Browse Category: Sahm Adrangi

SahmAdrangi raises Questions on the Economic Viability of the Pebble Deposit project

At only 36 years, Sahm is probably one of the most prominent people in the hedge fund business. He plies his trade as the Chief Investment Officer at Kerrisdale Capital Management LLC, an investment company he established in 2009. Sahm Adrangi obtained a Bachelor of Arts degree in Economics from Yale University. Under his leadership, the firm has realized great success. When he founded the business, he invested only a million dollars, but the company currently manages more than $150 million.

Kerrisdale Capital has employed several professionals who work hard to create awareness about hedge fund and the stock market. They also conduct research work in other fields including mining, biotechnology, and telecommunications. The firm then starts activism against indicted companies and taking such cases public. Mr. Adrangi has had a history of such activism campaigns. In the past, he exposed dishonest Chinese companies. In 2014, he laid bare the demerits of the planned Terrestrial Low Power Service project that Globalstar sponsored.

Recently, Sahm poked holes into the mining prospects and market valuation for Northern Dynasty Minerals’ Pebble Deposit. Mr. Adrangi opposes the mining of Pebble deposit. The resource, which comprises of unexplored gold and copper, is Northern Dynasty Minerals’ primary asset. Sahm says that the upfront investment required for the project would exceed its value thus rendering the business nonviable.

Furthermore, Sahm believes that Northern Dynasty Minerals is hiding a report they possess indicating all the negative aspects of the Pebble deposit mining project. The election of Donald Trump as US president has elicited wild reactions in the stock market. Stock prices have risen by up to 326%. This is because people hope that the new administration and the Republican EPA will allow the launch of the project by enacting friendly legislation.

Nonetheless, the project could also encounter fierce political opposition from some elected leader among them the Governor of the state of Alaska, the Speaker, and other local politicians. A setback for Northern Dynasty Minerals is that significant shareholders like Mitsubishi and Teck have sold their shares. Anglo American also exited the project way back in 2013 questioning the economic viability of the project despite participating in the planning of the project.