Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is making a run for the top in the market this morning, trading on gains of more than 17%. However, the company hasn’t issued any press releases or SEC filings. In fact, the news moving the market seems to have come from the White House, rather than the company. Here’s what’s going on:
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NAK Stock Heads Up On Executive Order
As mentioned above, Northern Dynasty Minerals is headed up after the White House issued an executive order. The order from President Trump specifically targeted the domestic supply chain and pointed to reliance on other countries for critical materials as a detrimental flaw.
The order went on to explain that around 80% of basic materials in the United States are being shipped here from China directly, with a portion of the remaining 20% coming from China indirectly.
The executive order put in place by President Trump late yesterday outlines a plan for bringing basic mineral production back to the United States. Of course, this bodes well for NAK.
Keep in mind, the main value proposition surrounding the stock is the Pebble Project. If approved, the Project will become one of the largest gold, silver, and other material mines in the world.
However, there has been a huge fight about the mine, with some suggesting that it will damage the environment surrounding it and some suggesting that no damage would come; instead, the mine would provide a valuable economic resource for this struggling Alaskan region.
At this point, the United States Army Corps of Engineers have signed off on the company’s plans and the company is awaiting permitting. However, due to the controversial nature of the mine, there are hoops of fire to jump through.
One of these very big hoops is approval from the White House. That’s where yesterday’s executive order comes in. I’ve been saying it all along… Trump is not likely to block the development of the mine.
Trump has always been for bringing business back to the United States, sometimes at costs that many simply don’t agree with. While I’ve looked over the Pebble Project plan and don’t believe it to be dangerous to the environment, even if there are some risks, President Trump will likely push to allow it to come to fruition anyway in an effort to add another pillar to strengthen the United States economy and supply of domestic materials.
The Bottom Line
The bottom line here is NAK is in a good spot right now. Regardless of the recent controversy that led to the resignation of the Pebble Project CEO, and regardless of potential environmental concerns (which again, I don’t personally have any), the company is likely to benefit from the White House approval of the Pebble Project. As such, NAK stock should be on your watchlist.
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