Q2 2026 Erdene Resource Development Corp Earnings Call Transcript
Key Points
- Strong production growth in Q2 2026, with gold output up 37% quarter-over-quarter to nearly 12,000 ounces.
- Improved mining efficiency and grade control, leading to a 25% increase in ore feed grades and reduced dilution.
- Process plant performing well, with gold recoveries consistently at 96%, exceeding the 93% target.
- Solid financial performance, with Erdene generating net income of $10 million in Q2, up from $4.8 million in Q1.
- Significant exploration upside across the Khundii Minerals District, including high-grade intercepts at Dark Horse and expansion potential at Altan Nar and Zuun Mod.
- All-in sustaining costs remain elevated at approximately $2,000 per ounce, though expected to decline to $1,500 as grades improve.
- Mining dilution was initially high (30-40%), requiring time to align grade control models with actual mill feed.
- Plant throughput was slightly below target at 94% of capacity, with some downtime during the quarter.
- The Zuun Mod PEA is still pending, and the project's large capital requirements may necessitate strategic partnerships or restructuring to fund development.
- The company faces regulatory and partnership uncertainties, particularly regarding the potential super pit with Erdenes Alt, which is still in early discussions.
Thank you for standing by. This is the conference operator. Welcome to the Erdene Resource Development Second Quarter 2026 Financial and Operating Results Conference Call Webcast.
As a reminder, all participants on the telephone are in listen-only mode and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad.
Should you need assistance during the conference call, you may signal an operator by pressing star, then zero.
Participants on the webcast may type in their questions in the chat feature of the webcast.
Now, let me hand the call over to John Vincic.
Thank you, operator, and hello, everyone, and thank you for joining our call today. A few housekeeping items to note. The accompanying presentation for today's call is available for download on the company's website at www
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