Basic Materials

Northern Dynasty Minerals LTD NAK Stock News

Northern Dynasty Minerals Ltd. (NYSEAMERICAN: NAK) is having a strong day in the market today after the company announced the hiring of Mark Hamilton. While this is great news, I believe that this new, high-profile hire is a signal of yet another big event to come. Today, we’ll talk about the Hamilton hire, what we’re seeing from the stock as a result, why this could be a prelude to some big news, and what we’ll be watching for ahead.





NAK Hires Mark Hamilton

As mentioned above, yesterday, Northern Dynasty Minerals announced that its wholly-owned subsidiary, Pebble Limited Partnership has made a key hire. The company has hired Mark Hamilton to serve as its Executive Vice President of External Affairs. Mark Hamilton is a retired Major General of the United States Army and President Emeritus of the University of Alaska. In a statement, Pebble Partnership CEO Tom Collier had the following to say about bringing Hamilton into the NAK family:




Mark Hamilton is among Alaska’s best known and most highly respected residents, in large part for his tremendous accomplishments and service to the state over 12 years as President of the University of Alaska… We fully expect Mark’s vision, his leadership and his credibility to materially advance our efforts to re-position the Pebble Project, to ensure it provides meaningful enduring benefits to the people of Bristol Bay and Alaska, and to help create the social and political conditions necessary to permit this project in the years ahead.”

What We’re Seeing From The Stock

As mentioned above, NAK is having an incredibly strong time in the market today following the announcement that the Pebble Project has hired Mark Hamilton. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:44), NAK is trading at $2.085 per share after a gain of $0.075 per share (3.73%) thus far today.

The Hamilton Hire Is A Signal Of Bigger News To Come

There’s no doubt that Mark Hamilton is going to be a big player in the Northern Dynasty Minerals family. When we look at this at first glance, we think about the benefits he’s going to bring to the permitting process. With his clout and relationships in the community, he’s likely to ensure that the Pebble Project’s vision stays clear and the project does make it through not just the first round of permits, but expansion permits that have been hinted at as easier to get down the road by reducing the proposed footprint for now.

However, there have also been some other big hints. Recently, NAK management has consistently pointed to partnerships that are likely coming down the line relatively soon. These partnerships are key to the development of the Pebble Project. However, we haven’t heard any solid news as of yet. Nonetheless, with Mark Hamilton being hired, NAK has made yet another pretty large commitment. I couldn’t see the company doing this unless partnerships were already pretty well in the bag. However, with partnerships just around the corner, a commitment like this could be a pretty simple one to make.

With that said, I’m expecting that the next big piece of news that we get out of Northern Dynasty Minerals will be a partnership agreement, or a consortium of agreements with various big players in the basic materials industry.

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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 interested in following the story surrounding the partnership agreements that the company is likely to announce relatively soon. We’ll also be following the Pebble Project permitting process, and the rest of the story closely. Nonetheless, we’ll bring updates to you as they break!

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Seadrill Ltd SDRL Stock News

Seadrill Ltd (NYSE: SDRL) is having an incredibly interesting day in the market today. The stock spiked dramatically early on, making it to gains of more than 20%. However, the stock has started to slide more recently, giving up a good amount of these gains, but still holding onto some impressive profits. So, what’s the deal? Why was the stock up so dramatically this morning before going on the decline? Today, we’ll talk about what’s propping the stock up, why it fell from highs, what we’re seeing from the stock at the moment, and what we’ll be watching for with regard to SDRL ahead.





Why SDRL Is Up In General

Seadrill is a company that’s focused in the industry of offshore oil. As a result, when the price of oil finds its way upward, the stock tends to follow suit thanks to the strong correlation between SDRL and oil. Well, recent news surrounding oil has been vastly positive.




Most recently, there has been the story of OPEC further extending production caps. Since the production caps have been in place, many experts have argued that OPEC simply wasn’t doing enough to bring balance to the oil industry. Nonetheless, OPEC argued that their moves would have a positive effect on the industry in time. While we may be getting to the end of the already agreed upon oil production caps, recent political changes in Saudi Arabia have led to renewed hopes that caps will be extended.

Recently, Saudi Arabian Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, made some serious enemies with a political purge in the country. However, through this purge, he essentially gave more power to himself. This is a great thing for oil, as the Crown Prince is interested in maintaining production caps and bringing further balance to the oil industry. This, in combination with recent agreements to extend production cuts in Russia and other major producing regions, has led to gains in oil, which ultimately has propped up the value of SDRL.

