Active Stocks: Northern Dynasty Minerals, Ltd [NYSE: NAK] was one of the biggest gainers in Tuesday’s session. The stock rallied by 65.31% to close the day at $0.9140. This followed a decision by the Trump administration to lift an Obama-era restriction on mining in Alaska. These restrictions had been put in place on environmental grounds, but as a consequence, limited the flexibility in land use by private landowners.
The CEO of Pebble Partnership, which is owned by Northern Dynasty appreciated the move, and stated that the Trump administration had finally dismantled an outrageous federal government overreach on the State of Alaska. Without these restrictions, Northern Dynasty can now work on the pebble mine. It is expected that the mine will produce 70 million tons of gold, copper, and molybdenum every year. This will be a huge boost for NAK, and the markets appreciate this fact, going by its price action on Wednesday.
Going by yesterday’s price action, NAK was making higher lows, an indicator of increasing bullish momentum. The stock is also supported by an increase in up volume in the last 24-hours, an indicator that this stock is currently drawing in bullish investors. However, if the stock does not hold support it could pull back from this recent move.
However, even with all this bullish sentiment around NAK, environmentalists have their reservations about this move by the Trump administration. Environmentalists and fishermen feel that the project could be a threat to the environment. According to Alannah Hurley, head of the United Tribes of Bristol Bay, it’s a move which shows that, the current administration is working with lobbyists. Nonetheless, from an investor perspective, NAK looks like a good deal at the moment.