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Entrée Resources Announces Second Quarter 2025 Results
Globenewswire·2025-08-14 12:00

Core Insights - Entrée Resources Ltd. has filed its interim financial results for Q2 2025, highlighting ongoing developments in its joint venture with Oyu Tolgoi LLC and the implications of recent regulatory changes in Mongolia [1] Group 1: Financial Performance - For the three and six month periods ended June 30, 2025, the Company's operating loss was $0.6 million and $1.3 million, respectively, compared to $0.9 million and $2.0 million for the same periods in 2024, indicating a decrease in losses [9] - The operating cash outflow before changes in non-cash working capital items was $0.5 million and $1.0 million for the same periods, down from $0.9 million and $1.9 million in 2024 [9] - As of June 30, 2025, the cash balance was $5.7 million and the working capital balance was $5.6 million [9] Group 2: Joint Venture Developments - The Entrée/Oyu Tolgoi Joint Venture Agreement requires Oyu Tolgoi LLC to hold title to the mining licenses on behalf of the joint venture participants [5] - The Government of Mongolia adopted Resolution No. 170 on April 9, 2025, establishing boundaries for certain mineral deposits of strategic importance, including the Oyu Tolgoi group of deposits [19] - The Company has maintained its willingness to provide the State with 34% of the economic benefit derived from its 20% contractual interest in the Licences [20] Group 3: Mining Operations and Production - The second quarter of 2025 was a record quarter for copper production at Oyu Tolgoi, with a monthly average of 34 ktpd and a single-day record of 47 ktpd achieved in June [9] - The project is on track to reach an average of approximately 500 thousand tonnes of copper per year from 2028 to 2036 [9] - Development work in the ore zone cannot proceed until the transfer of the Licences from Entrée LLC to Oyu Tolgoi LLC is completed [9] Group 4: Regulatory and Legal Matters - Entrée LLC filed a claim with the Administrative Court of Mongolia on August 1, 2025, seeking an order for the Mongolian tax authority to review and confirm the calculations of the values of the Licences [16] - The Company and Oyu Tolgoi LLC have been actively engaged with the Mongolian tax authority to confirm the calculations of the Licences' values [15] - The Tribunal ruled in favor of the Company in a partial final award on December 19, 2024, dismissing the counterclaims from Oyu Tolgoi LLC and Turquoise Hill Resources Ltd. [11] Group 5: Future Outlook and Strategy - The Company aims to transfer the Licences to Oyu Tolgoi LLC to maximize operational efficiencies and minimize delays in development work [12] - The potential conversion of the Entrée/Oyu Tolgoi Joint Venture Agreement into a more effective agreement is being explored [26] - The Company is focused on resolving outstanding issues regarding the State's interest in the Oyu Tolgoi Strategic Deposit [18]