Soma Gold Corp. (TSX-V:SOMA, OTCQX:SMAGF) reported increased revenue during the second quarter of 2024 despite lower production, with plans to boost output by mining higher-grade zones and expanding exploration efforts in the latter half of the year.
Revenue for the quarter increased to $22.7 million, with $42 million reported for the first six months, compared to $39 million in the first half of 2023.
The company sold 7,209 gold equivalent (AuEq) ounces in Q2 2024, totaling 14,233 AuEq ounces for the first half of 2024, down from 15,391 AuEq ounces in H1 2023.
Soma Gold posted EBITDA of $7.5 million, while total cash costs per ounce of gold sold rose to $1,340, up from $901 in the same period last year.
Soma successfully completed a major maintenance shutdown of its El Bagre Mill in Q2, impacting production but positioning the company for improved output in the latter half of 2024. The transition to conventional mining methods, while challenging, is nearing completion, with mining in higher-grade zones expected to commence by the end of Q3.
Looking ahead, Soma plans to continue exploring its expanded property package along the Otu fault, begin production at the Machuca mine in Q4, and advance its formalization process for small miners, aiming for a 10% increase in total ounces produced.
“For the balance of 2024 and into 2025, we expect the combination of higher grades, reduced development and waste rock and an increase in the number of stopes, which will all contribute to a strong finish for the year,” CEO Geoff Hampson said in a statement.
Hampson also said that ongoing exploration efforts could boost mineable resources and justify a mill expansion.