Soma Gold achieves first-ever profits in 4Q and full year results following 2020 El Bagre mine acquisition

Soma Gold Corp (CVE:SOMA) (OTCMKTS:PRSRF) (FRA:8PR1), a South American-focused gold producer with district-scale exploration potential in Antioquia, Colombia, has reported fourth quarter and 2020 results after seven months of production at the El Bagre Gold Mining Complex, including the first profit in the company’s history.

Since acquiring El Bagre on May 28, the company posted revenue of C$23 million and net income of C$6.8 million, C$0.14 per share, in 2020. Earning from mine operations were C$8.4 million, and the company sold 9,271 ounces of gold and 22,928 ounces of silver.

Revenue was C$10.4 million in the fourth quarter alone on 4,271 ounces of gold and 12,313 ounces of silver sold. Earnings were $0.15 per share, and the company had C$2.4 million in cash on hand at the end of the quarter.

READ: Soma Gold encouraged by drilling and sampling results from ongoing exploration at its Zara concessions, Colombia

“The Soma team continued to exceed expectations with numerous business accomplishments and production records during 2020, including the acquisition of and financing of the Mineras Operadora SAS mining business in El Bagre, Antioquia, Colombia,” CEO Javier Cordova said in a statement. “The acquisition of an operating and profitable mine and mill, on the property adjacent to the company’s El Limon property and mill, transitioned the company into a profitable mining business with district scale exploration potential.”

Since the acquisition, the company has shifted its focus to its South American operations.

“An ambitious exploration program that was started in July 2020, on the largely unexplored 29,000 hectare property has already indicated significant opportunity to strengthen our mine plan and expand resources,” Cordova said. “Soma will continue to  provide updates on near-mine and infill drilling results over the next several years of the planned drilling program.”

Additionally, Soma announced the granting of 200,000 restricted share units to officers and directors of the company and 125,000 stock options to employees that they can use to purchase common shares.

Contact Andrew Kessel at [email protected]
 
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Story by ProactiveInvestors