- Soma Gold (TSXV:SOMA) posted net income of C$1.2 million for the nine months ended September 30, 2024, despite delays in Q3 because of a community blockade and narrower-than-expected veins
- Total cash costs per ounce of gold sold came in at US$1,256 in Q3 and US$1,261 year-to-date
- Soma Gold is a gold producer and explorer that owns two adjacent mining properties in Antioquia, Colombia
- Soma Gold stock has given back 9.23 per cent year-over-year but remains up by 50 per cent since November 2021
Soma Gold (TSXV:SOMA) posted net income of C$1.2 million for the nine months ended September 30, 2024, despite delays in Q3 because of a community blockade and narrower-than-expected veins.
Should the gold producer end 2024 with positive net income, this would mark its third straight year of profitability under the metric following C$2.8 million in 2023 and C$0.26 million in 2022.
Q3 2024 and year-to-date highlights
- Revenue of C$22.4 million in Q3 and C$64.4 million for the nine months ended September 30, 2024 (YTD).
- EBITDA of C$9.1 million in Q3 and C$22.7 million YTD (C$0.25 per share).
- 6,612 ounces of gold equivalent sold in Q3 and 20,845 ounces sold YTD.
- 6,639 ounces of gold equivalent produced in Q3 and 20,565 ounces produced YTD (down from 25,106 ounces YoY).
- Total cash costs per ounce of gold sold of US$1,256 in Q3 and US$1,261 YTD.
- Average realized cash margin of US$1,272 in Q3 and US$1,058 YTD.
- Income from mining operations of C$17 million YTD.
- Net income of C$1.2 million or C$0.01 per share YTD.
Key catalysts for the remainder of 2024
- Expand exploration beyond 18,000 m (14,000 m completed YTD) by contracting additional rigs and drilling high-priority targets along the Otu fault with eyes on increasing resources.
- Complete work to access the high-grade zones at Upper Cordero and the Venus Gap.
- Complete phase-one of the road-building project in partnership with the local community.
- Complete the restoration, cleaning and permitting of the Machuca mine, with production slated for Q4.
- Complete the mine plan and permit application for the Nechi mine to increase feed for the El Limon and El Bagre mills. Mining operations at Nechi are slated for 2026.
- Onboard two small-scale miners operating on the company’s concessions, potentially increasing total gold production by 10 per cent in 2025.
- Continue underground drilling to confirm the extension of the Cordero deposit at depth.
Leadership insights
“We are pleased with the financial performance this quarter, which remained on budget. Cash resources are growing as capital-intensive projects wind down, although gold production was lower than expected due to external and operational factors. The blockade in Q3 by the local community, which stemmed from frustration over the pace of road improvements promised by the Municipality of Zaragoza in cooperation with Soma, restricted access to the company’s Cordero mine and El Bagre mill. The issue was resolved and the blockade was lifted after eight days. The shutdown halted both operations, reducing gold output by approximately 750 ounces,” Geoff Hampson, Soma’s president and chief executive officer, said in a statement.
“In addition to the lost production, the average head grade was lower than expected due to narrower and fragmented veins causing higher dilution and a lower-than-historical average grade,” Hampson continued. “The unplanned development work required to access the higher-grade zones in Upper Cordero and the Venus Gap also added to costs and increased waste. This development work is now largely complete and production from these areas is expected to begin in Q1 2025.”
“Our exploration efforts continue to improve our interpretation of the geological structures in the Otu Valley, enabling us to identify and verify high-priority exploration targets through mapping, soil sampling, stream sediment analysis and channel sampling inside several of the small mines along the trend. We have contracted a drilling company to increase the number of DDH holes and to accelerate the establishment of additional mineral resources,” he concluded.
About Soma Gold
Soma Gold is a gold producer and explorer that owns two adjacent mining properties in Antioquia, Colombia.
Soma Gold stock (TSXV:SOMA) last traded at C$0.59 per share. The stock has given back 9.23 per cent year-over-year but remains up by 50 per cent since November 2021.
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(Top photo of mining at Soma Gold’s Cordero mine in Colombia: Soma Gold)