Interview with Ron Thiessen, CEO of Northern Dynasty Minerals (TSX/NYSE:NAK)

Recording date: 19th September 2023

Northern Dynasty Minerals CEO Ron Thiessen provided an overview of the company's giant Pebble copper-gold project in Alaska in an interview at the Denver Gold Forum conference. Thiessen stated over $1 billion has been spent on drilling, engineering studies, and environmental work to advance Pebble, one of the world’s largest undeveloped copper-gold-molybdenum deposits.

The Pebble deposit contains approximately 57 billion pounds of copper, 71 million ounces of gold, and significant molybdenum and silver. Initial mine plans outline a project producing 300-350 million pounds of copper and 300,000-350,000 ounces of gold annually over a 20-year mine life. The asset has strong economics with an estimated IRR of 16% and NPV of $2.3 billion at a 7% discount rate.

While positive economic studies and engineering de-risking are complete, Pebble was denied a key permit in late 2020. Thiessen stated political factors in an election year likely influenced what should have been a science-based decision. Northern Dynasty has subsequently filed an appeal and legal challenge.

A pending Supreme Court decision could help overturn an EPA determination against Pebble as soon as 2023. Thiessen sees several upcoming potential catalysts that could unlock permitting and development of one of the world’s premier undeveloped copper-gold resources.

In the interim, Northern Dynasty has $60 million from a recent royalty sale to fund critical path work. Thiessen noted Pebble remains a highly coveted asset that senior miners around the world would like to develop when permitting risks are resolved.

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