Northern Dynasty Minerals (NAK) Stock: The Value Proposition

Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is having a strong day in the market today, following up on the gains seen on the stock yesterday. The gains are ultimately the result of news that brings the company one step closer to its goal with the Pebble Project. Today, we’ll talk about:

  • The recent news and value proposition of the Pebble Project;
  • what we’re seeing from NAK stock today; and
  • what we’ll be watching for ahead. 

NAK And Pebble

The big value proposition for Northern Dynasty Minerals is a project that the company has been working for years to get the permits for. The project, is known as the Pebble Project. 

Pebble is located in Alaska and the land it sits on is highly protected. So, getting permits to build a mining facility is difficult to say the least. However, a while ago, the company announced an agreement with the EPA that outlined a path to permit submission. 

Part of that path is that NAK work with the Army Corps of Engineers in order to ensure that the mine would be safe for the surrounding environment. This is where the recent news comes in. 

Recently, the company announced that the United States Army Corps of Engineers has posted the Draft Environmental Impact Statment on its website. This statement is one of the requirements in the path to permitting and marks a major milestone for the company. 

There’s good reason for all of the excitement here. Should the permits go through NAK is sitting on a literal gold mine, and one of the largest in the world. 

In fact, at the moment, it is believed that the site is one of the largest deposits of gold, copper, and molybdenum in the world. Of course, if the mine is built and becomes operational, it would be one that generates tremendous value. 

There are two problems, permitting and cost:

  • Permitting: As mentioned above, permits are hard to come by in protected lands. However, Northern Dynasty Minerals has made strides in this process. It is my belief that permit approval will be achieved over time. 
  • Cost: Building any mine is an expensive taks. However, building one of the largest in the world is a whole different animal. That’s what NAK plans to do, and the truth of the matter is that, it doesn’t have the money to do it. What the company does have is incredible support for investors and a plan to form partnerships to share in the costs and bounties associated with the mine. 

At the end of the day, while the mine is still likely a few years away, there’s plenty of reason to get excited here. After all, if the Pebble Project does come to fruition, those who got in on the investment early will likely reap incredible rewards. 

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Northern Dynasty Minerals, the recent news of the milestone completion on the path to Pebble Development great. 

After all, the company is now one step closer to Pebble Project permits, and that overwhelmingly valuable mine. 

So, it’s not surprising that excited investors sent the stock running for the top yesterday and continue to do so today. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:24), NAK is trading at $0.96 per share after a gain of $0.037 per share or 3.99% 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 continued work to bring Pebble to fruition. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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