NAK · Northern Dynasty Minerals Ltd.

Northern Dynasty Minerals reported a net income of $21.1 million for the three months ended March 31, 2026, compared to a net loss of $40.4 million in the same period last year. The swing was primarily driven by a $27.3 million gain on the change in fair value of the convertible notes derivative (versus a $34.5 million loss in Q1 2025). Operating expenses increased: exploration and evaluation expenses rose to $2.9 million from $2.0 million, and general and administrative expenses increased to $3.0 million from $2.6 million. Legal, accounting, and audit fees decreased to $0.3 million from $1.0 million. Share-based compensation was a gain of $0.07 million versus an expense of $0.14 million. Interest income was $0.15 million, and finance expense was $0.22 million. The company's cash position decreased to $52.5 million from $54.7 million at year-end 2025, with net cash used in operating activities of $4.9 million. Financing activities provided $2.0 million from stock option exercises. The company continues to face material uncertainty regarding its ability to continue as a going concern, given its working capital deficit of $22.3 million (including $73.3 million in current convertible notes-related liabilities) and the need for additional financing to advance the Pebble Project. The company is actively challenging the EPA's Section 404(c) veto and the USACE's 2024 record of decision in federal court, with a summary judgment hearing scheduled for June 25, 2026. The outcome of this litigation is critical to the company's future.