Soma Gold Corp. (TSX-V:SOMA) has reported a 73% increase in revenue in the year just gone and a near doubling of gold-equivalent ounces sold as it continues to advance its Cordero mine project in Colombia.
In the 12 months to end-December 2021, the Colombia-focused gold producer posted revenue of around C$40 million, up from C$23 million in 2020, while it sold 18,000 gold-equivalent ounces compared to 9,482 in the previous year.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the 12 months came in at C$11.3 million, up from around C$3 million in 2020.
"Fiscal 2021 was a development year for the company with the construction and development of the Cordero mine," Javier Cordova, Soma's CEO told investors in a statement.
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"Construction delays pushed production targets out by approximately 6 months," Cordova continued. "Limited production from Cordero began in Q1 2022, and we produced an average of 1,750 ounces per month through the end of April.
"Actual April production was 1,950 ounces and is expected to continue to grow as more stopes on Level 2 and 3 come into production - with a goal of 2,500 ounces per month by Q3 of this year," he added.
At Cordero, the so-called Fenix portal has reached level 4, and the ramp construction continues to progress to levels 5 and 6, said Soma, while there are currently four production stopes in operation accounting for roughly 250 tonnes per day (TPD) being sent to the mill.
"Production is expected to increase to 700 TPD by Q4 2022 which will allow the re-start of the El Limon Mill, adding an additional 225 TPD of milling capacity," noted the firm.
Soma is also converting to self-performing mine development as the current sub-contractor has been unable to meet the production schedule. The mining equipment worth around US$$5 million, has been ordered and will be delivered in Q2.
"The combination of increased production using company-owned equipment and the higher grade at Cordero will lead to increased gold production in the second half of 2022," said the miner.
Adjusted EBITDA in the fourth quarter of 2021 was C$2.6 million, compared to C$1.6 million in Q4, 2020.
Soma owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tpd, while internally generated funds are being used to finance a regional exploration program.
Contact the writer at giles@proactiveinvestors.com