Soma Gold Corp. (TSX-V:SOMA) said it sold the equivalent of 5,494 ounces of gold during the third quarter of 2022, the second-highest quarterly total in its history, even as it lost half of a month's production due to a union strike.
The company said 17,312 gold equivalent ounces have been sold year-to-date, compared to 13,264 in the comparative period.
Soma Gold CEO Javier Cordova said it’s been a busy quarter.
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"A new collective bargaining agreement was reached with our unionized employees on September 29 after a two-week strike. Our people are the heart of our operation, and we are pleased to have our many dedicated employees back working towards our mutual success. Despite losing half a month of production, we also achieved the company's second-highest gold production to date," Cordova said in a statement.
The Vancouver-based company said income from mining operations was C$4.1 million for the quarter and adjusted EBITDA was $3.8 million, adding both metrics were significantly affected by the strike but are expected to rebound strongly in 4Q.
Year-to-date, income from mining operations of $16.3 million (2021: $9.7 million) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $15 million (2021: $8.7 million) continue to demonstrate a significant increase over prior year results, the company said.
Cordova said development work at Cordero continues, aided by further deliveries of the company's new underground equipment from Sandvik.
“The final pieces of equipment were just delivered and are being integrated into our operations. It will allow us to ramp up development and production at the higher-grade Cordero mine and continue to make meaningful increases to our gold production in future quarters," Cordova said.
An additional $2.4 million in construction costs was capitalized during the quarter at Cordero, compared to $7.1 million for the nine months ended September 30, 2022.
Soma Gold said its unionized employees went on strike September 16, 2022. A new collective agreement was reached on September 29, and the mine and mill quickly ramped up to normal operating levels in early October.
The company also said payments were made towards the company's gold loan (deferred revenue) of $0.7 million, compared to $2.6 million for the nine months ended September 30, 2022. The remaining outstanding balance was reduced to $0.9 million at September 30, 2022.
Soma Gold owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tons per day (tpd), and has permits for 1,400 tpd. The El Bagre Mill is currently operating and producing. The company also owns an exploration property near Tucuma, Para State, Brazil, currently under option to Ero Copper Corp.
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