Please ensure Javascript is enabled for purposes of website accessibility

Why Northern Dynasty Minerals Stock Jumped Today

By Howard Smith - Jan 28, 2021 at 3:11PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's shares continue to trade based on the resolution for its Alaskan mine project.

What happened

Shares of Northern Dynasty Minerals (NAK 1.27%) soared 36% early on Thursday, before settling back to a gain of about 12% as of 3 p.m. EST. The stock has experienced several sharp moves since the U.S. Army Corps of Engineers rejected the company's response in addressing environmental issues related to dredged materials and waste fluids for its Alaskan Pebble Mine project.

So what

Today's initial jump came after the company released its request for appeal (RFA) on the Pebble permitting decision. The company's Alaskan project was virtually killed late last year with the U.S. Army Corps of Engineers decision. 

The RFA presented "some very compelling arguments" that the Army Corps' decision is "contrary to law," Northern Dynasty president and CEO Ron Thiessen said in a statement.

open pit mine at dusk with snow on the ground

Image source: Getty Images.

Now what

Earlier this month, Alaskan Gov. Mike Dunleavy's administration said it would formally appeal the Army Corps' denial of the federal permit for the project. The state has also officially submitted its RFA as the owner of land and sub-surface mineral resources at Pebble, the company said. 

The 92-page official RFA from the Pebble Limited Partnership (PLP) was sent on Jan. 19. The PLP argues in part that the alleged deficiencies could "easily" have been addressed if given the opportunity. However, it continues, the Alaskan district of the Army Corps "did not give PLP any opportunity to address the issues raised, nor did it explain why no such opportunity was provided."

An investment in Northern Dynasty hinges on the final Pebble Mine outcome. Control over that decision lies with the regulatory bodies, as well as management's appeal efforts. Today's publication of the response gave investors hope that there is still life left in this investment. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Northern Dynasty Minerals Ltd. Stock Quote
Northern Dynasty Minerals Ltd.
NAK
$0.32 (1.27%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.