Erdene Announces Q3 2025 Results Provides Bayan Khundii Mining and Exploration Update
Executive Summary
- Erdene reported its Q3 2025 operating and financial results, highlighting the first gold pour at the Bayan Khundii Gold Mine on September 14 and projecting name‑plate production by year‑end 2025.
- An updated independent mineral resource estimate for the Zuun Mod molybdenum‑copper porphyry project was released, showing substantial increases in both Mo and Cu resources.
- The company entered a July 3 option agreement to acquire up to an 80% interest in the Tereg Uul copper‑gold prospect adjacent to Oyu Tolgoi, with drilling now underway.
Key Details
- Production Milestone – Bayan Khundii (BK):
- First gold poured on September 14, 2025.
- Expected to reach nameplate capacity (85,000 oz Au per year) by end‑2025.
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Process plant designed for 650,000 t/yr of ore throughput.
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Quarterly Sales:
- Sold 342 oz gold at a weighted average price of US$3,805/oz.
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Sold 96 oz silver at a weighted average price of US$44/oz.
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Mining Activity – Q3 2025:
- Mined total 2.1 Mt (1.8 Mt overburden + 133 kt ore).
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ROM ore inventory: 111 kt at 2.30 g/t Au and 1.27 g/t Ag as of Sept 30.
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Exploration – BK District:
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Ongoing drill program: 9,300 m underway across BK, Dark Horse, and Altan Arrow targets.
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Community & Employment:
- ~35% of site personnel are local residents of Bayankhongor province.
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Updated local cooperation agreement signed post‑quarter.
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Zuun Mod Resource Update (announced Oct 2):
- Measured & Indicated Mo increased 22% to 333 Mlb; Inferred Mo up 90% to 300 Mlb.
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Measured & Indicated Cu increased 16% to 384 Mlb; Inferred Cu up 75% to 350 Mlb.
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Tereg Uul Option Agreement (July 3):
- Right to acquire up to 80% of the copper‑gold porphyry prospect located ~10 km SW of Oyu Tolgoi.
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Drilling commenced; surface program ongoing.
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Corporate Actions:
- Completed a 6:1 share consolidation on Sept 2, reducing common shares from 366.35 M to 61.06 M.
- Net loss for Q3 2025: C$2.75 M (vs. C$1.69 M in Q3 2024).
- Exploration & evaluation expenses: C$579,333 (up from C$215,903 YoY).
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Corporate & admin expenses: C$864,892 (up from C$582,089 YoY), driven by stock‑based compensation and higher professional fees related to the share consolidation.
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Loss from Investment in Associate:
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C$1.35 M loss attributable to joint‑venture EM, reflecting increased financing costs for BK construction offset partially by gold sales.
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Conference Call:
- Management webcast scheduled for Wed, Nov 5, 2025 at 10:00 AM ET (details provided).
Notable Quotes
“The team achieved a major milestone during the third quarter with first gold pour at the Bayan Khundii Gold Mine… we expect BK to achieve nameplate capacity by year‑end.” – Peter Akerley, President & CEO
“We also continued to advance our wholly owned projects. In October, we announced an updated independent mineral resource estimate for our Zuun Mod project… Drilling is now underway on the Zuun Mod project and the initial surface program is continuing at Tereg Uul.” – Peter Akerley, President & CEO