Erdene Announces Q3 2026 Results
Erdene reported net income of C$9.6 million on steady output at its Bayan Khundii gold mine, repaid US$30 million of project debt and published a new study for its Zuun Mod molybdenum-copper project.
Erdene Resource Development Corp. (TSX: ERD; MSE: ERDN) announced its operating and financial results for the third quarter ended 30 September 2026 on 4 November. The company recorded net income of C$9.6 million, as the Bayan Khundii Gold Mine produced and sold 11,853 ounces of gold. Bayan Khundii is operated by Erdene Mongol LLC (EM), a joint venture with Mongolian Mining Corporation (MMC) in which Erdene holds a 50% economic interest.
Sales of 11,853 ounces of gold and 3,046 ounces of silver generated revenue of US$51 million (C$71 million), at an average realised gold price of US$4,313 per ounce.
Operations
The plant processed 164 thousand tonnes of ore, averaging 1,788 tonnes per day, at a feed grade of 2.3 g/t gold. Gold recoveries held at 96%, and plant throughput rose 6% compared with the second quarter.
Cash costs were US$1,742 per ounce and AISC was US$1,848 per ounce. During the quarter, the pit was expanded into the higher-grade Striker and Midfield zones, and management expects grade and production to improve in the fourth quarter.
Debt and earnings
EM repaid US$30 million of project debt during the quarter. It ended September with US$19 million in cash and US$93 million of debt outstanding.
Erdene recorded net income of C$9.6 million, compared with a net loss of C$2.7 million in the same quarter of 2025. That quarter included only one month of production, following first gold in September 2025. Erdene's share of income from the joint venture was C$10.6 million.
The company also repurchased and cancelled 130,300 shares at an average price of C$5.57 under its normal course issuer bid.
Growth pipeline
In mid-October, Erdene published a Preliminary Economic Assessment (PEA) for Zuun Mod, which the company describes as one of Asia's largest undeveloped molybdenum deposits. The project lies approximately 280 km from the railhead on the Mongolia–China border.
At long-term prices of US$25.00/lb molybdenum and US$5.00/lb copper, the base case shows an after-tax net present value (NPV8%) of US$745 million and an internal rate of return of 16.1%. The study outlines a 34-year mine life with upfront capital costs of US$687 million.
Erdene has also launched a 16,500-metre drill programme across the Khundii Minerals District, including 9,000 metres at Bayan Khundii West Striker. Preliminary tests support heap leaching of lower-grade oxide material at Dark Horse and Bayan Khundii.
Why it matters
At current gold prices, Bayan Khundii is operating with a wide margin between its realised price and AISC. This is allowing EM to reduce project debt quickly in its first full year of production.
The key near-term test is whether the move into higher-grade zones delivers the improvement in grade and output that management expects in the fourth quarter. Over the longer term, investors will watch how Erdene and its partner propose to fund Zuun Mod's US$687 million upfront capital requirement.
As one of the few companies with Mongolian operating assets listed on both the Toronto and Mongolian stock exchanges, Erdene remains a reference point for international investors assessing Mongolia's mining sector.
Source
Erdene Resource Development Corp., Q3 2026 results release, 4 November 2026. Financial figures in Canadian dollars unless otherwise stated.
For information only. Not investment advice or an offer of securities.
