Northern Dynasty Minerals Ltd. · TSX:NDM
Northern Dynasty Minerals — Investor Presentation (August 2024)
57 slides from Northern Dynasty Minerals's investor presentation, Aug 6, 2024
Slide 1: The Pebble Project: Helping to Secure America's Green Future
THE PEBBLE PROJECT Helping to Secure America’s Green Future AUGUST 2024 TSX: NDM NYSE American: NAK Visit our website
Slide 2: Cautionary & Forward Looking Information
NORTHERN DYNASTY MINERALS LTD. Cautionary & Forward Looking Information PLEASE REVIEW CAREFULLY This presentation includes certain statements that may be deemed "forward-looking statements" under the United States Private Securities Litigation Reform Act of 1995 and under applicable provisions of Ca
Slide 3: Summary: Strong risk/return potential
NORTHERN DYNASTY MINERALS LTD. Summary: Strong risk/return potential Copper: Pebble: Pebble: AN Important Metal For A U.S.-Based A Path America’s Green Future World Class Resource Forward Transition to Green Energy expected to Largest undeveloped copper/gold deposit in Final EIS: no measurable impac
Slide 4: Copper – An Important Metal for America's Green Future
NORTHERN DYNASTY MINERALS LTD. PEBBLE COPPER – AN IMPORTANT METAL FOR AMERICA’S GREEN FUTURE TSX: NDM NYSE American: NAK
Slide 5: Electrification adding an extra layer to demand
NORTHERN DYNASTY MINERALS LTD. Electrification adding an extra layer to demand offsetting potential weakness in traditional demand sectors1 Annual copper consumption has grown at 2.5% on average over the last 40 years Trend economic growth would imply a growth rate of 2.0% Estimate 2.8% growth rate
Slide 6: Difficulties Facing Future Copper Supply
NORTHERN DYNASTY MINERALS LTD. DIFFICULTIES FACING FUTURE COPPer SUPPLY DECLINING HEAD GRADES GLOBALLY POLITICAL/SOCIAL INSTABILITY AVERAGE COPPER ORE HEAD GRADES 1 1.0 2015 • Panama • Ecuador 0.9 0.65% 0.8 2025 • Argentina • Peru 0.7 0.53% 0.6 • Chile 0.5 0.4 2000 2005 2010 2015 2020 2025 LACK OF N
Slide 7: Urgent Need for Significant Copper Projects
NORTHERN DYNASTY MINERALS LTD. URGENT NEED FOR SIGNIFICANT Copper PROJECTS Eric Heimlich, Head of Base Metals Supply, CRU1 said in March 2022: • Miners need to invest > $100 billion over the next 8 years to meet copper demand • The industry has to build 8 projects the size of Escondida (the world's
Slide 8: Where Will The U.S. Get Its Copper?
NORTHERN DYNASTY MINERALS LTD. Where Will The U.S. Get Its Copper? World’s top undeveloped copper projects predominantly located outside of the U.S • 60% of contained copper in top copper projects is foreign based; 40% “held-up” in U.S. permitting Pebble ranks as the largest undeveloped copper proje
Slide 9: Pebble: A U.S.-Based World Class Resource
NORTHERN DYNASTY MINERALS LTD. PEBBLE A U.S.-BASED WORLD CLASS RESOURCE TSX: NDM NYSE American: NAK
Slide 10: Pebble: A World Class Mineral Resource
NORTHERN DYNASTY MINERALS LTD. Pebble A World Class Mineral Resource on good mining ground Resources § 6.5 B tonnes of Measured & Indicated § 4.5 B tonnes of Inferred Recoverable Metal Measured & Indicated Inferred Copper 53 B lb 23 B lb Gold 54 M oz 28 M oz Molybdenum 2.8 B lb 1.8 B lb Silver 249 M
Slide 11: Upside potential for share price re-rating
NORTHERN DYNASTY MINERALS LTD. UPSIDE potential for share price RE-RATING Recoverable metal (excluding based on COMPARATIVE industry metrics1,2,3 $40.00 rhenium) in Pebble’s large M+I resource expressed as CuEq (see Pebble Good Mining Ground for details) $35.00 ~$34/share $33.94 and compared to medi
Slide 12: Untapped Exploration Potential
NORTHERN DYNASTY MINERALS LTD. PEBBLE Untapped Exploration Potential World’s Most Extensive Mineral System1 A zone of sulphide mineralization is indicated by an induced polarization chargeability anomaly at least 25 km by 7 km in size Sulphides and hydrothermal alteration confirmed by drilling that
Slide 13: Nature of the deposit provides optionality
