Shares of Northern Dynasty Minerals (NYSEMKT:NAK) are currently extremely overvalued due to the regulatory, logistical and economic problems regarding their only mine. The next essential step for Northern Dynasty is to partner with a larger company in order to develop the Pebble mine and if you factor in all of the roadblocks the mine still faces, it is unlikely they will be able to find a partner company.
Early last year, the combination of bad P.R., spooked investors, declining copper prices, logistical and infrastructural challenges, unresolved court battles, and a proposed intervention by the Environmental Protection Agency seemed to have rendered Pebble an extreme long shot. Northern Dynasty’s stock, worth twenty-one dollars a share five years earlier, bottomed out at twenty-one cents.
Perhaps not surprisingly, a project many believed was dead has been given new life. Some investment blogs and websites are newly bullish on the proposed Pebble project. Northern Dynasty's current CEO, Ronald Thiessen, is traveling the world to tout Pebble's prospects, stating the Pebble Limited Partnership, a subsidiary owned and created by Northern Dynasty to develop the mine, will begin permitting this year.
Political winds may indicate smoother sailing for a major proposed mine project in Bristol Bay, but new legal and financial hurdles may continue to stymie the project.