Rob Rutherford has been the CEO of Red Metal Limited (ASX:RDM) since 2003, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Red Metal.

Check out our latest analysis for Red Metal

Comparing Red Metal Limited's CEO Compensation With the industry

At the time of writing, our data shows that Red Metal Limited has a market capitalization of AU$27m, and reported total annual CEO compensation of AU$302k for the year to June 2020. That's a notable decrease of 26% on last year. Notably, the salary which is AU$230.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below AU$283m, we found that the median total CEO compensation was AU$309k. From this we gather that Rob Rutherford is paid around the median for CEOs in the industry. What's more, Rob Rutherford holds AU$1.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. Red Metal pays out 76% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.

A Look at Red Metal Limited's Growth Numbers

Over the past three years, Red Metal Limited has seen its earnings per share (EPS) grow by 62% per year. In the last year, its revenue is up 297%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Red Metal Limited Been A Good Investment?

Given the total shareholder loss of 36% over three years, many shareholders in Red Metal Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude…

As previously discussed, Rob is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. However, EPS growth is positive over the same time frame. Overall, we wouldn't say Rob is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for Red Metal (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about… and every practical investor I know worries about.' So it seems the smart money knows that debt – which is usually involved in bankruptcies – is a very important factor, when you assess how risky a company is. Importantly, Berkeley Energia Limited (ASX:BKY) does carry debt. But the more important question is: how much risk is that debt creating?

When Is Debt Dangerous?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.

Check out our latest analysis for Berkeley Energia

How Much Debt Does Berkeley Energia Carry?

As you can see below, at the end of June 2020, Berkeley Energia had AU$75.3m of debt, up from AU$36.0m a year ago. Click the image for more detail. But it also has AU$91.8m in cash to offset that, meaning it has AU$16.4m net cash.

A Look At Berkeley Energia's Liabilities

Zooming in on the latest balance sheet data, we can see that Berkeley Energia had liabilities of AU$78.8m due within 12 months and no liabilities due beyond that. Offsetting these obligations, it had cash of AU$91.8m as well as receivables valued at AU$1.44m due within 12 months. So it actually has AU$14.4m more liquid assets than total liabilities.

This short term liquidity is a sign that Berkeley Energia could probably pay off its debt with ease, as its balance sheet is far from stretched. Succinctly put, Berkeley Energia boasts net cash, so it's fair to say it does not have a heavy debt load! The balance sheet is clearly the area to focus on when you are analysing debt. But it is Berkeley Energia's earnings that will influence how the balance sheet holds up in the future. So if you're keen to discover more about its earnings, it might be worth checking out this graph of its long term earnings trend.

While it hasn't made a profit, at least Berkeley Energia booked its first revenue as a publicly listed company, in the last twelve months.

So How Risky Is Berkeley Energia?

By their very nature companies that are losing money are more risky than those with a long history of profitability. And we do note that Berkeley Energia had an earnings before interest and tax (EBIT) loss, over the last year. And over the same period it saw negative free cash outflow of AU$7.4m and booked a AU$43m accounting loss. Given it only has net cash of AU$16.4m, the company may need to raise more capital if it doesn't reach break-even soon. Importantly, Berkeley Energia's revenue growth is hot to trot. While unprofitable companies can be risky, they can also grow hard and fast in those pre-profit years. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet – far from it. For instance, we've identified 2 warning signs for Berkeley Energia that you should be aware of.

At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

This article will reflect on the compensation paid to Jim Shedd who has served as CEO of Intra Energy Corporation Limited (ASX:IEC) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Intra Energy.

Check out our latest analysis for Intra Energy

How Does Total Compensation For Jim Shedd Compare With Other Companies In The Industry?

Our data indicates that Intra Energy Corporation Limited has a market capitalization of AU$3.5m, and total annual CEO compensation was reported as AU$496k for the year to June 2020. Notably, that's an increase of 9.3% over the year before. Notably, the salary of AU$496k is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below AU$283m, we found that the median total CEO compensation was AU$355k. Hence, we can conclude that Jim Shedd is remunerated higher than the industry median.

