Northern Dynasty Minerals Ltd. (NAK): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that isn't selling widgets; you're looking at Northern Dynasty Minerals Ltd., a pure-play regulatory gamble sitting on one of the world's largest undeveloped copper-gold deposits. As of late 2025, this business model isn't about quarterly sales-it's about legal battles, political advocacy, and financing survival, evidenced by their $44,847 thousand CAD cash position against a $20,995 thousand CAD working capital deficit. To truly grasp the high-stakes, binary nature of this investment-where the value proposition hinges entirely on overturning the EPA's veto-you need to see the whole picture. Below is the distilled Business Model Canvas showing exactly how Northern Dynasty Minerals Ltd. operates today, right before that potential inflection point.

Northern Dynasty Minerals Ltd. (NAK) - Canvas Business Model: Key Partnerships

You're looking at the critical alliances Northern Dynasty Minerals Ltd. relies on to push the Pebble Project forward, especially given the ongoing regulatory and legal battles. These aren't just handshake deals; they involve significant financial commitments and high-stakes legal maneuvering.

Royalty Investor Financing

The royalty investor relationship is a cornerstone of Northern Dynasty Minerals Ltd.'s current liquidity strategy, avoiding equity dilution at what the company considered depressed prices. This partnership has reached its maximum commitment level as of late 2025.

The royalty holder secured these rights in return for a small portion of future gold and silver production, while Northern Dynasty Minerals Ltd. retains 100% of copper, molybdenum, and rhenium production.

Co-plaintiffs in Legal Action

Northern Dynasty Minerals Ltd. is pursuing a dual-track strategy of negotiation and litigation to overturn the U.S. Environmental Protection Agency (EPA) veto. The litigation track involves several key co-plaintiffs in the Alaska Federal Court case.

The plaintiffs filing the Summary Judgement Brief on October 3, 2025, included:

• The State of Alaska
• Pebble Limited Partnership (Northern Dynasty Minerals Ltd.'s U.S. subsidiary)
• Iliamna Natives Ltd.
• Alaska Peninsula Corp.

The schedule for the legal response has been adjusted due to a federal shutdown; the Department of Justice (DOJ) response brief is now due on February 16, 2026, with the plaintiffs' reply due on April 15, 2026.

Strategic Industry and Business Support

The company receives backing from major industry and business advocacy groups in its fight against the EPA veto, which they argue is an illegal overreach that handicaps future U.S. mining activity.

Organizations that filed Amicus Briefs in support of Northern Dynasty Minerals Ltd. include:

• National Mining Association (NMA)
• American Exploration & Mining Association (AEMA)
• Alaska Mining Association (AMA)
• The U.S. Chamber of Commerce (the "Chamber")

The NMA, AEMA, and AMA argue the proposed mine is a crucial source of copper needed for construction, transportation, electrical, and defense applications, especially given the surging demands of digitalization and electrification.

Alaska Native Corporation Engagement

Alaska Native corporations are key partners, both as plaintiffs in the legal action and as potential providers of essential local services for the Pebble Project.

Iliamna Natives Ltd. and Alaska Peninsula Corp., representing communities closest to the Pebble deposit, are actively suing the EPA, arguing the veto exceeded its authority and disregards local economic benefits.

The workforce development plan announced in July 2020 by Alaska Native village corporations outlines support for local employment through:

• On-site training, internships, scholarships & educational partnerships
• Region-wide recruitment and transport
• Work schedules that facilitate subsistence lifestyles

Legal Counsel Specialization

Northern Dynasty Minerals Ltd. is relying on specialized legal counsel to prosecute its case across multiple jurisdictions, focusing on environmental and administrative law challenges against federal agencies.

The company is challenging the EPA's veto in the U.S. District Court for Alaska, arguing the EPA relied on unsubstantiated speculation and that much of the land may fall outside the Clean Water Act jurisdiction following recent Supreme Court clarifications.

The legal challenges include:

• Summary Judgement motion in the Alaska Federal Court against the EPA and the U.S. Army Corps of Engineers (USACE)
• A separate case in the U.S. Court of Federal Claims alleging the veto constitutes an uncompensated property seizure

The case in the Alaska Federal Court is being overseen by Judge Gleason.

