Soma Gold Corp. (TSX-V:SOMA) told investors it is on track to meet its full-year targets after reporting record third-quarter production, sending its shares higher.
The Colombia-focused mining company sold 9,112 ounces of gold in the three months to September 30, 2023, a 66% increase from the same quarter a year earlier. For the first nine months of the year, production rose 42% to 24,503 ounces.
Revenue for the quarter amounted to $22.8 million, resulting in adjusted underlying earnings (EBITDA) of $9.6 million and net income of $3.2 million.
Soma Gold said total gold production from the Cordero Mine and the el Bagre Milling Operations was 24,839 ounces for the nine months to end September, with Cordero reporting an attributable cash cost per ounce of gold sold of US$911 and an all-in sustaining cost (AISC) of US$1,316 per ounce.
Looking ahead, the company said it will continue exploring its expanded property package along the Otu Fault to continue to build total resources and identify the next mine on its Antioquia properties.
It also plans to continue the formalization process for the small miners operating on its concessions, noting that 10% of the ounces produced come from these small miners.
Plans to restart the el Limon Mill to process both excess ore from Cordero and ore from formalized small miners are also being finalized, it added.
“Anticipating a strong finish to the year, we are actively ramping up production to meet our aggressive growth objectives for the year,” Soma president and CEO Javier Cordova commented in a statement.
“Initiating the restart of the el Limon Mill is a key component of our strategy to expand milling capacity. This move positions us for increased production capacity and sets the stage for robust growth in ounces produced, extending into 2024 and beyond.”
The company's shares were 6.7% higher at C$0.64 in early Thursday afternoon trading.
Soma Gold is a gold-focused mining company based in Vancouver, with operations primarily located in Antioquia, Colombia. The company owns two adjacent mining properties with a combined milling capacity of 675 tonnes per day (tpd), permitted for up to 1,400 tpd.
The El Bagre Mill, one of their key assets, is currently operational and contributing to the production success.
~Updated with share price movement~
Contact the author at stephen.gunnion@proactiveinvestors.com