Erdene Resource Development (ERD) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 gold production of 12,000 oz, a 37% increase from Q1, with significant improvements in mining efficiency, ore grades, and stable operations at Bayan Khundii; silver production was 3,317 oz.

• Process plant throughput reached 153,000 tons at 94% of capacity, with gold recoveries at 96% and ongoing cash flow generation.

• Expansion and exploration programs are underway at Bayan Khundii, Dark Horse, Khundii West, Altan Nar, and Tereg Uul, targeting mine life extension and production growth.

• Zuun Mod molybdenum-copper project advancing toward a PEA in mid-H2 2026, with robust market fundamentals and offtake interest from Asian partners.

Financial highlights

• Q2 2026 revenue was US$53 million (CAD 75 million), up 32% from Q1, driven by higher gold sales volumes and prices.

• Cost of revenue was US$24 million (CAD 33 million), or about $2,000/oz, 20% lower than Q1 due to efficiency gains.

• Net income reached $10 million (CAD 0.15/share), more than doubling from Q1 and reversing a loss in Q2 2025.

• Ended Q2 with CAD 28 million in corporate cash and $40 million in JV cash; project debt at $56 million and $10 million debt repayment made post-quarter.

Outlook and guidance

• Targeting 3.5 g/t ore feed grade by year-end, with 2026 gold production guidance of ~50,000 oz.

• All-in sustaining costs expected to decline to ~$1,500/oz USD as grades improve in H2.

• Major catalysts ahead include Zuun Mod PEA, heap leach decision, and expanded exploration at Altan Nar, Dark Horse, and Khuvyn Khar.