Northern Dynasty Minerals Ltd 6-K, filed Aug 15, 2023

Northern Dynasty Minerals Ltd (NAK)

6-K 2023-08-15 For: 2023-08-11

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Added on April 11, 2026

About this 6-K

Northern Dynasty Minerals Ltd filed this 6-K on August 15, 2023.

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Exhibits		Description
99.1		Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2023
99.2		Management’s Discussion and Analysis for the three and six months ended June 30, 2023
99.3		Certification of Interim Filings – Full Certificate – CEO
99.4		Certification of Interim Filings – Full Certificate – CFO

	Northern Dynasty Minerals Ltd.
	(Registrant)

Date: August 14, 2023.	By:	/s/ M Peters
	By:	Mark Peters
	Title:	Chief Financial Officer

	Notes		June 30 2023			December 31 2022

ASSETS

Non-current assets
Restricted Cash		5(b)	$	851		$	852
Mineral property, plant and equipment		3		124,579			127,531
Total non-current assets				125,430			128,383

Current assets
Amounts receivable and prepaid expenses		4		9,845			2,662
Cash and cash equivalents		5(a)		3,424			14,173
Total current assets				13,269			16,835

Total Assets			$	138,699		$	145,218

EQUITY

Capital and reserves
Share capital		6	$	700,278		$	700,278
Reserves		6		116,263			118,369
Deficit				(689,230	)		(675,962	)
Total equity				127,311			142,685

LIABILITIES

Non-current liabilities
Lease liabilities		8		385			463
Total non-current liabilities				385			463

Current liabilities
Payables to related parties		7		286			237
Trade and other payables		8		10,717			1,833
Total current liabilities				11,003			2,070

Total liabilities				11,388			2,533

Total Equity and Liabilities			$	138,699		$	145,218

			Three months ended June 30						Six months ended June 30
	Notes		2023			2022			2023			2022

Expenses
Exploration and evaluation expenses		9,10	$	1,813		$	2,182		$	4,087		$	4,483
General and administrative expenses		9,10		2,626			2,517			5,071			4,610
Legal, accounting and audit				1,449			1,521			3,474			1,605
Share-based compensation		6(c),(d)		403			6			816			12
Loss from operating activities				6,291			6,226			13,448			10,710
Foreign exchange income				(9	)		-			(23	)		(3	)
Interest income				(75	)		(55	)		(172	)		(91	)
Finance expense				14			17			29			34
Other income				(13	)		-			(14	)		-
Net loss			$	6,208		$	6,188		$	13,268		$	10,650

Other comprehensive loss (income)
Items that may be subsequently reclassified to net loss
Foreign exchange translation difference		6(e)		2,581			(3,860	)		2,922			(2,435	)
Other comprehensive loss (income)			$	2,581		$	(3,860	)	$	2,922		$	(2,435	)

Total comprehensive loss			$	8,789		$	2,328		$	16,190		$	8,215

Basic and diluted loss per share		11	$	0.01		$	0.01		$	0.03		$	0.02

			Six months ended June 30
	Notes		2023			2022

Operating activities
Net loss			$	(13,268	)	$	(10,650	)
Non-cash or non operating items
Depreciation		3		82			121
Interest income				(172	)		(91	)
Share-based compensation				816			12
Unrealized foreign exchange gain				(7	)		(14	)
Changes in working capital items
Amounts receivable and prepaid expenses				(7,151	)		1,402
Trade and other payables				8,857			(109	)
Payables to related parties				49			(55	)
Net cash used in operating activities				(10,794	)		(9,384	)

Investing activities
Acquisition of plant and equipment				-			(21	)
Disposal of plant and equipment				1			-
Interest received on cash and cash equivalents				140			71
Net cash from investing activities				141			50

Financing activities
Payments of principal portion of lease liabilities				(73	)		(61	)
Net cash used in financing activities				(73	)		(61	)

Net decrease in cash and cash equivalents				(10,726	)		(9,395	)
Effect of exchange rate fluctuations on cash and cash equivalents				(23	)		25
Cash and cash equivalents - beginning balance				14,173			22,291

