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ASX Director Trades: Which Meteoric Resources director buys up big in the December winner?
Director Trades
share
- December winner Meteoric Resources sees a non-executive director buy 6 million shares
- Northern Star Resources and Chalice Mining directors sell in December for tax obligations
- Johns Lyng Group COO Lindsay Barber sells 4 million shares, ~31% of his holding
Director trades are often considered a good indicator of a company’s future prospects. Our monthly ASX Director Trades column informs you who is buying in and who is selling down. Often referred to as insider buying or selling, directors are legally permitted to buy and sell shares of the company and any subsidiaries. However, these transactions must be properly registered and divulged.
Insider buying or selling is not to be confused with insider trading, which is buying shares based on non-public information, a big no-no and illegal.
We troll through the ASX company announcements looking at director trades of interest over the past month. It’s usually the big ones that stand out or those coinciding with company news.
Directors may get shares as part of employee incentive schemes, share purchase plans, rights issues, participate in dividend reinvestment plans or purchase on-market. It’s the on-market trades we think are worth noting, where directors directly or indirectly through entities they are associated either put up cash or cash in a stake.
When a director buys shares on-market or off-market, it can signify confidence the share price will rise in the future and if multiple directors are buying, especially at larger amounts, that is even more of an indication. Of course, it’s not a sure win that the share price will rise, so it’s always worth further research on a company.
Directors will often buy company shares after a sharp price decrease. Directors may think the stock has been oversold and represents good value, sometimes they want to show confidence in their company’s prospects, other times they’ve just got another good reason to buy or sell a stock which will be divulged, like paying the good ol’ taxman.
Market overview for December
While December has historically been one of the ASX200’s best months for performance it wasn’t the case for 2022 with the grinch out in full force.
While the benchmark S&P/ASX200 closed down 3.60% for December and 5.45% for 2022.
The S&P/ASX Emerging Companies (XEC) index is a benchmark for Australia’s micro-cap companies, containing up to 200 stocks that ranked between 350 and 600 by float-adjusted market capitalisation at the time of their index inclusion.
The top 50 performing ASX stocks for December:
Scroll or swipe to reveal table. Click headings to sort.
| Code | Company | Last Share Price | Mth % return | Market Cap |
|---|---|---|---|---|
| MEI | Meteoric Resources | 0.054 | 260% | $74,788,571 |
| 3DA | Amaero International | 0.16 | 122% | $66,473,634 |
| NGY | Nuenergy Gas Ltd | 0.036 | 112% | $53,314,398 |
| PCL | Pancontinental Energy | 0.009 | 80% | $60,433,782 |
| GRX | Greenx Metals Ltd | 0.64 | 78% | $136,955,051 |
| LME | Limeade Inc. | 0.305 | 61% | $73,007,901 |
| MAY | Melbana Energy Ltd | 0.064 | 60% | $208,952,654 |
| CAY | Canyon Resources Ltd | 0.065 | 55% | $56,826,924 |
| LCL | Los Cerros Limited | 0.058 | 53% | $40,795,683 |
| DUB | Dubber Corp Ltd | 0.475 | 46% | $144,275,544 |
| TON | Triton Min Ltd | 0.036 | 44% | $52,545,799 |
| MLX | Metals X Limited | 0.38 | 43% | $308,470,463 |
| MFD | Mayfield Childcare | 1.39 | 43% | $90,131,533 |
| WGO | Warrego Energy Ltd | 0.31 | 41% | $379,167,921 |
