Soma Gold Corp reported financial results before the bell Tuesday for the fourth quarter and full year 2022, revealing a 30% increase in gold sales in 2022.
The company produced 23,115 gold equivalent ounces from its El Bagre, Colombia operation and sold 22,952 ounces, up 30% year-over-year. Revenue increased 33% to $53 million.
Soma shares jumped more than 13% Monday to C$0.69 in anticipation.
The past year was a significant one for Soma’s development, CEO Javier Cordova said.
"Soma Gold successfully completed the construction of the Cordero Mine, with commercial production being declared effective January 1, 2023,” Cordova said in a statement. “Soma also achieved its goal for gold ounces produced, setting another record for the El Bagre Gold Complex in Colombia.”
He continued: “During 2022, our business generated $17.3 million of Adjusted EBITDA, a 53% increase from the prior year. Free cash flow from current operations substantially funded our long-term growth investments. It includes the construction of the Cordero Mine and a new tailings disposal facility ($9.7 million), the down payment for the underground mining fleet ($1.1 million), exploration programs ($1.1 million) and the commencement of final permitting and engineering and design work for the Nechi Mine."
In 2023, Soma Gold expects to produce between 35,000 and 37,000 ounces of gold. The company also plans to continue developing partnerships with artisanal and small-scale miners “to align with the Colombian government's focus on enabling small miners to operate,” Cordova added.
The full results can be found here.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel