Soma Gold (TSXV: SOMA) reported its financial results for Q2 2025, with revenue of $23.0 million, a modest 1.4% year-over-year increase from $22.7 million last year, as higher realized gold prices was offset by a steep drop in gold sales volume.
Cost of sales were relatively flat at $17.3 million, leading a marginal decline in operating income to $3.6 million from $3.7 million.
Lower interest expenses and losses helped swing the bottom line into positive territory at $1.6 million, marking a turnaround from the $0.4 million net loss in Q2 2024. This translates to $0.02 earnings per share.
Adjusted EBITDA was $8.9 million, or $0.10 per share, up from $7.6 million in Q2 2024.
Net cash provided by operating activities was $14.2 million for H1 2025, versus only $2.6 million in the same period a year prior. This enabled the company to pay down $3.5 million of its long-term debt during the first half. Subsequent to the quarter’s end, Soma converted an additional $10.0 million of its debt into equity to further deleverage the balance sheet.
Despite the increase in internal cash generation, the cash balance declined as the company deployed funds for capital expenditures and debt reduction. Cash and equivalents stood at $3.8 million as of quarter end, down from $7.8 million at year-end 2024.
Soma sold 5,200 gold equivalent ounces in the second quarter and 12,043 ounces in the six months ended June 30, 2025, compared to 14,233 ounces in the comparable period last year. Breaking it down, the company sold 5,153 gold ounces in Q2 2025, a 28% drop from 7,131 ounces sold last year, and 6,284 silver ounces in the quarter, down from 8,737 ounces in the comparable period last year. This was partially offset by a jump in average realized price to $3,269 per ounce, up from $2,369 last year.
The company logged 5,377 gold equivalent ounces in Q2 production and 12,020 gold equivalent ounces in H1 2025 versus 13,925 gold equivalent ounces in H1 2024. During the quarter, 5,330 gold ounces were produced, a drop from 6,513 ounces, and 6,284 silver ounces were produced, down from 8,737 ounces.
Total cash cost averaged $1,671 per ounce, up from roughly $1,340 per ounce in the year-ago quarter. Likewise, AISC surged to $2,565 per ounce, a 42.7% jump from about $1,797 per ounce last year.
“The first half of 2025 delivered strong results, achieving 91.6% of plan,” CEO Geoff Hampson said, citing Q2 shortfalls from lower grade and El Bagre mill issues that have been resolved with a new leach tank. He expects recoveries to approach nearly 90% and said El Limon is ramping to 100 tpd within two months, with a second ball mill enabling 200 tpd by year-end. Combined with higher-grade ore from Escondida, annual output from both mills is expected at 9,000–12,000 ounces.
Soma Gold last traded at $1.28 on the TSX Venture, down 10% on the day as of the time of writing.
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.
