- Gold production totaled 6,639 AuEq ounces in Q3-2024 and 20,565 AuEq ounces in the nine months ended September 30, 2024 (compared to 25,106 AuEq ounces in the nine months ended September 30, 2023.
- Cordero Operations reported attributable cash costs per ounce of gold sold(1) of US$1,261
- Income from mining operations was $17.0 million.
- EBITDA(1) of $22.7 million, with adjusted EBITDA(1) of $23.0 million.
- Income for the period was $1.2 million or $0.01 per share.
- EBITDA(1) per share of $0.25.
Outlook for the Remainder of 2024
- Expand exploration beyond the 18,000 m for 2024 (14,000 m completed YTD) by contracting additional rigs and focusing on multiple high-priority targets on the Company's concessions along the Otu fault to increase resources and identify the next mine on the Company's Antioquia properties.
- Complete development work access high-grade zones at Upper Cordero and the Venus Gap, as highlighted in the July 16, 2024 and November 1th, 2024 news releases.
- Complete Phase 1 of the road-building project as agreed with the local community
- Finalize the restoration, cleaning and permitting of the Machuca mine, with production set to begin in Q4. The explosives permit has been issued, and the first shipment is expected in Q4.
- Finalize 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 expected to commence by 2026.
- Complete the formalization process for two small-scale miners operating on the Company's concessions, aiming to increase Soma's total gold production by 10% in 2025.
- Continue the underground drilling program to confirm the extension of the Cordero deposit at depth.
Geoff Hampson, Soma's President and CEO, states, "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. 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. The unplanned development work required to access the higher-grade zones in Upper Cordero and the Venus Gap (as detailed in Soma's news releases dated July 16, 2024, and November 12, 2024) 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." Hampson further states, "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."
Three and Nine Months Ended September 30, 2024, and 2023 - Financial and Operating Highlights
RESTRUCTURING OF SUBORDINATED NOTE TERMS
During Q3-2024, the Company amended the terms of its subordinated note with Conex Services Inc., a company owned by a director. Under the amended agreement, the full amount of the principal and interest will be due and payable at the end of the ten-year term, on July 31, 3030. There is no penalty for pre-payment in full or in part at any time during the term. The delayed payment terms will allow Soma to accelerate exploration and development work on its Colombian land package.
Geoff Hampson, the Company's CEO states, "We are pleased that Conex Services agreed that prioritizing increased exploration and resource expansion will better position the company to re-pay the loans at a later but near-term date. Having the ability to repay the loans in full or in part at any time gives the Company great flexibility in managing its balance sheet."
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.
With a solid commitment to sustainability and community engagement, Soma Gold Corp. is dedicated to achieving excellence in all aspects of its operations.
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
"Geoff Hampson"
Chief Executive Officer and President
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 Three and Nine Months Ended September 30, 2024 and 2023 which can be accessed at www.sedarplus.ca. |
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.
SOURCE Soma Gold Corp.
For further information, please contact Andrea Laird, telephone: +1-604-259-0302
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