Cash and cash equivalents - ending balance		5(a)	$	3,424		$	12,921

Northern Dynasty Minerals Ltd.
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited - Expressed in thousands of Canadian Dollars, except for share information)

	Notes		Share capital				Reserves
							Equity -		Foreign
							settled		currency						Share
			Number of				share-based		translation			Investment			Purchase
			shares				compensation		reserve			revaluation			Warrants
			(note 6(a))		Amount		reserve		(note 6(e))			reserve			(note 6(b))		Deficit			Total equity

Balance at January 1, 2022				529,779,388	$	700,278	$	77,723	$	28,758		$	(17	)	$	271	$	(651,520	)	$	155,493
Share-based compensation		6(d)				-		12		-			-			-		-			12
Net loss						-		-		-			-			-		(10,650	)		(10,650	)
Other comprehensive income net of tax						-		-		2,435			-			-		-			2,435
Total comprehensive loss																					(8,215	)

Balance at June 30, 2022				529,779,388	$	700,278	$	77,735	$	31,193		$	(17	)	$	271	$	(662,170	)	$	147,290

Balance at January 1, 2023				529,779,388	$	700,278	$	80,024	$	38,091		$	(17	)	$	271	$	(675,962	)	$	142,685
Share-based compensation		6(c),(d)						816													816
Net loss																		(13,268	)		(13,268	)
Other comprehensive loss net of tax										(2,922	)										(2,922	)
Total comprehensive loss																					(16,190	)

Balance at June 30, 2023				529,779,388	$	700,278	$	80,840	$	35,169		$	(17	)	$	271	$	(689,230	)	$	127,311

1.	NATURE AND CONTINUANCE OF OPERATIONS

	Northern Dynasty Minerals Ltd. (the "Company") is incorporated under the laws of the Province of British Columbia, Canada, and its principal business activity is the exploration of mineral properties. The Company is listed on the Toronto Stock Exchange ("TSX") under the symbol "NDM" and on the NYSE American Exchange ("NYSE American") under the symbol "NAK". The Company’s corporate office is located at 1040 West Georgia Street, 14^th floor, Vancouver, British Columbia.

	The condensed consolidated interim financial statements ("Financial Statements") of the Company as at and for the three and six months ended June 30, 2023, include financial information for the Company and its subsidiaries (together referred to as the "Group" and individually as "Group entities"). The Company is the ultimate parent. The Group’s core mineral property interest is the Pebble Copper-Gold-Molybdenum-Silver-Rhenium Project (the "Pebble Project") located in Alaska, United States of America ("USA" or "US"). All US dollar amounts when presented are denoted "US$" and expressed in thousands, unless otherwise stated.

	The Group is in the process of exploring and evaluating the Pebble Project and has not yet determined whether the Pebble Project contains mineral reserves that are economically recoverable. The Group’s continuing operations and the underlying value and recoverability of the amounts shown for the Group’s mineral property interests is entirely dependent upon the existence of economically recoverable mineral reserves; the ability of the Group to obtain financing to complete the exploration and development of the Pebble Project; the Group obtaining the necessary permits to mine; and future profitable production or proceeds from the disposition of the Pebble Project.

	As of June 30, 2023, the Group had $3,424 (December 31, 2022 – $14,173) in cash and cash equivalents for its operating requirements and working capital (current assets minus current liabilities) of $2,266 (December 31, 2022 – $14,765). These Financial Statements have been prepared on the basis of a going concern, which assumes that the Group will be able to raise sufficient funds to continue its exploration and development activities and satisfy its obligations as they come due. During the six months ended June 30, 2023, the Group incurred a net loss of $13,268 (2022 – $10,650), and had a deficit of $689,230 as of June 30, 2023 (December 31, 2022 – $675,962). The Group has prioritized the allocation of its financial resources to meet key corporate and Pebble Project expenditure requirements in the near term, including funding the ongoing activities relating to the appeal and remand of the Record of Decision (the "ROD"), the Group’s response to the US Environmental Protection Agency ("EPA")’s final determination (both discussed below) and class action litigation (note 13(a)). Additional financing will be required in order to progress any material expenditures relating to the permitting of the Pebble Project and for working capital requirements. Additional financing may include any of or a combination of debt, equity and/or contributions from possible new Pebble Project participants. There can be no assurances that the Group will be successful in obtaining additional financing or funding when required. If the Group is unable to raise the necessary capital resources and generate sufficient cash flows to meet obligations as they come due, the Group may, at some point, consider reducing or curtailing its operations. As such, there is material uncertainty that raises substantial doubt about the Group’s ability to continue as a going concern.

	These Financial Statements do not reflect adjustments to the carrying values and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern, and such adjustments could be material.

	The Group, through the Pebble Limited Partnership ("Pebble Partnership"), initiated federal and state permitting for the Pebble Project under the National Environmental Protection Act ("NEPA") by filing documentation for a Clean Water Act ("CWA") 404 permit with the US Army Corps of Engineers ("USACE") in December 2017. The USACE published a draft Environmental Impact Statement ("EIS") in February 2019 and completed a 120-day public comment period thereon on July 2, 2019. In late July 2019, the EPA withdrew the determination initiated under Section 404(c) of the CWA in 2014 for the waters of Bristol Bay ("Proposed Determination"), which attempted to pre-emptively veto the Pebble Project before it received an objective, scientific regulatory review under NEPA. On July 24, 2020, the USACE published the final EIS. On November 25, 2020, the USACE issued a ROD rejecting the Pebble Partnership’s permit application, finding concerns with the proposed compensatory mitigation plan and determining the project would be contrary to the public interest. The ROD rejected the compensatory mitigation plan as "noncompliant" and determined the project would cause "significant degradation" and was contrary to the public interest. Based on this finding, the USACE rejected Pebble Partnership’s permit application under the CWA. On January 19, 2021, the Pebble Partnership submitted its request for appeal of the ROD with the USACE Pacific Ocean Division ("USACE POD") (the "RFA"). On February 24, 2021, the USACE POD notified the Pebble Partnership that the RFA is "complete and meets the criteria for appeal" and assigned a review officer ("RO") to oversee the administrative appeal process at that time and has since assigned a new RO. While federal regulations suggest the appeal should conclude within 90 days, and no case extend beyond one year, the USACE POD also indicated that due to the complexity of issues and volume of materials associated with the Pebble Project case, the review will take additional time. In June 2021, the USACE POD completed the ‘administrative record’ for the appeal and provided a copy to the Pebble Partnership, following which the Pebble Partnership and its legal counsel reviewed the voluminous record for completeness and relevance to the USACE’s permitting decision, and its sufficiency to support a fair, transparent and efficient review. An appeal conference was held in July 2022. On April 24, 2023, the USACE POD issued its decision to remand the permit application denial to the USACE Alaska District so that office can re-evaluate specific issues. As a result of the remand decision and in light of the EPA’s Final Determination (discussed below), the District has been instructed to review the appeal decision and had 45 days to notify the parties how it plans to proceed. The USACE Alaska District requested and has been granted four extensions to communicate its plans and the current deadline is September 26, 2023. The outcome from the remand remains uncertain.

	On October 29, 2021, the court granted the EPA’s motion for remand, and vacated the EPA’s 2019 withdrawal of the Proposed Determination decision, thus reinstating the Proposed Determination. The court declined to impose a schedule on the EPA’s proceedings on remand. On May 25, 2022, the EPA announced that it intended to advance its pre-emptive veto of the Pebble Project and issued a revised Proposed Determination. Public comments on the revised Proposed Determination closed on September 6, 2022. The Pebble Partnership submitted extensive comments on the Revised Proposed Determination, objecting to the EPA’s preemptive veto of the Pebble Project and stating its concerns about legal and factual flaws therein. On January 30, 2023, the EPA issued a Final Determination under Section 404(c) of the CWA, imposing limitations on the use of certain waters in the Bristol Bay watershed as disposal sites for certain discharges of dredged or fill material associated with development of a mine at the Pebble deposit. This Final Determination is the concluding step in the administrative process set forth in 40 C.F.R. Part 231, which governs the EPA’s authority under Section 404(c) to veto permit decisions. The Administrative Procedure Act ("APA"), 5 USC §551 et seq., which governs judicial review of agency decisions, provides that individuals aggrieved by agency action may seek judicial review of any "final agency action." The EPA’s administrative determination can be challenged by filing a lawsuit in U.S. federal district court seeking reversal of that decision.

	The Company and the Pebble Partnership plan to seek judicial review of the Final Determination through a challenge in a U.S. federal district court. On July 26, 2023, the State of Alaska filed a Motion for Leave to File a Bill of Complaint with the US Supreme Court challenging the Final Determination. The Company intends to prepare and file with the Supreme Court appropriate briefs to support the State’s Motion and/or the State’s case in the event that the Supreme Court exercises its discretion and decides to grant the Motion and hear the case.

2.	MATERIAL ACCOUNTING POLICIES

(a)	Statement of Compliance

	These Financial Statements have been prepared in accordance with IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB") and interpretations issued by the IFRS Interpretations Committee ("IFRIC"s). They do not include all of the information required by IFRS for complete annual financial statements and should be read in conjunction with the Group’s consolidated financial statements as at and for the year ended December 31, 2022 (the "2022 annual financial statements").

	These Financial Statements were authorized for issue by the Audit and Risk Committee on August 10, 2023.

(b)	Significant Accounting Estimates and Judgements

	In preparing these Financial Statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

	There was no change in the use of significant estimates and judgments during the current period as compared to those described in Note 2 in the 2022 annual financial statements, two of which are discussed below:

	Critical accounting judgments

	Mineral Property Interest

	The Group used judgement in concluding that no impairment indicators exist in relation to the Pebble Project, notwithstanding the receipt of the ROD denial of the permit by the USACE for the Pebble Project and the Final Determination issued by the EPA that prohibits the disposal of dredged or fill material for the Pebble Project, both of which may be considered an indicator under IFRS 6, Exploration for and Evaluation of Mineral Resources, for testing for impairment. Key to the Group’s judgement conclusion include the following:

	·	The Group submitted an administrative appeal with the USACE POD on the permit denial and the USACE POD has remanded the permit decision to the USACE Alaska District to re-evaluate specific issues. The Group is awaiting what the next steps are to be followed by the USACE Alaska District in this regard. In addition, the Group is pursuing other options available to it;
	·	With respect to the Final Determination, the Group has legal avenues to pursue to contest this determination; and
	·	The Company’s market capitalization on June 30, 2023, and the date the Financial Statements were authorized for issuance, exceeded the carrying value of the Pebble Project and the Group’s net asset value.

	Going Concern

	The Group has employed judgement that going concern was an appropriate basis for the preparation of the Financial Statements, as the Group considered existing financial resources and plans for raising funds in determining that key corporate and Pebble Project expenditure requirements will be met for at least the next twelve months (note 1).

(c)	Recent Accounting Pronouncements

	Certain new standards, interpretations, amendments and improvements to existing standards were issued by the IASB. The following were adopted by the Group on January 1, 2023:

	·	IAS 1, Presentation of Financial Statements ("IAS 1") and IFRS Practice Statement 2, Making Materiality Judgements - Disclosure of Accounting Policies (the "Practice Statement"): In February 2021, the IASB issued amendments to IAS 1 and the Practice Statement to provide guidance on the application of materiality judgments to accounting policy disclosures. The amendments to IAS 1 replace the requirement to disclose ‘significant’ accounting policies with a requirement to disclose ‘material’ accounting policies. Guidance and illustrative examples are added in the Practice Statement to assist in the application of materiality concept when making judgments about accounting policy disclosures. The adoption of these amendments had no impact on the Financial Statements.

