Northern Dynasty Minerals (NAK) Stock: It’s Time To Buy

Northern Dynasty Minerals NAK Stock News

Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) issued an great update this morning. However, the stock isn’t moving in the positive direction. Today, we’ll talk about the positive update, why the stock isn’t flying, and why now may be the time to buy.

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NAK Stock Is A Buy After Pebble Project Announcement

In the press release issued this morning, Northern Dynasty Minerals a revised mineral resource estimate for the Pebble Project. According to the newest estimate, once developed, the Pebble Project will be the single most significant known source of Rhenium in the world.

In the release, NAK said that it now estimates that the Pebble deposit contains 2.6 million kg of Rhenium, 57 billion pounds of copper, 71 million ounces of gold, 3.4 billion pounds of molybdenum and 345 million ounces of silver within 6.5 billion tonnes in the combined Measurable and Indicated categories.

Renium is a very important metal to the United States. It is often used as an alloying metal in jet engine turbine blades, combustion chambers, and exhaust nozzles. In fact, jet engines and related military applications accoutn for about 80% of the annual rehnium consumption in the United States.

Rhenium is also used as a catalyst. In fact, it is commonly used in the production of high octane, lead-free gasoline.

Why The Stock Isn’t Flying

With such strong news out of NAK, many are wondering why the stock isn’t rocketing this morning. The answer is simple:

Trump has coronavirus.

Northern Dynasty Minerals has been fighting to permit the Pebble Project for years. In fact, a couple of years ago, a court order forced the EPA to accept an application for permitting should specific parameters be met.

Today, those parameters have been met and the company is now waiting on the Trump Administration’s approval of the project. The problem is that this morning, it was announced that President Trump and his wife, Melania Trump, have tested positive for COVID-19.

For NAK, it’s very important that Trump is well and able to approve the project, as his administration is likely to do so. In fact, just yesterday, news broke of a new executive order that pushes for the fast permitting of basic materials projects that bring production in the country. With most of the country’s rhenium coming from foreign producers, this executive order further validates my view that the Trump administration will approve the Project.

The problem is that if COVID-19 takes the President out, well, there’s a strong chance that there will be more delays for the Pebble Project ahead. So, while the news is great, fears with regard to Trump and his wife being sick seems to be holding the stock down.

The Bottom Line

The bottom line here is simple, Northern Dynasty Minerals is sitting on a very significant deposit of a long list of basic materials. While permitting has taken years, the company is closer today than ever before.

With President Trump being sick, there’s a lot that’s up in the air. Nonetheless, I do believe that Trump will recover and NAK will receive approval for the Pebble Project. As such, it would be wise to dig into NAK stock as a potential addition to your portfolio.

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