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Erdene Resource Development Corp T.ERD

Alternate Symbol(s):  ERDCF

Erdene Resource Development Corp. is a Canada-based resource company focused on the acquisition, exploration and development of precious and base metals in underexplored and highly prospective Mongolia. It has interests in three mining licenses and an exploration license in Southwest Mongolia. Its projects include Khundii Minerals District, Bayan Khundii Gold Project, Altan Nar, Greater Dark Horse, Ulaan, Zuun Mod and Khuvyn Khar. Its projects are located in the eastern portion of the Central Asian Orogenic belt. The Bayan Khundii mining license covers 2,309 hectares and, in addition to the Bayan Khundii high-grade gold deposit, includes its highly prospective 20 square kilometers greater Dark Horse prospect area, including the Dark Horse Mane high-grade gold discovery. The Zuun Mod Molybdenum-Copper Project is a porphyry molybdenum-copper deposit. The Altan Nar mining license covers 4,669 hectares. The central and northern portion of the Ulaan license hosts a porphyry copper prospect.


TSX:ERD - Post by User

Post by cupricityon Jan 30, 2011 11:25pm
568 Views
Post# 18048369

Xstrata Website

Xstrata Website
https://www.xstratacoal.com/EN/Operations/Pages/DonkinExplorationProject.aspx
As per the website Donkin is now a 5 million tonne per year operation. 1.25 million tonnes for Erdene. $35 cost is higher than PEA on a ship. I have an email from Akerley when hard coking coal was $200 asking him what our met coal would be worth. He says 175. HCC is now over $275/ tonne. Quick math 1.25 million tonnes @ $100 profit a year (ie double costs and reduce market price by 30%) is 125 million a year. 10 times earnings gives Erdene a market cap of 1.25 billion or $13/ share. There is 100 years of coal at 5mmtpa in Donkin currently.
If we take the costs from the PEA of 28 dollars on ship and todays soft coking coal price of $230 a tonne we would get a 10 times earnings share price of $26 for Erdene.
This gives no value for Zuun Mod or exploration, or Granite hill or anything else. Don't get scared. 1.45 is very cheap. The folks in India, Indonesia, Brazil, China are not going back to their huts and rice paddies any sooner than I am going back to the falling down farm house in the prairies. Urbanization is a 1 way street. No better way to play than Erdene.

Fast Facts
Location
Canada, North America
Products
Coal
Employees
15
Annual production capacity
Donkin is being considered as a 5mtpa underground Longwall operation. Markets are anticipated to be both domestic and export. The short shipping distances to the East Coast of the United States place Donkin in an ideal position to enter this expansive market.

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