Why SDRL Fell From Highs

Today started off as an incredible day, with Seadrill shares spiking by more than 20%. However, the stock has fallen off of highs recently, but why? Well, the answer is relatively simple. News with regard to the oil sector hit, and this time, it wasn’t good.

Investors cringed when the United States EIA reported crude oil inventories. According to the report, crude oil inventories climbed by 2.2 million barrels in the week ending November 2. This came as a surprise due to estimates that crude oil inventories would fall by 1.562 million barrels in the country. Considering that the driving factor in the price of oil is supply and demand, the added supply proved to be a cause for concern, causing the value of oil to slide. Ultimately, this led to some pain for SDRL, but didn’t take away all of the day’s gains.

Where SDRL Sits Right Now

While it would have been great to see Seadrill hold onto the gains seen early this morning, the stock still isn’t doing bad in the market today. Of course, our partners were the first to alert us to the gains in the stock. Currently (11:10), SDRL is trading at $0.44 per share after a gain of $0.03 per share (7.36%) thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping an incredibly close eye on SDRL. In particular, we’ll be watching for any updates associated with the oil industry as a whole as well as the company’s direct business operations. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Chesapeake Energy Corporation CHK Stock News

Chesapeake Energy Corporation (NYSE: CHK) is having an overwhelmingly strong start to the trading week this morning, and for good reason. The price of oil is climbing, which ultimately means that good news is likely to hit the company ahead. Today, we’ll talk about what’s going on with oil, what we’re seeing from the stock as a result, and what we’ll be watching for with regard to CHK ahead.





Rising Oil Prices Send CHK Skyward

As mentioned above, Chesapeake Energy is having an incredibly strong start to the trading week in the market this morning, and for good reason. The price of oil is climbing. In fact, oil is currently trading at the highest price it’s seen since July of 2015 after Saudi Arabia’s crown prince, Prince Alwaleed bin Talal, increased his power in the kingdom. He did so through the launch of what is known as the anti-corruption purge.




Prince Alwaleed bin Talal recently said that he backed an extension to production cuts by OPEC, a group of the world’s largest oil production countries. As a result, OPEC will meet at the end of November to talk about extending the oil production cuts. Of course, if this does happen, it will be a great thing for the stability of the oil price as well as oil-related companies like CHK.

Moreover, there are other factors playing a role here. Over the weekend, leaders from Saudi Arabia, Russia, Kazakhstan, and Uzbekistan met in order to discuss the current condition of the oil market. All of these leaders said that they were willing to maintain restrictions on oil production to address the supply glut and continue to prop prices upward. In a statement, the Russian energy ministry had the following to offer:

The participating states expressed satisfaction with the decline in commercial oil inventories and expressed their readiness to continue joint efforts in this direction.”

How CHK Reacted To The News

As we’ve come to expect, any time we see news that can positively impact a publicly-traded company, we can expect to see gains in the value of the stock that represents the company. In this particular case, the news surrounding oil is propping the value of oil upward, and due to the gains in oil, CHK is enjoying gains itself. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (10:57), CHK is trading at $4.04 per share after a gain of $0.31 per share (8.16%) 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 CHK. In particular, we’re interested in following the news surrounding the oil industry as a whole. With the coming OPEC meeting, any agreement to extend production cuts could lead to further gains in the value of oil, ultimately sending Chesapeake Energy Corporation shares even further upward. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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United States Steel Corporation X Stock News

United States Steel Corporation (NYSE: X) is having an overwhelmingly strong start to the trading session in the pre-market hours this morning, and for good reason. The company reported its earnings for the third quarter, blowing away expectations and setting the stage for a strong Q4. Of course, our partners at Trade Ideas were the first to alert us to the gains. Below, we’ll talk about what we saw from earnings, how the stock reacted to the news, and what we’ll be watching for with regard to X shares ahead.





United States Steel (X) Reports Earnings

As mentioned above, United States Steel Corporation is having a strong start to the trading session in the pre-market this morning after reporting overwhelmingly strong earnings for the third quarter. Here’s what we saw from the earnings report:




  • Earnings Per Share – In terms of earnings per share, X definitely did not disappoint. During the quarter, the company generated earnings in the amount of $0.92 per share. That figure proved to be well ahead of analyst expectations of just $0.67 per share. On a GAAP basis, the company generated a profit of $0.83 per share.
  • Revenue – Revenue also proved to be a strong point for the X earnings report. During the quarter, analysts expected that United States Steel Corporation would produce revenue in the amount of $3.04 billion. However, the company actually reported revenue in the amount of $3.25 billion.
  • Guidance – Finally, on a full-year basis, the company created even more excitement with regard to their expectations. During the 2017 year, X is expecting that it will generate earnings in the amount of $1.70 per share. However, analysts are only expecting for full-year earnings to come in at $1.62 per share.

