Soma Gold's Sensor-Based Sorting Implementation and Operational Scalability: A Strategic Leap for Production Efficiency and Margin Expansion

Soma Gold Corp. (TSXV: SOMA) has emerged as a compelling case study in the strategic adoption of sensor-based sorting (SBS) technology, a move poised to redefine operational efficiency and margin expansion in the gold mining sector. By integrating advanced 3D laser and XRT (X-ray transmission) sensors at its Cordero Mine in Colombia, the company has demonstrated a transformative approach to ore processing, enabling significant reductions in gangue material and substantial increases in gold grade. This analysis explores how Soma's SBS implementation not only enhances production scalability but also positions the company to capitalize on cost savings and margin growth in a competitive market.

Operational Efficiency: A Quantum Leap in Ore Processing

Soma's SBS technology, tested on a 1,200kg bulk sample from the Cordero Mine, achieved a 70% mass reduction, concentrating the gold grade from 7.45 g/t to 20.44 g/t while retaining 90% of the gold content in the sample. This outcome underscores the technology's ability to reject up to 50% of gangue material in the middling fraction and 40% in the coarse fraction, with metallurgical recoveries of 86% and 94%, respectively. By minimizing the volume of material requiring downstream processing, Soma can effectively double throughput at its El Bagre and El Limon Mills without expanding plant capacity.

This scalability is critical for Soma's operational strategy. Mark Bren, the company's VP of Operations, emphasized that SBS reduces dependency on either mill to meet production targets, mitigating bottlenecks and ensuring consistent output. For instance, the El Limon Mill is projected to reach 200 tonnes of ore per day by Q1 2026, a milestone that aligns with Soma's broader goal of scaling production to 100,000 ounces of gold annually. The ability to process higher-grade ore with lower input volumes directly translates to reduced energy, labor, and reagent costs, amplifying the economic value of each ton processed.

The financial implications of SBS adoption are equally compelling. Soma's Q3 2025 financial results revealed an average realized cash margin of US$1,676 per ounce sold, a 55% increase compared to the same period in 2024. While a 57-day strike in Q3 temporarily disrupted production, the underlying trend of margin expansion is tied to the higher-grade ore enabled by SBS. By concentrating gold content in processed material, Soma reduces the cash cost per ounce, which stood at US$1,633 in Q3 2025.

The technology's cost-saving potential is further amplified by its ability to defer capital expenditures. Traditional methods of increasing throughput-such as expanding milling capacity-require significant investment. In contrast, SBS achieves similar or superior results through selective ore sorting, allowing Soma to allocate capital to exploration and mill optimization projects instead. For example, the El Bagre Mill's recent upgrades, including a new leach circuit and oxygen infusion system, have already improved gold recovery from 87.5% to 89.1%. Pairing these enhancements with SBS creates a compounding effect on profitability.

Strategic Positioning: A Model for Technological Innovation

Soma's SBS implementation exemplifies a forward-thinking approach to resource management. By leveraging cutting-edge technology, the company addresses two key challenges in modern mining: operational inefficiency and environmental impact. The reduction of gangue material not only lowers processing costs but also minimizes waste, aligning with growing ESG (Environmental, Social, and Governance) standards. This dual benefit enhances Soma's appeal to investors prioritizing sustainable practices.

Moreover, the scalability of SBS positions Soma to outperform peers in a sector where capital constraints often limit growth. As the El Limon Mill ramps to full capacity and the El Bagre Mill integrates SBS, the company is well-positioned to achieve its 2025 production guidance of 85,000–95,000 ounces. The potential to double throughput without additional plant capacity-coupled with a 275% grade increase in sorted ore-creates a robust foundation for long-term margin expansion.

Conclusion: A Compelling Case for Investors

Soma Gold's adoption of sensor-based sorting technology represents a strategic masterstroke in the pursuit of operational excellence and financial resilience. By enhancing gold recovery, reducing processing costs, and enabling scalable production, SBS directly addresses the core drivers of profitability in the gold sector. As the company moves into 2026, the full commercialization of this technology-alongside exploration gains and mill optimizations-could catalyze a step-change in Soma's market position. For investors, the combination of technological innovation and disciplined capital allocation makes Soma a standout opportunity in a resource-constrained world.