Erdene Resource Development (ERD) Q1 2026 earnings summary

Executive summary

• Bayan Khundii Gold Mine commenced production in September 2025, achieving commercial status with throughput and gold recovery rates exceeding 90%, and ramping up to 94% of target throughput and 96% recovery by Q1 2026.

• Produced and sold 8,527 oz gold and 3,135 oz silver in Q1 2026, a 20% increase in gold sales over Q4 2025.

• Exploration at Dark Horse, Altan Arrow, and Altan Nar expanded high-grade mineralization and advanced resource growth.

• Zuun Mod project advanced with 18 drill holes returning ore-grade mineralization; PEA expected in Q3 2026.

• Other wholly-owned prospects, including Khuvyn Khar and Tereg Uul, progressed with geophysics and drilling.

Financial highlights

• Q4 2025 generated $31 million in revenue from 7,434 oz gold sold at an average price of CAD 4,187/oz.

• Q1 2026 revenues reached US $42 million (C$57 million), up 35% from Q4 2025, with net income of $4.8 million, reversing a net loss of $4.5 million in Q1 2025.

• Erdene's share of net income from Erdene Mongol was $7.0 million in Q1 2026, up from a loss of $2.1 million in Q1 2025.

• Exploration and evaluation expenses were $0.9 million in Q1 2026, and corporate/admin costs were $1.4 million.

• Ended Q1 2026 with $29 million in cash at the corporate level and US $21 million at Erdene Mongol.

Outlook and guidance

• Ramp-up to full production expected in Q2 2026, targeting 80,000 oz gold per year at Bayan Khundii.

• Zuun Mod PEA expected in Q3 2026; geophysics and drilling at Khuvyn Khar and Tereg Uul planned for later in 2026.

• Multiple exploration and development milestones expected in 2026, including resource updates and feasibility studies.

• All-in sustaining costs projected at $1,250/oz, in the lowest quartile globally, subject to confirmation after two quarters of commercial production.

• No further capital injections required for Bayan Khundii; exploration and technical programs funded from current liquidity.