Professional Documents
Culture Documents
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 developments that the Company expects are forward-looking statements.
Although the Company believes the expectations expressed in its forward-looking statements are based on reasonable assumptions, such statements should
not be in any way construed as guarantees of the ultimate size, quality or commercial feasibility of the Pebble Project or of the Company's future performance
or the outcome of litigation. Assumptions used by the Company to develop forward-looking statements include the following: the Pebble Project will obtain all
required environmental and other permits and all land use and other licenses, studies and development of the Pebble Project will continue to be positive, and
no geological or technical problems will occur. The likelihood of future mining at the Pebble Project is subject to a large number of risks and will require
achievement of a number of technical, economic and legal objectives, including obtaining necessary mining and construction permits, approvals, licenses
and title on a timely basis, delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and
exploitation, the final outcome of any litigation, completion of pre-feasibility and final feasibility studies, preparation of all necessary engineering for surface or
underground mining and processing facilities as well as receipt of significant additional financing to fund these objectives as well as funding mine
construction. Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known ore at the Pebble Project and
there is no assurance that the mineralization at the Pebble Project will ever be classified as ore. The need for compliance with extensive environmental and
socio-economic rules and practices and the requirement for the Company to obtain government permitting can cause a delay or even abandonment of a
mineral project. The Company is also subject to the specific risks inherent in the mining business as well as general economic and business conditions. For
more information on the Company, Investors should review the Company's filings with the United States Securities and Exchange Commission and its home
jurisdiction filings that are available at www.sedar.com.
This presentation also uses the terms measured resources, "indicated resources" and "inferred resources". Although these terms are recognized and
required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be
converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It
cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a Preliminary Economic Assessment
as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
The technical information contained in this presentation has been reviewed and approved by qualified persons which are not independent of Northern
Dynasty. Information on geology, drilling and exploration potential has been reviewed by James Lang, PGeo., information on Mineral Resources by David
Gaunt, PGeo., and information related to engineering and metallurgy by Stephen Hodgson, PEng.
During the period 2007 to 2013, the Pebble Limited Partnership expended several hundred million dollars on the Pebble Project, a major portion of which was
spent on exploration programs, resource estimates, environmental data collection and technical studies, with a significant portion spent on engineering of
various possible mine development models, as well as related infrastructure, power and transportation systems. As a consequence of several factors,
including EPA Clean Water Act 404(c) action on the Pebble Project, the withdrawal of Anglo American from the project and the passage of time, technical
and engineering studies related to mine-site and infrastructure development are considered to have very uncertain and perhaps little value at this time.
2
Investment Highlights A World-Class Investment Opportunity
Strategic First-World Alaska USA State land Exploration & Development designation
Advantages Location Politically stable-history of responsible resource management and rule-of-law
Very significant benefits to USA, Alaska and the region
* Environmental Baseline and geological data aside, uncertain economic value due to EPA action as further described in slide 2.
3
A World-Class Mineral Resource
4
Global Ranking of Porphyry Deposits1
Contained Copper and Contained Gold
5
Pebble Project Area Strategically Situated in Alaska, USA
Six Major Producing Mines - Alaska a Resource Development State
6
Pebble Multi-Prong Strategy in Action
Cohen / DLA Piper Highly critical, independent report released October 2015
Media Strategy Washington Post, WSJ beginning to lay bare EPA misconduct
Congressional Activity
Several congressional committees conducting or considering hearings
7
Trump Election Victory A Return to Normal
8
Pebble: The Path to a Record of Decision
NEPA and 404 Permit Process
9
Pebble Project National Economic Impact Study1
Pebble can help address Alaskas fiscal crisis
Nationally
15,000 jobs
$2.7 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 workers
more than double the state average
More than $1 billion in annual operating expenses
Pebble-related economic activity in Alaska will boost
the state's GDP by more than 3% over 2011 levels
Pebble will literally transform the regional
economy in Bristol Bay
Secure, high-paying jobs
Of 5,394 working-age residents, just 63% worked in
2011 and only 35% were employed throughout the year
Increase Lake and Peninsula Borough tax base by a
staggering 600% annually over 2013 levels
Potential for affordable power for Southwest Alaska
1 The May 30, 2013 IHS report is intended to provide information about general economic effects/contribution of a development at Pebble to Alaska and the USA. The report should
not be used to evaluate the Pebble Projects impact on Northern Dynasty.
