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Erdene Resource Development Corp T.ERD

Alternate Symbol(s):  ERDCF

Erdene Resource Development Corporation is a Canada-based resource company. The Company is focused on the acquisition, exploration, and development of precious and base metals in Mongolia. Its principal development is the Bayan Khundii Gold Project, located in Bayankhongor province, Mongolia. Its other projects include Altan Nar Gold Project, Dark Horse, Ulaan, Zuun Mod, and Khuvyn Khar. The Bayan Khundii Gold Project is located in Bayankhongor province in Mongolia and is comprised of the 2,309 hectares (ha) Khundii mining license. The Altan Nar Gold Project is located in Bayankhongor province in Mongolia, approximately 16 kilometers (km) north of its Bayan Khundii Gold Project. Dark Horse (Khar Mori) gold prospect is situated on the Bayan Khundii license, about three km north of the Bayan Khundii project. The Ulaan exploration license covers an area of approximately 1,780 ha, immediately west of the Khundii mining license. The Zuun Mod property is located in Bayankhongor province.


TSX:ERD - Post by User

Comment by cyanide5on Jul 31, 2020 11:49am
919 Views
Post# 31350118

RE:Valuation

RE:Valuation

Ok mine follower. You have got the valuation wrong. Let me explain. Erdene once in production will produce let's say 60k per year. Let's say AISCs will be 1k (much higher the FS to be conservative). At 1900 the margin is 900 and for 60k that's 54 million in FCF. So bases on 2022 production (being first full year) you are trading at 2 time FCF right now. That is extremely cheap. At 400 million mkt cap you will be trading at 8 times FCF. That is very reasonable at these gold prices tbh. 


furthermore, they have a resource already of 1 million plus ounces taking Altan Nar into consideration. That is a 10 year mine life. I expect them to produce about 80-100k oz a year once they are actually in production as they will grow the resource by then. You are getting the exploration upside for free right now at 2 time FCF based on 2022. 


I also expect gold to go quite a bit higher in next 12 months or so. 


cheap cheap cheap. Only risk is location. That's it! 

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