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Soma Gold Corp V.SOMA

Alternate Symbol(s):  SMAGF

Soma Gold Corp. is a Canada-based mining company. The Company is focused on gold production and exploration. It is engaged in the business of acquiring, exploring, developing, and operating mining properties in South America. It owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tpd. The Company's principal operation is the El Bagre Gold Mining Complex (El Bagre), which consists of an operating gold processing plant (the El Bagre Mill) and the Cordero underground mine. The El Limon Project (El Limon) is adjacent to the El Bagre Project and includes a past producing underground mine and a gold processing plant with a capacity of approximately 225 tpd. The Company also owns an exploration property, Tucuma Exploration Project (Tucuma), a copper/gold exploration project, which is located in the Carajas metallogenic province in the State of Para, Brazil. Its exploration projects include the Nechi Project, the Zara Project, and the Otu Project.


TSXV:SOMA - Post by User

Comment by tobinator01on Nov 18, 2022 2:34pm
108 Views
Post# 35111203

RE:long and strong

RE:long and strongWelcome aboard.  Soma doesn't do much promotion, which is a little odd since insiders own 73% of the Company.  They issued a press release last year right on US Thanksgiving day.  I just sent an email for them to push it out to the following week.

The Q3 report will be roughly in-line with the Q2 report since the 10-day strike cost them 750 ounces of production.  In the Q2 report, they milled 387 tpd on average.  September they likely were at 400 tpd run rate and their August presentation says 600 tpd in early 2023. 

The beauty about this opportunity is that the increasing production is operationally easy.  They received the equipment to haul more ore months ago, the mill capacity is there and they have another mill that has sat idle.  Their 36,000 ounce guidance for 2023 (50% increase from 2022) is well within reach with the mill capacity improvements we know about. 

Operating cash flow is paying all the bills plus paying down debt; no equity needed to issue.  We could also see a large bump up in resources from Cordero in the next 6 weeks.  That will add value to the stock and it may very well get them to commit to an already approved increase to 1475 tpd upgrade to their milling capacity.  Today Soma's market cap is US$17.4 million.  I simply cannot find another miner with so much upside potential.

Like you Jonggua, this is a long term hold.  Strong fundamentals will always be fully appreciated by the market, it just doesn't happen on most investors time table.  With all the M&A that has happened in the mining sector, a small, growing miner could offer $1 for Soma and still be getting great value.
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