| MRL | Mayur Resources Ltd | 0.175 | 40% | $45,495,061 |
| DUG | DUG Tech | 0.63 | 40% | $73,236,499 |
| SOP | Synertec Corporation | 0.25 | 39% | $96,807,413 |
| 4DS | 4Ds Memory Limited | 0.036 | 38% | $50,312,025 |
| RFG | Retail Food Group | 0.08 | 38% | $166,179,277 |
| TNT | Tesserent Limited | 0.13 | 37% | $162,501,854 |
| QGL | Quantum Graphite | 0.69 | 35% | $204,706,000 |
| ZEO | Zeotech Limited | 0.047 | 34% | $77,113,166 |
| MNB | Minbos Resources Ltd | 0.099 | 34% | $72,396,979 |
| AR1 | Austral Resources | 0.21 | 33% | $67,968,503 |
| TIG | Tigers Realm Coal | 0.016 | 33% | $209,067,238 |
| BNL | Blue Star Helium Ltd | 0.041 | 32% | $60,274,462 |
| BBX | BBX Minerals Ltd | 0.105 | 31% | $48,672,148 |
| ETM | Energy Transition | 0.063 | 31% | $94,902,081 |
| MRM | MMA OffShore | 0.95 | 30% | $349,709,573 |
| MDR | Medadvisor Limited | 0.26 | 30% | $135,962,104 |
| MTC | Metalstech Ltd | 0.52 | 30% | $89,029,285 |
| SVY | Stavely Minerals Ltd | 0.24 | 30% | $77,509,117 |
| SOR | Strategic Elements | 0.155 | 29% | $66,449,581 |
| MCE | Matrix C & E Ltd | 0.29 | 29% | $43,821,429 |
| STX | Strike Energy Ltd | 0.315 | 29% | $711,656,859 |
| MCM | Mc Mining Ltd | 0.275 | 28% | $109,362,437 |
| HGO | Hillgrove Res Ltd | 0.054 | 26% | $64,585,898 |
| BOC | Bougainville Copper | 0.35 | 25% | $140,371,875 |
| G1A | Galena Mining | 0.25 | 25% | $156,553,515 |
| CKA | Cokal Ltd | 0.205 | 24% | $183,582,551 |
| TGN | Tungsten Min NL | 0.095 | 23% | $74,709,356 |
| SDV | Scidev Ltd | 0.37 | 23% | $68,329,268 |
| GTK | Gentrack Group Ltd | 2.38 | 23% | $242,947,313 |
| BMT | Beamtree Holdings | 0.345 | 23% | $79,539,330 |
| RSG | Resolute Mining | 0.215 | 23% | $447,091,379 |
| AVA | AVA Risk Group Ltd | 0.245 | 23% | $58,745,366 |
| GRV | Greenvale Energy Ltd | 0.12 | 22% | $50,606,665 |
| BCB | Bowen Coal Limited | 0.33 | 22% | $595,028,475 |
| RED | Red 5 Limited | 0.2075 | 22% | $586,491,510 |
| PRN | Perenti Limited | 1.315 | 22% | $916,376,728 |
The XEC fell 2.60% for December and 22.69% for 2022.
The traditional Christmas rally which investors had been hoping for just didn’t eventuate with all sectors finishing the month in the red. Leading the laggards, was consumer discretionary down 7.04% for December, followed by Industrials down 5.51% and Information Technology 5.49%.
Like most of 2022 investors remained jittery throughout December reactive to any economic news and indications of what might be in store for 2023.
China’s relaxation of tough COVID-19 restrictions also had investors jittery.
December director large buys
Swipe or scroll to reveal full table. Click headings to sort
| Code | Company | Director | Direct or Indirect | Date | Volume | $ | Nature of change |
|---|---|---|---|---|---|---|---|
| IPH | IPH Limited | Peter Warne | Direct | Dec-02 | 20,000 | $171,945 | On-market |
| CCR | Credit Clear | Paul Dwyer | Indirect | Dec-08 | 760,328 | $319,338 | On-market |
| CDM | Cadence Capital | Karl Peter Siegling | Indirect | Dec-12 | 110,921 | $102,430 | On-market |
| AUC | Ausgold Limited | Richard Lockwood | Direct | Dec-14 | 2,500,000 | $120,083 | On-market |
| TEK | Thorney Technologies | Alex Waislitz | Indirect | Dec 16-23 | 1,500,000 | $311,966 | On-market |
| MEI | Meteoric Resources | Paul Kitto | Indirect | Dec 19-22 | 6,000,000 | $253,208 | On-market |
| INF | Infinity Lithium Corporation | Remy Welschinger | Direct & Indirect | Dec-23 | 1,000,000 | $109,777 | On-market |
December winner Meteoric Resources (ASX:MEI) saw non executive director Paul Kitto ponied up for 6 million shares indirectly for $253,208.
