Soma Gold (TSXV: SOMA) has cut production guidance for 2025 following the end of a 57 day strike that occurred at their Cordero Mine and El Bagre Gold Complex.
While work has now resumed on site, additional maintenance is now required across several systems at the El Bagre mill as a result of the prolonged shutdown, with the processing plant now expected to run at 70% capacity through the end of November.
A delay in ramp up at the El Limon mill is also expected, as that ramp up was dependent on the expertise of several union employees. The ramp up was originally slated to be completed by mid December, which has now been delayed to early January 2026.
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The situation is said to have been partially mitigated by additional leaching capacity that was installed prior to the strike, however that offset evidently was not enough to cover the entire production shortfall. Soma as a result has indicated that they expect a 5,000 gold ounce production shortfall this year, impacting both Q3 and Q4 earnings.
The figure is significant, considering the second quarter saw gold production of 5,330 ounces. Soma has previously stated that once fully operational, both mills are expected to have annual production of between 9,000 and 12,000 ounces.
The company has also warned that a further reduction may result from delays in remediation of the El Bagre mill, alongside the full commissioning of the El Limon mill. 2026 production forecasts as of yet have not been modified.
“We are pleased to be back to work in Colombia and will address the various issues resulting from the processing plant shutdowns. We are confident that both mills will be operating at full capacity by early January 2026,” commented Geoff Hampson, CEO of Soma Gold.
Recoveries at El Bagre meanwhile are said to have improved from 87.5% to 89.1%, following the commissioning of the new leach circuit and oxygen infusion system.
Soma Gold last traded at $1.51 on the TSX Venture.
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