SOMA GOLD Releases 2022 Q3 Results
SOMA GOLD RELEASES 2022 Q3 RESULTS
VANCOUVER, BC
,
Nov. 23, 2022
/CNW/ -
Soma Gold Corp.
(TSXV: SOMA) (WKN: A2P4DU)
(OTC: SMAGF) (the "
Company
" or "
Soma
") is pleased to announce that the Company's third
quarter Financial Statements and MD&A have been filed on SEDAR and are available at the
following link:
https://bit.ly/SomaQ3Financials
.
Highlights of the quarter
Gold equivalent ounce sold of 5,494 ounces was the second highest quarterly total in Soma's
history, even after losing one-half of a month's production to a union strike. Year-to-date,
17,312 gold equivalent ounces have been sold compared to 13,264 in the comparative period.
The Company's unionized employees went on strike
September 16
th
. A new collective
agreement was successfully reached on
September 29
th
, and the mine and mill quickly ramped
up to normal operating levels in early October.
Income from mining operations was
$4.1 million
for the quarter and Adjusted EBITDA was
$3.8
million
. Both metrics were significantly impacted by the strike but are expected to rebound
strongly in Q4. Year-to-date, income from mining operations of
$16.3 million
(2021 -
$9.7
million
) and Adjusted EBITDA of
$15.0 million
(2021 -
$8.7 million
) continue to demonstrate a
significant increase over prior year results.
Development work at Cordero continued to advance with an additional
$2.4 million
in
construction costs capitalized during the quarter (
$7.1 million
for the nine months ended
September 30, 2022
).
Payments were made towards the Company's gold loan (deferred revenue) of
$0.7 million
(
$2.6
million
for the nine months ended
September 30, 2022
). The remaining outstanding balance has
been reduced to
$0.9 million
at
September 30, 2022
.
Select Results for the Quarter ended September 30
th
, 2022 and Comparative
Quarters
(CAD$ unless otherwise indicated)
3
rd
Quarter, 2022
2
nd
Quarter, 2022
3
rd
Quarter,2021
Revenue
12,107,696
17,743,251
11,258,071
Income from mine operations
4,127,801
8,034,147
4,965,255
Adjusted EBITDA
(1)
3,813,944
7,482,034
4,331,015
Gold ounces produced
5,482
6,637
5,031
Gold equivalent ounces sold
5,494
7,583
5,048
Ore milled
30,087
42,180
35,291
Gold grade
6.45
6.67
5.08
Average realized price per ounce sold
(USD)
(1)
1,726
1,870
1,810
(1) Table includes non-IFRS financial performance measures – see note (1) below.
"It was a very busy third quarter for Soma."
Javier Cordova
, Soma's CEO, states. "A new collective
bargaining agreement was reached with our unionized employees on
September 29
th
after a two-
week strike. Our people are the heart of our operation, and we are pleased to have our many
dedicated employees back working towards our mutual success. Despite losing half a month of
production, we also achieved the Company's second-highest gold production to date." He further
states, "Cordero development work continues, aided by further deliveries of the Company's new
underground equipment from Sandvik. The final pieces of equipment were just delivered and are
being integrated into our operations. It will allow us to ramp up development and production at the
higher-grade Cordero mine and continue to make meaningful increases to our gold production in
future quarters."
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
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.
SOURCE
Soma Gold Corp.
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%SEDAR: 00030511E
For further information:
Andrea Laird, telephone: +1-604-259-0302
CO: Soma Gold Corp.
CNW 07:15e 23-NOV-22