10
10
Copper Demand Outlook
Chinas Shift to Consumption Supports Demand
Non-OECD demand
growth forecast at
+3.6% per annual to
20302
Includes Chinese
demand growth
+2.6% p.a. to 2030
and
OECD demand
decline of 0.6% p.a.
to 2030
11
Copper A Significant Structural Deficit is Forecast
12
Gold Supply
13
Global C1 Copper Cash Costs1
Pebbles C1 copper cash costs are anticipated to be in the first decile of global primary copper mines1
C1 Cash Costs Net of By-Product Credits US$/lb Cu
The United States and the world need low cost, long-life,
environmentally sound supplies of strategically important copper
14
Valuation Potential
Current share price provides significant in-situ valuation upside relative to copper and gold
peers as the Pebble Project advances
As at January 3, 2017
Source: BMO Capital Markets,
Bloomberg, Public Disclosure
Assumptions: Shares of NAK: 338.7 M,
estimated theoretical cash position:
US$42.5 M. (assumes basic share count
of 265.4 M plus exercise, for cash
proceeds, of in-the-money
warrants/options. (Actual cash at
September 30, 2016 was $CAD 7.9M).
Copper equivalent metrics calculated
using long-term street consensus pricing
of US$2.85/lb Cu, US$1,300/oz Au,
US$8.00/lb Mo, US$20.00/oz Ag
1 Measured and Indicated Resources
only, excludes Inferred Resources. See
appendices for details on Qualified
Persons as defined in NI 43-101
2 EV= Enterprise Value = Market
Capitalization less cash
15
Precedent Transactions There is Extraordinary Value
in Pebble/Northern Dynasty
Source: Public disclosure, Bloomberg and BMO Capital Markets. 1. See page 20 for in-situ values
16
Northern Dynastys (NYSE MKT NAK)
Long Term Share Price
Fully-diluted market
capitalization is
$USD 656 million
*Actual market capitalization doubled to adjust for the fact that in 2011 Northern Dynasty owned 50% of Pebble Limited Partnership and today it owns 100%
17
Pebble Project Milestones Completed and Projected
2016 Resolve EPAs Proposed Determination and position Pebble to initiate permitting
unencumbered by any extraordinary development restrictions
Advance conversations regarding potential partner(s) transaction
Negotiate transportation corridor agreements with Alaska Native village corporations
Enhance public and political support for the Pebble Project
The Three Rs
2017 Resolution with EPA: position Pebble to initiate permitting unencumbered by
any extraordinary development restrictions
Re-partner: advance ongoing partner conversations to a successful conclusion
Re-position: begin roll-out of strategic initiatives to restore balance to public
debate on Pebble
Advance key Alaska and Native partnerships
Advance into US Army Corps of Engineers-led permitting process once the 404(c)
action is withdrawn
Finalize transportation corridor agreements with Alaska Native village corporation
landowners
Feasibility study completed
2020 Project construction commenced
18
Investment Conclusions A World-Class Investment Opportunity
World-Class Resource
US$750+* million invested
Great Location
Fisheries and mining can safely co-exist
Strategic Advantages
Very Important Economic Benefits for Alaska and USA
Conclusion
Pebble is a world-class deposit
Resolution with EPA, Re-partnering and Re-positioning are potential catalysts
We believe Pebble will receive a 404 permit
Compelling valuation
Northern Dynasty and PLP are committed to delivering results
* Environmental Baseline and geological data aside, uncertain economic value due to EPA action as further described in slide 2.
19
APPENDICES
Northern Dynasty Shares are Undervalued
1. Includes warrants exercisable as follows: 2,735,433 at $CAD 3.00 to September 2017; 13,182,076 at $CAD 0.55 to July 2020; 42,444,376 at $CAD 0.65 to June 10, 2021.
