- Global Lithium Resources and Minerals 260 see directors pony up for more shares as lithium prices fall
- Alkane Resources chairman Ian Gandel makes a $5 million sale but remains a “significant long-term shareholder”
- Supply Network non-executive director Peter McKenzie sells down more than $800k worth of shares
Leading into 2024 has seen several directors of companies increase and decrease stakes in their companies, buying or selling shares via on-market trades.
In what’s 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.
When directors 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 and may think the stock has been oversold and represents good value. When it comes to selling often directors also have a good reason to sell a stock, which will be divulged, like paying the ‘ol taxman.
Here’s some of the director trades we’ve noticed in January.
Global Lithium and Minerals 260 directors buy the dip
As ASX lithium stocks take a hit from the commodity’s plunging prices several directors are buying the dip. Global Lithium Resources (ASX:GL1) non-executive director Dr Dianmin Chen ponied up for 250,000 fully paid ordinary shares for $162,500 on January 17.
He now holds more than 6.2 million shares in GL1 directly along with 4.75 million indirectly and 3 million options indirectly.
Critical minerals explorer and lithium play Minerals 260 (ASX:MI6) non-executive director Emma Scotney also topped up her holding indirectly during January.
Warialda Pty Ltd as trustee for the Sconti A/C purchased 412,233 shares for ~$120k on January 17. According to the ASX announcement Scotney is a director and shareholder of Warialda Pty Ltd, and a beneficiary of the Sconti A/C.
Warialda Pty Ltd as trustee for the Sconti A/C now has 650,000 fully paid ordinary shares and 2.75 million options expiring between October 2024 and November 2026.
MI6 last week announced a new 4.5km x 3km lithium trend grading >100ppm Li2O has been defined by regional soil sampling at the Lyndon prospect within MI6’s Aston project in WA’s prolific Gascoyne mining province.
In December the company also announced its maiden drill program had confirmed significant gold, nickel, and rare earth metals potential at Dingo Rocks in WA.
The MI6 share price has dropped 42% in the past month as lithium spot prices plummet, while nickel prices also take a hit.
Advance Zinctek chairman ups holding after takeover offer
After receiving a cash off-market takeover offer last year of all Advance Zinctek (ASX:ANO) shares for $1.05/share by Ankla Pty Ltd, an entity within the Mizikovsky Group, or its preference to acquire up to 11,237,709 shares, its non-executive chairman Lev Mizikovsky has continued to indirectly increase his holding.
Throughout January Ankla has been increasing it holding. As of January 22, 2024 Mizikovsky held 136,696 shares directly in the company and almost 38 million indirectly, including 9,528,154 shares under Ankla.
The Mizikovsky Group now has a 60.9% voting interest in the manufacturer of zinc oxide powder for the personal care sector.
In a letter to shareholders accompanying a second supplementary bidder’s statement, Mizikovsky, as sole director of Ankla, encouraged shareholders to accept the all-cash unconditional offer. The end date for the offer is 7pm (AEDT) on February 26.
Alkan Resources chairman makes $5 million sale
Alkane Resources (ASX:ALK) chairman Ian Gandel sold 8,695,653 shares for ~$5 million which he held indirectly on January 17. In an announcement ALK says Gandel sold a portion of his shareholding by way of a pre-market block trade.
“Mr Gandel has been a shareholder and non-executive director of Alkane since 2006, the non-executive chairman since 2017 and has made a significant personal investment in Alkane shares,” ALK says in the announcement.
“Mr Gandel remains a significant long-term shareholder of the company and has no present intention to sell any further shares in the short or medium term.
“The company says he remains committed in his role of leading the board to deliver the expansion of gold production at Tomingley, deliver the scoping study for the Boda and Kaiser deposits and continue exploration across Alkane’s portfolio of tenements.”
Gandal still holds more than 118 million shares indirectly in ALK, which in December announced positive results from a drilling program at its Northern Molong Porphyry Project in Central New South Wales.
Supply Network director sells more than $800k shares
Supply Network (ASX:SNL) non-executive director Peter McKenzie indirectly sold 50,000 shares in the company on-market for $812,500 on January 9.
McKenzie still holds 4,542,508 ordinary shares following the sale.
SNL, operating under the Multispares brand, supplies aftermarket parts to the commercial vehicle industry in Australia and New Zealand, namely trucks and buses.
Chairman Greg Forsyth told the SNL AGM in November the company had completed its three-year plan 12 months ahead of expectations.
He says the board extended a new three-year plan to FY26, which is a continuation of its long-term organic growth strategy and “leverages the infrastructure, systems and scale the group has built over many years”.
The company has seen its share price rise ~25% over the past year.
Alligator Energy CEO sells down for ‘tax obligation’
Uranium play Alligator Energy (ASX:AGE) has seen its CEO and MD Gregory Hall sell down 1.5 million shares for $120k on January 16.
In an ASX announcement AGE says the on-market trade was “for the purposes of satisfying a tax obligation and other personal reasons”.
Hall still owns 22,182,507 ordinary shares 48,076 listed 7.8 cent options and 7,811,027 zero strike priced performance incentive options with various expiry dates.
AGE is up more than 85% over a one year period, joining uranium explorers and developers who have seen their share price rally strongly in the past few months as prices for the commodity soar.