The Canadian resource stocks we’ve found have seen large volume share purchases by company insiders recently
SmallCapPower | May 22, 2020: Most resource stocks took a beating from the COVID-19 related stock market selloff back in March but, long term, consumers will always require natural resources. That being said, today we have drilled down and discovered two Canadian resource stocks that have seen insiders step in and buy company shares, a sign of confidence in their business’ prospects.
*Returns are based on closing stock prices as of May 21, 2020
Hudbay Minerals Inc. (TSX:HBM) – $3.49
Hudbay Minerals is a diversified mining company producing primarily copper concentrate (containing copper, gold and silver) and zinc metal. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper projects in Arizona and Nevada (United States). Canadian private equity firm Waterton Global Resource Management purchased nearly 1.25 million Hudbay shares between May 4 and May 15, 2020.
- One-Year Return: – 46% (Excluding dividends)
Canacol Energy Ltd. (TSX:CNE) – $3.98
Canacol Energy is an exploration and production company with operations focused in Colombia. The Company is Colombia’s largest independent natural gas producer, with approximately 80% of its gas production sold under take-or-pay contracts denominated in U.S. dollars. During 2019, Canacol reported a 24% increase in total natural gas revenue to US$212.4 million, while adjusted funds from operations for the year rose 19% to US$124.9 million. And, Canacol Energy generated record Q1 2020 EBITDAX (Earnings before interest, taxes, depreciation, amortization and exploration expenses) that increased 48% year over year to US$58.9 million. The Company boasts a strong balance sheet, with growing cash flow and little debt repayable before 2025. CNE stock currently yields about 5.4%. Between April 15 and April 28, 2020, insider investor Fourth Sail Capital purchased a little more than 500,000 CNE shares on the open market. Fourth Sail Capital then bought an additional 1.5 million or so shares between April 29 and May 15, 2020.
- One-Year Return: 0% (Excluding dividends)
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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