Risk factor
Considerable default risk
Profitability factor
Greatly overvalued vs peers
About
Headquartered in Dartmouth, Canada, Erdene Resource Development Corporation focuses on the acquisition, exploration, and development of various precious and base mineral deposits across Mongolia. The company, which was incorporated in 2000 and changed its name from Erdene Gold Inc. in May 2008, primarily explores for metals such as copper, molybdenum, gold, silver, lead, and zinc. Its key assets include a wholly-owned 2,309-hectare Bayan Khundii Gold Project located in Mongolia's Bayankhongor province, and the Altan Nar Gold-Polymetallic project, also situated in the Bayankhongor Aimag. Additionally, Erdene holds five licenses in southwest Mongolia: three for mining and two for exploration.
Company Valuation
Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITD.