Northern Dynasty Minerals Ltd. · TSX:NDM
Northern Dynasty Minerals — Investor Presentation (September 2017)
44 slides from Northern Dynasty Minerals's investor presentation, September 2017
Slide 1: The Pebble Project: A Pathway to Permitting
THE PEBBLE PROJECT The Future of U.S. Mining & Metals A Pathway to Permitting September 2017 The Future of U.S. Mining & Metals 1
Slide 2: Cautionary & Forward Looking Information
Cautionary & Forward Looking Information This presentation includes certain statements that may be deemed "forward-looking statements". All statements in this presentation, other than statements of historical facts, that address exploration drilling, exploitation activities and events or development
Slide 3: Investment Highlights: Advancing a Strategically Significant Project
Investment Highlights: Advancing a Strategically Significant Project World Class Social & A Generational Permitting Resource Environmental Opportunity • Tier 1 by every • Recent legal • Committed to • Re-partnering measure settlement with EPA responsible of PLP • Proven mining • Normal course resour
Slide 4: World Class Resource
WORLD CLASS RESOURCE World’s Largest Undeveloped Cu–Au–Mo–Ag Resource The Future of U.S. Mining & Metals 4
Slide 5: A World Class Mineral Resource
A World Class Mineral Resource Resources Measured & Indicated Inferred • 6.44 B tonnes of Measured & Indicated Copper 57 B lb 25 B lb Gold 70 M oz 37 M oz • 4.46 B tonnes of Inferred Molybdenum 3.4 B lb 2.2 B lb Silver 344 M oz 170 M oz * Refer to table of Measured, Indicated and Inferred Resources
Slide 6: Global Ranking of Porphyry Deposits
Global Ranking of Porphyry Deposits1 Contained Copper and Contained Gold Pebble is the World’s Largest Undeveloped Copper and Gold Resource Escondida Pebble 1st Olympic Dam Andina Divison Grasberg El Teniente KGHM Polska Miedz Olympic Dam Reko Diq Collahuasi Cu Only Oyu Tolgi Cu + Ag Chuquicamata Cu
Slide 7: Pebble Property Captures the World's Most Extensive Mineral System
Pebble Property Captures the World’s Most Extensive Mineral System1 – Exploration Potential is High Induced Polarization has been the principal historical discovery method 1. USGS source. The Future of U.S. Mining & Metals 7
Slide 8: Very High Grades Extend into the East Graben
Very High Grades Extend into the East Graben What Happens East of the ZG1 Fault? Pebble Deposit 289.1 m Grading • Highest grades at Pebble truncated by the East Graben 1.98% CuEQ • Faulting was a post-mineralization event • DDH-6348 intersected 289.1 m grading 1.98% CuEQ below cover rocks in the gra
Slide 9: Pebble May Host Other Major Deposits
Pebble May Host Other Major Deposits • The extent of Pebble Alaska mineralization at Pebble is comparable to: ‒ Oyu Tolgoi ‒ Chuquicamata ‒ Los Bronces/ Andina • Exploration potential at deposit and within region is noteworthy Each area is shown at the same scale The Future of U.S. Mining & Metals 9
Slide 10: Permitting: A Permit-Ready Project
PERMITTING A Permit-Ready Project The Future of U.S. Mining & Metals 10
Slide 11: Pathway to Permitting – A Fresh Start
Pathway to Permitting – A Fresh Start • Legal Settlement with EPA ‒ Guarantees access to normal course permitting • Permitting must be initiated within 30 months • Our goal: re-partner this year and initiate permitting by year end • Advancing a project into permitting that is smaller and more respon
Slide 12: Project Status and Goals
Project Status and Goals The Future of U.S. Mining & Metals 12
Slide 13: Pebble is a Permit Process Ready Project
Permitting - Pebble is a Permit Process Ready Project • Comprehensive engineering and environmental work support a substantially smaller and more responsive project design to address stakeholder concerns • Goal is to initiate permitting by year-end • Goal is to advance expeditiously through the EIS
Slide 14: Social & Environmental
SOCIAL & ENVIRONMENTAL Our Vision: To design, permit, build and operate a modern mine at Pebble that fully co-exists with fisheries and traditional ways of life, and enhances the economic and social well-being of Alaskans The Future of U.S. Mining & Metals 14
Slide 15: Social & Environmental - Mission, Vision, Values
Social & Environmental - Mission, Vision, Values Mission • To develop the Pebble Project: A strategic Cu-Au-Mo-Ag resource Vision • To design, permit, build and operate a modern mine at Pebble that fully co-exists with healthy fish and wildlife populations and traditional ways of life in southwest A
Slide 16: Re-Positioning
Re-Positioning A comprehensive strategic initiative to change the face of the Pebble Project through key partnerships with local communities, Alaska Natives and commercial fishing interests: Completed In Progress • A project design more responsive to • Local/regional financial interest stakeholder c
Slide 17: Pebble Project – National Economic Impact Study
Pebble Project – National Economic Impact Study1 Pebble can help address Alaska’s fiscal crisis Nationally • 15,000 jobs • $2.5 billion to US GDP annually • Increase US copper production by 20% over decades of production In Alaska • Some 3,000 high-wage jobs • $109,500 average annual salary for mine
Slide 18: Environmental Baseline Studies
Environmental Baseline Studies • $150M invested over 7 years • One of the most extensive environmental databases ever assembled for a resource development project in America • Climate, water quality, wetlands, fish and aquatic habitat, wildlife, land and water use, socioeconomics and subsistence • S
Slide 19: Bristol Bay Watershed Context – Hydrology/Fisheries
Bristol Bay Watershed Context – Hydrology/Fisheries The Real story – The Fishery is Not Threatened The Future of U.S. Mining & Metals 19
Slide 20: Natural Fish Habitat Constraints Create Mitigation/Enhancement Opportunities
Natural Fish Habitat Constraints Create Mitigation/Enhancement Opportunities Numerous Pebble/Bristol Bay streams not producing fish at full potential due to natural constraints: • beaver dams & other barriers • dewatered & relic channels • low habitat complexity • limiting water quality • poor seedi
Slide 21: A Generational Opportunity
A GENERATIONAL OPPORTUNITY Making a Difference The Future of U.S. Mining & Metals 21
Slide 22: Northern Dynasty – Hunter Dickinson
Northern Dynasty – Hunter Dickinson • Northern Dynasty – affiliated with Hunter Dickinson • Hunter Dickinson (HDI) - A track record of success ‒ HDI, in business since 1985, has been involved in the discovery and advancement of several successful/prospective copper porphyries including Kemess, Mt. M
Slide 23: Copper – A Significant Structural Deficit is Forecast
Copper – A Significant Structural Deficit is Forecast Copper demand: Significant copper Intensity expected to increase • Non-OECD demand growth forecast at supply deficit expected in China2 +3.6% per annum to to emerge later this decade1 2030 • Includes Chinese demand growth +2.6% p.a. to 2030 and •
Slide 24: C1 Cash Costs Net of By-Product Credits
Global C1 Copper Cash Costs1 Pebble’s C1 copper cash costs are anticipated to be in the first decile of global primary copper mines C1 Cash Costs Net of By-Product Credits – US$/lb Cu 1 Source: Wood Mackenzie and BMO Capital Markets Note: Based on 2017E cash cost data. The Future of U.S. Mining & Me
Slide 25: Valuation Potential
Valuation Potential Resource provides potential for significant in-situ valuation upside relative to copper and gold peers as the Pebble Project advances As at August 29, 2017 Source: BMO Capital Markets, Bloomberg, Public Disclosure 1 Measured and Indicated Resources only, excludes Inferred Resourc
Slide 26: Precedent Transactions
Precedent Transactions There is Extraordinary Value Potential in Pebble/Northern Dynasty Northern Dynasty In-Situ Values1: 57/100th’s 1 cent per lb Cu US$8.00 per oz Au Exceptional In-Situ Value EV/Resource EV/Resource Date Acquiror Target Stage Date Acquiror Target Stage (US₵/lb) (US$/oz) Copper De
Slide 27: Future Potential Value-Creating Catalysts
Future Potential Value-Creating Catalysts • Re-partnering: ‒ The mining cycle has turned ‒ Mining sector has not invested in future resources to extent necessary ‒ Buy into partnership vs. explore and maybe discover? ‒ Pebble is strategic – a uniquely sized Cu-Au-Mo-Ag resource ‒ Positive fundamenta
Slide 28: Share Capitalization: Very Supportive Shareholder Base
Share Capitalization: Very Supportive Shareholder Base Issued & Options & Fully % Ownership2 Outstanding Warrants1 Diluted 304.0 M 63.4 M 367.4 M Balance Sheet & Major Trading Liquidity Shareholders C$48.7 M Cash/Equivalent • Stirling Global Value Fund (June 30, 2017) • Ostvast Capital • Kopernik Gl
