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Soma Gold Corp. Reports Increased Revenue Despite Lower Production, Eyes Growth in Second Half of 2024

Strategic Insights

— 1 min read

Despite lower production, Soma Gold Corp. (TSX-V:SOMA, OTCQX:SMAGF) reported increased revenue during the second quarter of 2024, driven by plans to mine higher-grade zones and expand exploration efforts. The company's revenue for the quarter rose to $22.7 million, with $42 million reported for the first six months, compared to $39 million in the first half of 2023. Soma Gold posted EBITDA of $7.5 million, but total cash costs per ounce of gold sold rose to $1,340, up from $901 in the same period last year.

Key Takeaways:

  • Soma Gold Corp. reported increased revenue of $22.7 million in Q2 2024, with $42 million in revenue for the first six months, a 7.7% increase from the first half of 2023.
  • The company sold 7,209 gold equivalent (AuEq) ounces in Q2 2024, totaling 14,233 AuEq ounces for the first half of 2024, down from 15,391 AuEq ounces in H1 2023.
  • Soma Gold posted EBITDA of $7.5 million, while total cash costs per ounce of gold sold rose to $1,340, up from $901 in the same period last year.
  • The company successfully completed a major maintenance shutdown of its El Bagre Mill in Q2, impacting production but positioning the company for improved output in the latter half of 2024.
  • Soma plans to continue exploring its expanded property package along the Otu fault, begin production at the Machuca mine in Q4, and advance its formalization process for small miners, aiming for a 10% increase in total ounces produced.
  • CEO Geoff Hampson stated that the combination of higher grades, reduced development and waste rock, and an increase in the number of stopes will contribute to a strong finish for the year.

Statistics:

  • Revenue for Q2 2024: $22.7 million
  • Revenue for the first six months of 2024: $42 million
  • Revenue for the first half of 2023: $39 million
  • EBITDA: $7.5 million
  • Total cash costs per ounce of gold sold: $1,340 (Q2 2024)
  • AuEq ounces sold in Q2 2024: 7,209
  • AuEq ounces sold in the first half of 2024: 14,233
  • AuEq ounces sold in the first half of 2023: 15,391

Sources:

  • Soma Gold Corp. press release (no date provided)
  • Soma Gold Corp. website (no date provided)

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