Trevali Mining: 6 Different Insiders Have Purchased Shares Since November 19

In this article, I will feature one mining company that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

1. The stock is purchased by three or more insiders within one month.


2. The stock is sold by no insiders in the month of intensive purchasing.


3. At least two purchasers increased their holdings by more than 10%.

Trevali Mining (OTCQX:TREVF) is a zinc-focused base metals development company with active operations in Canada and Peru.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Trevali's insider-trading activity during the last 30 days by insider.

Name	Title	Trade Date	Shares Purchased	Prospectus	Current Ownership	Increase In Shares
Daniel Marinov	VP	Nov 28	5,000	Yes	18,500 shares	+37.0%
Steve Stakiw	VP	Nov 28	10,000	Yes	152,000 shares	+7.0%
Mark Cruise	CEO	Nov 28	72,300	Yes	562,300 shares	+14.8%
David Huberman	Director	Nov 19	100,000	No	200,000 shares	+100%
Alan Hughes	VP	Nov 19	3,000	No	8,000 shares	+60%
Peter Meredith	Director	Nov 28	25,000	Yes	75,000 shares	+50%

There have been 215,300 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Trevali's insider-trading activity by calendar month.

Month	Insider buying / shares	Insider selling / shares
November 2013	215,300	0
October 2013	0	400,000
September 2013	0	0
August 2013	0	0
July 2013	0	0
June 2013	55,000	0
May 2013	55,000	0
April 2013	119,000	0
March 2013	5,000	0
February 2013	0	0
January 2013	0	0

There have been 449,300 shares purchased and there have been 400,000 shares sold by insiders this year. The month of November has seen the most insider buying.

Financials

Trevali reported the third-quarter financial results on November 13 with the following highlights:

Revenue	$0
Net loss	$2.6 million
Cash	$2.8 million
Debt	$52.0 million

On November 28, Trevali closed a $46.0 million financing.

Outlook

In Peru, Trevali expects to declare commercial production at its Santander mine by year-end. In Canada, Trevali's New Brunswick operations are scheduled to commence production during the next 12-24 months.

Competition

Trevali's competitors include Glencore Xstrata (OTCPK:GLCNF), Vedanta Resources (OTCPK:VDNRF), and Teck Resources (TCK). Here is a table comparing these companies.

Company TREVF GLCNF VDNRF TCK Market Cap: 169.61M 65.24B 4.02B 13.84B Employees: N/A N/A N/A 10,500 Qtrly Rev Growth (yoy): N/A 0.04 -0.17 0.01 Revenue: N/A 218.51B 13.70B 9.92B Gross Margin: N/A N/A N/A 0.24 EBITDA: -4.03M 5.08B 4.49B 3.08B Operating Margin: N/A 0.01 0.16 0.19 Net Income: -6.97M -10.19B -233.20M 684.86M EPS: -0.03 -1.29 -0.85 1.18 P/E: N/A N/A N/A 20.44 PEG (5 yr expected): N/A N/A N/A 4.61 P/S: N/A 0.31 0.29 1.41

Trevali doesn't have any revenues yet. In Teck Resources, there have been zero shares purchased and there have been 3,000 shares sold by insiders during the last 30 days.

Conclusion

There have been six different insiders buying Trevali and there have not been any insiders selling Trevali during the last 30 days. Five of these six insiders increased their holdings by more than 10%. Trevali has an insider ownership of 3%.

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(Source: November presentation)

Trevali has Indicated resources of 2.7 billion lbs Zn, 1 billion lbs Pb, 34.5 million ounces Ag, and 109 million lbs Cu.

(click to enlarge)

(Source: November presentation)

Trevali has a book value of $0.99 per share. I believe the stock could be a good pick below the book value based on the intensive insider buying.

(click to enlarge)

(Source: November presentation)

Source: Trevali Mining: 6 Different Insiders Have Purchased Shares Since November 19

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCQX:TREVF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

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