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Gold Mining Co. Reports 47% Increase In Gold Production

Source: Streetwise Reports


August 21, 2023 ( Newswire) Recently, Soma Gold Corp. reported gold production results for the year. Read to see why the company is confident and what its plans are for the next couple of years.

Soma Gold Corp. (SMAGF:OTCMKTS;SOMA:TSXV) has announced gold production results for the year. With a production total of 3,031 gold-equivalent (AuEq) ounces in July, the company has now produced 18,723 AuEq ounces this year. In July last year, Soma Gold produced 2,061 AuEq ounces, meaning this year's yield is 47% higher.

The company's production target for this year was 18,562 AuEq ounces.

President and CEO of Soma, Javier Cordova Unda, explained: "Although the team in Colombia faced a development phase with grades slightly below the projected yearly average, they continued to deliver on our operational goals. We anticipate an improvement in the average grade over the remainder of the year and are confident in our ability to continue to meet our aggressive production forecast."

Soma Gold Corp. is a mining company focused on exploration and gold production. It owns two mines in Antioquia, Colombia, which have a combined milling capacity of 675 tonnes per day. Its El Bagre mining complex produced 23,115 ounces of gold in 2022, and the company has forecast total output in 2023 at 35,500 ounces.

Additionally, the company's Limon Mill, although on care and maintenance since 2020, is available to restart production when production from its Cordero Mine (part of the El Bagre mining complex) reaches capacity. Soma Gold's other project, Nechí, consists of the El Catorce, Santa Elena, and Santa Maria deposits.

Soma Rated a Strong Buy

In a July report, Sadif Investment Analytics gave Soma an Above Average score and rated it a Strong Buy, with a target price of CA$0.743.

It noted the company's management as "efficient" and described Soma as having "attractive performance but a risky financial position." In the report, Sadif also reiterated the declining gold prices of the last quarter.

It rated Soma as "safe," with "small market risk but high operational risk."

Soma recently acquired 11,000 Ha of mineral concessions, which increases their land package there to around 41,000 Ha, stretching 100km along the OTU fault system in Antioquia, which accounts for 56% of all annual gold production in Colombia.

According to the company, its properties have multiple unexplored targets and are in a "prolific jurisdiction." The Antioquia jurisdiction is home to over 100 million ounces of potential discoveries.

"Informal mining" in the Otú fault has resulted in a yield of 17 million ounces of gold.

Upcoming Catalysts: 47,000 Ounces in 2024

The company was 5% ahead of its plan for 2023 as of the end of 2022. Its target for Q3 is 9000 ounces and 10,500 ounces for Q4. It plans to yield 47,000 ounces in 2024.

It also has a number of exploration goals set out for 2024 and 2025. The company plans to increase its resource at the Cordero Mine, including 10,000m of underground and surface drilling.

Soma also plans to evaluate and rank regional targets with diamond drill programs and complete regional airborne geophysical surveys, including its recently acquired properties. [OWNERSHIP_CHART-10919]

It will also carry out geochemical surveys, which will include stream sediment and soil sampling.

Ownership and Share Structure

Soma Gold Corp. is headquartered in Vancouver, British Columbia. It has a market cap of US$39.2 million and an enterprise value of US$57 million. It trades at a 52-week range of CA$0.21 and CA$0.72.

According to Reuters, 19.74% of the company is held by management and insiders. Executive Chairman Geoffery Hampson has 18.81%, with 17.18 million shares. Vice President Jean-Francois Meilleur has 0.45%, with 0.41 million. Director Glenn Walsh has 0.31%, with 0.29 million, and CFO Greg Hayes has 0.12%, with 0.11 million.

46.33% is with strategic investors. Conex Services Inc. has the most at 44.07%, with 40.26 million shares. Lake Fores Development Corp. has 2.25%, with 2.06 million.

0.71% is with institutions. Palos Management Inc. has 0.38%, with 0.35 million shares, and Marmite Capital AG has 0.33%, with 0.30 million.

The rest is with retail investors.

More Info: Newswire

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