Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, gold explorer Northern Dynasty Minerals (AMEX: NAK ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Northern Dynasty's business and see what CAPS investors are saying about the stock right now.
Northern Dynasty facts
|Headquarters (founded)||Vancouver, Canada (1983)|
|Market Cap||$1.37 billion|
|Industry||Diversified metals and mining|
CEO Ronald Thiessen (since 2001)
CFO Marchand Snyman (since 2008)
|Return on Equity (average, past 3 years)||(11.9%)|
|Cash/Debt||$40.8 million / $0|
Coeur d'Alene Mines (NYSE: CDE )
Hecla Mining (NYSE: HL )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93.5% of the 492 members who have rated Northern Dynasty believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars Seering and luvb2b, both of whom are ranked in the top 16% of our community.
In late January , Seering succinctly summed up the Northern Dynasty bull case: "Value of minerals in the ground, priced even conservatively, makes this stock a bargain."
Next year, in fact, Northern Dynasty is expected to cut its bottom-line loss by a whopping 65%. While still losing money, that compares well to growth rates at rivals Coeur d'Alene (0.4%) and Hecla (8.9%), as well as other gold stocks such as Goldcorp (21.9%) and Yamana Gold (NYSE: AUY ) (6.3%).
CAPS All-Star luvb2b offers a more detailed look into Northern Dynasty:
The estimated gold value alone is nearly $150 billion. Including copper and other metals, the deposit contains nearly $500 billion dollars in metal value. I believe it is the single largest store of mineral wealth in the world. Unlike Bre-X, large mining companies have done close examinations and come away owning substantial stakes: Rio Tinto, Mitsubishi, and Anglo-American. These are major players that Bre-X was never able to get on board, because of course, the deposit was a fraud.
How should one value this deposit? At the current price the market cap is under $2 billion. Bre-X topped out at a market cap around $20 billion -- and it was a complete fraud during a time when commodities weren't booming. ...
All it's going to take in NAK is the right psychological conditions to develop in the market -- at that point history suggests this stock could be shooting star like few others.
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