	·	IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors ("IAS 8"): In February 2021, the IASB issued amendments to IAS 8 – Definition of Accounting Estimates to help entities to distinguish between accounting policies and accounting estimates. The amendments clarify that accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty" and that a change in accounting estimate that results from new information or new developments is not the correction of an error. In addition, the effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors. The adoption of these amendments had no impact on the Financial Statements.

	The following has not yet been adopted by the Group :

	·	IAS 1, Classification of Debt with Covenants as Current or Non-current: In October 2022, the IASB issued amendments to IAS 1 titled "Non-current Liabilities with Covenants". These amendments seek to improve the information that an entity provides when its right to defer settlement of a liability is subject to compliance with covenants within 12 months after the reporting period. These amendments to IAS 1 override but incorporate the previous amendments, Classification of Debt as Current or Non-current, issued in January 2020, which clarified that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Liabilities should be classified as non-current if an entity has a substantive right to defer settlement for at least 12 months at the end of the reporting period. The amendments are effective January 1, 2024, with early adoption permitted. Retrospective application is required on adoption. The Group does not expect these amendments to have a material effect on its consolidated financial statements.

3.	MINERAL PROPERTY, PLANT AND EQUIPMENT

	The Group’s exploration and evaluation assets are comprised of the following:

Six months ended June 30, 2023	Mineral Property Interest ¹			Plant and			Total
Cost
Beginning Balance	$	97,078		$	2,435		$	99,513
Additions		–			16			16
Disposal of plant and equipment		–			(6	)		(6	)
Derecognition of right-of-use asset		–			(196	)		(196	)
Ending balance		97,078			2,249			99,327

Accumulated depreciation
Beginning Balance		–			(2,129	)		(2,129	)
Depreciation charge for the period ³		–			(82	)		(82	)
Derecognition on disposal of plant and equipment		–			6			6
Derecognition of right-of-use asset		–			191			191
Ending balance		–			(2,014	)		(2,014	)

Foreign currency translation difference
Beginning Balance		29,922			225			30,147
Movement from derecognition of right-of-use asset		–			5			5
Movement for the period		(2,876	)		(10	)		(2,886	)
Ending balance		27,046			220			27,266

Net carrying value – December 31, 2022	$	127,000		$	531		$	127,531
Net carrying value – June 30, 2023	$	124,124		$	455		$	124,579

	Notes to table:

	1.	Mineral Property Interest

		Comprises the Pebble Project, a contiguous block of 1,840 mineral claims covering approximately 274 square miles located in southwest Alaska, 17 miles (30 kilometers) from the villages of Iliamna and Newhalen, and approximately 200 miles (320 kilometers) southwest of the city of Anchorage.

	2.	Plant and Equipment include Right-of-Use Assets ("ROU Assets")

		ROU Assets, which relate to the use of office space, office equipment and, yard storage are included under plant and equipment. The following comprises ROU Assets:

Six months ended June 30, 2023	Land and Buildings			Equipment			Total
Cost
Beginning	$	1,024		$	32		$	1,056
Addition		–			16			16
Derecognition of ROU Asset		(196	)		–			(196	)
Ending balance		828			48			876

Accumulated depreciation
Beginning balance		(510	)		(30	)		(540	)
Depreciation charge for the period ³		(73	)		(1	)		(74	)
Derecognition of ROU Asset		191			–			191
Ending balance		(392	)		(31	)		(423	)

Foreign currency translation difference
Beginning balance		2			(1	)		1
Movement from derecognition of ROU Asset		5			–			5
Movement for the period		(10	)		(1	)		(11	)
Ending balance		(3	)		(2	)		(5	)

Net carrying value – December 31, 2022	$	516		$	1		$	517
Net carrying value – June 30, 2023	$	433		$	15		$	448

	3.	For the three months ended June 30, 2023, total depreciation was $41 (2022 – $61), of which ROU Asset depreciation was $37 (2022 – $37). For the six months ended June 30, 2023, total depreciation was $82 (2022 – $121) of which ROU Asset depreciation was $74 (2022 – $73). ROU Asset depreciation of $25 (2022 – $26) and $50 (2022 – $51) is included in general and administrative expenses (note 9(b)). The remainder of depreciation is included in exploration and evaluation expenses.

