Soma Gold's EBITDA Surge: Production Growth and Cost Control Measures

Soma Gold Corp. (TSXV: SOMA) has reported robust financial results for the third quarter and year-to-date, with EBITDA reaching $9.1 million and $22.7 million, respectively. This significant growth can be attributed to several factors, including increased gold production and effective cost control measures.

The company's gold production has witnessed substantial growth, contributing to a significant increase in revenue and EBITDA. In the third quarter of 2023, Soma produced 9,413 AuEq ounces, representing a 45% improvement over the same period in 2022. Year-to-date production reached 25,106 AuEq ounces, a 45% improvement compared to 2022. This robust production growth has led to a 53% increase in revenue to $81.1 million and an 83% increase in adjusted EBITDA to $31.8 million for the year.



Cost control measures have been instrumental for Soma Gold in maintaining stable cash costs despite Colombia's challenging inflationary environment. In the third quarter and year-to-date, the company's total cash costs per ounce of gold sold remained at US$1,002 and US$983, respectively, despite the inflationary pressures. This can be attributed to Soma's strategic decision to transition from mechanized mining to the conventional raise stope method, which has led to lower mining costs. Additionally, the company's exploration efforts have resulted in the discovery of new resources and the identification of the next mine on its Antioquia properties, further enhancing its cost-efficiency.



The exploration and development of new mines, such as the Machuca Mine, have significantly contributed to Soma Gold's production growth and financial performance. The Machuca Mine, set to come online mid-year, will provide additional feed material, justifying the restart of the El Limon Mill. This expansion is expected to lower mining costs and increase the number of produced ounces, driving continued growth in the company's financial performance.

Soma Gold's impressive EBITDA growth is a testament to its successful execution of production growth strategies and cost control measures. As the company continues to explore new resources and expand its mining operations, investors can expect further growth and improved financial performance.