Northern Dynasty Minerals (NAK) Stock: Putting Pebble Into Perspective


Northern Dynasty Minerals Ltd (NYSEMKT: NAK) is having a relatively strong day in the market today as investors weigh the risk-versus-reward aspects associated with the Pebble Project. At the end of the day, the project could prove to be a massive profit, or massive flop for that matter. Today, we’ll put the Pebble story into perspective for those interested in investing in NAK. With the data at hand here, this could prove to be a very strong long-run play.

Breaking Down The NAK Settlement With The EPA

For some time now, Northern Dynasty Minerals has been working to get the Pebble Project rolling. However, there has been one major thorn in the side of the company. That thorn has the letters E.P.A. written all over it! You see, the United States Environmental Protection agency has been working to block progress on Pebble for some time, suggesting that the mine would impact the surrounding environment in a major way, and blocking the company’s ability to even apply for the necessary permits in order to get the project going.

As a result, NAK pursued legal action against the EPA, stating that the agency has violated the legal rights of the company to pursue these permits. Well, that lit a bit of a fire under the EPA, and recently, the two parties reached a settlement that would allow NAK to apply for the permits required to move forward with the mine.

Northern Dynasty Minerals Has Deadlines, But Is Not Concerned

At the end of the day, the bulls and the bears have been fighting about limits associated with the Pebble Project since the settlement. In particular, the biggest limitation the company faces in the process is time. In fact, under the settlement that was recently reached between NAK and the EPA, the company has key deadlines that it must meet. First off, the company must file permit applications by no later than 30 months from the date of the settlement. On top of that, within 48 months, the company must provide a final environmental impact statement that will be filed by the US Army Corps of Engineers.

Nonetheless, NAK doesn’t seem to be concerned about these deadlines in the least. In fact, they don’t intend on taking more than 30 months, or even a full 12 months, to file the permits. The company said this will be done by the end of 2017. On the environmental impact statement side of the coin, that’s expected to come into play by no later than May of 2021, once again, falling cleanly into the deadlines set through the agreement.

Why This Mine Is Such A Big Deal

At first glance, you may think of Northern Dynasty Minerals’ Pebble Project as just another mine. However, the truth of the matter is that this mine has massive potential. In fact, it is expected that there are 56.8 billion pounds of copper in the mine. This, in combination with 70.4 million ounces of gold, 3.4 billion pounds of molybdenum, and 343.6 million ounces of silver will make this one of the most valuable mines in the world!

In particular, the big key here is gold and copper. At the moment, it’s becoming harder and harder to find stored deposits of copper and gold. This mine just so happens to be one of the biggest stored deposits of these two metals in the world. So, as supplies of these commodities dry up because they are becoming more difficult to find, NAK is sitting on top of, for lack of a better phrase, an incredible gold mine!

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on Northern Dynasty Minerals. In particular, we’ll be watching the Pebble Project, as the company finally has the green light it needed in order to move forward. We’ll continue to follow the story closely and bring the news to you as it breaks!

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