NDM - Northern Dynasty Minerals Ltd.

[yader]

NDM owns a 50% stake in the Pebble Mine. 

 

Full ability to mine at will is very unlikely however I do see good possibilities for mining but with restrictions.  The reserves are huge.  Hopefully the government will do the right thing here and protect one of the best salmon fisheries in the world, as well as a host of other wildlife.

 

The common stock here is like a call option.

 

http://en.wikipedia.org/wiki/Pebble_Mine

 

www.stockhouse.com/news/newswire/2014/07/21/northern-dynasty-t-ndm-wobbles-as-u-s-epa-moves-to-block-giant-alaska-mine

 

[bookie71]

Be very careful as the political pressure on the Pebble Mine is very intense.  Most of the native corporations (not all) and the commercial fisherman (Bristol Bay has the largest Red Salmon run) are very vocal about it.  There have been some very nasty local ads. The Pebble folks have really cut way back on their expenditures and a couple of their investors have dropped out.

Google it and see some of the articles.

https://www.google.com/webhp?sourceid=chrome-instant&rlz=1C1GGGE_enUS390&ion=1&espv=2&ie=UTF-8#q=pebble+mine

 

[yader]

Facing what seems an endless legal battle is there a possibility for shareholders to be paid while the mine is undeveloped?  What I mean is this: Mining is just as viable as fishing.  If miners were there first and fishers came in and said they wanted to establish a salmon run and commercial fishing in a premier location, would the miners then be shut down or would the community fight against the incoming fishermen?  Both have a claim to the resources.

 

Could the company transition to a royalty model being paid a percentage of the resources worth?  The fed gov, epa, state of AK, and taxes on fishing revenue could all be sources for the deal.  As a royalty company a 30-50x (or more) multiple would then be applied to the royalty and our new business would be worth a lot.  In the end we get paid and everyone is happy.  The locals keep their fishing, and a potential environmental concern is permanently averted.

 

Is there legal precedent to deny a company legal rights (such as mining) by the introduction of new law with no compensation for the new ruling?  Seems criminal to sell something (mining right) and then say, "Thanks for your money but you can't mine here."

 

Any thoughts appreciated.  Personally I'd like to see the mine undeveloped.  I'd be happy to participate in a win-win royalty though!

[bookie71]

DO Not under any circumstance, expect some common sense in Alaska politics.  It ain't gonna happen.  ;D

But that said, they are anything but dull.