Northern Dynasty Minerals NAK Stock News

Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is falling in the market yet again today. This seems to be a trend since the United States Army Corps of Engineers provided their final EIS, showing that the Pebble Project would have no negative effects on the surrounding environment.

The news that should have sent the stock soaring sent NAK on a downtrend. Why? Well, because investors see work ahead. Nonetheless, there are several potential catalysts ahead that could make this stock pop. Here’s how I see it.

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Why NAK Stock Has Been Falling

I was just as surprised as the masses when the final EIS sent Northern Dynasty Minerals stock on a downward trend. However, it makes sense.

The company’s claim to fame is the Pebble Project. If the Project comes to fruition, it will be one of the largest precious metals and minerals mines in the world. So, the value is there. The problem is bringing it to fruition.

Creating a mine of this size requires quite a bit of capital, and it’s capital that NAK doesn’t have. As a result, even if the company does receive the permits to move forward with mine production, it would likely have to partner with other companies for financial support.

So, while the EIS set the stage for permitting ahead, there are a couple of questions that investors seem to be taking the wait and see approach on:

  1. Will the permits for the Pebble Project actually be approved?
  2. Will NAK find a partnership?

These questions seem to be the reason for recent declines, but they could be opening the door to a massive discount, and with catalysts ahead, now may be time to buy.

Several Catalysts Ahead Could Provide A Boost

Ultimately, there are three key catalyst events ahead that, if they take place, could send the stock screaming for the top. These include:

  1. Permit Application – As soon as Northern Dynasty Minerals applies for permits to move forward with the Pebble Project, the stock will likely begin to soar. Pending permits will open the door to speculation, and if the past is any indication, speculation that the company is on the way to development of the mine will send the stock screaming for the top.
  2. Partnerships – Again, for the Pebble Project to come to fruition, NAK is going to need to find a partner to get in bed with. The reality is that the Project will cost millions upon millions of dollars to develop, and it’s best if another company shares in the risk. If the company announces that it has indeed found a partner, the stock could soar.
  3. Ground Break – Finally, if the company makes it as far as breaking ground, the potnetial for an announcement like this to cause gains is tremendous.

Final Thoughts

With recent declines, there’s a strong argument that NAK is trading at a discount. This is especially the case should one of these catalysts take place.

There’s also a good argument that should an event like this take place, a short squeeze will follow. With recent declines, short interest on NAK stock is building. So, a positive catalyst could send the shorts running for cover.

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2 COMMENTS

  1. Trump Jr. Vice President Pence said Bristol Bay and surrounding fishery are ” too unique and fragile to take any chances” thay will NOT permit the mine.

  2. Little Donnie Jr. Is the definition of irrelevant! Anyone who thinks this mine will be or not be permitted based on anything little Donnie says is extremely misguided. Pebble has proven through the NEPA process that the mine and fisheries can coexist (now scientific fact) fear-mongering from the NIMBY’s is all this is!

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