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. On a company level, Intra Energy prefers to reward its CEO through a salary, opting not to pay Jim Shedd through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.

Intra Energy Corporation Limited's Growth

Over the past three years, Intra Energy Corporation Limited has seen its earnings per share (EPS) grow by 21% per year. In the last year, its revenue is up 9.3%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Intra Energy Corporation Limited Been A Good Investment?

Intra Energy Corporation Limited has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

Intra Energy pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Intra Energy pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the company has impressed us with its EPS growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the high CEO pay, given the good EPS growth.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 2 which make us uncomfortable) in Intra Energy we think you should know about.

Important note: Intra Energy is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Toronto, Ontario–(Newsfile Corp. – September 25, 2020) – Jubilee Gold Exploration Ltd. (TSXV: JUB) (the "Company") is pleased to announce the closing of a non-brokered private placement of 130,000 Class A Common Shares in the capital of the Company ("Class A Common Shares"), at a price of $0.65 per Class A Common Share and gross proceeds of $84,500 (the "Private Placement"). The Company intends to use the proceeds from the Private Placement for general working capital purposes.

No commission, finder's fee or similar payment (whether in the form of cash, securities or an interest in assets) were paid by the Company in connection with the Private Placement.

The Class A Common Shares issued in connection with the Private Placement are subject to a statutory hold period of four months plus one day from the date of completion of the Private Placement, in accordance with applicable securities legislation.

The Private Placement was approved by the Company's board of directors by means of a unanimous resolution. The TSX Venture Exchange provided final acceptance of the Offering on September 24, 2020.

For further information contact:

Name: Summer Becker – Director
Office: (416) 364-0042
Email: thebeckergroup@bellnet.ca

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/64634

The full-year results for New Hope Corporation Limited (ASX:NHC) were released last week, making it a good time to revisit its performance. Things were not great overall, with a surprise (statutory) loss of AU$0.19 per share on revenues of AU$1.1b, even though the analysts had been expecting a profit. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for New Hope

After the latest results, the consensus from New Hope's five analysts is for revenues of AU$810.5m in 2021, which would reflect a sizeable 25% decline in sales compared to the last year of performance. Statutory losses are forecast to balloon 90% to AU$0.019 per share. In the lead-up to this report, the analysts had been modelling revenues of AU$890.1m and earnings per share (EPS) of AU$0.10 in 2021. There looks to have been a significant drop in sentiment regarding New Hope's prospects after these latest results, with a small dip in revenues and the analysts now forecasting a loss instead of a profit.

The consensus price target fell 10% to AU$1.62, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on New Hope, with the most bullish analyst valuing it at AU$2.20 and the most bearish at AU$1.10 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 25%, a significant reduction from annual growth of 22% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.0% annually for the foreseeable future. It's pretty clear that New Hope's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting New Hope to become unprofitable next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on New Hope. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for New Hope going out to 2025, and you can see them free on our platform here..

You can also see whether New Hope is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Graeme Drew is the CEO of AusQuest Limited (ASX:AQD), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for AusQuest.

Check out our latest analysis for AusQuest

Comparing AusQuest Limited's CEO Compensation With the industry

According to our data, AusQuest Limited has a market capitalization of AU$20m, and paid its CEO total annual compensation worth AU$219k over the year to June 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of AU$200.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under AU$278m, the reported median total CEO compensation was AU$302k. This suggests that AusQuest remunerates its CEO largely in line with the industry average. What's more, Graeme Drew holds AU$508k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. AusQuest is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.

AusQuest Limited's Growth

AusQuest Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is down 44%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has AusQuest Limited Been A Good Investment?

