Robert Quartermain, a director and major holder at Dakota Gold Corp (DC), recently picked up 10,000 shares. The buy increased his stake by 0.14 percent, and came to a total purchase price of just under $50,000.
The buy comes just a few days after the company President and CEO picked up 12,500 shares, at a price of just under $59,000. That constitutes the only two insider transactions since the company went public just a few weeks ago.
Overall, company insiders own 63 percent of shares.
The Vancouver-based gold mining company has properties in the Dakotas. Gold’s mixed pricing in the past few weeks haven’t been favorable to shares, which are down nearly half from their highs and 32 percent since going public.
Action to take: The company is a mid-sized gold operation, with a market cap of about $350 million. With gold prices likely to remain high, and with a reasonable balance sheet, the company should gain as gold prices gain in the short run.
A larger mining operation may buy them out in the future if they are successful and grow as well, making for multiple ways for buyers of shares to profit. At present, the company is in an early stage, so a dividend is some time off.
For traders, shares are the only way to go right now as options aren’t trading yet. With a share price under $5 right now, and some high volatility in shares, however, the stock acts much like an option on the gold space without having to contend with declining time premiums or other intricacies of options trading.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.