Northern Dynasty Minerals Ltd (NAK)

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Delays to Permitting Schedule Likely–In our view it will be exceptionally challenging to reach a compensation plan covering +3,600 acres of wetlands and 185 miles of streams that will satisfy all parties. Even in the highly unlikely scenario that a consensus is reached and the associated cost is not extremely punitive (best case), we do not believe this is achievable prior to the upcoming U.S. Presidential Election in November.

Balance Sheet in Good Shape –With +$50 MM in cash, Northern Dynasty will not require any additional funding to complete the compensatory mitigation plan.

BOTTOM LINE
Negative–As we understand it, Northern Dynasty and the Corps will now effectively enter into “negotiations” as to the size, cost, and methods of compensatory mitigation. Until we have more clarity on what the potential cost of the mitigation may be, and its impact to the Pebble project economics, our target and rating on Northern Dynasty will remain Under Review.

http://www.cantorcanada.com/sites/default/files/20200824NDM.pdf