Northern Dynasty Minerals .(NAK) - 2025 Q3 - Quarterly Report

Financial Performance - The net loss for the nine months ended September 30, 2025, was CAD 60,253,000, compared to CAD 13,604,000 for the same period in 2024, indicating a substantial increase in losses of approximately 343%[3][4] - The company reported a total comprehensive loss of CAD 64,205,000 for the nine months ended September 30, 2025, compared to CAD 10,877,000 in 2024, representing an increase of about 490%[3] - The basic and diluted loss per share for the nine months ended September 30, 2025, was CAD 0.11, compared to CAD 0.03 in 2024, reflecting a worsening of approximately 267%[3] - For the three months ended September 30, 2025, the Group recorded a loss of $1,311 thousand on the change in fair value of the embedded derivative, up from a loss of $736 thousand in the same period of 2024[61] - The loss attributable to shareholders for Q3 2025 was $7,945,000, compared to $4,618,000 in Q3 2024, indicating a 72% increase in losses[79] Assets and Liabilities - Total assets decreased to CAD 127,293,000 as of September 30, 2025, down from CAD 137,160,000 in December 2024, representing a decline of approximately 7%[1][2] - Total equity decreased to CAD 60,395,000 as of September 30, 2025, down from CAD 97,197,000 in December 2024, a decline of approximately 38%[1][2] - Total current liabilities increased to CAD 66,491,000 as of September 30, 2025, from CAD 39,415,000 in December 2024, representing an increase of about 68%[2] - The Group's total deficit increased to $793,123 as of September 30, 2025, compared to $732,870 at the end of 2024[12] - The Group's working capital deficit was $20,995 as of September 30, 2025, slightly improved from a deficit of $21,365 at the end of 2024[12] Cash and Cash Equivalents - Cash and cash equivalents increased significantly to CAD 44,847,000 from CAD 16,142,000, marking a growth of about 177%[1][4] - As of September 30, 2025, the Group had cash and cash equivalents of $44,847, up from $16,142 as of December 31, 2024[12] - The Group's cash and cash equivalents as of September 30, 2025, were primarily held in business and savings accounts, reflecting a stable liquidity position[37] - The Group's cash and cash equivalents and restricted cash totaled $38,710,000 as of September 30, 2025, compared to $16,272,000 at the end of 2024[86] Exploration and Evaluation - Exploration and evaluation expenses rose to CAD 5,028,000 for the nine months ended September 30, 2025, up from CAD 3,604,000 in 2024, reflecting an increase of about 39%[3] - The Group's exploration and evaluation assets as of September 30, 2025, include a mineral property interest valued at CAD 47,301,000, with a total carrying value of CAD 49,935,000 after accounting for depreciation[27] - The Group's total depreciation for the nine months ended September 30, 2025, was CAD 129,000, compared to CAD 119,000 for the same period in 2024, indicating a slight increase in asset usage[34] Regulatory and Legal Challenges - The Pebble Project is currently undergoing federal and state permitting processes, with significant regulatory challenges impacting its progress[15] - The Group's appeal of the USACE's permit application denial is ongoing, with the District instructed to re-evaluate specific issues following a remand decision[16] - The Group's legal actions against the EPA's Final Determination include a motion to add the District as a defendant, highlighting ongoing disputes regarding the Pebble Project's permit[18][19] - The Group's ongoing litigation and regulatory challenges have led to a temporary stay in court proceedings due to the US government shutdown, impacting the resolution timeline[20] Share Capital and Financing - The share capital increased to CAD 736,842,000 as of September 30, 2025, from CAD 702,755,000 in December 2024, an increase of approximately 5%[1][2] - The Group received proceeds of $9,145 from the exercise of share purchase options and warrants, along with $24,000 (approximately $33,190) from investment tranches under a royalty agreement[11] - The Group's financial statements have been prepared based on a going concern assumption, indicating the need for additional financing to meet obligations[13] - The Group has prioritized financial resources for key corporate and Pebble Project expenditures over the next twelve months, including challenges against the EPA's final determination[12] Management and Compensation - The total compensation for key management personnel for the nine months ended September 30, 2025, was $3,815 thousand, an increase from $3,007 thousand in 2024[63] - The Group recognized share-based compensation of $25 for DSU grants in the three months ended September 30, 2025, compared to $8 in 2024, and $50 for the nine months, up from $20 in 2024[45] Related Party Transactions - Total payables to related parties increased to $899 thousand as of September 30, 2025, compared to $267 thousand on December 31, 2024[62] Commitments and Future Obligations - The Group has a future commitment to distribute a minimum of $3,000 annually to residents of Bristol Bay villages as part of the Pebble Performance Dividend Commitment[97] - The Group's legal fees payable upon securing a partner for the Pebble Partnership total $635,000[100]