Northern Dynasty Minerals Ltd (NYSEMKT: NAK)
Northern Dynasty Minerals has been an incredibly interesting company to watch since I started watching it back in February of last year. Back then, the company had a big hurdle that it had to get past; but a lot has happened over the past year and a half, and things are looking pretty good at the moment. Today, we'll talk about the value proposition posed by NAK, the steps toward that value, and what we'll be watching for ahead.
The Value Proposition Posed By NAK
The big value proposition that we see from Northern Dynasty Minerals is a project known as the Pebble Project. While the company has faced some big hurdles surrounding the Pebble Project, the mine is definitely worth the pain. After all, when complete, the Pebble Project will become one of the world's largest and most productive raw materials mines.
To put it into perspective, it is estimated that that the current resources available in the Pebble Project equate to 6.44 billion tonnes in the measured and indicated categories containing about 57 billion pounds of copper, 79 million ounces of gold, 3.4 billion pounds of molybdenum, and 344 million ounces of silver. On top of that, in the inferred category, it is expected that there is an additional 25.6 billion pounds of copper, 37 million ounces of gold, 2.2 billion pounds of molybdenum and 170 million ounces of silver. That's a massive amount of resources!
The Problem Has Been Getting To The Resources
There's no doubt that the Pebble Project is loaded with valuable resources. However, the problem for NAK has been being able to actually mine those resources. You see, the Pebble Project is located near the Watershed Basin, an area that's overwhelmingly important for salmon and fisheries. As a result, the EPA spent quite a bit of time and money, ultimately blocking the process and putting a road block on the permitting process.
Nonetheless, even this is no longer an issue. Earlier this year, NAK and the EPA reached a settlement agreement under which the Pebble Project now has a clear and concise path toward permitting. While the path will be a somewhat long one, through the research Northern Dynasty Minerals has done and their plan to ensure that their mine doesn't have any ill effects on the watershed basin, things are looking good. At the end of the day, it seems as though we're no longer looking at a matter of law, we're looking at a matter of time.
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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 ongoing work the company is doing to bring the Pebble Project to life and excited with regard to the value proposition this project poses. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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