Northern Dynasty Minerals (NYSE:NAK) and their Pebble Mine have been in the news recently thanks to several positive advancements concerning the site and the political activity in Alaska. As a result, shares of this beaten down speculative mining stock have increased 50% to current levels. Many of the risks remain when investing in Northern Dynasty Minerals. However, I believe the latest political shift, the company’s new plan, and possible 2019 catalysts offer a compelling high-risk high-reward scenario here for speculative investors.
The biggest reason for the spike in the share price was the mid-term elections. Alaska elected GOP candidate Mike Dunleavy with 52.3% of the vote. Dunleavy defeated Mark Begich, a Democrat who has been vocal about not allowing the Pebble Mine to progress. Dunleavy has come across as pro-mining and when asked about the Pebble Mine specifically, has said he wants to see permits and testing go through before making a decision.
Alaskans also voted down Ballot Measure 1, also known as Stand for Salmon. The proposal would have made it tougher for the Pebble Mine to proceed. Alaska was a big election battlefield with Pebble Mine as a key driver. More than $14 million was spent on Ballot Proposal 1 with millions more spent on the governor race. Stand for Alaska, fueled by oil and mining companies, spent more than $12 million on the election. Two gubernational candidates who opposed Pebble Mine also lost in the election.
Going forward, Dunleavy has declared that “Alaska is open for business” and “we’re going to be humming here in just a few years.” Mining and mineral development were cited as important items to the future success of Alaska. Dunleavy has already appointed a possible positive appointment in the progress of Pebble Mine. Dunleavy announced Jason Brune as his environmental conservation commissioner. Brune
