Entrée Resources Announces Third Quarter 2025 Results

Core Viewpoint - Entrée Resources Ltd. has filed its interim financial results for Q3 2025, highlighting ongoing developments and challenges related to its joint venture with Oyu Tolgoi in Mongolia, particularly concerning the transfer of mining licenses and state interests in the area [1][5][10]. Q3 2025 Highlights - The Oyu Tolgoi project continues to ramp up production, with Rio Tinto reporting record quarterly production, aiming to become the world's fourth largest copper mine by 2030 [6][10]. - The company has engaged with the Mongolian government to resolve issues regarding the state’s interest in the mining licenses, which includes a 34% economic benefit derived from the project [5][18]. Joint Venture and License Transfer - The Entrée/Oyu Tolgoi joint venture agreement requires the transfer of mining licenses from Entrée LLC to OTLLC to maximize operational efficiencies and minimize delays in development work [9][12]. - A partial final arbitration award in December 2024 ruled in favor of Entrée, dismissing counterclaims from OTLLC and Turquoise Hill Resources [8]. Financial Performance - For Q3 2025, the company reported an operating loss of $0.6 million, a decrease from $0.7 million in Q3 2024, attributed to lower legal costs [10]. - The cash balance as of September 30, 2025, was $4.9 million, with a working capital balance also at $4.9 million [10]. Exploration and Development - The company has initiated a 2025 in-fill diamond drilling program at the Hugo North Extension deposit, with significant drilling completed by the end of Q3 2025 [5][10]. - An updated resource model for Hugo North is expected in H1 2026, with ongoing regional exploration programs [5][10]. State Interest and Oversight - The Mongolian Parliament established a Temporary Oversight Committee to investigate the protection of Mongolia's interests in the Oyu Tolgoi project, with Entrée supporting the committee's activities [19][20]. - The government has also formed a working group to negotiate the state’s interest in the licenses, with Entrée actively participating in these discussions [20][21].