Topic: How To Invest

Pat: Northern Dynasty seems to have great potential, but nothing is happening. Buy, sell or hold? Thanks.

Article Excerpt

Northern Dynasty Minerals, $7.13, symbol NDM on Toronto (Shares outstanding: 93.8 million; Market cap: $669.1 million), aims to start production at its Pebble project in Alaska. Northern Dynasty and mining giant Anglo American are equal partners in the project. The Pebble deposit contains an estimated 73.7 billion pounds of copper, 4.7 billion pounds of molybdenum and 89.9 million ounces of gold. The project needs continued high copper, gold and molybdenum prices. However, Northern Dynasty has a sound partner in Anglo American. In addition, Rio Tinto plc paid $200 million for 19.8% of Northern Dynasty’s shares in 2006. And Japan’s Mitsubishi Corp. holds an 11% stake in Northern Dynasty. The Pebble partnership is working on a prefeasibility study and expects to complete it by the end of this year. After that, the partners will apply for a permit under the U.S. National Environmental Policy Act. The project faces strict environmental regulations. As well, it is near one of Alaska’s key sockeye…