Insider Trades: Directors are buying shares in these 9 small-cap ASX companies

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 24 January and 2 February 2024.

Top ASX Insider Buys

Lunnon Metals is a nickel explorer, operating the Kambalda Project in Western Australia. The project neighbours two embattled names, including:

• Andrew Forrest's Wyloo Metals, which was shut down in January 2024 due to a steep decline in nickel prices. The project was bought for $760 million just six months ago

• BHP's Nickel West, remains subject to a possible write down in its upcoming financial results. “Nickel West is not immune to these challenges. Operations are being actively optimised, and options are being evaluated to mitigate the impacts of the sharp fall in nickel prices," the company said in its December quarter update

This has placed substantial downward pressure on Lunnon shares, down 58% year-to-date and 74% in the past twelve months to all-time lows. But now we're starting to see a number of insiders begin to nibble, including:

• Chief Executive Officer Edmund Ainscough

• Non-Executive Chairman Liam Twigger

• Non-Executive Director Ashley McDonald

Most of these trades were made around the 30 cent level vs. Lunnon's current share price of around 25 cents. Insiders might see value in the stock right now, but the industry remains in deep pain and without a positive catalyst in sight.

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

Top ASX Insider Sells

Laramide is a dual-listed uranium explorer, operating five projects across Australia and the United States. Interestingly, the stock has been suspended since 15 January 2024, pending the release of a Preliminary Economic Assessment for one of its projects in the US.

The stock has continued to trade on the TSX (Toronto Stock Exchange), which has allowed Chief Executive Marc Henderson to sell C$48,300 worth of shares last month.

Uranium stocks have gone from strength-to-strength after the world's largest producer, Kazatomprom, flagged it would be unable to meet its production target for the next two years. Shares in TSX-listed Laramide have pushed around 8.5% higher since Henderson's sale.

Laramide 12-month price chart (Source: Market Index)