Northern Dynasty Minerals (NAK): Looming Dilution Potential, 6 More Downside Risks
The Street Sweeper’s Blog, 16 August 2016
Northern Dynasty Minerals (NYSEMKT:NAK) proposes to build a massive copper and gold mine in Alaska’s Bristol Bay headwaters. But opposition has stretched over the past decade to block any advancement. Meanwhile the downside risks are piling up, including:
*Momentum trading influences the stock price in this company with “going concern” issues.
*A major investor has recently sold 4 million shares.
*The same investor recently promoted the stock on TV.
*Low cash, high burn are forcing NAK to issue stock. More dilutive shares will be ready for sale in October.
*Local opposition is stronger than ever, according to one observer.
*Copper prices are low amid oversupply concerns.
After a decade of controversy over its proposed Pebble mine, Northern Dynasty Minerals (NAK) is still absolutely nowhere. At first glimpse, unwary investors might expect significant news because the stock has practically doubled over a month to unsustainable levels.
The Pebble property covers 153 square miles of land in Alaska, taking in at least 15 square miles for the proposed mine operation and tailings ponds. The project would place one of the world’s largest copper and gold mine against the world’s largest salmon fishery and environmental concerns.The project has not yet entered the permitting phase.
