Erdene Resource Development (ERD) Q2 2025 earnings summary

Executive summary

• Substantial completion of Bayan Khundii Gold Mine construction as of June 30, 2025, with final permits received and commissioning underway.

• First gold pour expected in late Q3 2025, with commercial production targeted by year-end.

• Ore-control drilling expanded mineralized zones, intersecting exceptionally high-grade gold, including the district's highest-grade intercept to date.

• Exploration and technical studies advancing at Zuun Mod Molybdenum-Copper project and new Tereg Uul Copper-Gold prospect.

Financial highlights

• Net loss of $4,122,330 for Q2 2025, compared to $1,868,814 in Q2 2024.

• Exploration and evaluation expenses were $514,224, down from $596,590 year-over-year.

• Corporate and administrative expenses totaled $658,353, slightly down from $667,030 in Q2 2024.

• Loss from investment in associate (EM JV) was $2,995,481, up from $644,607 due to increased interest expenditures for BK construction.

• US$115 million in capital and operating expenditures incurred to date, with up to US$31 million undrawn liquidity available for commissioning and ramp-up.

Outlook and guidance

• Commercial gold production at Bayan Khundii expected by end of 2025.

• Updated mineral resource report for Zuun Mod project scheduled for Q3 2025.

• Exploration to ramp up at surrounding deposits and new Tereg Uul prospect following first gold and cash flow.