Soma Gold Corp (TSXV: SOMA) revealed this morning that work has been halted at its Colombia-based operations for a period of four days, following a union-backed strike that began on Friday.
The strike is said to impact the firms Operadora Minera SAS subsidiary, which as per company filings holds the El Bagre Gold Mining Complex. The complex includes a gold processing plant, two underground gold mines, as well as the Cordero mine development project.
Details provided by Soma Gold were slim, electing to simply state that the decision to strike is effectively immediately, and that “work at the site stopped,” which presumably refers to the complex as a whole. Negotiations are said to be presently underway, with the Colombian Ministry of Labour assisting with the process of mediation.
Soma Gold last quarter saw the operations generate revenues of $17.7 million, leading to the firm posting a net income of $1.9 million for the three month period, an outlier among its small-cap peers.
Inflation in Colombia hit 10.84% in August, which like most of the world has increased dramatically from year ago levels. Comparatively, September 2021 posted a figure of just 4.51%.
Soma Gold last traded at $0.295 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