In a statement, Dave Burritt, President and CEO at United States Steel had the following to offer:

We remain focused on our operations, revitalizing our assets, and developing our talent. We are seeing operating improvements in the assets in which we are investing… This increases our confidence that we will achieve the 2020 improvement targets we have disclosed. We believe the attention to our assets and employees, with continued focus on improving safety, quality, delivery, and cost, will result in improved operating reliability and enable us to remain a strong business partner for our customers.”

What We Saw From The Stock As A Result

As we’ve come to expect any time a publicly traded company reports strong earnings, United States Steel is having an incredibly strong time in the market today as a result. Currently (9:08), X is trading at $27.69 per share after a gain of 9.36% 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 United States Steel. In particular, we’ll be watching for any updates with regard to steel pricing, as well as the company’s ongoing growth. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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AK Steel AKS Stock News

AK Steel Holding Corporation (NYSE: AKS) is having an overwhelmingly rough start to the trading session this morning, and for good reason. The company reported its earnings for the third quarter, falling short of analyst expectations. Of course, this led to fear among investors, sending the stock downward and prompting an alert from our partners at Trade Ideas. Below, we’ll talk about what we saw from earnings, how the stock reacted to the news, and what we’ll be watching for with regard to AKS ahead.





What We Saw From AKS Earnings

As mentioned above, AK Steel Holding Corp. is having an incredibly rough start to the trading session this morning after the company reported earnings that fell short of analyst expectations. Here’s what we saw from the report:




  • Earnings Per Share – In terms of earnings per share, AKS missed the mark. During the third quarter, analysts expected that the company would generate earnings in the amount of $0.03 per share. However, the company missed expectations by 33.3%, generating earnings for the quarter in the amount of $0.02 per share.
  • Revenue – Unfortunately, revenue didn’t prove to be any better for the company, missing expectations yet again. During the quarter, analysts expected that the company would generate revenue in the amount of $1.5 billion. However, the company actually reported revenue in the amount of $1.49 billion, missing expectations once again.

How The Stock Reacted To The News

As you could imagine, AK Steel Holding didn’t have a very positive reaction to earnings. After all, with a miss on the books, investor fears hit hard, sending the stock spiraling downward. Currently (9:35), AKS is trading at $5.22 per share after a loss of $0.63 per share (10.77%) 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 AKS. In particular, we’re interested in following the company to see how they come back from the earnings miss. We’ll also be following the steel industry as a whole to get an idea of what market-wide benefits or issues the company will be facing in the quarter ahead. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Northern Dynasty Minerals LTD NAK Stock News

Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is having a relatively strong start in the pre-market hours this morning. The gains seem to be the result of the fact that basic materials pricing – copper pricing in particular – is headed upward. Of course, copper is a key material that will hopefully be mined at the Pebble Project. As a result, excited investors are working to send the stock toward the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:47), NAK is trading at $2.03 per share after a gain of $0.04 per share (2.01%) thus far today.





Should You Get Involved In NAK?

This is the million dollar question, and while I can’t give any personalized investment advice (it would be illegal for me to do so), I can tell you to look or not look at something. From there, it’s up to you to make your own educated decision. Nonetheless, if I were asked this question a year or so ago, I would have told you to stay as far away from Northern Dynasty Minerals as possible. At the time, things simply weren’t going well.




You see, about a year ago, NAK was elbow deep in a battle with the EPA. While the company wanted to get the Pebble Project up and running, it simply couldn’t do so. The EPA continuously blocked the company’s ability to file permits. As such, moving forward with the Pebble Project would have been an illegal action because the project wasn’t permitted.

Nonetheless, things have changed greatly over the past year. The most important of these changes was the fact that NAK and the EPA came to terms on an agreement to make permitting possible for the mine. Under the agreement, Northern Dynasty Minerals had to work to prove that the Pebble Project wouldn’t have a damning effect on the Alaskan environment surrounding it.

What’s Happened Since The Settlement?