MEI rose 260% in December after metallurgical results showed its new Caldeira project contains ionic adsorption clay REEs.
The exploration company targeting orogenic gold and porphyry copper-gold in WA and Brazil has seen its share price rise 460% in the past six months.
While a number of directors at Credit Clear (ASX:CCR) were issued with shares and options during December, non-executive director Paul Dwyer indirectly ponied up for 760,328 on market at a cost of ~$319k.
CCR is a provider of technology solutions to the debt collections industry and currently has a 1.4% market penetration in the Australian debt collection industry worth $2.5 billion.
The company recently outlined a three-year growth strategy which aims to increase this market share by around three times to 4-5% of the total addressable market.
CCR anticipates revenue to grow to $100 million per annum over this period, underpinning an EBITDA growth to $25-30 million annually.
The CCR & MEI share price today:
December director large sells
Swipe or scroll to reveal full table. Click headings to sort
| Code | Company | Director | Direct or Indirect | Date | Volume | $ | Nature of change |
|---|---|---|---|---|---|---|---|
| AFG | Australian Finance Group | Malcolm Stephen Watkins | Direct & Indirect | Dec-13 | 400,000 | $608,157 | On-market |
| LYL | Lycopodium | Karl Cicanese | Indirect | Dec-07 | 19,679 | $135,555 | On-market |
| NST | Northern Star Resources | Stuart Peter Tonkin | Direct | Dec 15 & 16 | 223,112 | $2,396,223 | On-market |
| ALK | Alkane Resource | Ian Jeffrey Gandel | Indirect | Dec 13-15 | 2,038,383 | $1,234,241 | On-market |
| JLG | Johns Lyng Group | Lindsay Barber | Indirect | Dec-19 | 4,000,000 | $25,000,000 | Off-market |
| CHN | Chalice Mining | Alexander Carl Dorsch | Indirect | Dec-19 | 1,250,000 | $7,687,500 | Not specified |
| ALK | Alkane Resource | Ian Jeffrey Gandel | Indirect | Dec-21 | 3,000,000 | $1,684,200 | On-market |
| CXO | Core Lithium | Gregory English | Direct & Indirect | Dec 16-22 | 300,000 | $311,280 | On-market |
| SLR | Silver Lake Resources Limited | Luke Tonkin | Indirect | Dec-06 | 740,000 | $967,920 | On-market |
| WTC | Wisetech Global | Richard White | Direct & Indirect | Dec 2-6 | 67,906 | $3,879,470 | On-market |
Johns Lyng Group COO sells $25 million shares
Johns Lyng Group (ASX:JLG) chief operating officer Lindsay Barber sold four million shares, ~31% of his prior holding.
JLG said the sale, worth more $25m, was undertaken to diversify Barber’s personal asset portfolio.
“Mr Barber has informed the company that he has no intention of selling more shares within the next 12 months,” JLG said.
CEO and managing director Scott Didier sold 4 million shares for $25 million on October 10.
Sales to pay the ol’ taxman
Northern Star Resources (ASX:NST) sold managing director and CEO Stuart Tonkin sold 223,112 ordinary fully paid shares directly for an average price of $10.74/share (totalling $2,396,223) on December 15 & 16.
“The sale was undertaken in order to meet Mr Tonkin’s estimated tax liability,” NST said in an announcement.
“Mr Tonkin retains 1,160,000 Northern Star shares.”
Chalice Mining (ASX:CHN) Managing Director and CEO Alexander Carl Dorsch sold 1,250,000 ordinary shares for more than $7.6 million on December 19.
In the change of directors interest announcement CHN said Dorsch sold the shares “primarily to fund significant taxation obligations created through the exercise of performance rights in FY21 and FY22.”
Dorsch still holds 5,722,172 fully paid ordinary shares plus a more than 574,000 of performance rights.
CHN is an explorer and developer with a major greenfield platinum group element (PGE), nickel, copper, cobalt and gold discovery at its Julimar Project in WA.
