Entrée announces 2017 financial results


On March 9, Entree Resources LL C, a TSE listed Canadian company, announced its 2017 fiscal year results and reviewed corporate highlights. According to the updated technical report of the Entree Resources and Oyu Tolgoi joint venture project that was released in January of this year, it is estimated that Entree Resources expects to gain within its investment US D 2.1 billion in undiscounted before-tax cash flow just from the Hugo North extension over the first 33 years of production. In 2017, Entree Resources closed a non-brokered private placement of 18.5 million units of the company for gross proceeds of CAD 7.6 million. The company’s operating loss was US D 3.1 million, 3 percent higher than the comparative period in 2016. In addition, the report demonstrated that at December end of 2017, cash on hand was US D 7.1 million. For 2018, the company plans that it will spend approximately US D1.2-1.5 million as corporate costs including Mongolian site management, marketing and compliance costs. Entree Resources and Oyu Tolgoi LL C joint venture property also includes majority of the Heruga (gold-copper-molybdenum) deposit in addition to its Huga North (gold-copper) extension at the Oyutolgoi Project site. Entree has a 20 percent carried participating interest in the Entree Resources and Oyu Tolgoi joint venture, with a 30 percent interest in all mineralization identified above 560 metres elevation on the Entrée Resources and Oyu Tolgoi JV Property. Sandstorm Gold Ltd., Rio Tinto and Turquoise Hill are major shareholders of Entree Resources, holding approximately 14 percent, 10 percent and 8 percent of the shares of the company, respectively.