4.	AMOUNTS RECEIVABLE AND PREPAID EXPENSES

	June 30		December 31
	2023		2022
Sales tax receivable	$	103	$	66
Interest, refundable deposits, and other receivables		29		64
Prepaid expenses ¹		1,268		2,532
Class action settlement recoverable (note 13(a))		8,445		–
Total	$	9,845	$	2,662

	Note to table:

	1. Includes prepaid insurance, which is amortized over the insurance term.

5.	CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

(a)	Cash and cash equivalents

	The Group’s cash and cash equivalents at June 30, 2023 and December 31, 2022, consisted of cash on hand and was invested in business and savings accounts.

(b)	Restricted cash

	The Group has cash deposited with a United States financial institution that has been pledged as collateral to the surety provider for a US$2,000 surety bond that was placed with the Alaskan regulatory authorities for a performance guarantee related to any potential reclamation liability as a condition of the Miscellaneous Land Use Permit granted to the Pebble Partnership for its ongoing activities on the Pebble Project. The cash deposit will be released once any reclamation work required has been performed and assessed by the Alaskan regulatory authorities. The cash is invested in a money market fund. For the three and six months ended June 30, 2023, the Group earned $9 (2022 – nominal) and $18 (2022 – nominal) income, respectively, which was re-invested.

6.	CAPITAL AND RESERVES

(a)	Authorized Share Capital

	At June 30, 2023 and 2022, authorized share capital consisted of an unlimited number of common shares ("Shares") with no par value, of which 529,779,388 (2022 – 529,779,388) Shares were issued and fully paid.

(b)	Options not Issued under the Group’s Incentive Plan

	The following reconciles outstanding non-employee options (options that were not issued under the Group’s incentive plan (see (c) below)), each exercisable to acquire one share, for the six months ended June 30, 2023 and 2022 respectively:

Continuity	Number of options ¹			Weighted average exercise price ($/options)		Remaining life in years ²
Balance December 31, 2021 and June 30, 2022		94,000			0.36		1.25
Expired		(56,400	)		0.40		–
Balance December 31, 2022 and June 30, 2023		37,600			0.29		1.44

		Notes to table:

	1.	The Group issued options in exchange for those which were outstanding in Cannon Point Resources Ltd. ("Cannon Point") on the acquisition of the company in October 2015.

	2.	As of June 30, 2022 and 2023.

(c)	Share Purchase Option Compensation Plan

	The following reconciles the Group’s share purchase options ("options") issued and outstanding pursuant to the Group’s incentive plan for the three and six months ended June 30, 2023 and 2022:

Continuity of options	Number of options			Weighted average exercise price ($/option)
Balance December 31, 2021 and June 30, 2022		20,825,500			1.45
Expired		(4,386,000	)		1.75
Granted		11,254,000			0.41
Balance December 31, 2022 and June 30,2023		27,693,500			0.98

		June 30, 2023						December 31, 2022
Exercise prices ($)		Number of options outstanding		Number of options exercisable		Weighted Average Remaining contractual life (years)		Number of options outstanding		Number of options exercisable		Weighted Average Remaining contractual life (years)
	0.41		11,254,000		5,627,000		4.14		11,254,000		5,627,000		4.63
	0.76		3,300,000		3,300,000		0.11		3,300,000		3,300,000		0.61
	0.99		6,368,500		6,368,500		1.25		6,368,500		6,368,500		1.74
	2.01		6,696,000		6,696,000		2.05		6,696,000		6,696,000		2.55
	2.34		75,000		75,000		0.08		75,000		75,000		0.58
Total			27,693,500		22,066,500				27,693,500		22,066,500

	The weighted average contractual life for options outstanding pursuant to the Group’s incentive plan was 2.48 (December 31, 2022 – 2.97) years per option. The weighted average contractual life and exercise price for exercisable options as at June 30, 2023 was 2.06 (December 31, 2022 – 2.55) years and $1.12 (December 31, 2022 – $1.12) per option.

