- Record 23,115 ounces of gold sales in 2022
- $17.3 million Adjusted EBITDA(1)
- Paid $3.4 million About the offtake contract
- invested $9.7 million at Cordero Mine
- total cash cost per ounce of gold produced $1,002(1)
Vancouver, British Columbia, May 2, 2023 /CNW/- Soma Gold Co., Ltd. (TSXV: SOMA) (WKN: A2P4DU) (OTC: SMAGF) (“company” again “Soma“) announces financial and operating results for the three and twelve months ended December 31, 2022 (fourth quarter 2022 and fiscal year 2022). Produced annually from 100% owned El Bagre The gold equivalent ounces obtained are Columbia, the operation was 23,115 ounces and 22,952 ounces were sold – a 30% increase from the previous year. The company’s financial statements and MD&A have been filed with SEDAR and are available at the following link: https://bit.ly/SomaYEFinancials.
CEO of Soma, Javier Cordova“Soma Gold has successfully completed construction of the Cordero mine and has been declared ready for commercial production. January 1, 2023Soma also hit the target for gold ounces produced, setting another record for the El Bagre gold complex. ColumbiaThe second tranche of the Nuevo Granada Gold Loan has been completed. January 2023, leaving only a 1% NSR tail as a remaining obligation. We generate free cash flow from our operations through active development and exploration projects underway to extend the life of our mines. In 2022, our business generated an Adjusted EBITDA of $17.3 million(1), an increase of 53% year-on-year. Free cash flow from current operations provided sufficient funding for long-term growth investments. This includes the construction of the Cordero Mine and a new tailings processing facility ($9.7 million), underground mining team down payment ($1.1 million), exploration programs ($1.1 million), and final permitting and commencement of engineering and design work for Nechi Mine. “
2023 Guidance
Cordova added: Operate in accordance with national environmental policies. “
Highlights for 2022
Operation:
- Produced a record 23,115 gold-equivalent ounces.
- 22,952 gold equivalent ounces sold at average realization price(1) of $1,813 per ounce.
- total cash cost per ounce of gold sold(1) of $1,002 compared to $1,084 per ounce in 2021.
- Updated NI 43-101 Technical Report, Columbia It indicated a gold resource of 665,000 tons at 5.9 g/t (127,000 contained ounces) and estimated a gold resource of 1,165,000 tons (277,000 contained ounces) at 7.4 g/t.
- Tucuma project options Brazil To erotic copperOptional terms include tiered cash payments US$450,000 of exploration spending $1.7 million Final option payment up to US$6,000,000 Cash or erotic stocks (see dated news release) March 15, 2022).
Finance and growth investments:
- Revenues from mining operations increased by 33%, $53 million
- Adjusted EBITDA(1) 53% increase from last year $17.3 million
- Significant capital and growth initiatives were funded from cash flow.
- Cordero Mine Construction and New Tailings Processing Facility – $9.7 million;
- Down payment for underground mining vessel – $1.1 million; and
- Exploration program – $1.1 million.
- net income of $258,000 compared to the loss of $1.2 million 2021
Environmental, Social and Governance:
- Received the “Sosteniviridad Award” from Antioquia for the second year in a row. This award is given to companies that exceed state environmental guidelines and requirements.
- Concluded a mutual cooperation agreement with Corantioquia, the environmental authority of Antioquia, and promoted environmental volunteer activities in Zaragoza and El Bagle in Antioquia.
- Implemented a safety first program to reduce lost time injuries by 48.3% compared to 2021.
Financial and operational highlights for the fourth quarter and year-end 2022
Key operating and financial data for the closed 3 and 12 months December 31, 2022 and 2021 are:
The company also announced that it will grant a total of 300,000 stock options to its employees to purchase shares of its common stock pursuant to its equity incentive plan, subject to regulatory approval. The options will vest immediately and will be priced at the Company’s market price following the expiration of the current trading suspension period associated with the Company’s annual financial results announcement. Options expire five years from the date of issue.
About SOMA GOLD
Soma Gold Corp. (TSXV: SOMA) is a mining company specializing in gold production and exploration. The company owns two of his mining facilities adjacent to Antioquia. Columbia Together they have a crushing capacity of 675 tpd. (allowed at 1,400 tpd). El Bagre Mill is now operational and in production. Funds generated internally are used to fund local exploration programs.
The company also owns an exploration site near Tucuma, State of Para. Brazil This is now an option for Ero Copper Corp.
On behalf of the Board of Directors
“Javier Cordoba Unda”
Chief Executive Officer and President
Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this release.
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(1) |
This news release refers to certain financial metrics such as EBITDA, Adjusted EBITDA, average realized price per ounce of gold sold and total cash cost per ounce of gold sold. IFRS. These measurements may differ from measurements made by other companies and may not be directly comparable to measurements reported by other companies. These measures are derived from our financial statements as we believe they are useful in understanding our performance. For a full description of these measures, please refer to the Non-IFRS Financial Performance Measure Disclosures in our MD&A for the years ended December 31, 2022 and December 31, 2021. www.sedar.com. |
All statements, analyzes and other information contained in this press release regarding anticipated future events or results constitute forward-looking statements. Forward-looking statements often, but not always, use words such as “seeks,” “anticipates,” “believes,” “plans,” “estimates,” “expects,” and “intends.” Identified by word usage. Events or results “may”, “would”, “should”, “could” or “may” occur or be achieved, and other similar expressions. Forward-looking statements are subject to business and economic risks, uncertainties and other factors that could cause actual operating results to differ materially from those contained in forward-looking statements. Forward-looking statements are based on management’s estimates and opinions as of the date the statements are made. We undertake no obligation to update any forward-looking statements whether circumstances or management’s estimates or opinions change, except as required by applicable law. Investors should not place undue reliance on forward-looking statements.
