Insider Trades: Directors are buying shares in these 8 small cap ASX explorers

Welcome back to the Insider Trades Series – A summary of on-market director transactions valued at more than $10,000 that have taken place between 5 and 8 February 2024.

During reporting season, trading activity among ASX directors has slowed due to compliance and trading restrictions. This week's transactions mainly involve small-cap resource directors, whose results are largely immaterial as company financials were already disclosed in last month's December quarter reports.

Top ASX Insider Buys

Queensland Pacific Metals, Galan Lithium, Vulcan Energy and Charger Metals all have a few things in common. The companies are all battery-metal related plays (predominately lithium), and the stocks are down around 40-70% in the past twelve months, trading near or at multi-year lows.

We're beginning to see a few Non-Executive Directors nibble, perhaps indicating a view that the company is undervalued. However, there's not much going for the lithium sector right now, with spot prices down 80-85% from November 2022 highs.

Queensland Pacific Metals 12-month price chart (Source: Market Index)

Galan Lithium 12-month price chart (Source: Market Index)

Earths Energy (formerly Cradle Resources) relisted on 7 February after successfully raising $6 million to advice its development of geothermal energy projects in South Australia and Queensland. The company describes itself as an "early mover in the Australian geothermal sector, aiming to establish a reliable, continuous renewable energy solution to contribute to Australia’s clean energy targets."

Earth Energy's portfolio of geothermal exploration licences is comprised of:

• South Australia: 12,000 km² near significant mining operations and power networks

• Queensland: A permit near Brisbane and power grids, and applying for additional blocks near major industrial areas

Upcoming catalysts in 2024 include: Complete native title and cultural heritage approvals, secure remaining Queensland tenements under application, conduct geological studies and progress a drilling program.