(d)	Deferred Share Units ("DSUs")

	The following reconciles DSUs outstanding for the six months ended June 30, 2023 and 2022:

Continuity of DSUs	Number of DSUs		Weighted average fair value ($/DSU)
Balance December 31, 2021		477,711		0.69
Granted		25,719		0.47
Balance June 30, 2022		503,430		0.68
Granted		35,856		0.33
Balance December 31, 2022		539,286		0.65
Granted		39,235		0.31
Balance June 30, 2023		578,521		0.63

	For the three and six months ended June 30, 2023, SBC of $6 (2022 – $6) and $12 (2022 – $12) was recognized in the Statement of Comprehensive Loss, based on the aggregate market value of shares on grant date, with a corresponding increase in the equity-settled share payment reserve in equity.

	Subsequent to the reporting period the Group issued 20,804 DSUs with a fair value of $0.31 per DSU on date of grant (note 7(a)) and 143,622 DSUs with a fair value of $0.69 on date of grant were redeemed and paid out in Shares.

Continuity
Balance December 31, 2021	$	28,758
Gain on translation of foreign subsidiaries		2,435
Balance June 30, 2022		31,193
Gain on translation of foreign subsidiaries		6,898
Balance December 31, 2022		38,091
Loss on translation of foreign subsidiaries		(2,922	)
Balance June 30, 2023	$	35,169

	The foreign currency translation reserve represents accumulated exchange differences arising on the translation, into the Group’s presentation currency (the Canadian dollar), of the results of operations and net assets of the Group’s subsidiaries with a US dollar functional currency.

7.	RELATED PARTY BALANCES AND TRANSACTIONS

	The components of transactions to related parties is as follows:

	June 30		December 31
Payables to related parties	2023		2022
Key management personnel ("KMP") (a)	$	27	$	35
Hunter Dickinson Services Inc. ("HDSI") (b)		259		202
Total payables to related parties	$	286	$	237

	Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation. Details between the Group and other related parties are disclosed below.

(a)	Transactions and Balances with Key Management Personnel

	The aggregate value of transactions with KMP, being the Group’s directors and also including the Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO"), Company Secretary and General Counsel, Executive Vice President ("EVP"), Environment and Sustainability, Vice President ("VP"), Corporate Communications, VP, Engineering, and the Pebble Partnership’s Interim CEO and Senior VP, was as follows for the three and six months ended June 30, 2023 and 2022:

	Three months				Six months
Transaction	2023		2022		2023		2022
Compensation
Amounts paid and payable to HDSI for services of KMP employed by HDSI ¹	$	639	$	636	$	1,274	$	1,290
Amounts paid and payable to KMP ²		505		516		958		977
		1,144		1,152		2,232		2,267
Share-based compensation ³		263		6		524		12
Total compensation	$	1,407	$	1,158	$	2,756	$	2,279

	Notes to table:

	1.	The Group’s CEO, CFO, Board Chair and senior management, other than disclosed in note 2 below, are employed by the Group through HDSI (refer (b) below).

	2.	Represents short-term employee benefits, including director’s fees paid to the Group’s independent directors, and salaries paid and payable to the Pebble Partnership’s Interim CEO and Senior VP.

	3.	SBC relates to options issued and/or vesting and DSUs granted during the respective periods (notes 6(c)-(d)).

	Subsequent to the reporting period 20,804 DSUs were issued to a director (note 6(d)).

(b)	Transactions and Balances with other Related Parties

	HDSI is a private company that provides geological, engineering, environmental, corporate development, financial, administrative and management services to the Group and its subsidiaries at annually set rates pursuant to a management services agreement. The annually set rates also include a component of overhead costs such as office rent, information technology services and general administrative support services. HDSI also incurs third party costs on behalf of the Group, which are reimbursed by the Group at cost. Several directors and other key management personnel of HDSI, who are close business associates, are also key management personnel of the Group.

	For the three and six months ended June 30, 2023 and 2022, transactions with HDSI were as follows: