |
Cobre Ltd | 28/03/23 | Martin Holland | Buy | $0.10 | $71,225 | On-market trade | |
Cannindah Resources | 28/03/23 | Simon Beams | Buy | $0.19 | $56,781 | On-market trade | |
Leo Lithium | 30/03/23 | Alan Rule | Buy | $0.51 | $50,500 | On-market trade | |
Cannindah Resources | 28/03/23 | Simon Beams | Buy | $0.19 | $50,481 | On-market trade | |
Clime Capital | 30/03/23 | Diana D Ambra | Buy | $0.84 | $42,000 | On-market trade | |
Peregrine Gold | 29/03/23 | Anees Sabet | Buy | $0.40 | $40,686 | On-market trade | |
Triangle Energy | 28/03/23 | Michael Collins | Buy | $0.02 | $29,966 | On-market trade | |
Torque Metals | 27/03/23 | Andrew Woskett | Buy | $0.10 | $21,870 | On-market trade | |
Metal Tiger | 30/03/23 | David McNeilly | Buy | $0.09 | $13,965 | On-market trade | |
Reward Minerals | 31/03/23 | Michael Ruane | Buy | $0.07 | $12,687 | On-market trade | |
Gullewa Ltd | 31/03/23 | Anthony Howland-Rose | Buy | $0.06 | $12,194 | On-market trade | |
WIA Gold Ltd | 28/03/23 | Mark Arnesen | Buy | $0.05 | $11,045 | On-market trade |
Interesting Observations
The gist of things: The price charts for most of these small caps are the same. They've all been badly beaten, down between 20-30% in the past year (and in some cases much more). The best performing stock among the list is Triangle Energy, a WA-based oil and gas explorer that's up about 6% in the past year.
Jervois Global's downward spiral: Shares in the cobalt developer have been in a downward spiral in almost any time frame, down 76% year-to-date and 92.5% in the past year. This follows a sharp decline in cobalt prices, from May 2022 peaks of US$80,000 a tonne to now US$35,00 a tonne. Last month, Jervois said it will halt the final construction of its Idaho Cobalt Project due to weak prices and inflationary pressures. This triggered a -42% selloff to 6.7 cents on the day of the announcement (29 March).
Between March 30-31, there were three director transactions that totaled $651,000. This triggered an oversold bounce between 31 March and 4 April, where the stock rallied as much as 35% to 8.5 cents. Those gains were rather short lived, with the stock trading at 6.5 cents on Wednesday.
The company says construction will continue when cobalt prices recover but until then, it's caught in a little bit of a limbo.
A lithium buy: Leo Lithium non-executive director Alan Rule purchased a $50,500 parcel at 51 cents per share on Thursday, 30 March. This was two days after the broad-based rally for lithium stocks which was triggered by Albemarle's $5.5 billion bid for Liontown Resources. Leo Lithium shares recently hit highs of 53 cents but have come back down to 49 cents on Wednesday.
