Northern Dynasty Minerals Ltd. · TSX:NDM
Northern Dynasty Minerals — Investor Presentation (March 2021)
46 slides from Northern Dynasty Minerals's investor presentation, March 2021
Slide 1: The Pebble Project: Helping to Secure America's Green Future
THE PEBBLE PROJECT Helping to Secure America’s Green Future TSX: NDM MARCH 2021 NYSE American: NAK
Slide 2: Cautionary & Forward Looking Information
NORTHERN DYNASTY MINERALS LTD. Cautionary & Forward Looking Information PLEASE REVIEW CAREFULLY All statements of Northern Dynasty Minerals Ltd. (“NDM”) in this presentation, other than statements of historical facts, that address the permitting, development and production for the Pebble Project are
Slide 3: Investment Highlights
NORTHERN DYNASTY MINERALS LTD. Investment Highlights Copper: Pebble: Pebble: A Critical Metal Significant Social & Pebble: A U.S.-Based For America’s A Path World Class Economic Benefits Forward Green Future Resource Expected 2 A strategic metal for renewable Among the globe’s greatest Local and reg
Slide 4: Copper: A Critical Metal for America's Green Future
NORTHERN DYNASTY MINERALS LTD. COPPER A CRITICAL METAL FOR AMERICA’S GREEN FUTURE A strategic metal for renewable energy & green technologies Critical metal for electric vehicles & associated infrastructure Renewable energy systems use up to 12 times more copper (per unit of energy produced) than co
Slide 5: Copper Is An Essential Metal For The Green Economy
NORTHERN DYNASTY MINERALS LTD. Copper Is An Essential Metal For The Green Economy1 Copper is a strategic metal in powering renewable energy systems and green technologies due to its properties: • Electrical Conductivity increases efficiency • Thermal Management allows rapid heating and cooling • Dur
Slide 6: Post-COVID recovery centered on clean energy transition
NORTHERN DYNASTY MINERALS LTD. Post-COVID recovery centered on clean energy transition Global increase in emphasis and dedication of resources for a swift transition to clean energy • Copper demand expected to grow to achieve these objectives • One tonne of copper used in rotating machines, such as
Slide 7: Copper Is Used Extensively In EVs And Supporting Infrastructure
NORTHERN DYNASTY MINERALS LTD. Copper Is Used Extensively In EVs And Supporting Infrastructure1,2,3 Copper Required By Vehicle Type1 Significant Increase in Electric Transportation Demand 900 800 • Globally, battery-powered and hybrid vehicles could increase from just Pounds Per Vehicle 700 over 5 m
Slide 8: The Metal That Drives Electric Transportation
NORTHERN DYNASTY MINERALS LTD. The Metal That Drives Electric Transportation1 Government policies directly impact adoption of electric transportation In 2019, more than 90% of global car markets (>50 countries) had incentives in place CHINA for EV sales, often in the form of subsidy or tax reduction
Slide 9: Significant Deficit Forecast For Copper
NORTHERN DYNASTY MINERALS LTD. Significant Deficit Forecast For Copper1,2 World Refined Copper Usage (1900-2018) 4 Copper Bull-Market now fully under way1 25,000 • “The bull market for copper is now fully underway with prices up 20,000 50% from the 2020 lows, reaching their highest level since 2017”
Slide 10: Where Will The U.S. Get Its Copper?
NORTHERN DYNASTY MINERALS LTD. Where Will The U.S. Get Its Copper? World’s top 10 copper projects predominantly located outside of the U.S • 77% of contained copper of 10 top copper projects foreign based • China owns or controls 30% of contained copper within the top 10 projects Pebble ranks as the
Slide 11: Pebble: A World Class Resource in the U.S.
