Erdene Resource Development (ERD) Q2 2024 earnings summary

Executive summary

• Achieved approximately 30% construction progress at Bayan Khundii Gold Project by June 30, 2024, with process plant nearing 40% completion and all major mechanical equipment on site.

• Construction remains largely on schedule despite minor logistical and weather delays, with first gold production targeted for mid-2025.

• Nearly 500 personnel on site, accumulating about 1.5 million construction hours without lost-time or environmental incidents.

• Advanced community development, local employment, and environmental programs, including operator training and conservation initiatives.

Financial highlights

• Net loss of $1,868,814 for Q2 2024, compared to $2,507,581 for Q2 2023.

• Exploration and evaluation expenses were $596,590 in Q2 2024, up from $478,599 in Q2 2023, due to higher staffing and office costs.

• Corporate and administrative expenses decreased to $667,030 in Q2 2024 from $1,391,454 in Q2 2023, mainly due to timing of bonuses and stock option grants.

• Loss from investment in associate was $644,607 in Q2 2024, compared to $696,325 in Q2 2023.

Outlook and guidance

• Construction expected to be substantially complete by end of 2024, with first gold production in mid-2025.

• Results from ongoing drilling and exploration at Bayan Khundii and surrounding licenses anticipated in late Q3 2024.