Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is making a run for the top in the premarket hour sthis morning, trading on gains of nearly 10% early on. However, with no news issued by the company, many are wondering why the stock is flying. Well, there’s good reason for the gains.
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NAK Stock Heads Up As COVID-19 Improves The Odds Of Pebble Project Permitting
For several years. Northern Dynasty Minerals has been working to bring a massive commodity mine known as the Pebble Project to fruition. If successfully permitted, the mine will become one of the largest in the world, containing gold, silver, and several other valuable metals.
However, environmental concerns have held back permitting for years, leading to a court battle to force the EPA to accept permitting applications, which NAK did win. Since then, there have been Army Corps of Engineers reports and other reports showing that there will be little-to-no environmental impact caused by the mine.
Not only is that good news, the Pebble Project is getting another big push at the moment. Unfortunately, the COVID-19 pandemic and low oil prices as a result of the pandemic are leading to severe economic strain in Alaska. more than 20% of Alaskans have filed for unemployment and jobs continue to be lost.
However, experts expect that a resurgence in the mineral market in Alaska could greatly benefit the economy of the state. As such, it is expected that the EPA will move faster and with more leniency in order to approve permits for mining projects.
Now, not only do we know that NAK and its Pebble project will have no negative impact on the environment surrounding the site, the EPA is much more likely to approve mining-related permits in the region in an attempt to reduce the economic impact of COVID-19.
The Bottom Line
The COVID-19 pandemic is a major issue both from a health perspective and from an economic one. However, many companies will benefit from the pandemic. While most of these are in the healthcare and technology sectors, those in mining like Northern Dynasty Minerals may become beneficiaries as the EPA works to ease the economic impact by approving projects that will open up jobs.
Considering this, NAK is a stock that’s well worth paying attention to.
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