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Erdene Resources
(TSX:ERD)
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Rating:50Neutral
Price Target:
C$6.50
▲(18.40% Upside)
Action:Reiterated
Date:08/10/26
The score is held down primarily by weak operating fundamentals (pre-revenue losses and ongoing cash burn), partially offset by a very strong, low-debt balance sheet. Technicals are supportive but overbought, and valuation is a headwind due to the elevated P/E and lack of dividend data.
Positive Factors
Low leverage / strong balance sheet
Very low leverage materially reduces financial distress risk and preserves optionality over 2–6 months. A near-zero debt load lowers fixed obligations, making it easier to fund exploration, meet JV obligations or withstand market shocks without urgent refinancing, supporting project timelines.
Negative Factors
Pre-revenue with operating losses
Operating a pre-revenue model with ongoing losses is a durable weakness: without product sales the company relies on external capital or asset deals. Persistent operating losses increase dilution risk, constrain strategic choices, and can delay project timelines if financing conditions deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Very low leverage materially reduces financial distress risk and preserves optionality over 2–6 months. A near-zero debt load lowers fixed obligations, making it easier to fund exploration, meet JV obligations or withstand market shocks without urgent refinancing, supporting project timelines.
Read all positive factors
Erdene Resources (ERD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$411.33M
Dividend YieldN/A
Average Volume (3M)138.53K
Price to Earnings (P/E)98.5
Beta (1Y)2.39
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
Employees500
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.07
Shares Outstanding65,498,640
10 Day Avg. Volume107,871
30 Day Avg. Volume138,529
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)9.23
Price to Sales (P/S)0.00
P/FCF Ratio-112.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Erdene Resources Business Overview & Revenue Model
Company Description
Headquartered in Dartmouth, Canada, Erdene Resource Development Corporation focuses on the acquisition, exploration, and development of various precious and base mineral deposits across Mongolia. The company, which was incorporated in 2000 and cha...
How the Company Makes Money
Erdene Resources’ ability to generate revenue primarily depends on monetizing its mineral interests rather than selling finished metal products. Typical cash generation pathways for the company include: (1) raising capital through equity financing...
Erdene Resources Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
78
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -35.48K | -26.18K | -29.83K | -36.96K | -38.09K | -37.35K |
| EBITDA | -2.07M | -8.15M | -3.48M | -3.95M | -5.84M | -5.48M |
| Net Income | 1.08M | -8.18M | -8.25M | 522.04K | -17.99M | -5.58M |
Balance Sheet | ||||||
| Total Assets | 88.11M | 56.07M | 63.00M | 59.06M | 52.53M | 46.54M |
| Cash, Cash Equivalents and Short-Term Investments | 29.11M | 4.66M | 7.30M | 4.35M | 7.42M | 7.06M |
| Total Debt | 83.00K | 88.83K | 0.00 | 22.94K | 82.60K | 151.84K |
| Total Liabilities | 338.00K | 1.53M | 782.85K | 186.15K | 909.01K | 812.30K |
| Stockholders Equity | 87.77M | 54.53M | 62.22M | 58.88M | 51.62M | 45.73M |
Cash Flow | ||||||
| Free Cash Flow | -6.33M | -4.49M | -3.67M | -3.09M | -13.41M | -14.07M |
| Operating Cash Flow | -5.75M | -4.44M | -3.30M | -2.05M | -5.14M | -5.24M |
| Investing Cash Flow | -1.64M | -1.55M | -211.76K | -1.03M | -8.21M | -8.77M |
| Financing Cash Flow | 30.15M | 3.36M | 6.42M | 27.88K | 13.74M | 8.14M |
Erdene Resources Technical Analysis
Positive
5.49
Price Trends
5.43
Positive
5.87
Positive
6.96
Negative
Market Momentum
0.21
Negative
75.37
Negative
98.17
Negative
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 5.49 is above the 20-day moving average (MA) of 5.38, above the 50-day MA of 5.43, and below the 200-day MA of 6.96, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 75.37 is Negative, neither overbought nor oversold. The STOCH value of 98.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ERD.
Erdene Resources Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | C$557.42M | -111.25 | -6.60% | ― | ― | -15.95% | |
51 Neutral | C$964.91M | -63.94 | -6.23% | ― | ― | -1.57% | |
50 Neutral | C$411.33M | 98.53 | 1.72% | ― | ― | ― | |
48 Neutral | C$529.77M | -29.68 | 16.43% | ― | ― | 7.10% | |
42 Neutral | C$299.85M | -17.89 | -41.69% | ― | ― | -274.02% | |
42 Neutral | C$1.14B | -324.77 | -0.57% | ― | ― | 28.16% |
* Basic Materials Sector Average
TSE:ERD
Erdene Resources
6.68
1.10
19.71%
TSE:ETG
Entree Gold
2.58
0.49
23.44%
TSE:GQC
GoldQuest Mining
0.85
0.22
34.92%
TSE:REG
Regulus Resources
4.45
2.16
94.32%
TSE:TLO
Talon Metals
7.21
3.16
78.02%
TSE:ARA
Aclara Resources, Inc.
4.16
2.58
163.29%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.