Soma Reports First Quarterly Net Profit
Revenue of $11.1 million, Net Profit of $668,000 and ADJUSTED EBITDA(1) of $3.5 million For the Quarter Ended September 30, 2020
November 25, 2020, Vancouver, B.C. – Soma Gold Corp. (the “Company” or “Soma”) is pleased to announce that the Company has produced its first quarterly net profit.
Highlights of the Three and Nine Months to September 30, 2020
Tons mined in quarter of 33,267 tons against plan of 38,064 tons and Tons milled of 36,920 tons against plan of 37,141 tons
Revenue of $11,056,402 made up of quarterly gold sales of 4,427 ounces at an average price of US$1,874 per ounce against the 2020 forecast of 3,530 ounces at an average price of US$1,400 per ounce.
Net income for the quarter of $667,691
Adjusted EBITDA(1) for the quarter of $3,499,849
2,957 meters of diamond drilling to expand the resource
Working capital swung from negative $8,043,792 as at December 31, 2019 to positive $648,143 at the end of Q3
Cash at the end of the quarter of $4.8 million
The full Q3 Financial Statements and Management Discussion and Analysis are available on SEDAR via the following link: https://bit.ly/3nVdVXv
Geoff Hampson, Soma’s Executive Chairman, states, “It is very gratifying to see that the acquisition of Operadora, which was completed in June of 2020, has performed better than anticipated. The purchase price of US $5.5 million now represents approximately six months of current Adjusted EBITDA(1), and production numbers continue to improve. We expect that trend to continue into 2021 and 2022 as the operations move into a higher-grade zone in the mine.”
The Company also announces that it has finalized and signed a new Union Agreement at its Operadora operation in El Bagre, Colombia. The current contract was set to expire at the end of 2020 and has now been extended for 2 years. The highlights of the renewal are as follows:
50% SOAT coverage (Required by law transit insurance)
Bonus for employees laboring December 24th, 25th, 30th and January 1st.
15 scholarships for COP$2,000,000 (US$550.00) each to be assigned.
Medical copayment fee recognition for medical appointments.
Javier Cordova, Soma’s President and CEO, states, “We are very pleased to have resolved all issues to the mutual benefit of our employees and the Company. The Union and the Company negotiated in good faith and transparency, establishing trust and respect. The Company looks forward to continuing a good relationship with its employees’ union.”
(1) Refer to the Non-IFRS Financial Performance Measures disclosure included in the Company's MD&A for a description and calculation of these measures.