Since the settlement, news has consistently been positive for NAK. Most recently, the company announced its plans surrounding the Pebble Project, and those plans make it hard to imagine that even the most protective members of the EPA would want to block the construction of the mine. Ultimately, the company put several safeguards into place in order to protect the environment surrounding the mine.

In their plans, NAK announced that it has vastly reduced the footprint of the Pebble Project. As a result, the project would stay away from key spawning grounds for salmon and prove to be more environmentally friendly. On top of that, the company announced that it would not be using cyanide in the mining process; cyanide is a chemical that proved to be a major source of concern for those going against the Pebble Project.

Nonetheless, Northern Dynasty Minerals didn’t stop there. Beyond the environmental protection the company announced associated with the mine, the company also announced the economic benefit the mine would have for the region. With the above environment-related news, NAK went into detail about the thousands of jobs the project would add to the region’s economy, as well as a revenue sharing program that would lead to an even stronger economic impact.

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The Bottom Line

The bottom line here is a relatively simple one. Considering the plans surrounding the Pebble Project, NAK is likely to receive permit approval from the EPA. As a result, the prospects associated with the mine are massive. If all goes well, the Pebble Project will be one of the world’s largest basic materials mines. With recent EPA news, the company is gaining interest from potential partners that will share the costs associated with moving forward with the project. As a result, not only is the mine likely to come to fruition, it’s likely that the company will have the strength and support of larger basic materials companies in the process. All in all, things are looking up for NAK.

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U.S. Energy Corp. USEG Stock News

U.S. Energy Corp. (NASDAQ: USEG) is having an incredibly strong day in the market today after the company announced its participation in an upcoming drilling program. This led to excitement among the investing public, sending the stock on an explosive run for the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:54), USEG is trading at $1.26 per share after a gain of $0.25 per share or 24.75% thus far today.





USEG Gains On Upcoming Drilling Program

As mentioned above, U.S. Energy Corp. is making a run for the top in the market today after announcing that it will be participating in an upcoming horizontal drilling program on its existing acreage position. The program will take place in the Georgetown formation in Zavala and Dimmit Counties in Texas. The positions of the development program have all been previously developed for shallower horizons. USEG said in the press release that it expects to begin drilling in late October 2017. The company also said that the initial well will be a dual lateral.




The company said that it plans on participating in the drilling of up to 6 horizontal wells, all of which are on its existing acreage position. It has interest that ranges from 6% yo 15% across the entire project. USEG said that based on current commodity prices, single wells are expected to generate approximately 60% internal rate of return as well as 2.5X cash on cash return payback over the course of approximately one year. The company is expecting that gross drilling and completion costs for each horizontal well will be about $3.4 million; which will be funded from cash flow from operations and existing cash on hand. In a statement, avid Veltri, Chairman and CEO at USEG, had the following to offer:

We are pleased to announce our participation in the upcoming drilling program and excited for the future prospects of U.S. Energy as we continue our transition from being focused on restructuring the Company’s balance sheet to becoming a growth-oriented E&P company. Our recently announced restructuring initiatives along with the completion of recent asset sales will allow us to re-deploy capital to focus on significant growth opportunities and position U.S. Energy to maximize returns for shareholders. This is the first newly drilled well that U.S. Energy has participated in since early 2015, and we look forward to evaluating and participating in other highly accretive development projects that are focused on capital returns and cash generation.”

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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 USEG. In particular, we’re interested in following the new drilling project and excited to see the fruits of the labor as the company regains its footing on a strong financial foundation. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Camber Energy Inc CEI Stock News

Camber Energy Inc (NYSEAMERICAN: CEI) is having an overwhelmingly strong day in the market today, and for good reason. The interim CEO of the company, Richard Azar II released a letter to shareholders, outlining plans to improve operations and the progress the company has made with regard to these plans. Of course, this led to excitement among shareholders, causing gains in the value of the stock and prompting an alert from our partners at Trade Ideas. Currently (10:37), CEI is trading at $0.16 per share after a gain of $0.01 per share or 7.70% thus far today.





CEI Letter To Shareholders

As mentioned above, Camber Energy is having an overwhelmingly strong time in the market at the moment after the interim CEO of the company, Richard Azar II, released a letter to investors. The beleaguered energy company seems to be making a turn around thanks to key changes made by Azar.