Northern Dynasty Minerals Ltd. (NAK) - Canvas Business Model: Key Activities

You're looking at the core operational drivers for Northern Dynasty Minerals Ltd. (NAK) as of late 2025. These aren't about selling widgets; they are about clearing regulatory and financial hurdles to unlock the Pebble Project. The key activities are almost entirely focused on external validation and capital preservation.

Pursuing legal action to overturn the EPA's Clean Water Act veto.

The primary legal activity centers on challenging the veto issued by the U.S. Environmental Protection Agency (EPA) under the Clean Water Act. This veto, which essentially blocked the project, was based on the potential destruction of over 2,000 acres of wetlands. Following the inability to secure a settlement, Northern Dynasty Minerals Ltd. filed a motion in the Federal District Court in Alaska seeking a summary judgment to expedite a decision on the veto's unlawfulness. The court case, overseen by Judge Sharon Gleason, has seen its timeline adjusted due to a 43-day federal government closure. The revised schedule now sets the Department of Justice's response brief for February 16, 2026, with the plaintiffs' reply due April 15, 2026. Consequently, the base case expectation for a court ruling is now Q3 2026.

Engaging in negotiations with the Environmental Protection Agency (EPA) for a settlement.

While the company previously reported active negotiations with government officials regarding a potential settlement to withdraw the veto, these discussions ultimately stalled. Despite this, Northern Dynasty Minerals Ltd. stated it would continue to work with relevant government agencies in parallel with the court action, viewing the settlement path as the fastest way forward, though it now appears unlikely the veto will be withdrawn voluntarily.

Managing and maintaining the 1,840 contiguous mineral claims in Alaska.

A foundational activity is the stewardship of the core asset. Northern Dynasty Minerals Ltd. maintains a 100% interest in a contiguous block of 1,840 mineral claims in Southwest Alaska, which encompasses the Pebble deposit. This activity requires ongoing administrative and maintenance expenditures to preserve the tenure over this world-class resource base.

Securing ongoing financing through equity and debt instruments.

The company's operational runway is directly tied to its ability to raise capital, as it continues to operate at a loss. For the nine months ended September 30, 2025, Northern Dynasty Minerals Ltd. reported a net loss of CAD 60.25 million. The key financing event in late 2025 was the receipt of the fifth and final US$12 million tranche under its royalty agreement in October 2025. This brought the total financing received under that agreement to US$60 million. The company reported $44,847 thousand (or $44.847 million) in cash and cash equivalents as of September 30, 2025. Factoring in the final US$12 million tranche, the proforma cash position is approximately US$45 million. With a current rate of cash burn estimated at roughly US$13 million per year, this funding is projected to last into 2029. Still, as of September 30, 2025, the Group had a working capital deficit of $20,995 thousand.

Here's a quick look at the financing and resource scale that underpins the need for this capital:

Public and political advocacy to promote the Pebble Project.

Advocacy remains a constant activity, framing the project as vital for domestic supply security. The Pebble Project is promoted as one of the world's largest undeveloped copper resources, critical for electrification and military applications due to its copper, gold, molybdenum, and rhenium content. The company is confident the court will agree the veto was unlawful, which would support the goal of achieving U.S. self-sufficiency in critical metals.

The potential scale of the resource that this advocacy supports includes:

• Measured and Indicated Mineral Resources: 6.5 billion tonnes.
• Inferred Mineral Resources: 4.5 billion tonnes.
• Estimated Copper Production (over 20 years): 6.4 billion pounds.
• Estimated Rhenium Content: 2.6 million kilograms.
• Q3 2025 Net Loss: CAD 7.95 million.

Finance: draft 13-week cash view by Friday.

Northern Dynasty Minerals Ltd. (NAK) - Canvas Business Model: Key Resources

You're looking at the core assets backing Northern Dynasty Minerals Ltd. (NAK) right now. These aren't projections; these are the hard numbers defining the company's primary value proposition as of late 2025.

