Director Transactions

Insider Trades: This director sold $1m worth of shares in this ASX small cap (plus 7 buys)

Thu 01 Jun 23, 1:22pm (AEDT)
Resources mining site
Source: iStock

Key Points

  • Meteoric Resources' Executive Chairman offloads $1m worth of shares after the stock rallied more than 1,200% year-to-date
  • Andromeda shares are down more than 90% from April 2022 highs but management are starting to buy shares
  • Sheffield Resources' insiders bought shares. The company is expected to make its first deliver of mineral sands in 2024

Welcome back to the Insider Trades series – A summary of small cap mining director transactions that have taken place between 22 to 29 May.

Insider activity among explorers has been buzzing, so we’re taking a look at transactions worth more than $20,000 for this week.


Top Insider Transactions

Code

Company

Date

Director

Type

Price

Value

Notes

MEI

Meteoric Resources

26/5/23

Andrew Tunks

Sell

$0.20

$1,000,000

On-market trade

ADN

Andromeda Metals 

24/5/23

Robert Katsiouleris

Buy

$0.04

$445,262

On-market trade

SFX

Sheffield Resources

25/5/23

John Richards

Buy

$0.49

$195,983

On-market trade

QGL

Quantum Graphite 

24/5/23

Bruno Ruggiero

Buy

$0.50

$100,161

On-market trade

LM8

Lunnon Metals 

26/5/23

Ashley McDonald

Buy

$1.00

$100,000

On-market trade

PEX

Peel Mining 

25/5/23

James Simpson

Buy

$0.11

$55,000

On-market trade

BNL

Blue Star Helium 

26/5/23

Ross Warner

Sell

$0.03

$41,400

On-market trade

CII

Ci Resources 

26/5/23

Adrian Gurgone

Buy

$1.00

$29,922

On-market trade

BNL

Blue Star Helium 

29/5/23

Neil Rinaldi

Buy

$0.03

$26,000

On-market trade


Interesting Observations

Selling into strength: Meteoric Resources is up more than 1,200% year-to-date. One of the major catalysts was its acquisition of a Tier 1 rare earths project in Brazil in late December. Executive Chairman Andrew Tunks has sold $1m worth of shares, on the same day he exercised $365,650 worth of options at 2.4 cents per share.

MEI chart
Meteoric Resources 12-month price chart (Source: Market Index)

Buying the dips dip: Andromeda – An emerging kaolin producer – hasn’t quite been the same since its Definitive Feasibility announcement on 5 April 2022. The disappointing economics of the project triggered a 33% selloff on the day of the announcement. And its share price performance has only gone downhill ever since. Insiders have been nibbling on the stock since the beginning of the year. Are they seeing value at current beaten up levels? 

ADN chart
Andromeda 12-month price chart (Source: Market Index)

A new mineral sands producer: Earlier this month, Sheffield Resources said the construction of its Thunderbird Mineral Sands Project is 85% and within its $484m budget. It expects to make its first delivery to customers in the first quarter of 2024. Non-executive director John Richards bought $196,000 worth of shares last week, marking the first insider buy since August 2021. The stock has been somewhat muted in the past twelve months, down 5%. Do insiders see valuation tailwinds ahead of production?

SFX chart
Sheffield Resources 12-month price chart (Source: Market Index)

 

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Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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