What is the story about?
What's Happening?
Soma Gold has reported a net income of C$4.8 million for the first half of 2025, a significant turnaround from a C$600,000 loss in the same period of 2024. Revenue from its Colombian mines increased by 21% to C$50.9 million, with EBITDA rising 59% to C$21.5 million. Despite selling fewer gold equivalent ounces, Soma achieved a 70% higher average cash margin per ounce. The company paid down C$3.5 million in long-term debt and converted C$10 million to equity. CEO Geoff Hampson noted that production issues at the el Bagre mill have been resolved, with new leach tank construction completed, enhancing capacity and gold recovery potential.
Why It's Important?
Soma Gold's financial turnaround and debt reduction are crucial for its long-term stability and growth. The operational improvements at the el Bagre mill and the upcoming ramp-up of the el Limon mill are expected to increase production capacity. These developments position Soma Gold to capitalize on higher-grade ore processing and boost annual production. The company's strategic focus on operational efficiency and debt management enhances its competitiveness in the mining sector, providing a solid foundation for future expansion.
What's Next?
Soma Gold plans to ramp up production at the el Limon mill, processing higher-grade ore from the Escondida acquisition. The company expects total annual production from both mills to increase significantly. Continued operational improvements and strategic acquisitions will be key to sustaining growth and profitability. Soma Gold's focus on enhancing milling capacity and gold recovery rates will likely drive further financial gains.
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