We think that the total shareholder return of 76%, over three years, would leave most AusQuest Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

As we touched on above, AusQuest Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for AusQuest you should be aware of, and 2 of them are a bit concerning.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

THUNDER BAY, Ontario, Sept. 22, 2020 (GLOBE NEWSWIRE) — Mr. Pierre Gagné, Mr. Chris Dougherty and Mr. Donald Sheldon announce that on September 18, 2020 Mr. Gagné acquired ownership of or control over an additional 6,048,350 common shares (each, a “Common Share”) in the capital of MetalCorp Limited (“MetalCorp” or the “Issuer”) (TSXV: MTC), Mr. Dougherty acquired ownership of or control over an additional 6,740,166 Common Shares and Mr. Sheldon acquired ownership of or control over an additional 7,585,835 Common Shares, respectively, at a price of $0.03 per Common Share through settlement of debts with the Issuer.

Prior to acquiring such Common Shares, (i) Mr. Gagné owned or controlled 16,610,382 Common Shares representing approximately 16.95% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would have represented approximately 2.04% of the issued and outstanding Common Shares, (ii) Mr. Dougherty owned or controlled 7,842,830 Common Shares representing approximately 8.00% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would have represented approximately 2.04% of the issued and outstanding Common Shares, and (iii) Mr. Sheldon owned or controlled 1,365,707 Common Shares representing approximately 1.39% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would have represented approximately 2.04% of the issued and outstanding Common Shares, provided that, for the purposes of National Instrument 62-104, Mr. Sheldon is deemed to beneficially own 3,809,610 Common Shares which Mr. Sheldon or entities which he controls lent to the Issuer in 2019 and 2013 and, accordingly, for the purposes of National Instrument 62-104, Mr. Sheldon is considered to have had ownership, control and beneficial ownership of 5,175,317 Common Shares representing approximately 5.28% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would have represented approximately 2.04% of the issued and outstanding Common Shares (calculated on a diluted basis).

As a result of the above-noted acquisition, (i) Mr. Gagné now owns or controls 22,658,732 Common Shares representing approximately 18.96% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would represent approximately 1.57% of the issued and outstanding Common Shares (calculated on a diluted basis), (ii) Mr. Dougherty now owns or controls 14,582,996 Common Shares representing approximately 12.20% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would represent approximately 1.57% of the issued and outstanding Common Shares (calculated on a diluted basis) and (iii) Mr. Sheldon now owns or controls 8,951,542 Common Shares representing approximately 7.49% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would represent approximately 1.57% of the issued and outstanding Common Shares (calculated on a diluted basis) provided that, for the purposes of National Instrument 62-104, Mr. Sheldon is now considered to have ownership, control and beneficial ownership of 12,761,152 Common Shares representing approximately 10.68% of the issued and outstanding Common Shares and 2,000,000 stock options that, if exercised, would represent approximately 1.57% of the issued and outstanding Common Shares (calculated on a diluted basis).

Mr. Gagné Mr. Dougherty and Mr. Sheldon have no present intention of acquiring additional securities of MetalCorp (other than with respect to the proposed acquisition of 729,500 Common Shares by Pierre Gagné Contracting Ltd. conditional on approval by disinterested shareholders of the Issuer which is being sought at a shareholders meeting currently scheduled to be held on December 8, 2020). Depending upon their evaluation of the business, prospects and financial condition of the Issuer, the market for the Issuer’s securities, general economic and tax conditions and other factors, any of them or entities controlled by them may acquire more or sell some or all of their MetalCorp securities.

The shares-for-debt transactions were entered into for the purpose of assisting MetalCorp in reducing its debts and liabilities at a time when it did not have the cash or other resources to pay such debts and liabilities and thereby assist MetalCorp in reducing its working capital deficiency and enabling it to use its limited cash and other financial resources for ongoing operations and other obligations.

MetalCorp relied on the prospectus exemption provided in the National Instrument 45-106, section 2.14 – Securities for Debt in respect of its issuance of the Common Shares.

