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Northern Dynasty Minerals: Shareholders Need A Dose Of Reality

Summary

-Northern Dynasty Minerals still has a lot more regulatory hurdles on both the state and federal level to jump over even after the EPA settlement.

The majority of the people living in the state of Alaska, including the governor, oppose the Pebble mine.

-Northern Dynasty Minerals has a history of empty promises and disappointment.

-It will not be as easy as people think it is for Northern Dynasty to partner with a larger mining company to construct the mine.

-There is also no guarantee that the Pebble mine, which is going to be a logistical nightmare to build, will be as profitable as management says it is.

Investment Thesis

Shares of Northern Dynasty Minerals (NYSE:NAK) are currently extremely overvalued due to the regulatory, logistical and economic problems regarding their only mine. The next essential step for Northern Dynasty is to partner with a larger company in order to develop the Pebble mine and if you factor in all of the roadblocks the mine still faces, it is unlikely they will be able to find a partner company.

The Problems With The Pebble Project

Northern Dynasty Minerals Ltd. is a small mining company which is currently trying to get develop and achieve regulatory approval for the Pebble mine. Southwest Alaska. If the mine is built, it would be North America's largest copper and gold mine. Read the rest of the article here.


At the time of writing, shares of Northern Dynasty Minerals traded at $1.39. As of July the 7th, shares trade in the $0.50 range. 

 

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