21
Pebble is Among the Worlds Greatest Stores of Mineral Wealth
22
22
Historical Mining Activity
23
Southwest Alaska & Bristol Bay
Access corridor as
per prior studies
24
24
Pebble Environmental, Fisheries & Mitigation
25
Bristol Bay Watershed Context Hydrology/Fisheries
The Real story The Fishery is Not Threatened
26
Water Management Surplus Water Situation
27
Comprehensive Multi-Disciplinary Science
28
Environmental Baseline Document (EBD) January 2012
Scientific Integrity Foundation for Successful Permitting
Conclusions:
We have the science to build and operate a safe mine
Fisheries and mines can & do co-exist
29
Pebble Limited Partnership Approach
Responsible Mineral Development
30
Comprehensive Basin-Wide Knowledge of Hydrology
31
Example of Habitat Model Results Weighted Usable Width
(2012 - SFK-B, Coho Spawning)
Mine flows create negligible fish habitat changes compared to natural conditions
Abundant habitat remains to meet fish needs
30 30
Average Year Pre-Mine
25 Mine Affected
25
Difference
Average WUW (feet)
20 20
15 15
10 10
5 5
0 0
-5 -5
-10 -10
24 25 26 27 28 29 30 31 32 33 34
River Kilometer
32
Salmon Mitigation/Enhancement Opportunities
* The Physical Habitat Simulation (PHABSIM) model, originally developed more than 30 years ago by the U.S. Geological Survey and the U.S Fish and Wildlife
Service, is one of the most scientifically advanced and widely accepted methodologies for determining aquatic habitat versus stream flow relationships.
33
Alaska Fish Habitat Enhancement Projects Agency Approved
34
Hard Rock Mining & Salmon Do Co-Exist
Fraser River Basin, BC*
35
Highland Valley Copper Mine Mining & Salmon in British Columbia
36
Highland Valley Copper Mine Mining & Salmon in British Columbia
37
Gibraltar Mine, British Columbia
Fraser River
38
Mines & Fisheries Do Co-Exist
Gibraltar Mine, BC
Seepage Collection Pond
Conclusion:
We have the science to build and operate a safe mine
39
Salmon Habitat Mitigation Summary
40
Summary
Deposit area watersheds are minor systems contributing negligible water &
habitat relative to massive Bristol Bay area
Conclusion: Pebble will not only achieve fisheries conservation, but also create
salmon enhancement.
41
Pebble Geology
42
Pebble Geology
43
Pebble Property Captures the Worlds Most Extensive
Mineral System Exploration Potential is High
44
East-West Geology Section Looking North
45
Very High Grades Extend into the East Graben
East Graben
1000 ft
Brittle-ductile
deformation
What Happens
East of the ZG1
Fault?
The highest grades at Pebble are truncated by the
East Graben
DDH-6348 intersected 289 m grading 1.98% CuEQ
below basalts in the graben; no follow up
Interval Cu % Au g/t Mo % CuEQ
High grades & the deposit clearly extend to the east (m) %
The extent of
mineralization at Pebble
is comparable to:
Oyu Tolgoi
Chuquicamata
Los Bronces/Andina
Exploration potential at
deposit and within
region is noteworthy
47
Pebble Engineering
48
Existing Infrastructure at Iliamna Operations Centre
Lake Iliamna
Iliamna
49
49
Cross Section
A
A
Note: Metal prices used for copper equivalent (CuEQ) are same as for resource (see page 52).
50
50
Plan View
Note: Metal prices used for copper equivalent (CuEQ) are same as for resource (see page 52).
51
51
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. Inferred mineral
Resources are considered to be too speculative
to allow the application of technical and
economic parameters to support mine planning
and evaluation of the economic viability of the
project. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the
basis of feasibility or pre-feasibility studies, or
economic studies except for Preliminary
Economic Assessments as defined under 43-
101. It cannot be assumed that all or any part of
the Inferred resources will ever be upgraded to
a higher category.
Copper equivalent calculations use metal prices
of $1.85/lb for copper, $902/oz for gold and
$12.50/lb for molybdenum, and recoveries of
85% for copper 69.6% for gold, and 77.8% for
molybdenum in the Pebble West zone and
89.3% for copper, 76.8% for gold, 83.7% for
molybdenum in the Pebble East zone.
Contained metal calculations are based on
100% recoveries.