For more information and to obtain a copy of the early warning reports required by securities legislation and filed on SEDAR under MetalCorp’s company profile at www.sedar.com, please contact:

Pierre Gagné, director of MetalCorp Limited
Telephone: (807) 626-3621
Chris Dougherty, director of MetalCorp Limited
Telephone: (807) 683-1730
Donald Sheldon, Chief Executive Officer and a director of MetalCorp Limited
Telephone: (416) 777-4017
c/o MetalCorp Limited
490 Maureen Street
Thunder Bay, Ontario P7B 6T2

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in RBR Group Limited (ASX:RBR).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for RBR Group

RBR Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Athol Emerton bought AU$70k worth of shares at a price of AU$0.014 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.01). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months RBR Group insiders were buying shares, but not selling. They paid about AU$0.01 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

RBR Group Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at RBR Group. Insiders shelled out AU$65k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Does RBR Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that RBR Group insiders own 36% of the company, worth about AU$3.6m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About RBR Group Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of RBR Group we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 6 warning signs for RBR Group you should be aware of, and 4 of them are a bit concerning.

But note: RBR Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

If you want to know who really controls Poseidon Nickel Limited (ASX:POS), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

Poseidon Nickel is not a large company by global standards. It has a market capitalization of AU$143m, which means it wouldn't have the attention of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Poseidon Nickel.

View our latest analysis for Poseidon Nickel

What Does The Institutional Ownership Tell Us About Poseidon Nickel?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Poseidon Nickel. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Poseidon Nickel, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Poseidon Nickel. Black Mountain Metals LLC is currently the company's largest shareholder with 21% of shares outstanding. For context, the second largest shareholder holds about 13% of the shares outstanding, followed by an ownership of 4.8% by the third-largest shareholder.

On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Poseidon Nickel

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in Poseidon Nickel Limited. In their own names, insiders own AU$5.4m worth of stock in the AU$143m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, with a 40% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 22%, of the Poseidon Nickel stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Poseidon Nickel (of which 1 makes us a bit uncomfortable!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

The big shareholder groups in Greatland Gold plc (LON:GGP) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of UK£884m, Greatland Gold is a decent size, so it is probably on the radar of institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Greatland Gold.

View our latest analysis for Greatland Gold

What Does The Institutional Ownership Tell Us About Greatland Gold?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Greatland Gold does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Greatland Gold's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Greatland Gold. The company's largest shareholder is HBOS Investment Fund Managers Limited, with ownership of 9.1%. In comparison, the second and third largest shareholders hold about 6.5% and 4.2% of the stock. In addition, we found that Gervaise Robert Heddle, the CEO has 2.0% of the shares allocated to his name

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Greatland Gold

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own some shares in Greatland Gold plc. This is a big company, so it is good to see this level of alignment. Insiders own UK£43m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public holds a 48% stake in Greatland Gold. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example – Greatland Gold has 6 warning signs (and 1 which is a bit concerning) we think you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

TORONTO, Sept. 15, 2020 (GLOBE NEWSWIRE) — CANSTAR RESOURCES INC. (TSXV: ROX) (“Canstar Resources” or the “Company”) is pleased to announce the appointment of Rob Bruggeman as Director and President & CEO of the Company, effective immediately. The Company’s Board of Directors is now comprised of David Palmer, Sam Leung, Patrick Reid, Dennis Peterson and Rob Bruggeman. The Company is also pleased to announce that it has closed the first tranche of the non-brokered private placement for gross proceeds of up to $2.0 million, as announced on September 2, 2020 (the “Offering”).

New CEO and Director

Rob Bruggeman has worked in senior management and consulting roles with mining companies for the past eight years and has invested extensively in the mining sector. Currently, he is Chairman of the Board of AbraPlata Resource Corp., a TSX-Venture listed company focused on silver-gold exploration in Argentina. Prior to joining the mining sector, Mr. Bruggeman spent more than 10 years working in equities research and institutional equities sales & trading roles at several brokerage firms, including five years with TD Securities as VP, Trading Strategy & Research. Mr. Bruggeman is a licensed Professional Engineer (Ontario) and a CFA charter holder.

