Northern Dynasty Responds To Kerrisdale's 'Short And Distort Campaign'

Shares of Northern Dynasty Minerals Ltd NAK lost more than 16 percent on Tuesday. Kerrisdale Capital issued a report recommending investors to sell the stock.

As per the report, the marked surge the stock has experienced since Donald Trump was elected president responds to the false hope of environmental deregulation.

"Though the legal and regulatory problems that will continue to plague the Pebble project even under a Trump presidency are enormous, the project’s Achilles’ heel is more fundamental: economics," Kerrisdale said.

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Rebuttal

In the early afternoon, Northern Dynasty Minerals issued a press release responding to what it calls a "short and distort Campaign."

"Northern Dynasty will be responding with a preliminary rebuttal which will appear on its website by the end of the week. The rebuttal will expose the many inaccuracies and outright misstatements in the Kerrisdale report," the release read.

"Northern Dynasty's Pebble Project is indisputably one of the world's largest undeveloped copper/gold deposits with a potential mine life which is measured in decades," the press release said. "Kerrisdale cites no technical or scientific studies whatsoever and relies on many unnamed persons who were purported to have been involved with the project several years ago."

"Investors should not rely on the Kerrisdale report and should await the Company's detailed response now in progress," Northern Dynasty concluded.

The stock neared the close down 18.2 percent at $2.60.

Image Credit: Pebble Mine, AlaskaTrekker at English Wikipedia [GFDL, CC BY-SA 3.0 or CC BY 2.5], via Wikimedia Commons