Release of 2022 Q2 Results
September 6, 2022, Vancouver, British Columbia, - Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU) (OTC: SMAGF) (the “Company” or “Soma”) is pleased to announce that the Company’s second quarter Financial Statements and MD&A have been filed on SEDAR and are available at the following link: https://bit.ly/3nVdVXv
Highlights of the Quarter
Gold equivalent ounce sold rose to 7,583 ounces – an increase of 79% from the prior quarter and 99% from Q2-2021.
Income from mining operations was $8.0 million for the quarter compared to $4.2 million in the previous quarter – an increase of 93%.
Adjusted EBITDA(1) doubled to $7.5 million for the quarter compared to $3.7 million in Q1-2022.
Development work at Cordero continued to advance with an additional $2.7 million in construction cost capitalized during the quarter ($4.6 million for the six months ended June 30, 2022).
Payments made towards gold loan (deferred revenue) of $1.1 million ($1.8 million for the six months ended June 30, 2022).
(1) Table includes non-IFRS financial performance measures – see note (1) below.
“The second quarter of 2022 was very successful for Soma. Higher-grade ore from Cordero, at an average of 7.75 gpt in the second quarter, is starting to replace ore from our legacy, lower-grade mines which has a very positive impact on gold production and financial results.” states Javier Cordova, Soma’s President and CEO. “As development at Cordero advances, mill throughput at higher-than-average grades will ramp up, allowing the Company to increase tons from the Q2 average of 387 tpd, to over 500 tpd in early 2023, resulting in further growth of gold production."
In addition, the Company has received the first shipment of underground equipment ordered from Sandvik. Mr. Cordova states, “Our ability to self-perform development and mining at the Cordero Mine will significantly impact gold production in Q4 of 2022 and going forward. The balance of the equipment will arrive in the coming months, and once fully implemented, mine production is anticipated to rise by over 250 tpd from current levels.”
ABOUT SOMA GOLD
Soma Gold Corp. (TSXV: SOMA) is a mining company focused on gold production and exploration. The Company owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tpd. (Permitted for 1,400 tpd). The El Bagre Mill is currently operating and producing. Internally generated funds are being used to finance a regional exploration program.
The Company also owns an exploration property near Tucuma, Para State, Brazil that is currently under option to Ero Copper Corp.
On behalf of the Board of Directors
“Javier Cordova Unda” Chief Executive Officer and President
For further information, please contact Andrea Laird, telephone: +1-604-259-0302
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(1) This news release refers to certain financial measures, such as EBITDA, Adjusted EBITDA, average realized price per ounce of gold sold, and total cash costs per ounce of gold sold which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures may differ from those made by other companies and accordingly may not be directly comparable to such measures as reported by other companies. These measures have been derived from the Company's financial statements because the Company believes that they are of benefit in understanding the Company's results. For a complete explanation of these measures, please refer to Non-IFRS Financial Performance Measures disclosure included in the Company's MD&A for the Years Ended December 31, 2022 and 2021 and the Three and Six Months Ended June 30, 2022 and 2021 which can be accessed at www.sedar.com.
All statements, analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change except as required by applicable laws. Investors should not place undue reliance on forward-looking statements.