Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is falling hard in the market this morning, and for good reason. The company announced the termination of a very important framework agreement, leading to fear among investors who are sending the stock spiraling downward. Today, we’ll talk about:
- The agreement termination;
- what we’re seeing from the stock;
- and what we’ll be watching for ahead.
NAK Falls Hard On Agreement Termination
As mentioned above, Northern Dynasty Minerals isn’t having the best of days in the market today after announcing that it has terminated an agreement. In a press release issued early this morning, NAK announced that it and First Quantum Materials Ltd. have been unable to reach an agreement with regard to the option and partnership transaction that was contemplated on December 15, 2017. As such, the company said that the Framework Agreement has been terminated in accordance with its terms.
This is horrible news for NAK. After all, the Pebble Project brings incredible potential with it. However, in order to get things rolling at what could become one of the world’s largest mines, a massive amount of resources are needed. As a result, the company has been looking for partners that will share in the expense as well as the profits, and First Quantum looked like a perfect partner. However, with the termination announced today, investors are concerned that the Pebble Project may never come to light.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In this particular case, the news surrounding Northern Dynasty Minerals was anything but positive. Following the termination of the Framework Agreement, the company will need to find a new partner to share in activities at the Pebble Project. So, it’s no surprise that upset investors are sending the stock spiraling downward. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (8:03), NAK is trading at $0.48 per share after a loss of $0.23 per share or 31.98% 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 NAK. In particular, we’re interested in following the story surrounding the company’s ongoing efforts to bring the Pebble Project to fruition. While the termination of this agreement was a set back, if the right partner is found and everything goes well, the company could be sitting on a massively profitable mine when all is said and done. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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