An update on the ultimate trump trade: 48% gain in less than a month!

On March 17, we presented Northern Dynasty Minerals as “A Second Chance at the Ultimate Trump Trade“. Last night, the stock jumped 31.88% after the State of Alaska approved a land-use permit that brings the mining project closer to development phase.

This is just one step of the permitting process, as the company is still battling the Environmental Protection Agency (EPA) in court over a preemptive veto. However, it marks a sharp change in market sentiment. The stock had been struggling after the release of a damning yet spurious short-seller report in February. Among other things, the report wrongfully argued that Northern Dynasty’s management was incapable of delivering tangible results and was excessively optimistic about the permitting process.

Yesterday, the Alaska Department of Natural Resources confirmed that the mining project is “a well-managed exploration project“, putting the company on course to initiate permitting under the Clean Water Act and National Environmental Policy Act.

While the ongoing litigation with the EPA still hangs over the company, we may not have to wait much longer as the deadline for negotiations to conclude was recently extended to May 4. With a new political environment in Washington, and a new EPA administrator who self-describes himself as a “leading advocate against the EPA’s activist agenda”, we’re expecting a favorable outcome.

The stock is up almost 48% since we last recommended it. It remains one of our best speculative bets on the Trump presidency.

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The information contained in this article is General in nature and has been prepared without taking into account your objectives, financial situation and needs.

 

Joao Costa Pereira
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Joao Costa Pereira

Equity Research Analyst at United Global Capital
BSc Economics, MSc Finance
Joao is an Equity Research Analyst at UGC
Joao Costa Pereira
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