- Soma Gold (TSXV:SOMA), a profitable microcap gold stock, is announcing record 2023 production of 32,340 ounces gold equivalent (AuEq) at its El Bagre gold complex in Colombia
- The company has been profitable since 2020 and expects to improve production results in 2024
- Soma Gold is a gold producer and explorer that owns two adjacent mining properties in Antioquia, Colombia
- Soma Gold stock (TSXV:SOMA) has added over 100 per cent year-over-year, and about 540 per cent since its COVID low in 2020
Soma Gold (TSXV:SOMA), a profitable microcap gold stock, is announcing record 2023 production of 32,340 ounces AuEq at its El Bagre gold complex in Colombia.
The figure represents 96.5 per cent of forecasted 2023 production of 33,500 AuEq ounces, and is up by 40 per cent compared with 2022.
The gold stock fell short of its forecast because of two temporary unscheduled suspensions during the year. The first was prompted by labour unrest in March and lasted for two weeks. The second, in Q4, occurred because of excessive wear in the primary ball mill at El Bagre. A temporary repair has allowed the mill to resume operations at a reduced rate, with a permanent repair slated for March 2024.
Soma is estimating production of an additional 750-1,000 ounces per month from the El Limon mill, which is scheduled to restart production in the first half of 2024.
The company will provide 2024 production guidance this month upon updating a mine plan with definition drilling conducted in 2023.
“Our team in Colombia has done an outstanding job managing production and safety and achieving our goals for the year, despite some delays and mechanical and social issues,” Javier Cordova, Soma Gold’s president and chief executive officer, said in a statement. “We anticipate that our production plan for 2024, including the additional production from the El Limon mill, will result in another production record in 2024.”
A stock on the move
Soma Gold stock has added more than 100 per cent year-over-year, but remains down by more than 60 per cent since 2019. If we measure from its COVID-induced drop of approximately 90 per cent from October 2019 to March 2020, the stock has gained approximately 540 per cent to date.
This stellar performance is in line with the company’s consistent profitability over the past few years, including C$6.72 million in 2020, C$0.26 million in 2022, C$1.2 million in Q1 2023, C$3.64 million in Q2 2023 and C$3.22 million in Q3 2023. The company posted a net loss of C$1.22 million in 2021 because of loan repayments and construction costs at its Cordero mine.
Soma Gold is a gold producer and explorer that owns two adjacent mining properties in Antioquia, Colombia, with a combined milling capacity of 675 tonnes per day. The company is allocating internally generated funds into a regional exploration program. It also owns an exploration property in Brazil under option to Ero Copper.
Soma Gold stock (TSXV:SOMA) opened with a loss of 3.12 per cent, trading at C$0.62 per share.
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