The Hunter Newsletter Volume 2024 May | Page 3

Annual Meeting recap |
NANA

President and CEO report

Financial overview

We were able to achieve our annual goals and put in place systems and strategies that will make sure that you receive benefits from your corporation in the short and long term . Last year , our gross revenues – or all the money we earned without accounting for our expenses – was $ 2.5 billion , up approximately 4 % from last year . This growth is due to significant gains in revenue from operations , however , lower zinc prices drove lower revenue from Red Dog , which mitigated growth elsewhere in the operations and resulted in flat growth in net revenues of $ 2.1 billion . Net revenue shows the total amount of income generated by our company from our business activities after subtracting any returns or allowances . Our earnings before interest and taxes , sometimes called EBIT , was about $ 212 million , which is the income generated after you subtract out the money spent by NRC on shareholder programs and running the corporation . Our net income was $ 181.5 million . About a third of that amount was allocated by the board for the spring and fall NRC Shareholder Trust distributions . The rest was used to execute board strategies and

goals including shareholder and regional support , business reinvestment and future planning .
In NANA ’ s case , we have many tax advantages that we maximize to keep as much money as possible for shareholders . Because of those advantages , the EBIT figure of $ 212 million is a better measure of how much cash income we made in FY23 when compared with net income .
Last year , Red Dog Mine and other natural resources contributed about 39.4 % to our operating income , of about $ 249 million . Relative income from Red Dog changes year to year due to the price of zinc and operational factors . Last year , Red Dog ' s net proceeds were significantly lower than expected , and after we deducted for 7 ( i ) and 7 ( j ) our overall operating income from natural resources was lower . Year after year , the mine contributes a meaningful income to NANA , our region and most importantly – to you – the shareholders .
Our net royalties from Red Dog Mine can be highly variable . To offset the risk of this variability , we ’ ve been investing in growing
our businesses to make sure we have steady income regardless of the zinc price . Akima is , by far , one of the best business investments we ’ ve ever made to diversify our sources of income in our business portfolio . You can see on this graph that EBIT for Akima was outstanding this year . And the company contributed $ 129.7 million to NANA . That is 12.6 % higher than EBIT from Red Dog Mine .
Our final main source of income is NANA North – our new whollyowned subsidiary that manages our Alaska businesses . NANA North performed well in 2023 bringing in about $ 21.3 million , accounting for
about 9 % of our EBIT , but NANA North ’ s real strength for shareholders is that its companies are excellent sources of shareholder jobs . In fact , in 2023 , 1,624 shareholders were employed at NANA companies and earned $ 8.8 million dollars more than in fiscal year 2022 for
a total of $ 86.2 million dollars in wages . 743 of these shareholders earned their paycheck from a NANA North company .
The Hunter | 2024 May
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