Please ensure Javascript is enabled for purposes of website accessibility

Why Northern Dynasty Minerals Stock Dropped Today

By Howard Smith – Sep 13, 2021 at 3:46PM

Key Points

  • Northern Dynasty's CEO says the company is ready for a fight.

Motley Fool Issues Rare “All In” Buy Alert

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 published a response to the recent U.S. EPA decision that went against its mining plans.

What happened

Late last week, the U.S. Environmental Protection Agency (EPA) said it plans to remand and overturn a previous notice made in 2019 that ended a review process for a planned mine near Alaska's Bristol Bay. Northern Dynasty Minerals (NAK -0.32%) angrily responded to the EPA notice, and shares dropped more than 12% this morning. As of 2 p.m. EDT, the mining stock was still down 9%. 

So what

If the court grants the EPA motion, the review process would be reinitiated for Northern Dynasty's Pebble Mine project. The EPA seeks to protect certain waters in the Bristol Bay watershed under the authority of the Clean Water Act (CWA). In the release of an official response to the EPA announcement, Northern Dynasty President and CEO Ron Thiessen provided a statement with a seemingly antagonistic tone.

Bristol Bay, Alaska, with mountains in the background.

Image source: Getty Images.

He said, "Here we go again. ... Under President Joe Biden, we once again find ourselves dealing with Obama-era policies that were inappropriate then, and are inappropriate now." Investors today likely don't think a hostile relationship with the EPA or administration will work out well for the company and its investments. 

Now what

An investment in Northern Dynasty hinges on the final Pebble Mine outcome. The mine is the world's largest undeveloped copper, gold, molybdenum, and silver resource, according to the company.

Northern Dynasty said in its official statement that it plans to focus on working through a formal appeal process. In trying to express a collaborative note, the company said, "The Pebble Project remains an important domestic source for the minerals necessary for the administration to reach its green energy goals."

But investors reading the CEO's statement likely feel the process is bound to be adversarial, and that probably won't help it achieve its ultimate goal to revive the project. 

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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 Stock Quote
Northern Dynasty Minerals
NAK
$0.25 (-0.32%) $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 analyst team.

Stock Advisor Returns
360%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

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.