Northern Dynasty Minerals Ltd (NYSEMKT: NAK) is off to an incredibly strong day in the market today, and for good reason. The bottom line is that the bullish argument surrounding the stock continues to strengthen. Of course, we’ll get into that a bit later. Nonetheless, a special thanks goes out to our friends at Trade Ideas for alerting us to the gains the stock. At the moment (11:10), NAK is trading at $1.63 per share after a gain of $0.10 per share (6.54%) thus far today.
Rehashing Old NAK News
Before we get into the new news that’s happening surrounding Northern Dynasty Minerals, I believe it’s important to take a few moments here to rehash old news. The largest value proposition for the company is the Pebble Project, a massive mine that would claim the position as one of the world’s largest gold mines if it is to come to fruition. However, gold isn’t the only thing there. In fact, there are several different basic materials that could turn the mine into cold-hard cash, just waiting for someone to take the stuff out of the ground.
The only problem for the company has been the EPA. Unfortunately, the EPA has blocked NAK from being able to apply for necessary permits to get the mine underway. Nonetheless, that recently changed. In a settlement, the EPA and NAK agreed on terms that would allow the company to apply for the permits it needs in order to get the mine underway. OK, that’s enough rehashing of old news. If you want to know more about this news, click here.
Donald Trump Gives The Stock Some Support
While President Donald Trump hasn’t spoken about NAK directly, he is giving the stock a boost – indirectly – as we speak. This has to do with his anti-globalism approach. Due to his views on a globalized monetary system, Bitcoin, a key competitor to gold, is taking a bit of a dive. As a result, investors are looking to the commodity rather than the cryptocurrency. Considering that NAK is sitting on what could become one of the largest gold mines in the world, the company is in a good position to take advantage of these trends.
Another thing that I have to think about here is the possibility of an acquisition. 3 months ago, the possibility was pretty much off of the table. Back then, the company was still in a legal battle with the EPA surrounding one of its most valuable assets. However, today, that story is very different.
You see, now that NAK has the ability to apply for the permits to build one of the world’s largest basic materials mines, it could be a great takeover target for larger players in the industry. Think about it this way, the hardest part of the job for Northern Dynasty Minerals was making it past the EPA hurdle. Now that a settlement has been achieved, there’s quite a bit of value in the Pebble proposition. If a savvy basic materials company wanted to get their hands on that mine, now would be the time. After all, the premium paid now would be far less than the premium paid once the permits have been approved.
Big News Coming?
Finally, there may be big news just beyond the horizon. That’s because, on June 23rd, 2017, NAK will be holding its annual general meeting. While no one (other than insiders) quite knows what to expect at this meeting, big news with regard to the Pebble Project is likely the first thing on the roster. If this is the case, it could prove to be a catalyst that sends the stock skyrocketing.
Stop wasting your time! Find winning trades in minutes with Trade Ideas!
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 company’s ongoing work with regard to the Pebble Project and hoping that our view of a potential acquisition is shared with a suitor that will make waves relatively soon. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!