Video - CEO Clips: Erdene Resource Development: Mongolia's Newest Gold Producer Sets Its Sights on Growth

What happened

Erdene Resource Development achieved commercial production at the Bayan Khundii Gold Mine in Mongolia earlier this year. The company aims to produce about 75,000 ounces of gold annually over the next five years with partner Mongolian Mining Corporation.

Confirmed

Global impact / market context

Reaching commercial production turns Erdene from an explorer into a gold seller, so mine revenue can fund drilling at more than 20 exploration targets and future mine building, reducing reliance on outside cash.

Analyst inference

Erdene holds gold, copper and molybdenum projects and works with Mongolian Mining Corporation. Gold output gives investors a measurable revenue stream, while exploration results will show whether the company can grow beyond its first producing mine.

Analyst inference

What to watch

1. Erdene targets roughly 75,000 ounces of gold a year for five years, so watch actual output against that figure and any change in the plan. Confirmed
2. Watch whether revenue from Bayan Khundii is actually spent on exploration and new mine development, since that spending is the stated path to growth. Analyst inference
3. The company says it will explore more than 20 targets for gold, copper and molybdenum, so watch drilling results for signs of a second deposit. Proposed

Evidence

• newsfilecorp.com