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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