A 0.30% CuEQ cut-off is considered to be
appropriate for porphyry deposit open pit mining
operations in the Americas.
All mineral resource estimates, cut-offs and
metallurgical recoveries are subject to change
as a consequence of more detailed economic
analyses that would be required in pre-
feasibility and feasibility studies.
52
Anticipated Relative Values by Metal
Note: Based on Measured and Indicated Resources only, as identified on page 52. 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.
53
53
Probable Process Flowsheet
54
Pebble: Answering Important Questions with Science
What About Seismicity?
CONCLUSION: Pebble will be designed to withstand seismic events larger than could have
occurred over the last 10,000+ years and to more stringent criteria than regulations require.
55
Pebble: Answering Important Questions with Science
What About the Sand Storage Facility?
OVERALL PRINCIPLES:
Three highly engineered embankments to provide safe, permanent storage of
1.8 billion tons of sand
Conservatively designed to withstand maximum forecast flood, storm, seismic events
Strict regulatory oversight and regular inspections by Alaska Dam Safety Program
Conventional porphyry deposit water/solid composition
PAG sand (~10%) to be stored sub-aqueously and encapsulated in sand mass
SSF water at similar porphyry deposits support healthy fish populations
Modified Centerline Design
56
Project Power Alternatives
Significant energy
requirement
400 MW
Gas supply
Via pipeline from
Kenai Peninsula
IPP opportunity
57
57
Preliminary Bathymetry Data Design Vessel
Bathymetry data
Minimum depth 36 ft
Average sea level +8 ft
Mean high water +14 ft
HandyMax
20,000 to 50,000 DWT
Draft of 41 ft
58
Pebble and Northern Dynasty Public Affairs
59
Southwest Alaska & Bristol Bay
60
60
Elders Forums / Elders Advisory Committee
61
61
Elders Forums / Elders Advisory Committee
62
62
Business Development Alaska
63
63
Workforce Development Plan
64
64
Environmental Baseline Document
65
The Pebble Fund
66
66
Forecast Economic Benefits for Alaska
The IHS report (see page 15) is intended to provide information about general economic effects/contribution of a development at Pebble to Alaska and the USA.
The report should not be used to evaluate the Pebble Projects impact on Northern Dynasty.
67
67
Forecast Economic Benefits for Southwest Alaska
The IHS report (see page 15) is intended to provide information about general economic effects/contribution of a development at Pebble to Alaska and the USA.
The report should not be used to evaluate the Pebble Projects impact on Northern Dynasty.
68
68
Forecast Economic Benefits for the United States
The IHS report (see page 15) is intended to provide information about general economic effects/contribution of a development at Pebble to Alaska and the USA.
The report should not be used to evaluate the Pebble Projects impact on Northern Dynasty.
69
69
Investment Highlights A World-Class Investment Opportunity
Strategic First-World Alaska USA State land Exploration & Development designation
Advantages Location Politically stable-history of responsible resource management and rule-of-law
Very significant benefits to USA, Alaska and the region
* Environmental Baseline and geological data aside, uncertain economic value due to EPA action as further described in slide 2.
70
Northern Dynasty Directors & Management
Marchand Snyman Chief Financial Officer Doug Allen Vice President, Corporate Communications
Mr. Snyman is a chartered accountant with more than 20 years of Mr. Allen is an asset management industry specialist with more than 35 years of
experience in corporate finance in the mining industry working on experience on both the sell-side and buy-side of the investment industry, and
international projects. Mr. Snyman is responsible for financial/corporate more recently the mining industry. He serves as the primary liaison with the
management and financing activities at Northern Dynasty Minerals Ltd. broker-dealer and asset management industries, and also works on corporate
and is Chief Operating Officer for Hunter Dickinson Inc. development activities.
71
71
Pebble Limited Partnership biographies
72
72
Contact Information
General Office Corporate Communications Websites
15th Floor Doug Allen VP, Corporate Communications www.northerndynasty.com
1040 W. Georgia Street dougallen@northerndynasty.com www.pebblepartnership.com
Vancouver, BC Tel: 604.684.6365 www.pebbleresearch.com
Canada V6E 4H1 TF: 800.667.2114