Vancouver-based junior gold and copper mining company Northern Dynasty Minerals (NYSEAMERICAN:NAK) has been the topic of intense debate among the trading community. Some folks like NAK stock, while others are dead set against owning it.
The company is seeking to explore and develop Alaska’s Pebble Project. This is a potential mine development located 200 miles from Anchorage.
Northern Dynasty Minerals has been blocked by environmental regulators from developing the Pebble Project. So, much of the drama and debate surrounding NAK stock involves the company’s ability (or lack thereof) to develop this project.
We’ll explore the recent developments concerning the Pebble Project. Just as importantly, however, investors should focus on the project itself, including its potential to be a highly prospective mineral asset.
NAK Stock at a Glance
It’s probably safe to say that much of the drama surrounding the Pebble Project has already been priced into NAK stock.
To put it another way, the share price has already been beaten down – perhaps unreasonably so.
Consider this: in July of last year, the stock reached a 52-week high of $2.49. As of midday April 13 2021, the stock price is at 60 cents.
Maybe some traders just didn’t want to be involved with Northern Dynasty Minerals while the Pebble Project is facing regulatory scrutiny.
If so, then it’s conceivable that they’ve dumped their shares prematurely. It’s possible that the worst-case scenario has already been assumed. And, the outcome might not be as bad as the bears anticipate.
Back in November of 2020, the seemingly worst possible news befell Northern Dynasty Minerals.
Specifically, the Trump administration officially denied the mine permit for the Pebble Project. Evidently, the U.S. Corps of Engineers had determined that the project’s plan to discharge fill material had failed to comply with the Clean Water Act.
So, if you’re wondering why NAK stock declined so deeply from its peak price, there’s the explanation.
Now, let’s fast-forward to Feb. 26, 2021. That’s when the U.S. Army Corps of Engineers accepted the request to initiate an administrative appeal for the Pebble Project, submitted by the Pebble Limited Partnership, a wholly owned subsidiary of Northern Dynasty Minerals.
That should provide stakeholders with some encouragement, at least.
Based on guidelines from the U.S. Army Corps of Engineers, Northern Dynasty Minerals said that it expected the appeal process to be concluded within 90 days. Under certain circumstances, though, this time frame could be extended.
Recently, the Pebble Partnership urged U.S. Environmental Protection Agency Administrator Michael Regan to support due process and the rule of law.
Meanwhile, I would urge NAK stock traders to check back for updates as this situation continues to unfold.
A Mineral-Rich Asset
With so much drama going on, it’s tempting to get distracted and ignore what the Pebble Project has to offer.
And, what it has to offer is strong prospectivity for copper and gold. As the Northern Dynasty Minerals investor presentation points out, the Pebble asset is among the world’s greatest accumulations of metal.
If Northern Dynasty Minerals does get permission to mine on this property, NAK stock could really fly.
That’s because there could be a major copper discovery at the Pebble Project. Check out the stats on the Pebble asset:
- Second-largest undeveloped copper project globally
- 17% of the contained copper of the world’s 10 top copper projects
- 74% of the contained copper of the 10 top U.S.-located projects
- 57 billion pounds, measured and indicated, of copper
- 71 million ounces, measured and indicated, of gold
- Significant deposits of silver, molybdenum and rhenium
The potential for discovery of more mineral assets is there – at this point, it’s just a matter of getting permission to drill.
NAK Stock: The Takeaway
I’m not recommending that anyone should pour his or her life savings into NAK stock.
The company still has obstacles to overcome. That being said, it’s possible that the share price has been pushed down too far – and that the recovery to the upside could be powerful.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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