Erdene Resource Development (ERD) Q1 2026 earnings summary

Executive summary

• Bayan Khundii Gold Mine began production in September 2025, achieving commercial production by Q1 2026 with first gold delivered, ramp-up ongoing, and operating at 94% of target throughput and 96% gold recovery.

• Produced and sold 8,527 oz gold and 3,135 oz silver in Q1 2026, a 20% increase in gold sales over Q4 2025, with cumulative gold production reaching 15,961 oz.

• Q4 2025 marked the first quarter of operations, with 365,000 tons mined (55% above feasibility) and 145,000 tons processed at 2 g/t, producing 7,434 oz gold and $31M in revenue.

• Exploration and expansion advanced at Dark Horse, Striker West, Ulaan, Altan Nar, and Altan Arrow, with robust drilling success and a focus on heap leach potential for oxide zones.

• Advanced preliminary economic assessment for Zuun Mod molybdenum-copper project, with completion expected in Q3 2026.

Financial highlights

• Generated US $42M (C$57M) in gross project revenues from gold and silver sales in Q1 2026.

• Net income of $4,764 for Q1 2026, compared to a net loss of $4,501 in Q1 2025; income from investment in associate totaled $6,963, up from a loss of $2,084.

• Recognized a CAD 1.3M loss from JV investment in 2025, reflecting pre-operating costs offset by gold sales post-September.

• Exploration and evaluation expenses were $891 in Q1 2026, down from $974 year-over-year; 2025 expenses rose to CAD 2.5M, mainly due to Tereg Uul.

• Corporate/admin expenses fell to nearly CAD 4M in 2025 and totaled $1,444 in Q1 2026, both lower than prior periods.

Outlook and guidance

• Full production at Bayan Khundii expected to reach 80,000 oz/year, with all-in sustaining costs targeted in the lowest quartile globally.

• Zuun Mod PEA expected in Q3 2026; geophysics and drilling at Khuvyn Khar planned for later in 2026.

• Dark Horse satellite pit to begin production in late 2027; resource updates and further drilling planned for 2026.

• Drilling at Tereg Uul underway, targeting copper-gold systems near Oyu Tolgoi.

• Field exploration season planning completed, with consultants engaged for geophysics.