NORTHERN DYNASTY MINERALS LTD. PEBBLE A WORLD CLASS RESOURCE IN THE U.S. Among the globe’s greatest accumulations of metal Potential domestic solution to U.S. foreign supply chain dependence of critical minerals Cu/Au/Mo/Ag/Re grades facilitate near-term development TSX: NDM Untapped exploration ups
Slide 12: Pebble A World Class Mineral Resource
NORTHERN DYNASTY MINERALS LTD. Pebble A World Class Mineral Resource Resources § 6.5 B tonnes of Measured & Indicated § 4.5 B tonnes of Inferred Measured & Indicated Inferred Copper 57 B lb 25 B lb Gold 71 M oz 36 M oz Molybdenum 3.4 B lb 2.2 B lb Silver 345 M oz 170 M oz Rhenium 2.6 M kg 1.6 M kg *
Slide 13: Critical Metals
NORTHERN DYNASTY MINERALS LTD. Critical Metals “We Know We Can Mine In A Responsible Way”1 Consecutive Federal Administrations have focused on the supply of Critical Minerals President Trump signed an Executive Order2 declaring a national emergency in the mining industry • Directs Interior Departmen
Slide 14: Critical Metals: U.S. Dependent on Foreign Imports
NORTHERN DYNASTY MINERALS LTD. Critical Metals U.S. Dependent on Foreign Imports U.S. import reliance1 Metal Net Imports Key Uses % potential Current With PEBBLE reduction Construction; transportation; electronics; Copper (kT) 640 35% 27% (8%) clean and renewable energy technologies High-octane fuel
Slide 15: Pebble: A Globally Significant Copper and Gold Resource
NORTHERN DYNASTY MINERALS LTD. Pebble: A Globally Significant Copper and Gold Resource Global Ranking Of Primary Copper Deposits Contained Copper Global Ranking Of Primary Copper Deposits Contained Precious Metals1 Escondid a Olympic Dam Andina Division Pebble Pebble2 El Tenien te Grasberg Olympic D
Slide 16: Pebble: A Potential Leading U.S. Metals Producer
NORTHERN DYNASTY MINERALS LTD. Pebble: A Potential Leading U.S. Metals Producer 900 Average annual metal production over 20 years of mining: 800 Pebble Could Be One of America’s 700 Largest Copper PRODUCERS… Estimated 2020 Cu Production 600 • 613,000 tons of copper gold- 500 (Million Lbs.)1 concentr
Slide 17: Pebble Metal Value Comparisons
NORTHERN DYNASTY MINERALS LTD. Pebble Metal Value Comparisons Relative Value of Copper and Gold Anticipated Relative Value By Metal ONLY at Varying Prices Cu Price/lb $2.50 $2.75 $3.00 $3.25 GOLD 33.2% $1,250 62% / 38% 64% / 36% 66% / 34% 68% / 32% Copper 53.5% $1,500 57% / 43% 60% / 40% 62% / 38% 6
Slide 18: Pebble Comparisons
NORTHERN DYNASTY MINERALS LTD. Pebble Comparisons Contained Copper at Pebble Versus Contained Gold at Pebble Versus Reserve & Resource Base of Select Major Copper Producers Reserve & Resource Base of Select Major Gold Producers 300 300 250 250 Contained Lbs Cu (Billions) Contained Oz Au (Millions) 2
Slide 19: Pebble Untapped Exploration Potential
NORTHERN DYNASTY MINERALS LTD. Pebble Untapped Exploration Potential World’s Most Extensive Mineral System1 Pebble Deposit Induced Polarization has been the principal historical discovery method 289.1 m Grading 1.91% CuEQ Zone/DDH# Multiple prospective targets already identified Pebble Deposit open
Slide 20: Pebble: Significant Social and Economic Benefits Expected
NORTHERN DYNASTY MINERALS LTD. PEBBLE SIGNIFICANT SOCIAL AND ECONOMIC BENEFITS EXPECTED Local and regional capital investment GDP & government revenue growth expected “The increase in job opportunities, year-round or seasonal employment, steady income, and lower cost of living …would have beneficial
Slide 21: Pebble: Potential Benefits for Alaska
NORTHERN DYNASTY MINERALS LTD. Pebble: ~850 DIRECT Potential Benefits for Alaska1 Jobs ~2,000 TOTAL Alaska’s ongoing fiscal crisis exacerbated by COVID-19 and declining AVERAGE MINING WAGE = US$100K+ oil & gas pricing/investment Pebble represents: Contribution OPERATING BUDGET OF • Capital investmen
Slide 22: Social integration with Bristol Bay region
NORTHERN DYNASTY MINERALS LTD. PEBBLE Social integration with Bristol Bay region Pebble has multiple partnership agreements with Alaska Native landowners/stakeholders in the project area to deliver: • Transportation corridor access to Pebble mine site • Direct financial benefits, contracting and emp
Slide 23: Final Environmental Impact Statement (EIS)
NORTHERN DYNASTY MINERALS LTD. PEBBLE Final Environmental Impact Statement (EIS) Pebble EIS initiated December 2017; published July 2020 Intensive federal permitting process led by U.S. Army Corps of Engineers under National Environmental Policy Act (NEPA) Eight federal & three state cooperating age
Slide 24: Final EIS: Findings
NORTHERN DYNASTY MINERALS LTD. PEBBLE Final EIS: Findings On subsistence fish & wildlife resources: • “Overall, impacts to fish and wildlife would not be expected to impact harvest levels. Resources would continue to be available because no population level decrease in resources would be anticipated
Slide 25: Final EIS: No measurable impact on fisheries
NORTHERN DYNASTY MINERALS LTD. PEBBLE Final EIS No measurable impact on fisheries Based on the Pebble Project design submitted for permitting, and considering all relevant environmental safeguards and mitigations, the USACE found that “impacts to Bristol Bay salmon are not expected to be measurable.
