Canada-based copper mining company Northern Dynasty Minerals’ (NAK) Pebble Project has attracted significant investor attention because of its potential to boost the production of metals used in green technology. But given that politically unfavorable circumstances have put the project’s future in jeopardy, is it worth betting on the stock now? Read on.Based in Vancouver, Canada, mineral exploration company Northern Dynasty Minerals Ltd.’s (NYSE:NAK) principal mineral property—the Pebble project—represents the most significant underdeveloped copper and gold resource in the world. And because the Biden administration's renewable and low-carbon energy targets are expected to drive unprecedented demand for copper, the company is well-positioned to benefit.
However, NAK’s shares fell 10.3% in price on Monday after the U.S. Environmental Protection Agency (EPA) announced its decision to file a motion to remand its July 2019 withdrawal notice concerning Alaska's Pebble Project. In addition, the stock is trading 64% below its 52-week high of $1.26, indicating short-term bearishness.
While its Pebble Project initiative could boost green power and electrification technologies, ongoing legal challenges and NAK’s faltering financials could make investors nervous.