Insider buying is often regarded as a bullish indicator, as few people should know a company better than its own directors.
The theory is that if they have the confidence to buy shares, it could be a sign that things are going well and they expect them to appreciate in value.
With that in mind, listed below are five ASX mining shares that have reported insider buying recently:
Andromeda Metals Ltd (ASX: ADN)
A non-executive director of this ASX-listed emerging industrial minerals producer has been buying shares on the market. A change of director's interest notice reveals that Austen Perrin picked up 939,598 shares between 19 June and 21 June for a total consideration of $38,889.37.
Challenger Gold Ltd (ASX: CEL)
Another ASX mining share reporting insider buying has been gold developer Challenger Gold. According to a notice, the company's non-executive chairman, Fletcher Quinn, bought 1 million shares through an on-market trade on 23 June. Quinn paid a total of $113,720 for the parcel of shares.
Lunnon Metals Ltd (ASX: LM8)
This nickel and gold explorer has also reported some insider buying. Non-executive director Deborah Lord bought 35,000 shares at an average of 93 cents per share on 22 June. This represents a total consideration of $32,550.
Nova Minerals Ltd (ASX: NVA)
A couple of directors of this gold developer have been buying its shares on-market. CEO Chris Gerteisen picked up a modest 25,000 for $6,500. Whereas executive director Craig Bentley snapped up 512,144 shares for a total consideration of $135,355.15. Nova Minerals is developing North America's next major gold trend, Estelle, to become a world-class, tier-one, global gold producer.
Prospect Resources Ltd (ASX: PSC)
A final ASX mining share that has reported insider buying is Prospect Resources. It is a lithium explorer with operations in Zimbabwe. Three directors have been buying shares recently. This includes Gerry Fahey picking up 300,000 shares for 10.5 cents per share on 20 June, Sam Hosack snapping up 1,670,000 shares for between 10.5 cents and 14.07 cents per share across 20 June and 22 June, and Mark Wheatley buying 500,000 shares at 10.5 cents per share on 19 June.
