Post by
tobinator01 on Aug 16, 2022 5:05pm
Merger, warrants and another Colombia gold producer
It's been over a decade that I posted on Stockhouse. I just can't find much discussion concerning Aris/GCM. I like the merger and the growth potential of the combined New Aris. My investment is concentrated on accumulating Aris C$2.75 strike warrants with expiry July 2025. Right now they are trading at C$0.20.
There's a microcap (C$29 million) that I have a good sized position in operating in Colombia, Soma Gold (SOMA.V). They are materially increasing gold production this year and will be reporting a record quarter of earings, cash flow and revenue in a couple of weeks. They are producing cash flow (EBITDA) on an annual basis of C$31 million with quarterly gold production of 7,500 ounces. Soma has guided that in early 2023 they will be running at a rate of 9,000 ounces per quarter.
Go to the link below and view their latest presentation. One thing that stood out to me is AISC is expected to be under $900/ounce by the end of this year. I should point out that insiders have a ton of skin in the game. Management owns 71% of all the outstanding shares. If another miner (perhaps New Aris) buys them out, shareholders will be well represented. Anyway, Soma is a profitable miner and looks to have a really bright future considering its tiny market capitalization.
https://www.somagoldcorp.com/