Insider Trading Inco executives buy low, sell near high

A number of Inco (TSE) executives made a substantial profit recently after exercising options at a hefty discount to the nickel miner’s May 29 trading price of US$38.62.

According to the Ontario Securities Commission’s OSC Bulletin, Stephen Sopher, executive vice-president of Inco’s 62% owned TVX Gold (TSE) exercised an option on 5,500 shares at US$26.595 before selling all of them for $40.25. By doing so he made a profit of US$75,103.

At the same time, Claudio Barsotti, president of Inco Exploration, exercised on 2,500 shares at US$23.19 before selling all of them for US$39.75 to hold 398. Chairman Donald Phillips exercised 5,954 shares at US$30 to hold 70,487 directly.

Driven by expectations of a higher nickel price, shares of Inco peaked recently at $40.63. But profit takers have caused the issue to slip somewhat.

Other mining insiders who were active in the stock market recently include:

Aurizon Mines (TSE) director Frank Lang completed the private purchase of warrants for 304,000 shares at 15 cents to hold 1.1 million shares directly and 489,758 indirectly.

Golden Star Resources (TSE) President David Fennell and Vice-President James Stewart were each granted the right to purchase 50,000 options for $1.15 to hold 110,000 while directors Robert Friedland, Hugh Horner, Jean-Pierre Lefebvre, Roger Morton and Henry Reimer were each granted rights to 15,000 options at the same price. Officer John Vanriper was given rights to buy 20,000 options at $1.15.

Golden Rule Resources (TSE) officer Leslie Bitz exercised an option to purchase 15,000 shares for 65 cents to hold 15,000. He was also granted options on 80,000 warrants at the same price. Robert Lemmon, officer of affiliate, exercised options on 15,000 shares at 65 cents before selling 10,000 at $1.01 to hold 5,000.

Goldnev Resources (TSE) Chairman Murray Pezim sold 233,000 for 76 cents to hold 530,380 shares directly and 52,800 indirectly.

Greenstone Resources (TSE) Chairman James Anthony exercised an option on 80,000 shares at $2 which he then sold for the same price to hold 101,116. Anthony was also given the right to buy 20,000 options at $3 to hold 200,000 options. Steven Small, director of affiliate, bought 5,000 shares for $3.15 to hold 5,000.

Metalore Resources (TSE) director Christopher Brown sold 1,100 shares for $9-8.12 to hold 4,813.