Insider Trading Barrick executive profits from sale

Despite the recent drop in gold prices, American Barrick Resources (TSE) Vice-President John Lill was recently able to profit handsomely after exercising an option to buy shares of the Toronto-based producer. According to the Ontario Securities Commission’s OSC Bulletin, Lill exercised an option two months ago to purchase 10,000 shares for $11.875 before selling 9,500 for $20.375. He still holds 500 shares.

With gold dropping to a 4-year low of US$345.50, the share prices of many producers including big companies like Barrick have suffered the consequences. However, thanks largely to its huge Goldstrike mine in Nevada, and a hedging program that guarantees a minimum of US$421 per oz. return for 95% of this year’s gold output, Barrick has suffered less than most.

The issue traded recently at $19.88 in a 52-week range of $39 and $17.88.

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

Agnico-Eagle Mines (TSE) director Mikey Drutz who bought 104,000 shares for between $8.87 and $9.75 to hold 398,190. President Paul Penna also purchased 2,000 shares for $7.38.

Audrey Resources (TSE) President Guy Hebert bought 13,400 shares for between $2.00 and $2.25 to hold 717,839.

Aur Resources (TSE) Secretary Peter McCarter bought 3,973 shares for $3.40 to hold 32,027.

Battle Mountain Gold (TSE) director Richard Howe sold 7,535 shares for $12.75 to hold none.

Corona Corp. (TSE) Vice- President Brian Hay bought 1,000 shares for $8.75 to hold 1,000. He was also granted the right to purchase 40,000 options for $10.

Crown Butte Resources (TSE) President David Rovig bought 2,500 shares for $8.75 to hold 9,250.

Newhawk Gold Mines (TSE) President Donald McLeod bought 6,000 shares for between $2.80 and $2.85 to hold 109,133.