This past week has seen several directors of resources explorers and miners increase their stake in their companies, buying shares in on market trades or participating in capital raisings.<\/p>\n
For eagle-eyed investors, this can often be seen as a positive sign because it implies the director is not-so-quietly-confident in the company\u2019s projects when they put some of their own cash into the kitty.<\/p>\n
It\u2019s by no means no guarantee that the company will do well or is worth investing in, but if a director has some personal wealth tied to the company\u2019s success it could lead to greater accountability and decision making that\u2019s in the best interest of shareholders.<\/p>\n
We asked Elevate Uranium (ASX:EL8)<\/strong><\/a> \u00a0managing director Murray Hill \u2013 who topped up his holding last week, exercising options granted four years ago, paying $612,000 for 3,600,000 shares at $0.17 per share \u2013 why investors should pay attention when an MD makes a direct cash injection into the company.<\/p>\n Murray told Stockhead in his case, it\u2019s a direct show of how confidence he is in the company\u2019s 48Mlb eU3O8 Koppies uranium project in Namibia.\u00a0<\/span><\/p>\n \u201cThis is a large sum of money and shows my commitment and belief in the company, both in what we are achieving but also what I expect for the future growth of the company,\u201d he said.<\/p>\n \u201cIt also demonstrates my belief in uranium as a commodity and thus the nuclear industry to provide carbon free energy globally.\u00a0\u00a0<\/span><\/p>\n \u201cWhat do they say, \u2018talk the talk and walk the walk\u2019, and I am clearly demonstrating to our shareholders and investors that I am doing so, I believe strongly in our story.\u201d<\/p>\n Murray says that having skin in the game aligns management with shareholders\u2019 interests.\u00a0<\/span><\/p>\n \u201cThe very significant and large investment of my private funds into the company demonstrates my strong belief in the company.\u201d<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Just last month, EL8 announced a 136% jump in the resource at Koppies<\/a>, and currently has three drill rigs working on yet another resource update expected in late Q1 2024.<\/p>\n \u201cIt\u2019s growing into a large resource,\u201d Murray said. \u201cThe resource is very near surface, 50% is within 6.5 metres of surface while 95% is within 15 metres of surface, which is very shallow and means the mining process is expected to be low cost with a low strip ratio.<\/p>\n \u201cAdd to that the application of our proprietary\u00a0U-pgrade process, which is expected to lower the development and processing costs by about 50% compared to conventional process routes, and we have an exciting project.\u00a0\u00a0<\/span><\/p>\n Meanwhile, the company is also exploring across its other Namibia tenements, with Koppies just one of four discoveries in the historic uranium mining region.<\/p>\n The move also comes as uranium spot prices\u00a0have pushed past\u00a0US$80\/lb\u00a0<\/a>towards new recent highs.<\/p>\n \u201cWe are planning drill programs on the other discoveries next year with the intention of adding to our resource base,\u201d Murray said.\u00a0<\/span><\/p>\n \u201cWe are also planning more exploration drilling on a number of our tenements.<\/p>\n \u201cWe also have uranium projects in Australia on which we are planning drill programs at both Angela and Minerva in 2024.\u00a0\u00a0<\/span><\/p>\n \u201cWe are expecting 2024 to be an exciting year for the company as a result of our aggressive exploration programs but also the expected continued rise in the uranium price.\u201d<\/p>\n \u00a0<\/p>\n \ufeff<\/span><\/span> \u00a0<\/p>\n This past week has seen a flurry of directors upping their stake in their respective resources companies.<\/p>\n Iron ore giant Fortescue (ASX:FMG)<\/strong><\/a> non-executive director Sebastian Coe topped up his holding in the company with the recent purchase of 5,000 shares to the value of $123,700.<\/p>\n Another iron ore producer, Fenix Resources (ASX:FEX)<\/strong><\/a> recently saw chairman John Welborn acquire 2,800,000 shares for $729,172, topping up his holding to 15m fully paid ordinary shares.<\/p>\n REE and lithium explorer Cazaly Resources (ASX:CAZ)<\/strong><\/a> chairman Clive Jones bought 1,666,667 shares for $50,000 to total 4,311,667 shares in the company.<\/p>\n Gold miner Brightstar Resources (ASX:BTR)<\/strong><\/a> MD Alex Rovira picked up $10,335 at $0.015 and $7,750 at $0.0155 to total $18,085.<\/p>\n Another uranium explorer Alligator Energy (ASX:AGE)<\/strong><\/a> saw non-executive chairman Paul Dickson participate in a recent Share Purchase Plan (SPP) picking up 240,384 options exercisable at at 7.8 cent options \u2013 to the tune of around $1,874,995.<\/p>\n Gold explorer Saturn Metals (ASX:STN)<\/strong><\/a> non-executive director Adrian Goldstone also participated in an SPP, purchasing $40,000 worth of shares at $0.125 per share.<\/p>\n And six of battery minerals player Liontown Resources (ASX:LTR)<\/strong><\/a> directors participated in an SPP, with chairman Tim Goyder, MD and CEO Tony Ottaviano, non-executive directors Anthony Cipriano, Craig Williams, Jennifer Morris and Shane McLeay all buying $30,000 worth of shares each.<\/p>\n \u00a0<\/p>\n Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.\u00a0<\/p>\n At Stockhead, we tell it like it is. While Elevate Uranium and Brightstar Resources are Stockhead advertisers, they did not sponsor this article.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n <\/span><\/p>\n The post Skin in the game: Which directors are buying shares in their companies this week?<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Backing the resource growth story<\/h2>\n
EL8 share price today:<\/h2>\n\n
\n\u00a0<\/p>\nNot the only director topping up shares<\/h2>\n