- Record Gold Sales of 23,115 ounces in 2022
- $17.3 million in Adjusted
EBITDA(1)
- Made payments of $3.4 million
on offtake agreement
- Invested $9.7 million in the
Cordero Mine
- Total cash cost per ounce of gold produced of US$1,002(1)
VANCOUVER, BC, May 2, 2023
/CNW/ - Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU) (OTC:
SMAGF) (the "Company" or "Soma") announces financial
and operating results for the three and twelve months
ended December 31, 2022 (Q4 2022 and FY2022). Gold
equivalent ounces produced during the year from its 100% owned El
Bagre, Colombia, operation was
23,115 ounces and 22,952 ounces were sold - a 30% increase from the
previous year. The Company's Financial Statements and MD&A have
been filed on SEDAR and are available at the following link:
https://bit.ly/SomaYEFinancials.
Soma's CEO, Javier
Cordova, states, "Soma Gold successfully completed the
construction of the Cordero Mine, with commercial production being
declared effective January 1, 2023.
Soma also achieved its goal for gold ounces produced, setting
another record for the El Bagre Gold Complex in Colombia. The second tranche of the Nuevo
Granada Gold Loan was completed in January
2023, leaving only the 1% NSR tail as the remaining
obligation. The Company is generating free cash flow from
operations with aggressive development and exploration projects
underway to ensure a long mine life. During 2022, our business
generated $17.3 million of Adjusted
EBITDA(1), a 53% increase from the prior year.
Free cash flow from current operations substantially
funded our long-term growth investments. It includes the
construction of the Cordero Mine and a new tailings disposal
facility ($9.7 million), the down
payment for the underground mining fleet ($1.1 million), exploration programs ($1.1 million) and the commencement of final
permitting and engineering and design work for the Nechi Mine."
2023 Guidance
Mr. Cordova further states, "Looking forward, we expect to
produce between 35,000 and 37,000 ounces of gold during 2023. We
are also continuing to develop our partnerships with artisanal and
small-scale miners to align with the Colombian government's focus
on enabling small miners to operate in compliance with the
Country's environmental policy. "
2022 Highlights
Operational:
- Produced a record 23,115 gold equivalent ounces.
- Sold 22,952 gold equivalent ounces at an average realized
price(1) of US$1,813 per ounce.
- Total cash cost per ounce of gold sold(1) of
US$1,002 compared to US$1,084 per ounce in 2021.
- Updated NI 43-101 Technical Report increased our Colombia indicated gold resources to 665,000
tonnes at 5.9 g/t (127,000 contained ounces) and our inferred gold
resources to 1,165,000 tonnes at 7.4 g/t (277,000 contained
ounces).
- Optioned the Tucuma Project in Brazil to Ero
Copper. Option terms include staged cash payments of
US$450,000 and exploration
expenditures of US$1,700,000 with a
final option payment of up to US$6,000,000 in cash or Ero shares (see news
release dated March 15, 2022).
Financial and Growth Investments:
- Revenue from mining operations increased 33% to $53.0 million
- Adjusted EBITDA(1) increased 53% from last
year to $17.3 million
- Significant capital and growth initiatives were funded out of
cash flow:
-
- Construction of Cordero Mine and new tailings disposal facility
- $9.7 million;
- Down payment for the underground mining fleet - $1.1 million; and
- Exploration programs - $1.1
million.
- Net income of $258,000 compared
to a loss of $1.2 million in
2021
Environmental, Social and Governance:
- Awarded the "Sello de Sostenibilidad" by the State of Antioquia
for the second year in a row. This award is given to companies that
exceed the environmental guidelines and requirements of the
state.
- Entered into a mutual collaboration agreement with
CORANTIOQUIA, The Province of Antioquia's Environmental authority,
to advance environmental voluntary activities in Zaragoza and El
Bagre, Antioquia.
- Introduced a Safety-First Program resulting in a 48.3%
reduction in lost time accidents compared to 2021.
Q4 2022 and Year End Financial and Operating
Highlights
The key operating and financial data for the three and twelve
months ended December 31, 2022 and
2021 are as follows:
The Company also announces, subject to regulatory approval,
the grant of a total of 300,000 stock options to employees of the
Company to purchase common shares of the Company in accordance with
its Equity Incentive Plan. The options will vest immediately and be
priced at the Company's market price after expiration of the
current trading blackout period associated with the release of our
annual financial results. The options expire five years from the
date of issuance.
ABOUT SOMA GOLD
Soma Gold Corp. (TSXV: SOMA) is a mining company focused on gold
production and exploration. The Company owns two adjacent mining
properties in Antioquia, Colombia
with a combined milling capacity of 675 tpd. (Permitted for 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, Para
State, Brazil that is currently
under option to Ero Copper Corp.
On behalf of the Board of Directors
"Javier Cordova Unda"
Chief Executive Officer and
President
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
(1)
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This news release
refers to certain financial measures, such as EBITDA, Adjusted
EBITDA, average realized price per ounce of gold sold, and total
cash costs per ounce of gold sold which are not measures recognized
under IFRS and do not have a standardized meaning prescribed by
IFRS. These measures may differ from those made by other companies
and accordingly may not be directly comparable to such measures as
reported by other companies. These measures have been derived from
the Company's financial statements because the Company believes
that they are of benefit in understanding the Company's results.
For a complete explanation of these measures, please refer to
Non-IFRS Financial Performance Measures disclosure included in the
Company's MD&A for the Years Ended December 31, 2022 and 2021
which can be accessed at www.sedar.com.
|
All statements, analysis and other information contained in this
press release about anticipated future events or results constitute
forward-looking statements. Forward-looking statements are often,
but not always, identified by the use of words such as "seek",
"anticipate", "believe", "plan", "estimate", "expect" and "intend"
and statements that an event or result "may", "will", "should",
"could" or "might" occur or be achieved and other similar
expressions. Forward-looking statements are subject to business and
economic risks and uncertainties and other factors that could cause
actual results of operations to differ materially from those
contained in the forward-looking statements. Forward-looking
statements are based on estimates and opinions of management at the
date the statements are made. The Company does not undertake any
obligation to update forward-looking statements even if
circumstances or management's estimates or opinions should change
except as required by applicable laws. Investors should not place
undue reliance on forward-looking statements.
SOURCE Soma Gold Corp.