Erdene Resource Development (ERD) Q2 2026 earnings summary

Executive summary

• Achieved gold production of 11,709 ounces at Bayan Khundii in Q2 2026, a 37% increase over Q1 2026, with 3,317 ounces of silver also produced and sold.

• Gross revenues reached US$53 million (C$75 million) at an average gold price of US$4,493/oz; total cost of revenue was US$24 million (C$33 million).

• Net income for Q2 2026 was $9,993, compared to a net loss of $4,122 in Q2 2025, driven by production ramp-up at Bayan Khundii.

• Advanced Zuun Mod molybdenum-copper project PEA, with results expected mid-H2 2026; completed maiden drill program at Tereg Uul, confirming gold and silver mineralization.

Financial highlights

• Income from investment in associate (joint venture interest in EM) totaled $11,201 in Q2 2026, compared to a loss of $2,995 in Q2 2025.

• Exploration and evaluation expenses were $726 in Q2 2026, up from $514 in Q2 2025, mainly due to Tereg Uul exploration.

• Corporate and administrative expenses rose to $1,617 in Q2 2026 from $1,488 in Q2 2025, reflecting higher investor relations and regulatory costs.

Outlook and guidance

• Zuun Mod PEA expected mid-H2 2026; geophysics and drilling planned for Khuvyn Khar copper potential later in 2026.

• Tereg Uul option extended for another year following encouraging drill results; further exploration planned.