Directors can sell up to 30% of their holdings for any reason they choose. Using inside knowledge is illegal and he needs to be careful that he doesn't sell because he knows something. He says its for tax to keep the market and ASIC happy.
I'd be more worried if he had sold 30% of his holdings, or if he dropped another 15% next week.
Previous experience tells me that the gold market has another 12-18 months of good life in it when we see these sort of director sales.
I've only ever seen two directors dump shares only for the company to tank soon after. One was found guilty in court (John Gay from Gunns Limited) and the other (not naming him) I suspect he really did use inside knowledge as his company went belly up and left 1000s of people out of pocket to the tune of a billion or two, I'm surprised he managed to get away with it. Most other sales were legit money off the table and the share price continued without any changes.
DRM Price at posting:
$1.18 Sentiment: Buy Disclosure: Not Held
