Insider trading Inco insider sells at discount

Driven by threats of a miners’ strike in the Soviet Union, shares of Toronto-based Inco (TSE), the western world’s largest nickel miner, recently equalled their high for the year of $39.63. However, according to the Ontario Securities Commission’s OSC Bulletin Inco’s primary metals marketing Vice-President Peter Salathiel, sold a portion of his holdings when the shares were trading well below current levels.

Back on Feb. 1, Salathiel sold 8,604 shares for $33. He also bought 1,194 shares for an undisclosed price to hold 1,563.

A number of analysts including Nesbitt Thomson Deacon’s Julian Baldry expect Inco to be one of the stars of the economic recovery that is anticipated in the latter half of this year.

Nickel producers like Inco and Falconbridge have undertaken little in the way of expansion and as demand for the metal grows, Baldry is anticipating a supply shortage in the next economic cycle.

“The result is that nickel prices will stay higher for longer periods than they have in the past and this should lead to a much higher price for Inco shares,” he told The Northern Miner. When this article was prepared, nickel was trading at US$4.08 per lb. on the spot market.

Other mining insiders who were active in the stock market recently include: Echo Bay Mines (TSE) Vice-President Richard Kraus, who sold 10,653 shares for US$8.50 to hold 40,000.

Golden North Resources (TSE) Chairman John Godfrey was granted the right to purchase 300,000 options for 41 cents to hold 300,000 options.

Horsham (TSE) director James Tory bought 2,000 subordinated voting shares for $9.125 to hold 2,000.

Mill City Gold (TSE) President Clive Brown exercised an option to purchase 167,500 shares for 9 cents to hold 702,951.

Noranda (TSE) Vice-President Lance Tigert acquired 15,000 shares under a plan for $16.57. He was also granted an option to purchase 10,300 shares for $14.50 to hold 34,600.

St. Genevieve Resources (TSE) insider Camille Lamer bought 5,000 shares privately for 85 cents before selling the shares for $1.10 to hold 127,077.