The single most significant Key Resource is, without question, the mineral endowment of the Pebble Deposit. This resource base is what underpins every strategic move the company makes, especially given the ongoing legal and permitting hurdles.

The financial foundation, though lean, is critical for sustaining operations, particularly the legal challenges. As of the close of the third quarter on September 30, 2025, Northern Dynasty Minerals Ltd. reported cash and cash equivalents of $44,847 thousand CAD.

The corporate structure and intangible assets are also vital components of the Key Resources block:

• The principal asset, the Pebble deposit, is held through its 100%-owned U.S.-based subsidiary, Pebble Limited Partnership.
• Extensive technical and environmental data accumulated over years of work, including input for the National Environmental Protection Act (NEPA) permitting process.
• Intellectual property related to the design of a modern, long-life mine and environmental mitigation strategies developed through technical and engineering studies.

Honestly, the cash position is just enough to keep the lights on and fund the legal fight, which is the core business objective right now. Here's the quick math: the reported cash, plus the expected final royalty tranche received in October 2025, gave them proforma cash near $45 million USD, which analysts estimated could cover burn rates into early 2029. That runway is the immediate resource protecting the long-term mineral resource.

Northern Dynasty Minerals Ltd. (NAK) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Northern Dynasty Minerals Ltd. (NAK) exists in the market, which really boils down to one massive, controversial asset: the Pebble Project.

Supply of critical minerals (copper, rhenium) for US energy and defense needs.

The Pebble deposit is touted as the world's largest undeveloped copper resource, which is a massive proposition for US supply chain security. The US currently imports over 70% of its copper, creating a vulnerability that this project aims to alleviate. Analysts suggest the Pebble Project could meet 20-30% of US copper demand at peak production. Copper demand itself is critical, with projections showing global needs growing by 40% by 2035 and nearly 100% by 2050 due to electrification. Beyond copper, the deposit holds a significant resource of rhenium, a mineral essential for military applications, as the US imports 100% of its supply. The potential output over the mine's life, based on one study, includes 6.4 billion pounds of copper and 200,000 kilograms of rhenium.

The sheer scale of the resource is best captured by the measured and indicated mineral resource estimate:

The contained metal estimates from this resource are staggering, which is the real draw here. It's about securing domestic supply for defense and the green energy transition.

• Contained Copper (M&I): 57 billion pounds.
• Contained Gold (M&I): 71 million ounces.
• Contained Rhenium (Projected Life of Mine): 200,000 kilograms.

Unlocking one of the world's largest undeveloped copper-gold resources.

Northern Dynasty Minerals Ltd. is essentially a pure-play on this single, world-class deposit. The resource base is what underpins any future valuation. The measured and indicated resources alone equate to 57 billion pounds of copper and 71 million ounces of gold. This is one of the greatest stores of mineral wealth ever discovered. The company is advancing this resource toward permitting and development, though the estimated cost to build the mine is substantial, pegged between $5-6 billion.

Potential for significant, long-term economic benefits for Alaska and the US.

The value proposition extends beyond the metal itself to the economic activity a successful mine would generate. A 2013 independent study projected the conceptual mine would support 15,000 American jobs and contribute over $2.4 billion annually to US GDP. The 2020 Final Environmental Impact Study also highlighted the potential for substantial tax revenues for the State of Alaska and local communities. Still, the company is currently not generating revenue from production, reporting an $8.6 million net loss for Q2 2025, relying on financing to sustain operations.

Offering high-leverage exposure to a binary regulatory outcome for investors.

This is where the investment thesis gets interesting, and frankly, risky. You aren't buying a producing mine; you are buying a bet on the regulatory environment. The stock price movement reflects this leverage. For instance, NAK stock surged 30% in March 2025 following an executive order supporting domestic mineral production, but it plunged over 60% in the month prior to late August 2025 after disclosing a stall in talks with the Environmental Protection Agency (EPA) to end its veto. The core binary event is the legal challenge against the EPA's veto, with a court ruling now expected in Q3 2026. The company's financial position has improved recently, receiving the final $12 million tranche of a royalty investment in October 2025, giving it approximately $45 million in proforma cash. This cash, based on a current burn rate of roughly $13 million per year, is expected to last into 2029. However, the fully diluted market cap is over US$1 billion, which is far below the estimated $5-6 billion development cost, meaning any positive regulatory news offers massive upside leverage to that valuation.

Here's a snapshot of the financial context underpinning this high-leverage play as of late 2025:

The stock is definitely sensitive to these regulatory whispers, trading up 7.63% on October 28, 2025, on positive financing news, but its fundamental value is tied to that court decision. Finance: draft 13-week cash view by Friday.

Northern Dynasty Minerals Ltd. (NAK) - Canvas Business Model: Customer Relationships

Northern Dynasty Minerals Ltd. (NAK) engages with key stakeholders through distinct, high-stakes relationship tracks, primarily centered on regulatory approvals and financial backing for the Pebble Project.

High-touch engagement with government officials and regulatory bodies

Engagement with government officials and regulatory bodies is characterized by parallel tracks of negotiation and litigation to address the U.S. Environmental Protection Agency (EPA) veto imposed in 2023 under the Clean Water Act.

• Active negotiations with government officials regarding the withdrawal of the veto are ongoing and described as potentially fruitful.
• The company is pursuing legal action through summary judgment proceedings against the EPA and the U.S. Army Corps of Engineers (USACE).
• Judge Gleason established a timeline for summary judgment briefings: plaintiffs' opening briefs due on October 3, 2025, the DOJ response by January 2, 2026, and the plaintiffs' response by February 27, 2026.
• The case against the USACE remains stayed.
• The Pebble Project asset encompasses a contiguous block of 1,840 mineral claims in Southwest Alaska.

Investor relations focused on legal updates and project viability

Investor communications heavily emphasize the company's financial runway and the progress of the legal challenges, which directly impact project viability. Northern Dynasty Minerals Ltd. reported a $8.6 million net loss for Q2 2025, alongside a 2-cent-per-share deficit for that quarter. The company's operational spending is currently funded by recent financing activities.

The company received the fifth and final US$12 million tranche investment under its royalty agreement in October 2025, bringing the total received under the agreement to US$60 million.

Community outreach to local Alaskan Native groups and residents

Direct communication and engagement with local stakeholders are ongoing components of the operating expense structure, though specific budget allocations are not itemized separately from general operating costs.

• Current spending includes costs associated with dealing with Alaskan stakeholders.
• The company acknowledges that conservation groups and Indigenous communities remain fiercely opposed to the project.
• The annual cash burn of roughly US$13 million covers these stakeholder management activities.

Direct communication with industry associations providing legal support

Northern Dynasty Minerals Ltd. leverages direct communication with industry bodies to secure high-level advocacy and legal assistance in its regulatory efforts.

The legal challenge against the veto gained momentum from significant backing provided by influential mining associations and the U.S. Chamber of Commerce, who filed court documents against the veto.

The company reported that the NMA, AEMA, AMA, and the U.S. Chamber of Commerce filed court documents on December 1, 2025, against the veto.

Northern Dynasty Minerals Ltd. (NAK) - Canvas Business Model: Channels

You're looking at how Northern Dynasty Minerals Ltd. (NAK) pushes its primary objective-getting the Pebble Project permitted-through various external touchpoints. This isn't about selling widgets; it's about influencing regulators, courts, and capital markets. The channels are highly specialized, reflecting the single-asset, high-stakes nature of the business.

Alaska Federal Court system for primary business progress

The Alaska Federal Court system is arguably the most critical channel for Northern Dynasty Minerals Ltd.'s primary business progress as of late 2025. This is where the company directly challenges the regulatory roadblocks to the Pebble Project. The core activity involves litigation against the Environmental Protection Agency (EPA) regarding its Clean Water Act veto and actions by the U.S. Army Corps of Engineers (USACE).

The company, through its subsidiary Pebble Limited Partnership (PLP), along with the State of Alaska and two Alaska Native villages, is actively using the court as a mechanism to overturn the veto. Specifically, on October 3, 2025, Northern Dynasty Minerals Ltd. and fellow plaintiffs filed a Summary Judgement Brief in the Alaska Federal Court.

The timeline for this legal channel has recently shifted. Due to a federal government shutdown, the summary judgment briefing schedule was pushed back by approximately 1.5 months. Here's the quick math on the revised schedule:

• Department of Justice (DOJ) response brief deadline: February 16, 2026.
• Plaintiffs' reply brief deadline: April 15, 2026.
• Base case scenario for Judge Gleason's ruling: Q3 2026.

What this estimate hides is the potential for settlement discussions to still derail or accelerate this timeline, though the company noted a lack of apparent progress in negotiations with the EPA as of late November 2025. The company also launched a separate Takings action in the US Court of Federal Claims. This entire legal effort is financially supported by the Royalty Financing, which has seen four tranches completed, totaling $48 million of the $60 million aggregate purchase price.

Direct communication with US federal and state government agencies

Direct engagement with federal and state agencies remains a constant, high-stakes channel, even while litigation proceeds. Northern Dynasty Minerals Ltd. President and CEO Ron Thiessen confirmed that they continue to work with relevant government agencies to resolve the veto issue, even while pursuing court action.

This communication channel is focused on demonstrating the project's importance to U.S. critical mineral self-sufficiency and advocating for a withdrawal of the EPA veto. The company noted receiving an update on government discussions on September 25, 2025. The company's messaging often aligns with political sentiment, referencing the Trump Administration's emphasis on domestic mineral production. The company's goal here is to secure permitting without undue delay, which includes addressing requests from agencies like the EPA, such as consenting to a 90-day abeyance in February 2025 for new agency leadership to decide how to proceed.

The key players in this channel are the EPA and the USACE, but the company also references the potential for recommendations that would empower the State of Alaska to direct and oversee the permitting process, particularly on State lands. This channel is about persuasion and negotiation, running parallel to the adversarial court channel.

Investor services team and corporate website for public disclosures

For the investment community, the channels are structured for compliance and information dissemination. The corporate website, www.northerndynastyminerals.com, serves as the primary hub for news releases, project details, and economic rationale, such as the September 2023 PEA (Preliminary Economic Assessment) results. Public filings are channeled through regulatory bodies: www.sec.gov for U.S. disclosures (including the Form 40-F Annual Report) and www.sedarplus.ca for Canadian filings.

The Investor Services team provides direct support via phone: (604) 684-6365 or the North American toll-free line at 1-800-667-2114. The company's financial structure and shareholder base are key metrics communicated through these channels. As of Q3 2025, Northern Dynasty Minerals Ltd. reported approximately 552 million shares outstanding. The company's market capitalization stood at C$1.61B as of early December 2025, with the latest analyst rating being a Buy with a C$2.50 price target.

The Royalty Financing is a critical disclosure point, as the final $12 million tranche is available to the royalty investor up to December 31, 2025, completing the $60 million total investment.

Here is a snapshot of the key data points related to this channel:

Industry conferences and media for political advocacy

Industry conferences and media appearances are used to advocate for the Pebble Project's strategic importance, particularly concerning the growing demand for copper driven by digitalization and electrification. This channel targets institutional investors and policymakers who influence the political environment surrounding permitting.

Recent participation in 2025 included:

• H.C. Wainwright Annual Global Investment Conference (September 8 - September 10, 2025), featuring a presentation by Mike Westerlund, Executive VP, Investor Relations.
• John Tumazos Very Independent Research Metals Conference (June 11, 2025).

The advocacy messaging centers on the Pebble deposit being one of the world's largest undeveloped copper/gold resources, a potential domestic solution to foreign supply chain dependence, and a source of thousands of forgone jobs in Alaska. The company also cites the U.S. House of Representatives passing the Critical Mineral Consistency Act, which names copper as a critical mineral. The project is estimated to contain 57 billion pounds of copper in the Measured and Indicated categories.

Finance: draft 13-week cash view by Friday.

Northern Dynasty Minerals Ltd. (NAK) - Canvas Business Model: Customer Segments

You're analyzing Northern Dynasty Minerals Ltd. (NAK), and the customer segments are entirely prospective, tied to the permitting and eventual development of the Pebble Project. The current financial reality, with 2025 Revenue Forecast of $0.00, means these segments are defined by potential future value and current strategic alignment.

Global Metal Traders and Smelters (Future Off-take Partners)

The primary future customers are entities that process and trade base and precious metals. Their interest is purely driven by the sheer scale and quality of the contained resources, which represent a globally significant supply source for critical minerals needed in electrification and technology.

The resource base that forms the basis of this future customer interest includes:

• Contained Gold (Measured and Indicated): 71 million ounces.
• Contained Copper (Measured and Indicated): 57 billion pounds.
• Contained Molybdenum (Measured and Indicated): 3.4 billion pounds.
• Contained Silver (Measured and Indicated): 345 million ounces.

The potential economics, based on a 2021 Preliminary Economic Assessment (PEA), showed a Net Present Value (NPV) of $2.3 billion at long-term metal prices. For the royalty holder, at assumed prices of US$4,000/oz gold and US$50/oz silver, the annual net revenue could be around US$109 million over a 20-year mine life.

High-Risk Tolerance, Long-Term Equity Investors and Speculators

This segment funds Northern Dynasty Minerals Ltd. (NAK)'s operations, legal defense, and administrative costs while awaiting binary regulatory outcomes. Their investment thesis is based on the potential upside if the Pebble Project secures all required federal and state permits, which is currently tied to a legal challenge expected to result in a court ruling around Q3 2026.

Key financial metrics defining this segment's risk profile as of late 2025 include:

This group is betting against the estimated development cost of $6.5+ billion being a barrier, provided the regulatory risk is cleared.

US Government and Defense Sectors (Domestic Critical Mineral Source)

This segment views the Pebble Project as a strategic domestic source of copper and other minerals essential for national security and the energy transition, especially given global supply chain concerns. The project's location in Southwest Alaska, 200 miles from Anchorage, positions it as a domestic asset.

The strategic value is underscored by the potential production figures, which could meet a significant portion of future demand:

• The project holds the world's largest measured gold resource at 69.84 million ounces.
• Global supply needs require opening 60+ large mines by 2050 to meet present needs, highlighting the importance of large, domestic deposits like Pebble.

Alaska Native Corporations and Local Communities (Beneficiaries)

These stakeholders are crucial for social license to operate, with potential benefits including employment and dividends, contingent on permitting success. The Pebble Partnership is the proponent of the project in Southwest Alaska, located 125 miles from Bristol Bay.

The forward-looking statements from Northern Dynasty Minerals Ltd. (NAK) specifically mention:

• The social integration of the Pebble Project into the Bristol Bay region.
• Projected benefits for Alaska, which would directly impact local communities and corporations.

Finance: draft 13-week cash view by Friday.

Northern Dynasty Minerals Ltd. (NAK) - Canvas Business Model: Cost Structure

You're looking at the cost structure for Northern Dynasty Minerals Ltd. (NAK), and honestly, it's a structure defined by pre-production reality: massive holding costs dominated by legal defense and corporate overhead necessary to keep the Pebble Project alive. This isn't about cost of goods sold; it's about the cost of waiting for regulatory decisions.

Legal and Regulatory Expenses

The single largest driver of ongoing cash burn is the legal and regulatory battle to overturn the U.S. Environmental Protection Agency (EPA) veto. While specific quarterly legal, accounting, and audit fees for Q3 2025 aren't fully itemized in the available snippets, the entire operating environment is geared toward this fight. For instance, the net loss for the nine months ended September 30, 2025, reached $60,250 thousand CAD, reflecting these sustained costs. Furthermore, the company's estimated annual cash burn rate is roughly US$13 million per year, a significant portion of which is dedicated to legal defense and stakeholder management in Alaska.

• The company is funding its challenge against the EPA's final determination and the USACE 2024 record of decision.
• Legal support from the National Mining Association, AEMA, AMA, and the U.S. Chamber of Commerce in December 2025 suggests the legal battle remains central to the cost base.

