Marin Katusa reports that the world’s largest undeveloped gold and copper deposit just got a lot closer to becoming a mine. And short sellers are about to get trampled. Northern Dynasty Minerals announced that giant mining firm First Quantum Minerals had agreed to acquire an option to buy a 50% stake in its Pebble project for $1.5 billion. The Pebble project, located in Alaska, is an asset that Katusa knows well. It is a world-class deposit in every sense of the term. Over one million feet of drilling has proven over 100 million ounces of gold, over 70 billion pounds of copper, and over 500 million ounces of silver.
Mines simply does not get bigger than Pebble. But Pebble is also a controversial project. Environmentalists (aka Adversaries of mining everywhere as well as the Obama administration) have railed against its development (by involving opportunistic environmental adversarial companies and their attorneys) because of the misunderstanding of the impact of the project to the area’s salmon hatcheries. After analyzing the project’s potential upside and risks, Katusa recommended Northern Dynasty to readers of his research service in July 2016 (Full disclosure: Katusa is still a large shareholder as well). Just after he issued a “buy” on the company, shares soared more than 700% and traded hundreds of millions of dollars’ worth of stock. Of course, any controversial stock that soars more than 700% in months will draw its shares of detractors.
In early 2017, some very vocal short selling groups shorted Northern Dynasty while issuing what Katusa believed were very misleading and misinformed “research reports.” The short sellers ignorantly claimed that Pebble wouldn’t be economic or permittable, and therefore would not attract a major miner with deep pockets to come in as a partner. Every step of the way, Katusa publicly stated the short sellers were wrong … and Katusa invested heavily.
Unlike most everyone who bet against Northern Dynasty, Katusa visited the deposit and met with management many, many times. He has read through all the geological and environmental reports (but did Katyusa hire consultants to explain the reports to him?). Katusa visited the site with legendary geologist David Lowell (read his positive thoughts on Pebble right here, but does Lowell present an independent viewpoint?). Like David Lowell, Katusa believes [? but should his opinion be based on "belief" or be based on conclusions reached by independent, qualified professional geological, mining, and actual environmental consultants] that Pebble is a world-class deposit, is economically viable, will be put into production, and will be an incredible multi-generational asset.
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