NORTHERN DYNASTY MINERALS LTD. PEBBLE Nature of the deposit provides optionality1 2023 Preliminary Economic Assessment ("PEA") updates cost estimates and financial results for the Proposed Project, defined in the original 2017 permit application and amended in 2019 The Proposed Project (i.e. Permitt
Slide 14: 2023 PEA: Proposed Project
NORTHERN DYNASTY MINERALS LTD. PEBBLE 2023 PEA: PROPOSED PROJECT Proposed Project • 20-year, 180,000 tons per day open pit operation with conventional processing producing two concentrates • Capable of processing 1.3 billion tons of mineralized material over 20 years of mining at a low strip ratio o
Slide 15: 2023 PEA Production Summary
NORTHERN DYNASTY MINERALS LTD. PEBBLE 2023 PEA Production Summary1,2 Units Proposed Project Potential Expansions3 Mineralized Material billion tons 1.3 8.6 Copper Equivalent4 % 0.57 0.72 Copper % 0.29 0.39 Gold oz/ton 0.009 0.01 Year 10 Molybdenum ppm 154 208 Silver oz/ton 0.04 0.046 Rhenium ppm 0.2
Slide 16: 2023 PEA Proposed Project
NORTHERN DYNASTY MINERALS LTD. PEBBLE 2023 PEA proposed project1,2 Proposed Project – Description Units Base Case, including Royalties Mining Taxes & Government Royalties US$ M 1,487 Corporate Income Tax US$ M 1,931 Post – Tax Undiscounted Cash Flow US$ M 7,681 Post – Tax NPV at 7%3 US$ M 2,233 Post
Slide 17: Potential Expansion Scenarios
NORTHERN DYNASTY MINERALS LTD. PEBBLE potential expansion scenarios1,2,3,4 Three potential expansion scenarios were evaluated to test the sensitivity of the project to expansion of the operation and extraction of a greater portion of the resource. The potential expansion scenarios were modeled on th
Slide 18: Secondary Gold Recovery Plant
NORTHERN DYNASTY MINERALS LTD. PEBBLE secondary gold recovery Plant1,2,3,4 Possible addition of a secondary gold recovery plant in Production Year 5, using the most efficient and permittable lixiviants available at the time any related permitting applications are made We continue to evaluate multipl
Slide 19: Secondary Gold Recovery Plant – Financial Results
NORTHERN DYNASTY MINERALS LTD. PEBBLE secondary gold recovery Plant – FINANCIAL RESULTS1,2,3,4 Description Units Proposed Project + Gold Plant Year 5 Expansion Year 10 Expansion Year 21 Expansion Net Smelter Return $M 38,190 338,260 337,820 338,010 Operating Costs $M 19,740 136,320 130,600 135,340 T
Slide 20: Pebble: A Path Forward
NORTHERN DYNASTY MINERALS LTD. PEBBLE A PATH FORWARD TSX: NDM NYSE American: NAK
Slide 21: Still working its way through the permitting process
NORTHERN DYNASTY MINERALS LTD. PEBBLE STILL working its way through the permitting process Negative Record of Decision (ROD) Issued: November 25, 2020 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 22: USACE remanded permit appeal but could not act with EPA veto
NORTHERN DYNASTY MINERALS LTD. USACE remanded permit appeal but then decided it could not act with the EPA veto in place 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 publishe
Slide 23: EPA Fails to Follow its own Process
NORTHERN DYNASTY MINERALS LTD. EPA Fails to Follow its own Process EPA “May Affect” Letter (3a) EPA “Will Affect” Letter (3b) Notice of Intent Environmental Protection to Proceed Agency (“EPA”) must notify Environmental Protection CASE Elevation the U.S. Army Corps of Agency (“EPA”) must notify Revi
Slide 24: Fundamental Flaws with EPA's Final Determination
NORTHERN DYNASTY MINERALS LTD. Fundamental FLAWS WITH EPA’s FINAL Determination PLP’s submitted to the EPA (Sept 2022), noting flaws in their veto EPA has not exhausted specific measures during the permitting process to voice and address its concerns before issuing a Section 404(c) veto Ø 404(c) act
Slide 25: Supreme Court Decided not to hear State appeal
NORTHERN DYNASTY MINERALS LTD. 1 Supreme Court Decided not to hear State appeal to bypass lower courts Alaska asked the Supreme Court to opine whether it would hear its case against the EPA’s veto of Pebble without going through the Federal District Court system first Is NOT a comment on the merits
