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Bradley Doig spends R78‚000 on Petmin shares over two weeks

30 Dec 2015

Bradley Doig‚ business development director of anthracite miner and pig iron developer Petmin (PET)‚ has spent about R78‚000 in the past two weeks in a series of small transactions buying the company's shares.

Bradley Doig spends R78‚000 on Petmin shares over two weeks

Although companies often incentivise executives by awarding them performance-based shares‚ it is a sign of confidence in the future of the company when management spends its own money to buy additional shares.

From December 10‚ Doig started to buy small parcels of shares‚ between 3‚500 and 20‚000 at a time‚ at prices between 118c and 124c. Petmin's shares are currently 118c. They recently touched a two-year low of 110c‚ but they were at 273c only eighteen months ago. He could not be reached for comment on the transactions.

Although the recent slide in Petmin's share price reflects prolonged weakness in coal and iron ore prices‚ its financial performance has proven resilient because it produces mainly a premium priced coal product from its Somkhele mine and the pig iron project it is developing in North America‚ called North Atlantic Iron Corporation (NAIC)‚ will make a low-cost product for the foundry market. Petmin holds 35% of the project.

The company was able to declare a dividend of 5c a share in the 2015 financial year‚ which puts the shares on a 4.27% dividend yield.

In the latest Petmin annual report‚ chairman Ian Cockerill said Petmin expected sales from Somkhele would increase slightly this year and though dollar prices were likely to remain stable‚ receipts would be aided by the weakening rand. In the current financial year Petmin intended to spent $4m to raise its stake in NAIC to 40%.

Source: BDpro

Source: I-Net Bridge

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