Mr. Bruggeman commented: “Canstar has an excellent platform for mineral exploration in Newfoundland. I look forward to working with the Canstar team, as well as the technical team from Altius Minerals, on advancing the exploration of Canstar’s district-scale properties in the province. I am especially excited about exploration on the newly optioned Golden Baie Project in south Newfoundland, given the exceptional gold grades discovered at surface recently.”

Canstar would like to thank Mr. Dennis Peterson for his dedication as Interim CEO. Mr. Peterson will continue to serve as Chairman of the Company’s Board of Directors.

First Tranche of Private Placement

The first tranche of the Offering consists of an aggregate of 4,761,920 units (each a “Part & Parcel Unit”) at a price of $0.105 per Part & Parcel Unit for gross proceeds of $500,001.60. Each Part & Parcel Unit was comprised of one (1) common share in the capital of the Company and one common share purchase warrant (a "Warrant") at an exercise price of $0.21 per Warrant for two years from the date of issuance. Canstar intends to close a further $1,500,000 in subscriptions in a second tranche of the Offering, for an aggregate total amount of approximately $2,000,000.

The Company intends to use the net proceeds raised from the Offering for general corporate purposes, working capital, and exploration expenses on the Company’s properties, including Buchan’s/Mary March, Daniel’s Harbour, and Golden Baie. In particular, the proceeds from the sale of Part & Parcel Units will be used to fund the exploration expenditure commitment on the Golden Baie project, subject to the approval of the TSX Venture Exchange (the “TSXV”).

Directors and management of the Company acquired an aggregate of 1,820,050 Part & Parcel Units in the Offering for aggregate proceeds of approximately $191,100, which participation constituted a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Part & Parcel Units acquired by the insiders, nor the consideration for the Part & Parcel Units paid by such insiders, exceed 25% of the Company's market capitalization.

No finder’s fees were paid on the Offering. All securities issued pursuant to the Offering are subject to the applicable statutory hold period of four months and one day from the closing. The Offering is subject to the final approval of the TSX Venture Exchange.

About Canstar Resources Inc.

Canstar Resources is a mineral exploration and development company focused on creating shareholder value through discovery and development of economic mineral deposits in Newfoundland, Canada. Canstar is in the process of completing option agreements on the Golden Baie Project in south Newfoundland, a large claim package (660 km²) with recently discovered, multiple outcropping gold occurrences. The Company also holds the Buchans-Mary March project and other mineral exploration properties in Newfoundland and Labrador, Canada. Canstar Resources is based in Toronto, Canada and is listed on the TSX Venture Exchange and trades under the symbol ROX-V.

For further information, please contact:

Rob Bruggeman P.Eng., CFA
President & CEO
Email: rob@canstarresources.com
Phone: 1-416-884-3556
www.canstarresources.com

Forward-Looking Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions, as well as the anticipated size of the Offering, the Offering price, the anticipated closing date and the completion of the Offering, the anticipated use of the net proceeds from the Offering and the receipt of all necessary approvals. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, an inability to complete the Offering on the terms or on the timeline as announced or at all, an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Whilst it may not be a huge deal, we thought it was good to see that the Oklo Resources Limited (ASX:OKU) MD, CEO & Director, Simon Taylor, recently bought AU$103k worth of stock, for AU$0.26 per share. However, it only increased their shares held by 7.3%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Oklo Resources

The Last 12 Months Of Insider Transactions At Oklo Resources

Notably, that recent purchase by Simon Taylor is the biggest insider purchase of Oklo Resources shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.30. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Oklo Resources insiders decided to buy shares at close to current prices.

Oklo Resources insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.20. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Oklo Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Oklo Resources

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Oklo Resources insiders own about AU$17m worth of shares. That equates to 11% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Oklo Resources Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Oklo Resources shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oklo Resources. Case in point: We've spotted 4 warning signs for Oklo Resources you should be aware of, and 2 of them shouldn't be ignored.

But note: Oklo Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.