Slide 26: Pebble: A Pathway Forward
NORTHERN DYNASTY MINERALS LTD. PEBBLE A PATHWAY FORWARD Final EIS: Fisheries. “… would not be expected to result in long-term changes to the health of the commercial fisheries in Bristol Bay” NDM’s administrative appeal of U.S. Army Corps’ denial of Federal ROD* has been accepted and the appeal proc
Slide 27: ROD Denial Decision Contains Questionable Conclusions
NORTHERN DYNASTY MINERALS LTD. PEBBLE ROD Denial Decision Contains Questionable Conclusions Record of Decision (ROD): November 25, 2020 permit denial: Public Interest review (PIR) found Pebble to be ‘not in the public interest’ Compensatory mitigation plan (CMP) deemed ‘non-compliant’ ROD and PIR de
Slide 28: Pebble Lodges Appeal of USACE Record of Decision
NORTHERN DYNASTY MINERALS LTD. Pebble Lodges Appeal of USACE Record of Decision Under U.S. regulatory law, permitting decisions for major development projects must be based on an ‘administrative record’ – which, in Pebble’s case, includes the Final EIS published by the USACE in July 2020. Northern D
Slide 29: Pebble Permitting Case: Right-Sized & De-Risked
NORTHERN DYNASTY MINERALS LTD. Pebble Permitting Case: Right-Sized & De-Risked Permitting case reflects the Company’s Project Location & Proposed Transportation Corridor efforts to mitigate and minimize risk where reasonably possible Conventional open-pit mine • 20-year operating life • Mining rate:
Slide 30: Supportive Shareholder Base
NORTHERN DYNASTY MINERALS LTD. Supportive Shareholder Base Fully % Ownership2 Issued & Outstanding Options & Warrants1 Diluted 100% 512.5 M 42.5 M 555.0 M INSTITUTIONAL 90% 14.2% Major Shareholders5 Balance Sheet & Trading Liquidity • SKKY Capital Corp Ltd 80% • Kopernik Global Investors LLC C$63.1M
Slide 31: Proven Experienced Leadership
NORTHERN DYNASTY MINERALS LTD. PROVEN Experienced Leadership Management Board of directors Ronald Thiessen CEO / Director Robert Dickinson Chairman Mr. Thiessen, a Chartered Professional Accountant (FPCA, FCA) with more than 25 years of corporate development Mr. Dickinson, an economic geologist with
Slide 32: Investment Highlights
NORTHERN DYNASTY MINERALS LTD. Investment Highlights Copper: Pebble: Pebble: A Critical Metal Significant Social & Pebble: A U.S.-Based For America’s A Path World Class Economic Benefits Forward Green Future Resource Expected 2 A strategic metal for renewable Among the globe’s greatest Local and reg
Slide 33: Appendix
NORTHERN DYNASTY MINERALS LTD. APPENDIX
Slide 34: Alaska: A Proven Mining and Resource Development Jurisdiction
NORTHERN DYNASTY MINERALS LTD. Alaska A Proven Mining and Resource Development Jurisdiction Established mining industry: • Six operating mines and multiple late-stage development projects • Ranked #5 Globally for Investment Attractiveness by Fraser institute Annual Survey of Mining Companies 2020 St
Slide 35: Pebble Among the World's Greatest Stores of Mineral Wealth
NORTHERN DYNASTY MINERALS LTD. Pebble Among the World’s Greatest Stores of Mineral Wealth HELPING TO SECURE MARCH 2021 AMERICA’S GREEN FUTURE 35
Slide 36: Pebble Exploration History
