Soma Gold Corp. (TSX-V:SOMA) told investors it expects earnings before interest, tax, depreciation and amortization (EBITDA) to further grow this year as the miner continues to lift output at its Colombia operation.
In a statement, the company reported that its El Bagre asset produced 6,952 gold-equivalent (AuEq) ounces and sold 7,740 AuEq ounces in the second quarter to June 30, 2022.
Production for the first half came in at 12,054 AuEq ounces, which was 11% ahead of the firm's plan of 10,845 AuEq ounces.
"It's gratifying to see the Cordero Mine in production and the grade higher than expected," noted Soma's executive chairman Geoff Hampson in a statement.
READ: Soma Gold says it set a new monthly record for ounces produced and sold during May
"The underground mining equipment acquired by Soma, which will be delivered this Summer, will ensure that production continues to ramp up. AuEq production is expected to further increase by the end of the year as more tons are mined. Once total mine production exceeds 600 tpd, we will restart the el Limon mill, and monthly gold production will increase commensurately," he added.
The executive chairman also noted that at the current production level of around 2,500 ounces per month at market prices, the mine generates an estimated US$2 million in EBITDA per month, and the company expects EBITDA to "further grow with the expected increase in production".
Also in the statement, Soma announced that 29,353,556 of the 29,654,297 per share warrants priced at C$0.25, which expired on July 3, 2022, were exercised for net proceeds to the company of C$7,338,319.
There are now 5,750,000 warrants outstanding of which 5,500,000 are exercisable at C$0.66 per share and expire on October 16, 2023, and 250,000 warrants exercisable at C$2.00, which expire on April 4, 2023.
Soma Gold owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tons per day (TPD) - permitted for 1,400 TPD.
Its El Bagre Mill is currently operating and producing. Internally generated funds are being used to finance a regional exploration program. The company also owns an exploration property near Tucuma, Para State, Brazil that is currently under option to Ero Copper Corp.
Contact the author at giles@proactiveinvestors.com