PolyMet Mining Corp [NYSE: PLM] is braving the market sell-off this afternoon and is up by over 70% at the time of writing. The stock’s momentum is driven by a confluence of positive factors around it. The latest of this news is with regards to the company’s clearance by a court in a case involving its adherence to procedure.
Yesterday, a judge in the Ramsey District Court ruled that the Minnesota Pollution Control Agency did not err in the procedure when it processed the National Pollutant Discharge Elimination System permit for a precious metals, copper and nickel project that is run by a subsidiary of PolyMet Mining Corp.
The judge rejected in totality allegations that the MPCA took steps to keep evidence from its administrative records. Commenting on the development, PolyMet President and CEO stated that the company was happy with the ruling of the District Court.
He added that the company was confident that the permit and applicable standards will be upheld by the courts. This is a big deal for the company as it looks forward to a favourable ruling on a Minnesota Supreme Court to give the company its permits on mining, air quality, and dam safety.
Oral arguments on the permits will be heard in October 2020. Given that this permits touch directly on the company’s operations, there is a good chance that it will lead to an increase in the company’s revenues. It is for this reason that investors are bidding up the price in anticipation of a price appreciation in the near-term.
The news comes just a few days after the company did a 1 to 10 reverse stock split. On the 26th of August, 2020, the company announced that the split would drop the number of common shares from 1,006, 997, 495 to 100,699, 749 shares. The reverse share split has added to the stock’s momentum at the moment.
The above factors have also created FOMO around the stock as other stocks sink in the red. As investor chase gains and try to recover losses in other stocks, they could keep bidding up the stock and see it close the day as one of the top stock’s biggest in the week This coupled with the company’s fundamentals could see it start next week on a high note.
About PolyMet Mining Corp
PolyMet Mining Corp develops natural resources with a focus on precious metals and other minerals. It is headquartered in Toronto, Canada.