February 14, 2017 / 8:31 PM / in 9 months

BUZZ-Northern Dynasty Minerals: "Worthless," says short-seller Kerrisdale

(Adds Northern Dynasty response)

** U.S.-listed shares of miner slump as much as 39.6 pct to $1.92; Canadian shares fall 39.4 pct to C$2.52

** Both stocks touch over a month low

** Kerrisdale Capital, which is short on the stock, calls the company “worthless”

** Northern Dynasty owns the Pebble deposit, an undeveloped copper and gold resource in Alaska

** "The upfront capital costs necessary to build and operate the mine (Pebble deposit) are so onerous that the mine isn't commercially viable," short-seller Kerrisdale says in a report titled "Cu at Zero" (bit.ly/2kGx8fb)

** Anglo American pulled out of the Pebble copper project in 2013, while Rio Tinto gave away its 19.1 pct stake in Northern Dynasty Minerals in 2014

** In response to Kerrisdale, Northern Dynasty says it will come up with a preliminary rebuttal by the end of the week on its website

** Up to Monday’s close, Northern Dynasty’s U.S. stock had risen more than four-fold since Donald Trump’s election, as investors focused on his promise of lighter regulations

** The only analyst covering stock has a “hold” rating and a PT of $5, according to TR data

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