Slide 29: Investment Conclusions: Advancing a Strategically Significant Project
Investment Conclusions: Advancing a Strategically Significant Project World Class Social & A Generational Permitting Resource Environmental Opportunity • Tier 1 by every • Recent legal • Committed to • Re-partnering measure settlement with EPA responsible of PLP • Proven mining • Normal course resou
Slide 30: Appendices
APPENDICES The Future of U.S. Mining & Metals 30
Slide 31: Pebble is Among the World's Greatest Stores of Mineral Wealth
Pebble is Among the World’s Greatest Stores of Mineral Wealth The Future of U.S. Mining & Metals 31
Slide 32: Pebble Project Area – Strategically Situated in Alaska, USA
Pebble Project Area – Strategically Situated in Alaska, USA Six Major Producing Mines - Alaska a Resource Development State Alaska State Constitution (1949) “It is the Policy of the State of Alaska to encourage…the development of its resources by making them available for maximum use consistent with
Slide 33: Southwest Alaska & Bristol Bay
Southwest Alaska & Bristol Bay The Future of U.S. Mining & Metals 33
Slide 34: Pebble – Exploration History
Pebble – Exploration History The Future of U.S. Mining & Metals 34
Slide 35: 6.44 Billion Tonnes Measured & Indicated, 4.46 Billion Tonnes Inferred
6.44 Billion Tonnes Measured & Indicated 4.46 Billion Tonnes Inferred Notes: David Gaunt, P.Geo., a qualified person who is not independent of Northern Dynasty is responsible for the estimate. These resource estimates have been prepared in accordance with NI 43-101 and the CIM Definition Standards.
Slide 36: Anticipated Relative Values by Metal
Anticipated Relative Values by Metal Note: Based on Measured and Indicated Resources only. Prices assumed are current long term consensus forecasts of $USD 2.96 lb Cu; $1,250 oz Au; $8.00 lb Mo and $17.75 oz Ag. Source: Company data and BMO Capital Markets. The Future of U.S. Mining & Metals 36
Slide 37: Plan View
Plan View Note: Metal prices used for copper equivalent (CuEQ) are same as for resource (see page 52). The Future of U.S. Mining & Metals 37
Slide 38: Cross-Section
Cross-Section Note: Metal prices used for copper equivalent (CuEQ) are same as for resource (see page 52). The Future of U.S. Mining & Metals 38
Slide 39: Mines & Healthy Fisheries Do Co-Exist
Mines & Healthy Fisheries Do Co-Exist Gibraltar Mine, British Columbia Gibraltar Mine Cyclone Sand Embankment Trophy Rainbow Trout Designed Seepage Collection Pond Fraser River Healthy fish with metal levels equal to or less than that found in control lakes outside the mine area. Conclusion We have
Slide 40: Northern Dynasty Board of Directors
Northern Dynasty Board of Directors Robert Dickinson Chairman Gordon Keep Director Mr. Dickinson, an economic geologist with more than 40 years of mineral Gordon Keep is a Professional Geologist with extensive business experience exploration experience who is an inductee of the Canadian Mining Hall
Slide 41: Northern Dynasty Management
Northern Dynasty Management Ronald Thiessen CEO and Director Sean Magee Vice President, Public Affairs Mr. Thiessen, a Chartered Professional Accountant (FPCA, FCA) with more than 25 Mr. Magee is a former journalist and speech writer who brings more than years of corporate development experience, le
Slide 42: Pebble Limited Partnership Management
Pebble Limited Partnership Management Tom Collier CEO John Shively Chairman Mr. Collier is a regulatory lawyer and former Chief of Staff in the U.S. Department Mr. Shively came to Alaska in 1965 as a VISTA volunteer. What began as a one- of Interior with extensive experience in federal permitting --
Slide 43: Analyst Coverage
Analyst Coverage • Craig Hutchison TD Securities • Mike Kozak Cantor Fitzgerald “Pebble is simply too large, too high quality, and too important globally for it to not wind up in the project pipelines belonging to the majors.” June 2017 • Chris Mancini Gabelli & Co. • Andrew Mikitchook BMO Capital M
Slide 44: Contact Information
Websites Contact Information www.northerndynasty.com General Office www.pebblepartnership.com 15th Floor www.pebbleresearch.com 1040 W. Georgia Street Vancouver, BC Canada V6E 4H1 Investor Relations info@northerndynasty.com Tel: 604.684.6365 TF: 800.667.2114 3201 C Street, Suite 404 Anchorage, AK 99
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