Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is having yet another strong start to the trading session this morning after climbing by nearly 8% in the market yesterday. While the company hasn’t released any news this week, there’s a good reason that investors are pushing this thing toward the top at the moment. Today, we’ll talk about what we’re seeing from the stock, why investors are excited, and what we’ll be watching for with regard to NAK ahead.
What We’re Seeing From NAK
As mentioned above, Northern Dynasty Minerals is having yet another strong start to the trading session this morning, following up on the nearly 8% gains the stock posted in the market yesterday. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:00), NAK is trading at $2.34 per share after a gain of $0.05 per share (2.18%) thus far today.
Why Investors Are So Excited
With no news out this week, many may find it strange that NAK is finding its way toward the top with more than 10% gains between yesterday and the pre-market today. So, what’s the deal? Why is it that investors are so excited? Well, they are waiting on partnership news.
You see, for months now, Northern Dynasty Minerals has been on track to get the permits going for the Pebble Project, a massive mine that is essentially the key value driver for the company. However, in order to develop the mine, the company will likely need financial partners.
Nonetheless, over the past several months, NAK has been hinting about conversations with “a consortium of potential partners.” From there, just last week, the company announced that it has hired Mark Hamilton to play a key role in the Pebble Project. Hamilton is a key figure in Alaska, and he has the ability to help in a big way with permitting the Pebble Project. However, he’s not cheap.
Many argue that NAK wouldn’t be making such a high profile hire if they didn’t have partnerships in the bag. After all, without financial partners, taking on yet another large salary could be a major issue on the financial side. So, many, including myself, believe that the announcement of the company bringing Hamilton on board is a signal that partnerships are just around the corner.
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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 potential partnerships that should be announced relatively soon. We’re also excited to follow the permitting process. With Hamilton on board, permits should be relatively easy to attain. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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