3 ASX mining directors buying up their company shares

Insiders likely expect these stocks to provide returns for investors — and themselves.

Brooke Cooper

Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.

Published May 24, 2023 10:46 am AEST

There are countless reasons one might buy ASX mining shares.

The mining sector is one of the biggest on the ASX, making up around a quarter of the All Ordinaries Index (ASX: XAO). And with hundreds of ASX mining stocks to choose from, there's bound to be a winner out there for every type of investor.

But, as with any investment, most people, likely including these directors, buy in because they believe their purchase will provide returns.

So, without further ado, let's dive into three ASX mining shares that insiders have been snapping up.

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer — Image source: Getty Images

3 ASX mining shares bought by insiders recently

Syrah Resources Ltd (ASX: SYR)

The first ASX mining share seeing insider buying lately is Syrah Resources.

The company's chair, Jim Askew, snapped up 200,000 shares on the market last week, paying 91 cents apiece to do so.

That saw the director forking out a total of $182,000 to bolster his total indirect holding in the graphite producer to more than 700,000 stocks.

So far that's been a good buy. The Syrah share price is currently 92 cents – leaving Askew with a 1% return so far.

Nova Minerals Ltd (ASX: NVA)

There was also director buying action over at gold and lithium explorer Nova Minerals. Director Craig Bentley indirectly purchased 300,000 shares in the ASX mining company on market last week.

The insider paid a total of nearly $105,000 for the stake – around 35 cents apiece.

That sees him holding approximately 1.2 million shares directly and another 2.5 million indirectly.

Sadly, the insider's most recent purchase has so far resulted in a loss. The Nova Minerals share price is trading at 32.5 cents right now.

Rumble Resources Ltd (ASX: RTR)

Finally, non-executive director of Rumble Resources Matthew Banks has bolstered his position in the metal explorer.

He purchased a little over 823,600 of the ASX mining company's shares on market over the course of two days last week, paying nearly $155,500 to do so.

That equates to 18.9 cents a share and sees the insider holding 3.25 million shares in the company directly and around 18.8 million indirectly.

Right now, the Rumble Resources share price is trading marginally above the purchase price, at 19 cents.

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