Mention on Motley Fool website
Insiders Are Buying These Three Small Caps, Should You?
Elgin Mining (TSX:ELG)
Elgin operates a gold mine in Sweden and is attempting to rejuvenate two past producing gold mines in Nunavut. The company also has an ownership stake and working interest options in several other developing gold projects in the U.S. and Mexico.
Elgin’s CEO picked up 500,000 shares at $0.48 last week. This took his share count in the company to 1,996,500 and ownership stake to 1.35%.
Over the past 12 months, Elgin was actually free cash flow positive, a trait many gold miners, junior and senior, would love to share. The company generated free cash of $0.07 per share. With a stock price of $0.51, Elgin trades at a very attractive free cash flow yield of 13.7%.
Not only does this company generate free cash, the balance sheet looks good too. With just $700k in total debt, leverage at Elgin is not an issue.
Insiders buying, free cash flow positive, and a clean balance sheet. Not a bad starting trio, if you’re feeling speculative.