When it comes to ASX lithium stocks, Nova Minerals Ltd (ASX: NVA) is probably not a share that initially comes to mind. But Nova Minerals is a $74 million company that has been listed on the ASX for more than two decades.
It is primarily a gold company, but also has a significant stake in lithium, primarily through its 37% stake in the US–listed Snow Lake Lithium.
Nova shares have had a tough time of late, unlike many of its larger lithium peers. While shares like Pilbara Minerals Ltd (ASX: PLS) have boomed over the past 12 months, Nova shares have retreated by a painful 57.7% or so:
But Nova has one thing going for it right now – the unbridled enthusiasm of its management team.
Nova released a series of ASX notices on 13 April earlier this month. These showed that not one, not two, but three of its directors have been buying up shares of this ASX lithium stock. Including the CEO.
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Nova management buys up shares hand over fist
Firstly, there was Craig Bently, director of finance and compliance at Nova. The ASX release shows that Bently purchased 300,000 additional Nova shares on 12 April for a cost of $100,450. That brings his total holdings (both direct and indirect) to more than 2 million shares.
Then there was executive director Louie Simens. ASX records show Simens bought 114,200 shares on 12 April as well, for a sum of just under $40,000. He now owns roughly 8 million Nova Minerals shares, both directly and indirectly.
Last, but certainly not least, we have Nova Minerals director and CEO Christopher Gerteisen. Gerteisen also picked up an extra 95,000 shares on 12 April, for a total cost of $30,850. That lifts his total holdings to just under 900,000 shares.
So why are these directors all buying up shares right now? Well, we don't know for sure – no reasoning was given with these purchase notices. But we can assume that these buys went through for the same reason that most do – the buyers think it is a wise investment that will make them money over time.
In a recent investor presentation, Nova Minerals argued that it is undervalued. The company pointed to its estimated reserves of 9.9 million tonnes against its market capitalisation and argued that it is trading at a significant discount against other ASX gold miners.
But only time will tell if these director buys prove to be canny investments. No doubt shareholders will appreciate the financial dedication of management though.
