Northern Dynasty Minerals NAK Stock News

Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is running for the top in the market this morning, following up on the strong gains that the stock saw yesterday. While we’ve seen strong gains in the past two trading sessions, there’s still plenty of room for gains in both the short and long run following what I believe to be a misleading report from Politico that sent the stock tumbling earlier this week. Here’s what’s going on:

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Politico Post Sends NAK Stock Tumbling

Politico published an article over the weekend suggesting that the Trump Adminstration would soon block the Pebble Project. For those of you who haven’t been following the story, allow me to rewind a bit.

Northern Dynasty Minerals has been working for several years and spent more than a billion dollars in order to get the permits to build what is expected to be one of the world’s largest gold, copper, and silver mines in the world. Unfortunately, the deposit sits in the middle of what is known as home for the world’s largest sockeye salmon population.

For several years, the EPA has blocked the mine. However, a recent environmental impact statement from the United States Army Corps of Engineers concluded that the mine would have little to no impact on the surrounding environment.

Now, NAK needs the Trump Administration to sign off on Pebble to complete the permitting process. So, if Trump doesn’t sign off, the company will have spent years and over a billion dollars trying to bring a mine to fruition that simply won’t be built.

With the Politico report suggesting that the Trump Administration would shoot the company’s plans down, the stock timbled, loosing a significant portion of its value early this week.

Investors Are Starting To Realize That The Report Is Likely Wrong

The Politico report suggested that the Trump Administration would block the Pebble Project. However, when you really start to think about it, that doesn’t make any sense.

The Trump campaign that led to his election and his current campaign centers around United States production. The idea is to develop business in the United States to strengthen the United States economy.

With the United States Army Corps of Engineers suggesting that the mine will have little-to-no impact on the surrounding environment, Trump is actually highly likely to approve the Pebble Project. In fact, if Trump were to deny the request from NAK, it would go against everything he seems to stand for in his campaigns.

The Bottom Line

The bottom line is that while NAK has somewhat recovered from the Politico post, there’s still plenty of room for gains in the recovery, and I believe the recovery will happen. At the end of the day, the Trump Administration is likely to approve the project, and soon enough, investors will realize that. This means that the recovery is likely to continue. Moreover, the long run potential with NAK is hard to ignore.

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