Soma Gold Corp V.SOMA

Soma Gold Chart

[tobinator01]

Soma is one of the best performing Gold mining stocks this year at +115% YTD.  We will be getting the Q2 earnings report within the next couple of weeks.  Most companies will preannounce an earnings date and set up a conference call.

C$0.74 is the highest price the stock has been in 3 years.  Soma is just a whisper below that now at C$0.71.  With C$0.66 warrants expiring in 7 weeks, we could see the stock price stall out IF the warrant holders intend to sell stock to fund exercise.  Eitherway, post October 16th, there will no longer be any potential overhang on the stock price.


Soma Gold Chart

[Freddy1989Germa]

Market Cap The market cap the fair for Soma Gold? Currently 67 million CAD market cap The target is 35000 ounces, I am curious about the further development. I would use a P/E ratio of 10-15 as a fair value and I am curious about your opinion.

[tobinator01]

P/E ratios really don't apply in the mining space.  Miners are valued primarily by cash flow and ounces in the ground.  If those ounces in the ground are not in production, their value is heavily discounted.  Those producing mines with 43-101 resources have the contained ounces with much higher value and add to the market cap.  Soma is lean on inground resources that are