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Northern Dynasty Minerals Ltd. Shares Continue To Respond Favorably

By Kurt Osterberg · On July 20, 2017

TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Written by SmallCapPower Staff

Shares of Northern Dynasty Minerals Ltd. (TSX:NDM), which explores one of the world’s largest copper-gold resource at its Pebble project in Alaska, have been seen in a more favourable light recently on positive developments related to the settlement with the EPA.

Northern Dynasty Minerals’ stock had been on an upward trend in anticipation of favorable news going back to March, 2017.

Then on April 12, 2017, its share price zoomed nearly 32% to reach $1.89 on news that the Alaska Department of Natural Resources issued a notice of approval of Miscellaneous Land Use Permit for the Pebble Project.

In the run up to the settlement, the shares surged nearly 28% on May 8 and 9to close at $2.84 but had been on a gradual decline due to the “buy on rumor” and “sell on news” behaviour of investors.

Northern Dynasty Minerals’ stock gained 8% post the July 11 news of the EPA beginning the process to withdraw its earlier restriction under the CWA.

Northern Dynasty Minerals – 1 Year Chart

Investment Thesis

On May 12^th, Northern Dynasty Minerals announced the legal settlement with EPA, which should pave the way for the development of the Pebble project

The Pebble copper-gold hosts contained resources of 57 billion pounds of copper and 70 M ozt of gold

Balance sheet is healthy with $54.7 million of cash equivalents and no debt

Legal settlement with EPA clears obstacles for Pebble mine development

After nearly a decade of litigations with regulators, Northern Dynasty Minerals announced on May 12 2017, that it reached a settlement agreement with the U.S. EPA that allows the Pebble Project to proceed into normal course permitting under the CWA and National Environmental Policy Act.

On July 11, 2017, consequent to the settlement agreement, the EPA began a process to withdraw a Proposed Determination it issued under the Clean Water Act in 2014, which paves the way for the normal development of the large copper and gold Pebble Project.