A CEO has a deeper insight into their own company’s operations than any outsider could ever hope to obtain. They represent the informed money – if they’re buying stock, it is worth taking note.
Here, we are going to highlight a large insider purchase from the ex-CEO of Greatland Gold PLC (GGP:LN). Greatland Gold engages in the exploration and development of natural resources in the United Kingdom and Australia. It explores for gold, nickel, cobalt, and copper deposits. It’s listed on the London Stock Exchange’s AIM market and currently has a market capitalization of £1.0 billion.
Greatland Gold PLC: Insider Buying
Regulatory filings show that on 1 February the ex-CEO of Greatland Gold, Gervaise Heddle, purchased 500,000 GGP shares at a price of £0.22 per share. This purchase cost the insider £110,000.
The purchase by the ex-CEO of Greatland Gold is interesting as the insider has substantial experience in both finance and mining. Prior to joining Greatland Gold, he was a fund manager at Merrill Lynch which means he is likely to have a good understanding of the company’s intrinsic value. He is also a board member at Metalnrg PLC and was a board member at Thor Mining PLC.
Additionally, our data shows that this is Heddle’s first purchase for nearly a year. This suggests he believes the company’s stock is undervalued, following a recent pullback in the share price.
Positive Drilling Results
Greatland Gold PLC has seen a significant rise in its share price over the last 12 months, due to successful drilling reports at Havieron. This is part of The Paterson Project, which is a joint venture with fellow miner, Newcrest. A loan from Newcrest has ensured Greatland Gold can fund its share of further drilling costs.
A recent drilling update at the end of January concerning Havieron, was positive. “Latest drill results confirm the continuity of higher-grade mineralization within the South East Crescent and Breccia. Mineralization is open at depth below the Inferred Mineral Resource shell providing support for potential expansion at depth,” the company wrote in an update.
Targets have also been identified for the growth drilling program, with plans afoot for 65,000 meters of drilling within the next six months.
After digesting this latest update, we see the insider buying here as a bullish signal. It suggests that the ex-CEO believes that the recent sell off in the shares has created a buying opportunity.