Insider Buying Signals Gold Industry Momentum

NEW YORK, Oct. 19, 2020 /PRNewswire/ -- As the general economy tanks and precious metal values soar, the mining industry is booming. No one knows this better than the people in charge of mining companies. Over the past few months, plenty of examples have popped up of junior mining company executives buying up stock in their own companies, or institutional investors buying shares under direct influence from the company's own management. When this happens, it can be taken as an indicator that the people who know the company in question best are highly confident in its future. We have seen a surge of insider buying lately, with activity from companies like Graycliff Exploration Ltd. (CSE: GRAY) (FSE: GE0), Yamana Gold (NYSE: AUY) (TSX: YRI), Capstone Mining Corp. (TSX: CS) (OTCPK: CSFFF), Ivanhoe Mines Ltd (TSX: IVN) (OTCQX: IVPAF), and Roxgold (TSX: ROXG) (OTCQX: ROGFF).

Graycliff Exploration Has Some of the Highest Insider Ownership in the Business

Graycliff Exploration Ltd. (CSE:GRAY) (FSE:GE0) has a share structure that is about as tight as a mining company can be. More than 60 percent of the Company's shares are owned by management and strategic investors, and the Company has approximately just 15M shares outstanding. This is nearly unheard of in the junior mining industry, where 10 percent insider ownership is typically considered a tight share structure. Graycliff ownership has more skin in the game than nearly any other junior mining company, a clear indication that the group behind this Company believes strongly in the potential of their assets and projects. It's also proof that the Graycliff management legitimately believes their stock is currently undervalued.

Graycliff Exploration's Shakespeare Project is what has the Company's management so confident in its future. Located about 80 kilometers west of Sudbury, Ontario, within the prolific Canadian Shield geological region, the site of the Shakespeare Project has been well-known for its mineral potential for over a century, but economic factors have kept Shakespeare closed since 1907. The mine produced 2,959 oz of gold between 1903 and 1907.

Graycliff is conducting exploration on the property under some of the best gold market conditions in years. The Company commenced its exploration program on September 28 with a program that will include 2,000 meters of drilling.

On September 25, Graycliff Exploration announced that the Company had completed a non-brokered private placement for gross proceeds of $530,000. The investment comes primarily from one strategic investor. Graycliff intends to use the financing primarily for exploration at the Shakespeare Project.

Insider Buying Across the Mining Industry

On March 30, Yamana Gold's (NYSE:AUY) (TSX:YRI) Senior Officer and Director Peter Marrone acquired 75,000 Common Shares in Yamana on a direct ownership basis for a price of $3.92 per share for a total investment of $293,992. Marrone now holds 3.7 percent of the company. Yamana Gold holds gold exploration and production projects throughout the Americas, including producing mines in Canada, Chile, Argentina, and Brazil.

In February, private investment company GRM Investments added approximately 4.5 million shares in Canadian-based mining company Capstone Mining Corp. (TSX:CS) (OTC:CSFFF) to its position, bringing its ownership in the company to 86.75M shares, equating to 21.7 percent. Although this purchase was from an institutional investor, it was an increase of an already significant position, which means it was almost certainly made based on information from the company's management. Capstone is currently undergoing development on three properties in Arizona, Mexico, and Chile.

Ivanhoe Mines Ltd (TSX:IVN) (OTC:IVPAF) Founder, Executive Co-Chairman, and Non-Independent Director Robert Friedland increased his holding in the company on June 11 by 63,900 shares, bringing his total to 25.755 million shares, or 13.4 percent of the company. Ivanhoe Mines holds major stakes in three projects in the Democratic Republic of Congo, including the company's wholly-owned Western Foreland project, as well as a 60 percent stake in the Platreef project in South Africa.

John Lewis Knowles, director of Roxgold (TSX:ROXG) (OTC:ROGFF), purchased 50,000 shares on June 12 at C$1.28 per share, bringing his total holding to 390,000. Roxgold expects to produce between 120,000 and 130,000 ounces of gold by the end of the year. Roxgold holds several assets throughout West Africa, including the company's flagship Yaramoko Mine Complex in the Houndé greenstone belt region in southwestern Burkina Faso's Balé province.

These are big days in the gold and silver markets, and mining company management teams know it. Taking a look at the moves made by mining insiders can provide solid clues as to which companies are primed to benefit from the market's momentum. The management teams of companies like Graycliff Exploration are sending those signals now.

For more information about Graycliff Exploration Ltd., click here.

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