In his letter, Azar made it clear to inform investors of the challenges the company faced when he took the position as the interim CEO. He went on to explain that in order to clean up the issues, he needed to assemble a strong team of veterans that would help in the process, and that he has done so; saying:




I have assembled an all-star team because turning around any business requires nearly flawless execution by management. This group of individuals has my utmost trust and confidence, and I believe that together we will be able to drive shareholder value.”

In the letter, Azar made it clear that CEI has made progress in leaps and bounds on three key fronts. First and foremost, the company has secured $16 million in financing. These funds were necessary for the company to clean up their balance sheet and turn to focus on growth initiatives as well as undertaking efforts to regain compliance with covenants in the company’s senior credit facility. The company has since worked closely with their bank to cure defaults.

Another key factor in turning he company around is regaining compliance with the NYSE. In his letter Azar said that CEI has submitted a formal plan to the New York Stock Exchange designed to help the company regain compliance by no later than August of 2018. While the company is still awaiting a formal response from the NYSE, they believe that by following their plan, they will be able to regain compliance by May of 2018, giving them a little extra time should things not go as planned.

As we move forward through the letter, it becomes clear that the key for Camber Energy is for the company to continue drilling new wells that could drive strong revenue. Toward the end of the letter, Azar had the following to offer:

During the first half of 2018, funding permitting, we intend to drill four new wells adjacent to our existing wells in the Hunton formation in Oklahoma. During the second half of 2018, funding permitting, we expect to drill an additional four to five new wells in this same area, and perhaps one well in the Permian in West Texas. In total, we expect to drill between eight and ten new wells in 2018, subject to the availability of sufficient capital. I anticipate these wells, if successful, could collectively generate approximately $1 million in EBITDA per month by the end of 2018. I also believe there are other significant opportunities for the company in Oklahoma, as well as significant opportunity to extract hydrocarbons in the San Andres Formation in the Permian Basin, which we will continue to explore.”

Azar goes on to explain that if all goes as planned, the company could be generating around $2 million per month in EBITDA by the end of next year. He also thanked shareholders for staying by the side of CEI through troubling times.

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What We’ll Be Watching Moving Forward

Moving forward, the CNA Finance team will continue to keep a close eye on CEI. In particular, we’re interested in following the progress of Azar’s plan. If all goes well, the interim CEO may be the key to bringing the company out of the nearly drowning state it is in. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Northern Dynasty Minerals LTD NAK Stock News

Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is having an incredibly strong day in the market today as investors start to realize that the stock represents a potentially massive opportunity. Interestingly enough, just a year ago, the overall view of the company was very different. Nonetheless, with the progression the company has made over the past year, the opportunity is becoming more and more clear. We’ll get into what opportunity is here in a bit, but before we do, we’d like to give a thank you to our partners at Trade Ideas for being the first to alert us to the gains. Currently (10:14), NAK is trading at $2.02 per share after a gain of $0.14 per share (7.45%) thus far today.





NAK A Year Ago

A year ago, Northern Dynasty Minerals wasn’t doing all that well. While the company had an incredible management team, that team was facing massive hurdles. First and foremost, the company was being blocked every step of the way by the United States EPA, which didn’t want to allow the company to even apply for permits to get the Pebble Project underway.

In the midst of the legal battle with the EPA, the company was the victim of falling basic materials prices. In fact, due to the complications with the EPA and the falling prices of basic materials, its partners (Anglo American and Rio Tinto) decided to back out of the Pebble Project, essentially leaving NAK to fend for themselves in what proved to be one of the hardest times in the history of the project. However, things have changed, and the change has been dramatic.




Northern Dynasty Is In A Far Better Position Today

Today, things are very different from what they were just a year ago. It all started several months ago when the company struck a deal with the EPA. Under the deal, NAK would have a clear path to permit approval, taking the battle with the EPA out of the courts, and bringing the administration to the company’s side. Ultimately, the company simply needed to prove that their mine at the Pebble Project would not have a negative impact on the land and communities around it.

Well, NAK released the plans for the Pebble Project recently, and it quickly became clear that there is no reason for the permits to be declined. In the plans, the company first focused on the environment surrounding the mine. Ultimately, the company reduced the footprint of the Pebble Project to just 5.4 square miles, keeping key environmental zones out of the equation. The idea is that the company could gain approval for the smaller footprint, allowing them to get work underway and worry about expansion later. Of course, this smaller footprint is better for the environment surrounding it. Also, NAK put several other environmental safeguards in place, including eliminating the of use of cyanide in the mining process, which proved to be one of the main concerns in the past. So, on the environmental level, it’s clear that the company hit the nail on the head. But what about the community level?

