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  5. ERD: Would you give an assessment of Erdene Resources. [Erdene Resource Development Corporation]
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Q: Would you give an assessment of Erdene Resources. Gold production has started, and the company appears to be expecting a production rate of 7000 ozs per month, by year end.
Thanks.
Asked by mike on November 28, 2025
5i Research Answer:

ERD has had no revenue in its history, but just started a new mine. ERD is a Canadian exploration company advancing precious metals projects in Mongolia, with its flagship Bayan Khundii gold mine acheiving its first gold pour in late Q3 2025 and commercial production expected by year-end. Erdene focuses on gold and polymetallic deposits in Mongolia's Khundii Minerals District, including Bayan Khundii, Altan Nar, and Zuun Mod. The Bayan Khundii project, a high-grade open-pit gold mine (averaging 4 g/t Au), forms a 50/50 joint venture with Mongolian Mining Corporation, where Erdene retains a 5% NSR royalty after 400,000 oz produced. It is a bit too early to call the mine fully successful, but no problems are expected. ERD stock has done well, and companies do typically get re-rated once they are in commercial production. Insiders own 3%, Eric Sprott owns 23%. Only one brokerage (Paradigm) covers the stock. It should be cash flow positive and earnings positive next year, assuming no issues at the mine. Mongolia does carry some political risks, and other companies have experienced some government intervention (tax changes, etc.). This would be our main concern, but otherwise it is priced well and the outlook is good here.