General and Administrative Costs and Corporate Overhead

General and administrative (G&A) costs are the fixed backbone of the corporate structure, necessary for compliance, investor relations, and management. While the specific G&A expense for the nine months ended September 30, 2025, is not explicitly stated, employment costs, which include executive salaries and services from HDSI, account for roughly 30% of the total operating expenses. The company reported a net loss of $10,900 thousand CAD for the third quarter ended September 30, 2025, which encapsulates these overheads.

Mineral Property Maintenance and Exploration/Evaluation Expenses

As an exploration and development company, Northern Dynasty Minerals Ltd. incurs expenses to maintain its core asset, the Pebble Project. These are classified as exploration and evaluation expenses. For the three months ended March 31, 2025, the reported exploration and evaluation expenses were $40,374 thousand CAD. This figure highlights the capital intensity even in the pre-development phase, though this number is for Q1 2025, not Q3 2025.

Interest Expense on Liabilities

Northern Dynasty Minerals Ltd. has historically managed to keep its traditional debt low, but the convertible notes introduce a specific interest cost. The US$15,000,000 aggregate principal amount convertible notes bear interest at a rate of 2.0% per annum, payable semi-annually on June 30 and December 31. As of September 30, 2025, the liability component related to these notes on the balance sheet was $2,568 thousand CAD, with an additional $60,419 thousand CAD recorded as a derivative on the convertible notes.

Working Capital Deficit

Despite recent non-dilutive financing, the company operates with a working capital deficit, meaning current liabilities exceed current assets. As of September 30, 2025, Northern Dynasty Minerals Ltd. had a working capital deficit of $20,995 thousand CAD. This is a crucial metric you must watch; it shows the immediate gap between short-term obligations and short-term resources. The company's cash position at that date was $44,847 thousand CAD, but this must cover the current liabilities before any other operational needs.

Here's a quick look at the liability side of the balance sheet as of September 30, 2025, expressed in thousands of Canadian Dollars:

Finance: draft 13-week cash view by Friday.

Northern Dynasty Minerals Ltd. (NAK) - Canvas Business Model: Revenue Streams

As of late 2025, Northern Dynasty Minerals Ltd. operates as a pre-production entity, meaning its revenue streams are entirely non-operational and financing-based.

Zero revenue from mineral production (pre-revenue company)

Northern Dynasty Minerals Ltd. currently generates no revenue from the sale of mined minerals, as the Pebble Project is not yet in production. The consensus estimate for the 2025 fiscal year Revenue is $0.00. Consequently, the company consistently reports net losses, with the net loss for the trailing twelve months (TTM) ending September 30, 2025, reported as -$82.8 million (CAD).

Proceeds from royalty/streaming agreements

The primary source of recent, non-dilutive capital has been the royalty agreement. The aggregate total purchase price under this agreement is $60 million. The final tranche of this financing was received in late 2025.

The key milestones and current status of the royalty financing are detailed below:

This final $12 million payment was received ahead of the December 31, 2025, deadline. The completion of the full $60 million investment means the maximum royalty rates are now in effect. The proforma cash position following this final tranche is approximately US$45 million.

Proceeds from equity financing (share issuances, warrants, options)

Northern Dynasty Minerals Ltd. also secures capital through equity-related activities, which is a secondary funding source compared to the royalty stream. This inflow helps maintain liquidity alongside the royalty proceeds.

Recent equity-related cash inflows include:

• Proceeds from the exercise of stock options and warrants, totaling 'several million dollars of inflow' during the summer of 2025.
• Conversion of convertible notes into common shares. Approximately 14% of the US$15 million in convertible notes converted at a price of US$0.3557 per share.

Potential future revenue from the sale of copper, gold, molybdenum, silver, and rhenium

The ultimate, long-term revenue for Northern Dynasty Minerals Ltd. is contingent upon the successful permitting and development of the Pebble Project. This future revenue is anticipated from the sale of the following metals:

• Copper
• Gold
• Molybdenum
• Silver
• Rhenium

Under the completed royalty agreement, the royalty holder has the right to purchase a portion of the future production of two of these metals, while Northern Dynasty Minerals Ltd. retains 100% of the others: