- Soma’s Increased Production and Revenue in Q1-2024
VANCOUVER, BC, June 3, 2024 /CNW/ – Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU) (OTC: SMAGF) (the “Company” or “Soma“) reported a 8% increase in AuEq ounces produced, totaling 7,335 in Q1-2024 compared to 6,796 AuEq ounces in Q1-2023. Revenue for the quarter also saw a significant uptick, rising by 21% to $19.3 million.
The increase in production and revenue underscores the company’s commitment to operational efficiency and growth in the competitive gold market.
Adjusted EBITDA remained consistent
The Company’s Adjusted EBITDA for the quarter was $6.3 million, which was on par with the $6.8 million recorded in Q1-2023. Despite the challenges posed by the transition to a new mining method, Soma’s ability to maintain strong EBITDA reflects its focus on financial stability and prudent cost management.
- Transition to New Mining Method in Q1
The transition to a new mining method during Q1 resulted in higher production costs as expected. However, the company anticipates these costs to decrease in Q2 and throughout the rest of the year. This strategic move highlights Soma’s proactive approach to improving operational efficiency in the long run.
- Financial Performance Highlights
During the quarter, total cash costs per ounce of gold sold stood at US$1,192, with an average realized cash margin of US$894, compared to US$983 in Q1-2023. These figures demonstrate Soma’s ability to manage costs effectively while optimizing profitability, even amidst operational changes.
- Outlook for the Remainder of 2024
Soma looks ahead to the rest of 2024 with optimism, outlining key objectives including further exploration, mine development activities, and formalization processes. The company’s strategic goals for the year underline its commitment to sustainable growth and operational excellence.
Geoff Hampson’s Vision for Soma’s Future
Soma’s President and CEO, Geoff Hampson, expressed confidence in the Company’s progress, especially citing anticipated higher grades, reduced development costs, and increased stopes in the second half of the year. His strategic vision aligns with the company’s commitment to maximizing the potential of its mining assets and enhancing shareholder value.
