One gold company has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
- The stock is purchased by three or more insiders within one month.
- The stock is sold by no insiders in the month of intensive purchasing.
- At least two purchasers increase their holdings by more than 10%.
Guyana Goldfields (TSX:GUY, Financial) is engaged in the acquisition, exploration, evaluation, and development of gold deposits in Guyana.
Insider Buying During the Last 30 Days
Here is a table of Guyana Goldfields' insider activity during the last 30 days.
| Name | Title | Trade Date | Shares Purchased | Prospectus | Current Ownership | Increase In Shares |
| Jean-Pierre Chauvin | Director | June 27 | 60,000 | Yes | 60,000 shares | from 0 to 60,000 |
| Rene Marion | Director | June 26 | 54,000 | Yes | 54,000 shares | from 0 to 54,000 |
| The Baupost Group | 10% Owner | June 24 | 4,728,000 | Yes | 29,606,669 shares | +19.0% |
There have been 4,842,000 shares purchased by insiders during the last 30 days. All these shares were purchased pursuant to a private placement.
Insider Buying by Calendar Month
Here is a table of Guyana Goldfields' insider activity by calendar month.
| Month | Insider buying / shares | Insider selling / shares |
| June 2014 | 4,842,000 | 0 |
| May 2014 | 0 | 0 |
| April 2014 | 0 | 0 |
| March 2014 | 0 | 10,000 |
| February 2014 | 0 | 62,000 |
| January 2014 | 0 | 15,000 |
| December 2013 | 0 | 0 |
| November 2013 | 0 | 0 |
| October 2013 | 0 | 120,000 |
| September 2013 | 0 | 20,000 |
| August 2013 | 20,000 | 0 |
| July 2013 | 0 | 0 |
| June 2013 | 40,000 | 0 |
| May 2013 | 0 | 0 |
| April 2013 | 82,000 | 0 |
| March 2013 | 0 | 0 |
| February 2013 | 6,490,000 | 0 |
| January 2013 | 10,000 | 0 |
There have been 11,484,000 shares purchased and there have been 227,000 shares sold by insiders since January 2013. The month of June has seen all of the insider buying this year.
Financials
Guyana Goldfields reported the fiscal 2014 second-quarter, which ended April 30, financial results on June 12 with the following highlights:
| Revenue | $0 |
| Net loss | $1.1 million |
| Cash | $77.1 million |
Guyana Goldfields closed a $41.5 million private placement on June 27.
Outlook
Guyana Goldfields is currently fully funded to production start.
Upcoming Milestones
Guyana Goldfields is targeting mid-2015 production start.
(Source: Investor presentation)
Competition
Guyana Goldfields' competitors with operations in South America include Golden Star Resources (GSS), and IAMGOLD (IAG). Here is a table comparing these companies.
| Company | GUYFF | GSS | IAG |
|---|---|---|---|
| Market Cap: | 306.82M | 153.03M | 1.55B |
| Qtrly Rev Growth (yoy): | N/A | -0.36 | -0.09 |
| Revenue: | N/A | 419.89M | 1.12B |
| Gross Margin: | N/A | 0.12 | 0.25 |
| EBITDA: | -8.51M | -323.72M | 94.00M |
| Operating Margin: | N/A | -0.90 | -0.64 |
| Net Income: | -13.36M | -296.26M | -839.70M |
| EPS: | -0.11 | -1.15 | -2.23 |
| PEG (5 yr expected): | N/A | -1.95 | -2.31 |
| P/S: | N/A | 0.35 | 1.36 |
| P/B: | 0.98 | 2.89 | 0.54 |
Guyana Goldfields doesn't have any revenues yet.
Here is a table of these competitors' insider activities during the last 30 days.
| Company | Insider buying / shares | Insider selling / shares |
| GSS | 37,000 | 0 |
| IAG | 0 | 0 |
Only Guyana Goldfields has seen intensive insider buying during the last 30 days.
Conclusion
There have been three different insiders buying Guyana Goldfields and there have not been any insiders selling Guyana Goldfields during the last 30 days. All three of these insiders increased their holdings by more than 10% each.
The three insiders purchased their shares at $1.85. I believe Guyana Goldfields could be a good pick below $1.85 based on the intensive insider buying.
Disclosure: The author is long TSX:GUY, IAG, GSS.
