There’s more bad financial news for Vancouver-based Northern Dynasty Minerals, the last remaining company in the now-depleted Pebble Partnership - the company behind the reckless scheme to build a massive open pit mine in the heart of the world’s greatest wild salmon fishery, the Bristol Bay fishery of southwest Alaska.
According to Northern Dynasty’s own Consolidated Financial Statements filed last month (as well as Deloitte LLP’s audit and the company’s Management’s Discussion and Analysis for the year ending December 31, 2015), there is now “material uncertainty that casts substantial doubt about the company’s ability to continue as a going concern.”
This conclusion follows inexorably from debt and deficit numbers like the following:
The company incurred a net loss of $33,829,000 (all amounts in Canadian dollars) during the year ended December 31, 2015.
It incurred a net loss of $31,347,000 during the year ended December 31, 2014.
As of December 31, 2015, it had a deficit of $379,124,000.
According to the company and its own auditors, its deficit of more than $379 million and its recent significant net losses indicates “the existence of material uncertainties that raise substantial doubt about the company’s ability to continue as a going concern.”
As of December 31, 2015, the company and all its subsidiaries have only $7.5 million in cash and cash equivalents to pay for its operating requirements. Northern Dynasty admits that “Additional financing will be required in order to progress any material expenditures at the Pebble Project.”
If it is unable to secure financing to “generate sufficient cash flow to meet obligations as they come due,” Northern Dynasty may “consider reducing or curtailing its operations.”