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Highlights

  • Q1 net loss increased to $4.5M, up 68% YoY due to project and staff-related expenses
  • Bayan Khundii Project 92% complete; first gold production expected in late Q3 2025
  • Over 160 local residents trained for mine roles, with 23% of workforce female

Erdene Resource Development Corp. (TSX: ERD; MSE:ERDN) posted a net loss of $4.5 million for Q1 2025, a 68% increase from the $2.7 million loss reported in the same period last year. The rise was attributed to increased exploration and evaluation costs, incentive payments, and non-capitalized interest tied to financing arrangements.

The company reported a total of $96 million in expenditures at the Bayan Khundii Gold Project through the end of the quarter. As of March 31, 2025, the project had reached 92% completion. Key infrastructure components, including the process plant and support facilities, were roughly 87% finished, while the power supply infrastructure stood at 76%. Delays due to weather and logistics have been acknowledged, but Erdene indicated these remain within the scope of existing funding.

Commissioning of facilities is progressing, with nine facilities completed by quarter-end and additional units slated for activation in Q2. The process plant—considered the project’s critical path—had all major equipment installed, though final mechanical and electrical work remains.

Operational readiness efforts are also advancing. Hiring and training for equipment operators and maintenance teams is largely complete, and local hiring continues to be a focal point. Nearly 30% of site personnel are from Bayankhongor province, with local female employment at 23%.

Exploration at the Khundii Minerals District is ongoing, with 200 ore-control holes planned for Q2 2025 and an updated mineral resource estimate for the Zuun Mod deposit expected by mid-year. The company also continues its community engagement efforts, including support for small and medium-sized local enterprises.