Erdene Resources (ERD) AI Stock Analysis

• Market Cap: C$275.70M
• Dividend Yield: N/A
• Average Volume (3M): 289.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: N/A
• EPS Growth: -1666.67%
• Country: CA
• Employees: 17
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 362,766,970
• 10 Day Avg. Volume: 289,867
• 30 Day Avg. Volume: 289,764
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -99.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Erdene Resources is characterized by significant financial challenges with no revenue and recurring losses. However, positive technical trends and corporate developments, such as the progress of the Bayan Khundii Project, suggest potential future growth. The negative valuation due to losses remains a key concern.

Erdene Resources Business Overview & Revenue Model

Company Description

Erdene Resource Development Corporation focuses on the acquisition, exploration, and development of precious and base mineral deposits in Mongolia. It explores for copper, molybdenum, gold, silver, lead, and zinc deposits. The company principally holds a 100% interest in the Bayan Khundii Gold Project comprising 2,309 hectares located in the Bayankhongor province in Mongolia; and the Altan Nar Gold-Polymetallic project located in located in the Bayankhongor Aimag. It also holds interests in three mining licenses and two exploration licenses located in southwest Mongolia. The company was formerly known as Erdene Gold Inc. and changed its name to Erdene Resource Development Corporation in May 2008. Erdene Resource Development Corporation was incorporated in 2000 and is headquartered in Dartmouth, Canada.

How the Company Makes Money

Erdene Resources makes money primarily through the discovery, development, and eventual sale or production of mineral resources, specifically gold. The company generates revenue by increasing the value of its mineral assets through exploration and development activities. Key revenue streams include the potential sale of mineral rights, joint ventures, or partnerships with other mining companies for the development of its projects. Additionally, Erdene Resources might engage in financing activities, such as issuing shares or securing investments, to fund its exploration and development efforts. The company's earnings potential is significantly influenced by the success of its exploration activities, the market demand for gold, and its ability to navigate regulatory and operational challenges in Mongolia.

Erdene Resources Financial Statement Overview

Summary

Erdene Resources exhibits financial resilience with a strong equity position but faces significant challenges in achieving profitability due to zero revenue generation and ongoing losses. The company's financial health is sustained by equity and financing activities, with evident risks in operational sustainability.

Income Statement

Erdene Resources has consistently reported zero revenue over the past years, indicating no operational income generation. The negative net income and EBIT margins highlight the company's struggle to achieve profitability, primarily due to high operating expenses without corresponding revenue.

Balance Sheet

The company maintains a strong equity position with no current debt, reflected in a favorable debt-to-equity ratio and a high equity ratio. However, the absence of revenue and continuous losses pose risks to financial stability despite a strong equity base.

Cash Flow

Free cash flow has shown improvement in the most recent trailing twelve months, yet the operating cash flow remains consistently negative, indicating operational cash burn. The company's cash flow heavily relies on financing activities, which may not be sustainable long-term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-239.25K	-36.96K	-38.09K	-37.35K	-36.85K	-18.05K
	EBIT
-3.52M	3.98M	6.02M	5.72M	-3.24M	-2.71M
	EBITDA
-6.98M	-3.95M	-5.84M	-5.48M	-3.19M	-2.64M
	Net Income Common Stockholders
-866.11K	522.04K	-17.99M	-5.58M	-14.78M	-2.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.75M	4.35M	7.42M	7.06M	12.80M	5.11M
	Total Assets
17.71M	59.06M	52.53M	46.54M	42.81M	26.97M
	Total Debt
0.00	22.94K	82.60K	151.84K	113.55K	6.40M
	Net Debt
-1.75M	-4.33M	-7.34M	-6.91M	-12.69M	1.29M
	Total Liabilities
224.39K	186.15K	909.01K	812.30K	695.91K	6.99M
	Stockholders Equity
17.48M	58.88M	51.62M	45.73M	42.12M	19.98M
Cash Flow		Free Cash Flow
6.72M	-3.09M	-13.41M	-14.07M	-11.21M	-8.40M
	Operating Cash Flow
-12.06M	-2.05M	-5.14M	-5.24M	-2.16M	-1.58M
	Investing Cash Flow
18.96M	―	-8.21M	-8.77M	-8.99M	-6.78M
	Financing Cash Flow
-32.58M	27.88K	13.74M	8.14M	18.64M	11.83M

Erdene Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ERD, the sentiment is Positive. The current price of 0.76 is below the 20-day moving average (MA) of 0.77, above the 50-day MA of 0.69, and above the 200-day MA of 0.57, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 17.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ERD.

Erdene Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNT	79 Outperform	C$2.88B	19.21	26.82%	―	77.93%	236.93%
MND	79 Outperform	C$499.60M	7.52	22.34%	―	37.39%	516.99%
Sector *	47 Neutral	$2.65B	-3.07	-22.25%	3.27%	3.70%	-29.53%
ERD	47 Neutral	C$275.70M	―	-13.62%	―	―	-1666.67%

Erdene Resources Corporate Events

Erdene Reports 2024 Progress and Bayan Khundii Project Update

Erdene Resource Development Corp. has reported significant progress in 2024, highlighted by the advancement of the Bayan Khundii Gold Project, which is set to become Mongolia’s largest primary gold producer. With construction over 80% complete, the project is on track for first gold production in Q3 2025. The company has also achieved substantial exploration success, with high-grade results from drilling activities, indicating strong growth potential. Additionally, Erdene has focused on community development and local employment, implementing a Local Cooperation Agreement and training local residents for employment at the mine.