Slide 26: Two Legal Actions Launched Against EPA Veto of Pebble Mine
NORTHERN DYNASTY MINERALS LTD. Two Legal Actions Launched Against EPA Veto of Pebble Mine Case filed in Federal District Court in Alaska seeking to vacate the EPA veto is Main Focus of permitting strategy, case alleges: Veto violates various federal statues regarding Alaska’s statehood rights and a
Slide 27: Our legal case strengthened by the USACE decision
NORTHERN DYNASTY MINERALS LTD. Our legal case against the EPA veto was strengthened by the USACE decision: The USACE has announced (April 16, 2024) they can’t move forward with the Remand Order while the EPA veto is outstanding But the veto relies heavily on statements made by the USACE that were hi
Slide 28: Innovative Royalty Agreement up to $60 Million
NORTHERN DYNASTY MINERALS LTD. Innovative Royalty Agreement up to $60 Million on non-core metals The Pebble Project requires time, patience and sufficient liquidity to successfully navigate the established legal process and continue ongoing efforts to work with the people in the region Second $12 M
Slide 29: Proven Leadership
NORTHERN DYNASTY MINERALS LTD. PROVEN 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 Mr. Dickinson, an economic geologist with more than 40 years of m
Slide 30: Supportive Shareholder Base
NORTHERN DYNASTY MINERALS LTD. Supportive Shareholder Base Fully % Ownership2 Issued & Outstanding Options & other1 Diluted 100% INSTITUTIONAL 537.7 M 33.4 M 571.1 M 90% 14.6% 80% Balance Sheet & Trading Liquidity Major Institutional Shareholders4 C$15.2M Cash & Cash Equivalents 70% (March 31, 2024)
Slide 31: Summary: Strong risk/return potential
NORTHERN DYNASTY MINERALS LTD. Summary: Strong risk/return potential Copper: Pebble: Pebble: AN Important Metal For A U.S.-Based A Path America’s Green Future World Class Resource Forward Transition to Green Energy expected to Largest undeveloped copper/gold deposit in Final EIS: no measurable impac
Slide 32: Appendix
NORTHERN DYNASTY MINERALS LTD. APPENDIX
Slide 33: Final Environmental Impact Statement (EIS)
NORTHERN DYNASTY MINERALS LTD. PEBBLE Final Environmental Impact Statement (EIS)1 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 ag
Slide 34: Pebble Permitting Case: Right-Sized & De-Risked
NORTHERN DYNASTY MINERALS LTD. Pebble Permitting Case: Right-Sized & De-Risked Permitting case reflects the Company’s efforts to mitigate and minimize risk where reasonably possible Conventional open-pit mine • 20-year operating life • Mining rate: ~70M tons per annum (avg) 180,000 ton-per-day proce
Slide 35: 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 weather data Compact project footprint • 0.025% of Bristol Bay watershed • No impact on critical fish habitat • No permanent waste rock piles
Slide 36: Tailings Storage Facilities (TSF)
NORTHERN DYNASTY MINERALS LTD. PEBBLE Tailings Storage Facilities (TSF) Two separate TSFs to manage bulk/non-PAG (1.0 billion tons) and pyritic/PAG (0.1 billion tons) material Bulk tailings can be stored sub-aerially Flow through main embankment (530 ft high) Lined southern embankment Flattened slop
Slide 37: 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 38: 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 39: 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 40: 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 #11 Globally for Investment Attractiveness by Fraser institute Annual Survey of Mining Companies 2022
Slide 41: 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 AUGUST 2024 AMERICA’S GREEN FUTURE 41
Slide 42: Pebble Good Mining Ground
NORTHERN DYNASTY MINERALS LTD. Pebble Good Mining Ground Ø Pebble Resource Estimate using a 0.3% CuEq cutoff Classification Tonnes Grades Recoverable Metal CuEq Cu Au Ag Mo Re Cu Au Ag Mo Re Million % % g/t g/t ppm ppm B lb M oz M oz B lb Kg Measured 527 0.65 0.33 0.35 1.7 178 0.32 3.35 4.58 20.4 0.
