Entree Resources (ERLFF, Financial) has announced a halt to the Oyu Tolgoi Lift 1 Panel 1 underground development within the Shivee Tolgoi mining license in Mongolia. This work, initiated in October 2024, has seen approximately 230 meters of development primarily on the return air level completed by Oyu Tolgoi, the joint venture partner. The pause is attributed to delays in transferring the title of the joint venture mining licenses, a requirement under the 2008 Joint Venture Agreement and anticipated in the 2009 Oyu Tolgoi Investment Agreement.
Efforts to facilitate this licensing transition began in February 2025, with Entree and OTLLC, the joint venture's managing partner and 80% owner, collaborating with the Mongolian government to expedite the process. Meanwhile, OTLLC intends to shift focus to other areas of its 100% owned operations to mitigate the economic impact.
Despite hopes for a brief delay, uncertainty around the timing of the license transfer persists, affecting the 2025 Mine Plan by the Mineral Resources and Petroleum Authority of Mongolia. The delay may impact development costs, schedules, and Entree's financial health. Transfer agreements have been lodged with the Mongolian tax authority, pending final assessment and approval.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Entree Resources Ltd (ERLFF, Financial) is $1.41 with a high estimate of $1.41 and a low estimate of $1.41. The average target implies an downside of 13.77% from the current price of $1.63. More detailed estimate data can be found on the Entree Resources Ltd (ERLFF) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Entree Resources Ltd's (ERLFF, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
