Director Trades: These resources bosses are buying more of their own stock
Directors in the oil and gas, mineral sands and uranium sectors have recently bought more shares in their respective companies on market.
Ray Shorrocks, a non-executive director of Galilee Energy (ASX:GLL), acquired a further 1 million shares for $155,000 only a few months after taking part in a rights issue.
“I really think the company has got some long-term benefits,” he told Stockhead.
“I increased my holding because we’ve got a drilling campaign sometime in March or April, which we announced to the market, and it looks extremely prospective. So I thought it was well worth my while.
“I think it shows the market that directors are not just sitting there collecting directors’ fees but are actually investing their own money in the company.”
Galilee is primarily exploring for gas in the Galilee Basin in Queensland and is backed by the same team that executed the successful almost $1 billion takeover of Eastern Star Gas by oil and gas heavyweight Santos in 2011.
Uranium prospects looking much brighter
Grant Davey, a non-executive director of junior uranium explorer Boss Resources (ASX:BOE), has added a further 1.15 million shares to his portfolio at a cost of $43,700.
The main focus for Boss Resources is its Honeymoon uranium project near Broken Hill in South Australia.
While the uranium market has been in the doldrums for some time, things are finally looking up following a decision by one of the world’s biggest uranium producers, Cameco, to suspend production at its McArthur River uranium mine.
Boss expects the move to cut global supply by 10 per cent and boost the spot price, which is currently sitting around US$22 per pound and a long way off the record highs of over $70 per pound prior to the Fukushima nuclear disaster in 2011.
Meanwhile, Bruce McFadzean, managing director of mineral sands player Sheffield Resources (ASX:SFX), has invested almost $10,000 to acquire a further 15,000 shares.
Late last year, the company successfully spun out and listed its secondary gold and base metal assets on the ASX.
Sheffield’s primary focus is its Thunderbird mineral sands project in the Canning Basin of Western Australia.