Insider Trades: Directors are buying shares in these 8 small cap ASX explorers
The volume of director trades hits a wall amid reporting season compliance and trading restrictions.
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Source: Ground eye view of several city tower skyscrapers. Image by: BruceEmmerling from Pixabay.
Mentioned
KEY POINTS
- Director transactions slow during reporting season due to compliance and trading restrictions
- Recent insider buys mainly involve small-cap resource directors
- Earths Energy relists to develop geothermal projects, signaling a focus on renewable energy amid market challenges in the lithium sector
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
Code | Company | Date | Director | Type | Price | Value |
|---|---|---|---|---|---|---|
Earths Energy | 7/02/24 | Buy | $0.02 | $99,540 | ||
Frontier Energy | 6/02/24 | Buy | $0.30 | $80,811 | ||
Trek Metals | 7/02/24 | Buy | $0.03 | $60,006 | ||
Queensland Pacific Metals | 5/02/24 | Buy | $0.04 | $57,000 | ||
Ardiden | 5/02/24 | Buy | $0.18 | $41,407 | ||
Galan Lithium | 8/02/24 | Buy | $0.31 | $31,171 | ||
Vulcan Energy Resources | 5/02/24 | Buy | $2.05 | $29,039 | ||
Kelly Partners Group | 6/02/24 | Buy | $5.46 | $16,988 | ||
Charger Metals | 8/02/24 | Buy | $0.13 | $13,082 |
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 km<sup>2</sup> 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.
