Kerrisdale Capital has reached out to Northern Dynasty Minerals Ltd (NYSEMKT:NAK) over a short and distort campaign. Kerrisdale has claimed responsibility for the recent publishing of a negative opinion piece, which seems to hit back at Northern Dynasty. The company claims that Dynasty’s massive copper/gold project in Alaska does not have any economic value.
The effect to this was massive because Dynasty lost in excess of 16% of its shares. At the same time, Kerrisdale has been calling on investors to sell off the stock for fear of uncertainties. Apparently, Northern Dynasty Minerals has not categorically responded to Kerrisdale moves.
In a press release, the company says, “Northern Dynasty will be responding with a preliminary rebuttal which will appear on its website by the end of the week.” Word has it that there is a lot of misrepresentation and misstatements from Kerrisdale’s report and this is exactly what the rebuttal will be seeking to expose.
Investors should not rely on the Kerrisdale report: Northern Dynasty says
The little sneak peak from Dynasty’s press release is clear indication that it will not be cowed by Kerrisdale’s allegations. In what seems like a justification of its determination, the Vancouver miner claims that its Pebble Project is one of the world’s largest undeveloped copper/gold deposits, which has great potential mine life. It is now urging investors not to bank on Kerrisdale report.
In a quick response, Kerrisdale cites lack of scientific studies that can support the Pebble project. It claims that Dynasty is relying on people who were once part of the project. Kerrisdale further spells out that the project is not likely to survive so long as Trump remains the president.
Pebble project has been stalled since 2014
The project suffered a major blow from the U.S. Environmental Protection Agency in 2014. It was denied the application of operational permit and was named a threat to Alaska’s large sockeye salmon fishery.
However, chief executive of Northern Dynasty, Ronald Thiessen says that they are expectant of better terms from the new administration. There are predicting to have a solution in the next 100days given the speculations that Trump’s administration is likely to take a softer lane on miners in general.
Meanwhile, Northern Dynasty’s stock closed at $2.50 a fall of $0.68 or 21.38%.