SOMA GOLD Reports Record Full-Year 2022 Financial and Operating
SOMA GOLD REPORTS RECORD FULL-YEAR
2022 FINANCIAL AND OPERATING
HIGHLIGHTS
Record Gold Sales of 23,115 ounces in 2022
$17.3 million
in Adjusted EBITDA
(1)
Made payments of
$3.4 million
on offtake agreement
Invested
$9.7 million
in the Cordero Mine
Total cash cost per ounce of gold produced of
US$1,002
(1)
VANCOUVER, BC
,
May 2, 2023
/CNW/ -
Soma Gold Corp.
(TSXV: SOMA) (WKN: A2P4DU)
(OTC: SMAGF) (the "
Company
" or "
Soma
") announces financial and operating results for the three
and twelve months ended December 31, 2022 (Q4 2022 and FY2022). Gold equivalent ounces
produced during the year from its 100% owned El Bagre,
Colombia
, operation was 23,115 ounces
and 22,952 ounces were sold - a 30% increase from the previous year. The Company's Financial
Statements and MD&A have been filed on SEDAR and are available at the following link:
https://bit.ly/SomaYEFinancials
.
Soma's CEO,
Javier Cordova
, states, "Soma Gold successfully completed the construction of the
Cordero Mine, with commercial production being declared effective
January 1, 2023
. Soma also
achieved its goal for gold ounces produced, setting another record for the El Bagre Gold Complex in
Colombia
. The second tranche of the Nuevo Granada Gold Loan was completed in
January 2023
,
leaving only the 1% NSR tail as the remaining obligation. The Company is generating free cash flow
from operations with aggressive development and exploration projects underway to ensure a long
mine life. During 2022, our business generated $17.3 million of Adjusted EBITDA
(1)
, a 53% increase
from the prior year. Free cash flow from current operations substantially funded our long-term
growth investments. It includes the construction of the Cordero Mine and a new tailings disposal
facility (
$9.7 million
), the down payment for the underground mining fleet (
$1.1 million
), exploration
programs (
$1.1 million
) and the commencement of final permitting and engineering and design work
for the Nechi Mine."
2023 Guidance
Mr. Cordova further states, "Looking forward, we expect to produce between 35,000 and 37,000
ounces of gold during 2023. We are also continuing to develop our partnerships with artisanal and
small-scale miners to align with the Colombian government's focus on enabling small miners to
operate in compliance with the Country's environmental policy. "
2022 Highlights
Operational:
Produced a record 23,115 gold equivalent ounces.
Sold 22,952 gold equivalent ounces at an average realized price
(1)
of
US$1,813
per ounce.
Total cash cost per ounce of gold sold
(1)
of
US$1,002
compared to
US$1,084
per ounce in
2021.
Updated NI 43-101 Technical Report increased our
Colombia
indicated gold resources to
665,000 tonnes at 5.9 g/t (127,000 contained ounces) and our inferred gold resources to
1,165,000 tonnes at 7.4 g/t (277,000 contained ounces).
Optioned the Tucuma Project in
Brazil
to
Ero Copper
. Option terms include staged cash
payments of
US$450,000
and exploration expenditures of
US$1,700,000
with a final option
payment of up to
US$6,000,000
in cash or Ero shares (see news release dated
March 15,
2022
).
Financial and Growth Investments:
Revenue from mining operations increased 33% to
$53.0 million
Adjusted EBITDA
(1)
increased 53% from last year to
$17.3 million
Significant capital and growth initiatives were funded out of cash flow:
Construction of Cordero Mine and new tailings disposal facility -
$9.7 million
;
Down payment for the underground mining fleet -
$1.1 million
; and
Exploration programs -
$1.1 million
.
Net income of
$258,000
compared to a loss of
$1.2 million
in 2021
Environmental, Social and Governance:
Awarded the "Sello de Sostenibilidad" by the State of Antioquia for the second year in a row.
This award is given to companies that exceed the environmental guidelines and requirements of
the state.
Entered into a mutual collaboration agreement with CORANTIOQUIA, The Province of
Antioquia's Environmental authority, to advance environmental voluntary activities in Zaragoza
and El Bagre, Antioquia.
Introduced a Safety-First Program resulting in a 48.3% reduction in lost time accidents
compared to 2021.
Q4 2022 and Year End Financial and Operating Highlights
The key operating and financial data for the three and twelve months ended
December 31, 2022
and
2021 are as follows:
Q4 2022 and Year End Financial and Operating Highlights. (CNW Group/Soma Gold Corp.)
The Company also announces, subject to regulatory approval, the grant of a total of 300,000 stock
options to employees of the Company to purchase common shares of the Company in accordance
with its Equity Incentive Plan. The options will vest immediately and be priced at the Company's
market price after expiration of the current trading blackout period associated with the release of our
annual financial results. The options expire five years from the date of issuance.
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 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/May2023/02/c3379.html
%SEDAR: 00030511E
For further information:
please contact Andrea Laird, telephone: +1-604-259-0302
CO: Soma Gold Corp.
CNW 07:10e 02-MAY-23