Well, Northern Dynasty Minerals left no stone unturned. The company pointed out a revenue-sharing process and informed listeners about the massive number of jobs that the mine would bring to the economy surrounding it, ultimately outlining several economic benefits that the Pebble Project would bring to this key region in Alaska. So, on the environment side of the coin, check… on the community side of the coin, check… It seems like both big issues have been checked off. The permit is as good as approved at this point.

Derisking The Project

Of course, any time you want to build one of the world’s biggest of anything, there is going to be cost, and there is going to be risk. However, NAK has made it clear that they intend to reduce risk in the project through partnerships. In fact, the company is currently in talks with various potential partners to bring others on board in order to bring the risks and costs associated with construction down.

Of course, we imagine that the long lost partners, Rio Tinto and Anglo American, are chomping at the bit to get involved considering all of the progress the company has made since the partnerships with these two dissolved last year. Nonetheless, I doubt that these will be the only partners, as NAK CEO Ron Thiessen made it clear that several partners will likely take part in the mine.

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Final Thoughts

At the end of the day, if you would have asked for my opinion of NAK a year ago, I would have told you to stay away. Things just weren’t headed in the right direction at that time. However, everything seems to have changed in a big way. Not only are permit approvals likely, but partnership talks are also in place, and the risk surrounding the investment has crumbled to just about nothing. Nonetheless, investors haven’t realized the potential opportunity here yet, maintaining a massive undervaluation and giving savvy investors the opportunity to get involved today for pennies on the dollar. The bottom line here is that NAK is an opportunity in the making, and those who are interested in investing in basic materials and mining companies should take note of what’s happening surrounding the stock today!

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Northern Dynasty Minerals LTD NAK Stock News

Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) isn’t having the best of days in the market today. However, I don’t look at this as a reason to have the blues. In fact, the declines may represent a discounted opportunity to get in on what may become an incredibly profitable trade. That all seems to hinge on one key word – partnership. Before we get into the details here, we’d like to extend a thank you to our partners at Trade Ideas for always being the first to alert us to movement in the market. At the moment (11:09), NAK is trading at $1.88 per share after a loss of $0.06 per share (2.84%) thus far today.





NAK Is Almost Guaranteed To Get Permit Approval

Northern Dynasty Minerals has been an incredibly interesting stock to watch. In the past, many (including myself) didn’t believe that the company would ever achieve permitting for the Pebble Project. The company even found itself in a legal battle with the EPA over its rights to even file for permits. However, after negotiating a settlement that would allow them to apply for a permit, the idea of the dream Pebble Project mine coming together is becoming more of a reality. In fact, in light of recent news, it’s hard to argue the fact that the Pebble Project mine will achieve permit approval.




Ultimately, my opinion on this lies around the recent plan unveiling done by NAK. The company has greatly reduced the mine’s footprint, adding several environmental safeguards that even the most hard-pressed opponents of the mine will likely enjoy seeing, which could cause them to change their mind. Some of the most important of these new safeguards include eliminating any mining in the Upper Talarik watershed region and not using cyanide in the recovery process. The company also outlined incredible economic benefits that make it even harder to decline the permit application.

With Approval In Sight, Partnerships Are Key

At the end of the day, permit approval is becoming less and less of a concern for NAK and its investors. Now, it’s time to get down to the nitty gritty of the process, actually building and operating the mine. Think about it, that’s going to cost a ton of money, and chances are that Northern Dynasty Minerals will have a hard time doing it on their own. Nonetheless, it seems that NAK already has this covered as well. In fact, Thiessen recently explained that the Pebble Project is “more likely a consortium of developers to share costs and risks.” So partnerships are key to the process. Furthermore, the company is already in talks with various other companies to put these partnerships together.

While Northern Dynasty Minerals hasn’t said who they are in talks with as of yet, there are rumors circling the topic. Some of the most likely to be involved in the Pebble Project turned Pebble Partnership will be Rio Tinto and Anglo American, as the company has already had previous discussions with the two and these discussions are likely to hit the table again.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on NAK. In particular, we’re interested in following the Pebble Project, as this could prove to be one incredibly profitable venture as the partners come on. Considering the information that is available to the public as we speak, it’s hard to imagine that NAK would have any issues receiving permit approvals or getting necessary partners involved. At this point, it’s more a matter of time than a matter of ability. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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