David Hughes of PolyMet walked through a closed plant back in 2011 that his company now wants to resurrect so it can process copper. The old taconite plant would be brought back to life when, and if, PolyMet gets a state permit to drill for copper and nickel.
Edison Investment Research Ltd, which counts PolyMet Mining as a research client, published an analyst report this week on the British Columbia-based mining company, which is proposing a copper-nickel mine in northern Minnesota.
Analyst Wayne Atwell noted that PolyMet released a draft of an environmental impact statement on Dec. 6. According to Atwell, PolyMet has a strong balance sheet with $40.5 million in cash and $35.8 million in debt. “Its cash should carry PolyMet through the permitting process,” Atwell wrote. Based on PolyMet’s management guidance, Atwell believes the company should get needed permits by the end of 2014.
‘Buy’ on NORTHERN
Analyst Jason Wangler of Wunderlich Securities reiterated his “buy” rating on Northern Oil and Gas (NOG) Friday after the company updated its drilling operations in North Dakota. NOG reported strong November activity, which was important to Wangler given the cold December weather that’s likely to slow activity. “With improving completion techniques and a focus on development, we feel Northern should see improved rates of return from both a well and company basis going forward.”