Soma Gold Posts Revenue Of $8.4 Million, $1.1 Million Net Loss In Q2 2021

Soma Gold Corp. (TSXV: SOMA) reported this morning its financial results for Q2 2021, highlighting quarterly revenue of $8.4 million. This is an increase from Q2 2020’s revenue of $1.6 million.

The mining firm was able to sell 3,802 gold equivalent ounces during the quarter at an average price of US$1,832 per ounce sold. These figures are marginally up from last year’s gold equivalent sales of 707 ounces at US$1,699 per ounce sold.

Gross profit margin from mining operations came in at 21.5% compared to a negative margin incurred in the same period last year. However, the company still notched a net loss for the quarter amounting to $1.1 million, down from last year’s loss of $2.5 million. This is primarily driven by incurred finance costs amounting to $1.3 million. The quarter’s loss per share ended at $0.02.

Considering a number of financial items, the firm recorded an adjusted EBITDA of $1.1 million for the quarter, up from a loss last year of $1.3 million.

The company’s cash position at the end of the three-month period is $1.3 million from a starting balance of $1.8 million. Current assets ended with a balance of $12.1 million while current liabilities came in at $10.7 million.

Soma Gold CEO Javier Cordova said that the quarterly financial results were expected as the mining operations were only limited to the La Ye and Mangos mines. Cordero mine, which began production in mid-August, is expected to contribute to the company’s performance by the end of the year.

“In addition to the increased throughput, the average grade at Cordero is expected to be approximately 50% higher than the mineralized material currently being mined at La Ye and Mangos mines,” Cordova added.

Soma Gold last traded at $0.30 on the TSX Venture.

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