SOMA GOLD Releases 2021 Results
SOMA GOLD RELEASES 2021 RESULTS
VANCOUVER, BC
,
May 3, 2022
/CNW/ -
Soma Gold Corp.
(TSXV: SOMA) (WKN: A2P4DU)
(OTC: SMAGF) (the "
Company
" or "
Soma
") is pleased to announce that the Company's 2021
Financial Statements and MD&A have been filed on SEDAR and are available at the following link:
https://bit.ly/3KANQYz
2021 Financial Highlights
73% increase in gross revenues from the same period in 2020 to
$40 million
.
Income from mining operations was
$12.5 million
for the year compared to
$8.4 million
in 2020.
Adjusted EBITDA
(1)
was
$11.3 million
for the year and
$2.6 million
for the 4
th
quarter.
An 8% increase in gold equivalent ounces sold versus Q4-2020.
Construction and development of the Cordero mine and deposit continues to advance, and ore
is now being mined from production stopes on Level 2 and Level 3.
Construction costs at Cordero capitalized during the year of
$6.6 million
.
Payments towards gold loan (deferred revenue) of
$4.8 million
Selected Results for the Quarter and Year Ended December 31, 2021
('000's CAD)
4
th
Quarter
2021
4
th
Quarter
2020
Annual
2021
Annual
2020
Revenue
10,595,784
10,403,239
39,966,176
23,049,999
Income from mine operations
2,644,291
3,492,099
12,359,291
8,390,837
Adjusted EBITDA
(1)
2,640,156
1,668,202
11,330,343
3,053,521
Gold equivalent ounces sold
4,736
4,386
18,000
9,482
Average realized price per ounce sold (USD)
(1)
1,816
1,852
1,812
1,843
(1)
Table includes non-IFRS financial performance measures – see note (1) below.
Highlights of the Cordero Mine
The Fenix portal has reached level 4, and the ramp construction continues to progress to levels
5 and 6
.
The Company has decided to convert to self-performing mine development as the current sub-
contractor has been unable to meet the production schedule. The mining equipment, with a
value of approximately US
$5.0 million
, has been ordered and will be delivered in Q2.
The development of all levels is expected to speed up as a result of the new equipment.
There are presently 4 production stopes in operation accounting for roughly 250 TPD being sent
to the mill.
Production is expected to increase to 700 TPD by Q4 2022 which will allow the re-start of the
El Limon Mill, adding an additional 225 TPD of milling capacity.
The average grade at the Cordero Mine is expected to be 6.5 gpt vs the historical average
grade of 4.5 gpt.
The Company has engaged SLR Consulting (
Canada
) Ltd to complete an updated Mineral
Resource and Mineral Reserve Estimate, a Preliminary Economic Assessment and a NI 43-101
Technical Report on the Company's El Bagre Mine. The report is expected to be released in Q3
2022.
Quarterly Production Results (CNW Group/Soma Gold Corp.)
(1)
Gold equivalent ("AuEq") ounces include silver ounces produced and sold and converted to a gold equivalent based on the spot market price. The silver content accounts for
approximately 2-3% of the total gold equivalent ounces.
(2)
Table includes non-IFRS financial performance measures – see note (1) below.
(3)
In the comparable 2020 periods disclosed above, results reflect gold production from June 2020 onwards, after the purchase of the El Bagre Gold Mining Complex on May 28,
2020 and also exclude 475 ounces of gold that were stolen in a robbery in June 2020. Investors are cautioned that these factors significantly impact the comparability of current
results to the prior year.
"Fiscal 2021 was a development year for the Company with the construction and development of the
Cordero mine. Construction delays pushed production targets out by approximately 6 months.
Limited production from Cordero began in Q1 2022, and we produced an average of 1,750 ounces
per month through the end of April. Actual April production was 1,950 ounces and is expected to
continue to grow as more stopes on Level 2 and 3 come into production – with a goal of 2,500
ounces per month by Q3 of this year," states
Javier Cordova
, Soma's CEO. "The combination of
increased production using Company-owned equipment and the higher grade at Cordero will lead to
increased gold production in the second half of 2022."
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 and development property near Tucuma, Para State,
Brazil
.
On behalf of the Board of Directors
"Javier Cordova Unda"
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 Years Ended December 31, 2021 and 2020, 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.
SOURCE
Soma Gold Corp.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/May2022/03/c2616.html
%SEDAR: 00030511E
For further information:
Andrea Laird, telephone: +1-604-259-0302
CO: Soma Gold Corp.
CNW 06:15e 03-MAY-22