Erdene Resources (ERD) AI Stock Analysis

• Market Cap: C$373.07M
• Dividend Yield: N/A
• Average Volume (3M): 274.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: N/A
• EPS Growth: -1666.67%
• Country: CA
• Employees: 17
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 365,751,950
• 10 Day Avg. Volume: 415,098
• 30 Day Avg. Volume: 274,087
• PEG Ratio: 0.05
• Price to Book (P/B): 5.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -89.35
• 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

• Rating: 47 Neutral
• Price Target: ―

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 through the exploration and development of mineral resources, specifically focusing on gold and copper. The company's revenue model is primarily based on the successful discovery and development of economically viable mining projects, which can lead to the sale of mineral concentrates or the outright sale of mining assets to larger mining companies. Additionally, Erdene may enter into strategic partnerships or joint ventures with other mining companies to share the costs and benefits of exploration and development. Funding for exploration and development activities is often raised through equity financing, issuing shares to investors who believe in the company's potential for successful mineral discoveries and future profits.

Erdene Resources Financial Statement Overview

Summary

Erdene Resources faces significant financial challenges with no revenue generation and recurring losses. Despite a strong equity base and no debt, the company's reliance on financing activities to sustain operations highlights its precarious financial position.

Income Statement

Erdene Resources has consistently reported no revenue over the last several years, indicating challenges in generating sales. The company’s EBIT and net income margins are negative, reflecting ongoing operational losses. The absence of revenue growth further underscores the financial instability and lack of profitability in the current and prior periods.

Balance Sheet

The company maintains a strong equity position with no significant debt obligations, resulting in a zero debt-to-equity ratio, which is a positive sign of financial health. However, the lack of revenue and profitability limits the effectiveness of this strength. The equity ratio has remained robust, suggesting a stable financial structure despite operational challenges.

Cash Flow

Cash flow analysis reveals negative operating and free cash flow, indicating that the company is not generating sufficient cash from its operations. Although there is some growth in cash position due to financing activities, the reliance on external funding poses a risk to sustainability. The lack of free cash flow growth further highlights potential liquidity concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-29.83K	-36.96K	-38.09K	-37.35K	-36.85K
	EBIT
-5.40M	3.98M	6.02M	5.72M	-3.24M
	EBITDA
-3.48M	-3.95M	-5.84M	-5.48M	-3.19M
	Net Income Common Stockholders
-8.25M	522.04K	-17.99M	-5.58M	-14.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.30M	4.35M	7.42M	7.06M	12.80M
	Total Assets
63.00M	59.06M	52.53M	46.54M	42.81M
	Total Debt
0.00	22.94K	82.60K	151.84K	113.55K
	Net Debt
-7.30M	-4.33M	-7.34M	-6.91M	-12.69M
	Total Liabilities
782.85K	186.15K	909.01K	812.30K	695.91K
	Stockholders Equity
62.22M	58.88M	51.62M	45.73M	42.12M
Cash Flow		Free Cash Flow
-3.67M	-3.09M	-13.41M	-14.07M	-11.21M
	Operating Cash Flow
-3.30M	-2.05M	-5.14M	-5.24M	-2.16M
	Investing Cash Flow
-211.76K	―	-8.21M	-8.77M	-8.99M
	Financing Cash Flow
6.42M	27.88K	13.74M	8.14M	18.64M

Erdene Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.02 is above the 20-day moving average (MA) of 0.97, above the 50-day MA of 0.89, and above the 200-day MA of 0.68, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 45.89 is Neutral, 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
Sector *	51 Neutral	$2.02B	-1.12	-21.36%	3.65%	2.87%	-30.54%
ERD	47 Neutral	C$373.07M	―	-16.90%	―	―	-1666.67%
WRN		$251.73M	―	-3.62%	―	―	―
LUCA	56 Neutral	C$350.94M	37.31	-18.51%	―	100.84%	17.40%
EMO	42 Neutral	C$279.97M	―	-47.70%	―	―	51.26%
EMX		$259.20M	1,008.33	0.17%	―	―	―
FWEDF		$342.66M	―	-111.91%	―	―	―

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.