Soma Gold Corp. (TSX-V:SOMA) said it has had a successful second quarter, reporting a sharp rise in income from mining operations which hit C$8.0 million in the three months ended June 30, 2022, compared to C$4.2 million in the first quarter.
During the second quarter, the mining company sold 7,583 ounces of gold equivalent, an increase of 79% from the first quarter of 2022 and 99% higher than the year-ago period, and produced 6,637 ounces of gold in 2Q 2022, against 5,005 ounces and 3,760 ounces in 1Q 2022 and 2Q 2021, respectively.
"The second quarter of 2022 was very successful for Soma. Higher-grade ore from Cordero, at an average of 7.75 grams per ton (g/t) in the second quarter, is starting to replace ore from our legacy, lower-grade mines which has a very positive impact on gold production and financial results," Soma president and CEO Javier Cordova said in the results statement.
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"As development at Cordero advances, mill throughput at higher-than-average grades will ramp up, allowing the company to increase tons from the 2Q average of 387 tons per day (tpd) to over 500 tpd in early 2023, resulting in further growth of gold production," he added.
Soma recorded revenue of $17 million in the three months to June 30, 2022, compared to $9.8 million in the preceding quarter, and $8.4 million in the year-ago quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) doubled to $7.5 million for the quarter compared to $3.7 million in 1Q 2022 and 1.1 million in 1Q 2021.
The company has continued to advance development work at its Cordero Project in Antioquia, Colombia, with an additional $2.7 million in construction cost capitalized during the quarter. In addition, Soma has received the first shipment of underground equipment ordered from Sandvik.
"Our ability to self-perform development and mining at the Cordero mine will significantly impact gold production in 4Q of 2022 and going forward. The balance of the equipment will arrive in the coming months, and once fully implemented, mine production is anticipated to rise by over 250 tpd from current levels," CEO Cordova added.
Soma Gold is focused on gold production and exploration and owns two adjacent mining properties in Antioquia, Colombia, with a combined milling capacity of 675 tpd of the permitted 1,400 tpd. The 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 in Para State, Brazil that is currently under option to Ero Copper Corp.
Contact the author at jon.hopkins@proactiveinvestors.com