Rox Resources Insider Buying Signals Confidence Despite Recent Loss

Rox Resources Non-Executive Director Nathan Stoitis bought AU$100k of shares at AU$0.14 per share. This is the biggest insider purchase in the last year, but made at a significantly lower price than the recent price of AU$0.21. Rox Resources insiders own 5.7% of the company, worth AU$6.2m. While the recent purchases are positive, the company made a loss during the last year, and there are concerns about low insider ownership and other risks.

Rox Resources Limited (ASX:RXL) experienced a significant insider purchase by Non-Executive Director Nathan Stoitis, who bought AUD 100,000 worth of shares at a price of AUD 0.14 [1]. This purchase marks the most substantial insider acquisition in the past year, yet it was made at a price significantly lower than the recent share price of AUD 0.21 [2].

Stoitis, with 25 years of experience in plant management, operations, and global sales and marketing, has been a Director and Principal Metallurgist for consultancy Extreme Metallurgy Pty Ltd since 2008. His extensive background in the mining industry, coupled with his recent involvement in testwork, design, and commissioning of the Bellevue processing plant, positions him as a knowledgeable investor in Rox Resources.

The recent price decline of 16% in Rox Resources' stock may have influenced Stoitis' decision to purchase shares at a lower price. Despite the recent losses, Stoitis' investment demonstrates a level of confidence in the company's potential for growth. This is not the first time insiders have shown faith in Rox Resources. In the past year, CEO, MD & Non-Executive Director Robert Ryan purchased AUD 98,000 worth of shares at a price of AUD 0.24 per share [2].

Insiders' average purchase price of AUD 0.22 suggests that they view the current share price as attractive, despite the recent decline [2]. This sentiment is further supported by the fact that insiders have not sold any shares in the past year.

Although insider transactions should not be the sole determinant for investors, they can provide valuable insights into the company's direction and the confidence of its management and insiders.

References:
[1] MarketIndex. (2023, March 16). Nathan Stoitis. Retrieved from https://www.marketindex.com.au/asx/directors/nathan-stoitis
[2] SimplyWall.St. (2023, March 16). Rox Resources Insider Transactions Over The Last Year. Retrieved from https://simplywall.st/stocks/au/materials/asx-rxl/rox-resources-shares/news/insiders-give-up-au63k-as-rox-resources-stock-drops-to-au015