Northern Dynasty Minerals (NAK) Stock Declines Are An Opportunity

Northern Dynasty Minerals NAK Stock News

Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is falling in the market this morning, trading on declines of around 4% just before the bell. The move comes after presidential hopeful, Joe Biden, made some comments, leading many to believe that the company simply won’t get permitting for the Pebble Project. However, I don’t believe that to be the case, and neither does NAK.

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NAK Stock Falls On Biden Comments

Democratic president hopeful, Joe Biden made some comments recently, suggesting that he would stop any permitting of the Pebble Project. Essentially, he said that he would rely on a study completed by the Obama-era Environmental Protection Agency in 2014. This would lead to federal permits to Pebble being denied. Of course, that’s bad news for Northern Dynasty MInerals.

After all, if Pebble is not permitted, the company will never be able to recover the more than $1 billion it has spent to bring the mine to fruition to date. However, In a press release issued by NAK this morning, a very important statement was made.

Ultimately, this is election season. Presidential hopefuls will say whatever they believe the general population wants to hear in order to be elected. However, from an educated decision standpoint, Pebble will likely be permitted.

Moving forward, the Final Environmental Impact Statement (EIS) from the United States Army Corps of Engineers (USACE), is likely to be used when making these decisions, not a study that was performed nearly a decade ago, regardless of who wins the presidency.

In the press release, Collier, top dog at the Pebble Project, couldn’t have said it better when he was quoted as saying:

It’s election season, and people are going to posture and say things, I totally understand that. But when it comes down to brass tacks, to the law, there can be no federal action at Pebble that is inconsistent with the Final EIS, period.

The Obama administration was unable to impose a regulatory decision on Pebble without the final EIS from USACE, and if Biden is elected, he simply can’t over step Federal Law, which would require the EIS to be the basis for the final decision.

And let’s not forget how positive that EIS was. NAK was told that its Pebble Project would have no negative impact on the surrounding environment. Furthermore, the Project would add jobs and income to a struggling region of Alaska, ultimately assisting in economic growth.

For any president to ignore the evidence brought forward by the United States Army Corps of Engineers would be a gross miscarriage of justice. It’s simply not likely to happen.

So, the declines created by these comments are doing nothing more than creating a discounted opportunity to get in the door.

Final Thoughts

An investment in Northern Dynasty Minerals doesn’t come without its risks. The primary risk is the fact that the mine will be massive, costing bakoodles of bucks to create. So, the company will likely need to partner with other mining companies to make it come to fruition.

However, in my view, permitting is no longer a risk. The fact of the matter is that the final EIS is legally the foundation of any permitting review surrounding the Pebble Project. Considering this, the foundation is strong and the house will likely be built.

As such, NAK stock represents what I believe to be a strong opportunity at the current price.

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