Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is having a strong day in the market today. As soon as we received the alert, we started digging to see what was happening. While the company has released no news as of late, there’s plenty of reason to be excited about the future here. Today, we’ll talk about recent developments surrounding NAK, what we’re seeing from the stock, and what we’ll be watching for ahead.
The Key Value Prospect
For Northern Dynasty Minerals, the key value prospect is known as the Pebble Project. The Pebble Project is a prospective mine that’s located in Alaska. However, because of where it is located, the company has had a big fight on their hands to get the mine permitted. In fact, the company went through a legal battle with the EPA to even be able to file for permits.
Nonetheless, once permitted, the Pebble Project is likely to be one of the world’s biggest mines, proving to be a source of massive amounts of gold, silver, and other basic materials. So, there’s quite a bit of value here once the mine is permitted and operational. The key is getting to that point.
Recent Announcement Suggests That Permitting Will Come Soon
Recently, questions with regard to the Pebble Project were largely answered. In fact, on the seventh of December, Mark Hamilton, Executive Vice President of External Affairs, published information with regard to the company’s plans to file permits in the month of December. A key excerpt from the publication reads as follows:
“I have every confidence that the project we take into permitting later this month will be safe, and that we have the scientific knowledge and technological know-how to be successful.”
The Above Statement Makes Things Very Interesting
The fact that permitting is in the works for the Pebble Project is great news in and of itself for NAK and its investors. However, this news has far-reaching implications. Back in May, management at NAK held a conference. During the conference, they stated that they intended to pursue partnerships before pursuing permitting. Once the partner was locked down, the permits would be filed.
Since this May 12th announcement, there has been no news of partnerships. However, the company has not retracted the statement that they would pursue partnerships first. So, we have to assume that this is still the case.
If Hamilton believes that permits are on track to be filed in the month of December, NAK investors likely have a flurry of good news coming their way. After all, if permits are indeed filed this month, that in and of itself will be a catalyst. However, the idea that permits will be filed also suggests that we’ll see another coming catalyst soon – a partnership announcement.
What We’re Seeing From The Stock
Investors are clearly seeing opportunity here. This can be seen from the gains that we’re seeing on NAK today. Of course, our partners at Trade Ideas were the first to alert us to the movement. Currently (11:56), NAK is trading at $2.09 per share after a gain of $0.08 per share (3.98%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NAK. In particular, we’re watching the Pebble Project as the story unfolds. With the expectation of permit filings this month, we can also expect to see news surrounding partnerships. These catalysts are likely to breathe new life in NAK, and we’re excited to watch it take place. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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