Erdene Resources (ERD) AI Stock Analysis

• Market Cap: C$260.81M
• Dividend Yield: N/A
• Average Volume (3M): 296.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: N/A
• EPS Growth: 86.05%
• Country: CA
• Employees: 6
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Mining
• EPS (TTM): >-0.01
• Shares Outstanding: 362,236,970
• 10 Day Avg. Volume: 216,854
• 30 Day Avg. Volume: 296,400
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -92.10
• P/FCF Ratio: 0.00
• 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

Erdene Resources faces significant financial challenges, primarily due to zero revenue and ongoing losses, which greatly impact its overall score. While the strong equity position provides some stability, the lack of profitability and reliance on financing activities pose substantial risks. Technical analysis suggests mild negative momentum, and valuation metrics are unattractive with a negative P/E ratio. These factors combined lead to a below-average score for the stock.

Erdene Resources Business Overview & Revenue Model

Company Description

Erdene Resources Development Corporation (ERD) is a Canadian-based resource company focused on the exploration and development of precious and base metal deposits in Mongolia. The company primarily operates within the mining sector, with its core activities centered around its flagship Khundii Gold District, which includes the Bayan Khundii and Altan Nar gold projects. Erdene Resources aims to advance these projects through exploration, development, and eventual production, leveraging Mongolia's rich mineral resources to drive growth.

How the Company Makes Money

Erdene Resources makes money primarily through the discovery, development, and eventual sale or production of mineral resources, specifically gold. The company generates revenue by increasing the value of its mineral assets through exploration and development activities. Key revenue streams include the potential sale of mineral rights, joint ventures, or partnerships with other mining companies for the development of its projects. Additionally, Erdene Resources might engage in financing activities, such as issuing shares or securing investments, to fund its exploration and development efforts. The company's earnings potential is significantly influenced by the success of its exploration activities, the market demand for gold, and its ability to navigate regulatory and operational challenges in Mongolia.

Erdene Resources Financial Statement Overview

Summary

Erdene Resources exhibits financial resilience with a strong equity position but faces significant challenges in achieving profitability due to zero revenue generation and ongoing losses. The company's financial health is sustained by equity and financing activities, with evident risks in operational sustainability.

Income Statement

Erdene Resources has consistently reported zero revenue over the past years, indicating no operational income generation. The negative net income and EBIT margins highlight the company's struggle to achieve profitability, primarily due to high operating expenses without corresponding revenue.

Balance Sheet

The company maintains a strong equity position with no current debt, reflected in a favorable debt-to-equity ratio and a high equity ratio. However, the absence of revenue and continuous losses pose risks to financial stability despite a strong equity base.

Cash Flow

Free cash flow has shown improvement in the most recent trailing twelve months, yet the operating cash flow remains consistently negative, indicating operational cash burn. The company's cash flow heavily relies on financing activities, which may not be sustainable long-term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-239.25K	-36.96K	-38.09K	-37.35K	-36.85K	-18.05K
	EBIT
-3.52M	3.98M	6.02M	5.72M	-3.24M	-2.71M
	EBITDA
-6.98M	-3.95M	-5.84M	-5.48M	-3.19M	-2.64M
	Net Income Common Stockholders
-866.11K	522.04K	-17.99M	-5.58M	-14.78M	-2.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.75M	4.35M	7.42M	7.06M	12.80M	5.11M
	Total Assets
17.71M	59.06M	52.53M	46.54M	42.81M	26.97M
	Total Debt
0.00	22.94K	82.60K	151.84K	113.55K	6.40M
	Net Debt
-1.75M	-4.33M	-7.34M	-6.91M	-12.69M	1.29M
	Total Liabilities
224.39K	186.15K	909.01K	812.30K	695.91K	6.99M
	Stockholders Equity
17.48M	58.88M	51.62M	45.73M	42.12M	19.98M
Cash Flow		Free Cash Flow
6.72M	-3.09M	-13.41M	-14.07M	-11.21M	-8.40M
	Operating Cash Flow
-12.06M	-2.05M	-5.14M	-5.24M	-2.16M	-1.58M
	Investing Cash Flow
18.96M	-1.03M	-8.21M	-8.77M	-8.99M	-6.78M
	Financing Cash Flow
-32.58M	27.88K	13.74M	8.14M	18.64M	11.83M

Erdene Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.73 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.64, and above the 200-day MA of 0.55, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.46 is Neutral, neither overbought nor oversold. The STOCH value of 76.67 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
MND	79 Outperform	C$454.52M	6.87	22.34%	―	37.39%	516.99%
KNT	75 Outperform	C$2.43B	23.27	20.56%	―	64.92%	185.22%
NGD	66 Neutral	$3.43B	24.62	11.14%	―	18.32%	―
BTO	54 Neutral	$4.96B	―	-18.54%	6.17%	-4.17%	-318.18%
Sector *	46 Neutral	$2.64B	-3.89	-29.36%	3.33%	2.89%	-29.66%
SEA	38 Underperform	$1.59B	―	-1.59%	―	―	63.45%
ERD	32 Underperform	C$260.81M	―	-1.66%	―	―	86.05%

Erdene Resources Corporate Events

Erdene Resources Secures $50M Finance for Gold Project

Erdene Resource Development Corp. has secured a US$50 million finance facility from the Trade and Development Bank of Mongolia to advance its Bayan Khundii Gold Project, aiming for initial gold production by mid-2025. The company also reports commitments for warrant exercises totaling approximately C$5 million, which will help fund other projects, including the Zuun Mod molybdenum-copper project.

Erdene Resources Reports Bayan Khundii Mine Progress

Erdene Resource Development Corp. has reported significant progress in the construction of the Bayan Khundii Gold Mine in Mongolia, with the project reaching 45% completion by the end of September 2024. The company anticipates completing the process plant and infrastructure by early 2025, aiming for first gold production in mid-2025.