NORTHERN DYNASTY MINERALS LTD. Pebble Exploration History HELPING TO SECURE MARCH 2021 AMERICA’S GREEN FUTURE 36
Slide 37: Pebble Resource Estimate
NORTHERN DYNASTY MINERALS LTD. Pebble RESOURCE ESTIMATE 6.5 Billion Tonnes Measured & Indicated 4.5 Billion Tonnes Inferred NOTES: David Gaunt, P.Geo., a qualified person as defined under 43-101 who is not independent of Northern Dynasty, is responsible for the estimate. Copper equivalent (CuEQ) cal
Slide 38: Key Environmental Design Features
NORTHERN DYNASTY MINERALS LTD. PEBBLE Key Environmental Design Features Primary Mine Facilities & Local Hydrography Robust water management plan • 76 years of data Compact project footprint • 0.025% of Bristol Bay watershed • No impact on critical fish habitat • No permanent waste rock piles Potenti
Slide 39: Tailings Storage Facility (Proposed Design)
NORTHERN DYNASTY MINERALS LTD. PEBBLE Tailings Storage Facility (TSF) (PROPOSED Design) Two engineered facilities to segregate PAG (0.1 billion tons) and non-PAG tailings (1.1 billion tons) Non-PAG facility designed with a flow-through main embankment (530 feet high) PAG tailings stored with PAG was
Slide 40: Conventional Froth Flotation Proposed Process Flow Sheet
NORTHERN DYNASTY MINERALS LTD. PEBBLE Conventional Froth Flotation PROPOSED Process Flow Sheet Note: See Disclosures Page 2 HELPING TO SECURE MARCH 2021 AMERICA’S GREEN FUTURE 40
Slide 41: Proposed Mine Site General Layout
NORTHERN DYNASTY MINERALS LTD. PEBBLE PROPOSED Mine Site General Layout Note: See Disclosures Page 2 HELPING TO SECURE MARCH 2021 AMERICA’S GREEN FUTURE 41
Slide 42: Proposed Transportation System
NORTHERN DYNASTY MINERALS LTD. PEBBLE PROPOSED TRANSPORTATION SYSTEM Access Road: Bridge Crossing PROPOSED DIAMOND POINT PORT 82-mile all-weather access road for Copper Concentrate slurry pipeline2 Concentrate Pipeline Pump station2 transporting mine equipment, fuel & supplies Note: See Disclosures
Slide 43: Proposed Power Supply
NORTHERN DYNASTY MINERALS LTD. PEBBLE PROPOSED POWER SUPPLY 270 MW natural gas-fired power plant at mine site • Smaller power plant at port site 164 mile pipeline to connect to Kenai Peninsula • Sub-marine crossing of Cook Inlet Note: See Disclosures Page 2 HELPING TO SECURE MARCH 2021 AMERICA’S GRE
Slide 44: Proposed Water Management
NORTHERN DYNASTY MINERALS LTD. PEBBLE PROPOSED Water Management Note: See Disclosures Page 2 HELPING TO SECURE MARCH 2021 AMERICA’S GREEN FUTURE 44
Slide 45: References & Source Material
NORTHERN DYNASTY MINERALS LTD. References & Source Material SOURCES FOR SLIDE 18 • TECK: https://www.teck.com/investors/reserves-&-resources/reserves-and-resources • ANGLO AMERICAN: https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group/PLC/investors/annual-reporting/2019/aa-ore-reserves
Slide 46: Thank You
TSX: NDM NYSE American: NAK Thank You COPPER: A Critical Metal For The U.S. Green Future PEBBLE: Contact Information A U.S.-Based World Class General Office 15th Floor 3201 C Street, Suite 505 Resource 1040 W. Georgia Street Anchorage, AK 99503 Vancouver, BC Phone: (907) 339-2600 PEBBLE: Canada V6E
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