Soma Gold Corp. (TSX-V:SOMA, OTCQX:SMAGF) reported a big year-over-year increase in gold production in 2023 as the company gets set to bring another mine online by mid-2024.
The South American gold producer reported total gold equivalent (AuEq) production of 32,340 ounces from the Cordero Mine and the el Bagre Milling Operations in Antioquia, Colombia; a 40% increase from 2022’s figure.
Total revenue for the year jumped 53% to $81.1 million, Soma Gold reported.
Income for 2023 also saw a significant uptick, reaching $2.8 million compared to $0.3 million in 2022. In the fourth quarter alone, revenue climbed by 46% to $19.4 million.
Adjusted EBITDA of $31.8 million was an 83% increase over the previous year.
The company maintained stable total cash costs per ounce of gold sold for 2023, reported at US$983, slightly lower than the US$1,002 reported in the previous year.
In the coming year, Soma said it will focus on exploration efforts to expand the property package along the Otu fault to increase total resources and identify new mine opportunities.
The company is continuing its efforts to formalize the operations of small miners working on its concessions, with the aim of achieving 10% of production from these sources. Additionally, plans are being finalized to restart the el Limon Mill, intending to process ore from both the Cordero mine and formalized small miners.
Furthermore, the company is reviewing strategic additions to its concession package, drawing insights from exploration program results. Moreover, the company plans to conduct deep drilling of the Cordero deposit using a new underground drill to confirm resource continuity and enhance resource estimates.
Soma will be doing this with a new CEO at the helm. Geoff Hampson is taking over following the resignation of Javier Cordova as CEO, President, and Director of the Board.
A statement expressed gratitude for Cordova’s contributions.
"2023 was an exceptional year as we achieved significant increases in our gold production and EBITDA,” said Hampson.
“Despite a challenging inflationary environment in Colombia and changes in mining methods, we managed to maintain stable cash costs.
"Going forward, we expect continued growth in the number of produced ounces, with the Machuca Mine set to come online mid-year. This additional feed material justifies the restart of the el Limon Mill, which has been on care and maintenance as production scaled up.”