Since The U.S Election, Northern Dynasty Minerals LTD. Has Boosted Its Shares As Trump Plans To Restore Its Alaska Project.
Underdeveloped mineral companies in Canada such as Northern Dynasty Minerals Ltd. (TO:NDM). increased their shares since Trump’s victory in the recent U.S Election.
Northern Dynasty had tripled its shares as demonstrated in the chart below. The copper and gold deposit company boosted its shares as an approach to a four year high as the plans of reviving its Pebble Project in Alaska have been heavily hypothesized to push through with the recent growth.
Project: Alaska
In 2001, Northern Dynasty instigated an exploration at a Pebble site in Alaska and uncovered a deposit that scaled more than the expected results. The site holds resources of 81.5 billion pounds of copper, 107 million ounces of gold and 514 million ounces of silver which can be a great asset for the company if mining in the said site was to push through. If the planned excavation was imposed, 55% of the resources would be extracted within the range of 80 years, according to CEO Ronald Thiessen in his speech back in March.
Six years later, the former Governor of Alaska Sarah Palin helped Thiessen to gather potential stakeholders in Northern Dynasty’s project. In results, Anglo American (LON:LON:AAL) agreed to a partnership with the company’s project as Rio Linto bought stakes in Northern Dynasty with both holders in hopes of generating good returns with the said project.
However, partnerships were unsuccessful. In 2013, Anglo American parted ways after investing 500 million dollars to the project. On the other hand, Rio Linto decided to donate their shares to charities which include foundations that are against the project.
The pebble site is estimated to measure up to 320Km in area with some parts of the northern tundra touching the grounds of the site. Located at the southwest of Anchorage, it holds some parts of the primeval waters of Bristol Bay, a home for the endemic Sockeye Salmon which sparked the environmentalists’ to oppose to the project of Northern Dynasty.
Former president Barack Obama prohibited mining and any other forms of deforestations in the site to maintain the pristineness of the natural deposit but with the new administration, the prohibition might be removed as Trump looks forward to push the company’s project on the Alaskan sanctuaries.
The Alaska Project is scheduled to be executed around 2024 but Northern Dynasty has still to face Activists who are against the project. On the Brightside, resolutions from both parties are still being discussed as Northern Dynasty still needs to secure a clear permit before enforcing the project.
Technical Analysis
All four indicators have signaled a rise for the stock. Generally, Northern Dynasty Minerals Ltd. traded with the volume of 10.72 Million in the recent session. Its regular trading volume positions at 4.43 Million shares. The company opened at $2.49 and closed at $2.5 as it displayed a gain of 9.65 %.
Northern Dynasty’s market capitalization is at $606.15 Million. Correspondingly, the stock’s P/E is 0 and volatility on a weekly basis is at 8.37% and as per month is at 10.12%.
Starting with the relative strength index, Northern Dynasty Minerals Ltd is at 68.72 whereas 3-day RSI mounts at 92.05, the 7-day rests at 77.88 and the 14-day is at 68.72.
The 14-day Average Directional Index noted the stock at 44.95. ADX signals this as a good trend because interpretations lower than 20 would display a static inclination. Generally, if a stock is rated 20-25, the stock is not trending.
Williams’s %R signals that the stock is on a good state with a rating of -10.28. If the stock manages to rise above -20, the stock may be considered as overbought but the probability so far is unlikely.