Soma Gold Corp. Reports Strong Financial Performance in Q3 2024

VANCOUVER, BC,

Nov. 29, 2024 /CNW/ –
Soma Gold Corp.
SOMA
(WKN: A2P4DU)
SMAGF
(the “Company” or “Soma“) has reported its financial results for the three and nine months ended
September 30, 2024, and
September 30, 2023. These filings are now available on SEDAR+ and the Company’s website.

Key Financial Highlights

• Quarterly revenue was $22.4 million and for the nine-month period, it totaled $64.4 million as of September 30, 2024.
• EBITDA⁽¹⁾ for the quarter reached $9.1 million, bringing the nine-month total to $22.7 million as of September 30, 2024.
• Gold sales: Soma sold 6,612 AuEq ounces in Q3-2024 and 20,845 AuEq ounces during the nine months ended.
• Cash costs per ounce of gold sold⁽¹⁾ were reported at US$1,256 for the quarter, with a nine-month average of US$1,261.
• Average realized cash margin⁽¹⁾ stood at US$1,272 for the quarter and US$1,058 for the nine-month period.
• EBITDA⁽¹⁾ per share was recorded at $0.25.

Operational Overview

• For Q3-2024, gold production totaled 6,639 AuEq ounces, with cumulative production at 20,565 AuEq ounces for the nine months, compared to 25,106 AuEq ounces produced in the same period last year.
• The Cordero Operations reported cash costs per ounce of gold sold⁽¹⁾ at US$1,261.
• Income from mining operations amounted to $17.0 million.
• Total EBITDA⁽¹⁾ for the period was $22.7 million, with adjusted EBITDA⁽¹⁾ reaching $23.0 million.
• Net income for the period was reported at $1.2 million, equivalent to $0.01 per share.
• EBITDA⁽¹⁾ per share remained steady at $0.25.

Future Plans for 2024

• Increase exploration efforts beyond the 18,000 m target set for 2024 (with 14,000 m already completed) by adding more rigs and focusing on significant targets.
• Enhance development work to access high-grade zones at Upper Cordero and the Venus Gap, as detailed in recent press releases.
• Finish Phase 1 of the road construction project to improve access in coordination with the local community.
• Complete the restoration and permitting for the Machuca mine, aiming for production to start in Q4. The explosives permit has been granted, with the first shipment expected soon.
• Finalize the mine plan and application for the Nechi mine to boost input for the El Limon and El Bagre mills, with mining operations anticipated to start by 2026.
• Formalize agreements with two small-scale miners on the Company’s concessions to aim for a 10% increase in gold production by 2025.
• Continue underground drilling to confirm the Cordero deposit’s extension at depth.

Geoff Hampson, President and CEO of Soma, expressed satisfaction with the quarter’s financial results, stating, “We are pleased with the financial performance this quarter, which remained on

“`

Soma Gold Reports Q3 2024 Results Amid Challenges and Future Growth

Lower Gold Production Due to Blockades and Operational Hurdles

Soma Gold Corp. indicates a rise in cash resources as large-scale projects conclude. However, gold production fell short due to various external and internal issues. In particular, a blockade by a local community in Q3 over slow road improvements halted access to the Cordero Mine and El Bagre Mill for eight days, which reduced gold output by around 750 ounces. Additionally, unexpected operational challenges led to a lower average head grade because of narrower and fragmented veins, contributing to higher dilution and a grade lower than the historical average.

This situation exacerbated costs, particularly due to unplanned development that was necessary to access higher-grade zones in Upper Cordero and the Venus Gap. The completion of this development work is now near, with production from these areas on track to begin in Q1 2025.

Enhanced Exploration Initiatives in Otu Valley

CEO Geoff Hampson shared insights about ongoing exploration efforts in the Otu Valley. The team’s improved understanding of geological structures is aiding in the identification and validation of high-priority exploration targets through mapping and various sampling techniques. A drilling company has been contracted to speed up the establishment of additional mineral resources.

Financial and Operational Highlights for Q3 and Nine Months Ended September 30, 2024

Amendment of Subordinated Note Terms

During Q3 2024, the Company altered the terms of its subordinated note with Conex Services Inc., a company owned by a director. The amended agreement stipulates that the total principal and interest will be due at the end of the ten-year term on July 31, 3030, without penalties for partial or full early repayment. This change will allow Soma to fast-track exploration and development activities in Colombia.

Geoff Hampson noted, “Conex Services’ agreement to emphasize exploration and resource expansion enhances our capacity to address loans when the time is right. The flexibility to repay loans partially or fully at any time empowers us in managing our financial obligations.”

About Soma Gold

Soma Gold Corp. SOMA specializes in gold production and exploration. The Company operates two neighboring mining properties in Antioquia, Colombia, which have a total milling capacity of 675 TPD, permitted for up to 1,400 TPD. The El Bagre Mill is currently active and generating production. The company is utilizing internally generated funds to support a regional exploration program.

Committed to sustainability and community engagement, Soma Gold Corp. strives for excellence in its operational practices.

The Company also possesses an exploration property near Tucuma, Para State, Brazil, presently under option to Ero Copper Corp.

On behalf of the Board of Directors

“Geoff Hampson”
Chief Executive Officer and President

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Statements and information in this press release regarding expected future events or results are forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ from those stated. Forward-looking statements are based on estimates made by management at the time they are presented. The Company does not need to update these statements unless required by law. Investors should not overly rely on them.

SOURCE Soma Gold Corp.

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