Directors’ Trades: More than a decade since DeGrussa was discovered, these Sandfire directors have chipped in again
One of the biggest exploration success stories of the decade prior to COVID-19 was copper play Sandfire Resources (ASX:SFR).
A struggling explorer at the time the GFC hit, it stumbled across the DeGrussa copper-gold deposit and is now a $2 billion producer.
It was founded in the early 2000s by prospector Graeme Hutton, mining entity Miles Kennedy and Karl Simich.
Simich is still with the company today and he recently bought another $1.6 million in shares in a rights issue, one of the few conducted by the company in the past decade.
In total, five Sandfire directors participated but only one other exceeded $100,000 – John Richards, a relative newcomer having joined in January this year.
One other large cap stock with a big buy from a director was Transurban (ASX:TCL), which operates toll roads.
It recently conducted a rights issue to fund the purchase of the NSW Government’s remaining stake in the WestConnex project. Louis Charlton bought over $700,000, and three other directors chipped in below $100,000.
But the biggest buy came from Ross Anderson who hails from Murray Cod Australia (ASX:MCA) which breeds, grows and exports fish. He bought just over $3 million in MCA shares in an off-market transaction.
If you’ve been a long term MCA shareholder, it’s fair to say you’ve had a wild ride – from lows such as having to reassure investors it wasn’t affected by the Murray River fish kills in 2019 to highs such as being backed by celebrity chef Heston Blumenthal.
But it’s been good times for the company as of late. Its share price has doubled in 12 months and it has either recommenced or expects to recommence exports in several major export markets.
Another company with few other comparable stocks on the ASX is DUG Technology (ASX:DUG) which is in the business of supercomputers.
Dug’s boss Matthew Lamont bought in to the tune of almost $210,000 in a placement.
One of the ASX’s few stocks in the legal space is AF Legal (ASX:AFL). Director Glen Dobbie chipped in $200,000 off-market.
Buying as part of dividend reinvestment plans were Michael Gregg from WiseTech (ASX:WTC) who topped up his holdings by just over $280,000 and Peter Cook of Westgold Resources (ASX:WGX) who bought just over $210,000.
But the company told shareholders the proceeds would be put back into the company – specifically the Seek Growth Fund.
While the Seek Growth Fund hasn’t yet made major investments, it has raised nearly $500 million in capital which includes Basset’s commitment.