Soma Gold Corp. (TSXV: SOMA) reported on Thursday its financial results for Q3 2021, highlighting quarterly revenue of $11.3 million. This is an increase from Q2 2021’s revenue of $8.4 million and Q3 2020’s revenue of $11.1 million.
The mining firm was able to sell 5,048 gold equivalent ounces during the quarter at an average price of US$1,810 per ounce sold. These figures compare to sales from last quarter’s 3,802 ounces at US$1,832 per ounce sold and last year’s gold equivalent sales of 4,427 ounces at US$1,931 per ounce sold.
Gross profit margin from mining operations came in at 44.1%, up from 21.5% last quarter but down from 46.2% last year. The company also managed to end with a net income for the quarter amounting to $1.1 million, coming from a net loss last quarter of $1.1 million and a net income of $0.7 million last year. The quarter’s earnings per share ended at $0.02.
Considering a number of financial items, the firm recorded an adjusted EBITDA of $4.3 million for the quarter, up from $1.1 million last quarter and $3.5 million last year.
The company’s cash position at the end of the three-month period is $0.8 million from a starting balance of $1.3 million. Current assets ended with a balance of $10.9 million while current liabilities came in at $11.8 million.
The firm relayed that the Fenix portal has reached Level 2 and 3 at the Cordero deposit, from which the first ore was processed in August 2021. “As a result, Q3 production and financial results compare favourably to the previous quarter as some of the initial development ore from Cordero was brought to the mill,” explained Soma Gold’s CEO Javier Cordova.
The mining company is still setting its target to achieve full production of approximately 600 tonnes per day at an average grade of 6.5 g/t in Q2 2022. The firm points this as a precursor to start its second mill, el Limon.
Soma Gold last traded at $0.39 on the TSX Venture.
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