Slide 43: Plan View and Cross Section
NORTHERN DYNASTY MINERALS LTD. PEBBLE Plan View and Cross Section The Pebble resource is based on 699 diamond core holes and >59,000 samples. Mineralization extends over a 4km by 3km area East-West Cross Section Through the Approximate Centre of the Resource Looking North A A’ Plan View at the Top S
Slide 44: Proposed Project Mining
NORTHERN DYNASTY MINERALS LTD. PEBBLE Proposed Project Mining Standard open pit truck/shovel operation • 1.3 billion tons mill feed, 1.4 billion tons total (0.12:1 strip ratio) • 1 year pre-production, 20 years operation • No permanent waste rock facility • PAG waste and tails backfilled to the pit
Slide 45: Metallurgical testwork
NORTHERN DYNASTY MINERALS LTD. PEBBLE Metallurgical testwork NDM testwork completed from 2004 to 2008 • Focused on flowsheet development • Comminution variability testing $10.5 million on metallurgical testwork from 2008 to 2013 • Managed by PLP • Majority of the testwork completed at SGS Lakefield
Slide 46: Metallurgical recoveries by geometallurgical domain
NORTHERN DYNASTY MINERALS LTD. PEBBLE Metallurgical recoveries by geometallurgical domain Flotation Recovery to Concentrate Cu Conc Mo Conc Cu Au Ag Mo Supergene Sodic Potassic 74.7 60.4 64.1 51.2 Illite Pyrite 68.1 43.9 64.1 62.6 Hypogene Illite Pyrite 86.4 43.9 64.1 73.2 Sodic Potassic 86.2 60.4 6
Slide 47: 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 AUGUST 2024 AMERICA’S GREEN FUTURE 47
Slide 48: Proposed Mine Site General Layout
NORTHERN DYNASTY MINERALS LTD. PEBBLE PROPOSED Mine Site General Layout HELPING TO SECURE AUGUST 2024 AMERICA’S GREEN FUTURE 48
Slide 49: Earthquake design
NORTHERN DYNASTY MINERALS LTD. PEBBLE earthquake design Alaska earthquakes • Most active state in the U.S. • Critical design consideration Earthquake design in two steps • Probability based on history • Calculated worst case (maximum credible) Probability • Used USGS data • Based on accelerations du
Slide 50: Earthquake design
NORTHERN DYNASTY MINERALS LTD. PEBBLE earthquake design Maximum Credible Earthquake (MCE) • Evaluated all potential seismic sources in region • Selected 4 earthquakes 9.2 M Megathrust – 0.16g • Repeat of 1964 event 8.0 M Intraslab – 0.61g • Major event near port site 7.5 M Lake Clark Fault – 0.57g •
Slide 51: Water management
NORTHERN DYNASTY MINERALS LTD. PEBBLE water management Water management is a key project component • Need to protect salmon spawning habitat • Tailings management safety • Very specific and demanding discharge criteria • Required for process operations Water balance developed using: • 11 years of si
Slide 52: Water Management
NORTHERN DYNASTY MINERALS LTD. PEBBLE Water Management Water management plan • Designed to manage full range of expected precipitation • Minimize water storage in tailings facilities • Meet or exceed discharge quality criteria Water management facilities • Main Water Management Pond – primary storag
Slide 53: Pebble: Transportation System
NORTHERN DYNASTY MINERALS LTD. Pebble: Transportation System Access Road – Bridge Crossing North Ferry Terminal Ice Breaking Ferry South Ferry Terminal HELPING TO SECURE AUGUST 2024 AMERICA’S GREEN FUTURE 53
Slide 54: Pebble: Concentrate Haulage in Containers
NORTHERN DYNASTY MINERALS LTD. Pebble: Concentrate Haulage in Containers Amakdedori port Permitting Case Access Corridor Concentrate Container Transfer Bulk Carrier Container Transfer Bulk container laydown yard HELPING TO SECURE AUGUST 2024 AMERICA’S GREEN FUTURE 54
Slide 55: 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 168 mile pipeline to connect to Kenai Peninsula • Sub-marine crossing of Cook Inlet • Sub-lake crossing of Iliamna Lake Note: See Disclosures Page 2 HELPIN
Slide 56: References & Source Material
NORTHERN DYNASTY MINERALS LTD. References & Source Material SOURCES FOR SLIDE 25 • 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 57: Thank You
THANK YOU COPPER: TSX: NDM A Critical Metal NYSE American: NAK For The U.S. Green Future PEBBLE: Contact Information A U.S.-Based World Class General Office 14th Floor Suite 405, 2525 Gambell Street Resource 1040 W. Georgia Street Anchorage AK 99503 Vancouver, BC Phone: (907) 339-2600 Canada V6E 4H1
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