Soma Gold (SOMA) AI Stock Analysis

• Market Cap: C$144.24M
• Dividend Yield: N/A
• Average Volume (3M): 366.58K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.75
• Revenue Growth: 12.05%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): <0.01
• Shares Outstanding: 117,265,300
• 10 Day Avg. Volume: 360,864
• 30 Day Avg. Volume: 366,582
• PEG Ratio: 0.23
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 5.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: C$1.50 ▼(-6.83% Downside)

Soma Gold's strong financial performance and positive technical indicators are the primary drivers of its overall score. The company's robust revenue growth and profitability, coupled with a bullish technical outlook, support a favorable assessment. However, the high leverage and potential for a short-term technical pullback slightly temper the overall score.

Positive Factors

Revenue Growth

Sustained revenue growth reflects successful market expansion and product demand, enhancing long-term financial stability and shareholder value.

Cash Flow Management

Strong cash flow management supports operational stability and provides flexibility for future investments and debt servicing, bolstering financial health.

Profitability

Robust profitability margins indicate efficient operations and cost management, ensuring sustainable earnings and competitive advantage in the industry.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.

Equity Financing

A moderate equity ratio may limit the company's ability to raise additional capital without increasing debt, potentially constraining future growth initiatives.

Debt Management

While financial performance is strong, high debt levels require careful management to avoid liquidity issues and ensure long-term financial stability.

Soma Gold Business Overview & Revenue Model

Company Description

Soma Gold Corp., a natural resource company, engages in the acquisition, exploration, and development of mineral properties in South America. The company's principal operation is the El Bagre gold mining complex, which consists of an operating gold processing plant, the La Ye and Los Mangos operating underground gold mines, and the Cordero underground mine development project located in the Antioquia, Colombia. It also holds a 100% interest in the Zara exploration properties covering an area of approximately 29,000 hectares located in Antioquia, Colombia; and the El Limon gold mine located in Colombia. In addition, the company holds interest in the Nechí Gold project located in Antioquia, Colombia. The company was formerly known as Para Resources Inc. and changed its name to Soma Gold Corp. in May 2020. Soma Gold Corp. is headquartered in Vancouver, Canada.

How the Company Makes Money

Soma Gold generates revenue primarily through the extraction and sale of gold. Its business model is centered around operating gold mines, where the company mines ore containing gold and processes it to produce gold bullion. The revenue streams include the direct sale of gold to refiners and other buyers in the commodities market. Additionally, Soma Gold may benefit from partnerships with other mining companies or financial entities that provide funding or operational support, which can enhance its production capabilities and market reach. The company also focuses on maintaining cost efficiencies in its operations to maximize profit margins and is involved in exploration activities that can lead to the discovery of new gold deposits, further increasing potential revenue sources.

Soma Gold Financial Statement Overview

Summary

Soma Gold exhibits strong financial health with robust revenue growth, solid profitability, and effective cash flow management. Despite high leverage, the company generates substantial returns on equity, indicating efficient resource use. Positive trends in revenue, profit margins, and cash flows suggest a promising outlook, although attention to debt levels is advisable.

Income Statement

Soma Gold has demonstrated strong revenue growth with a TTM revenue growth rate of 32.4%, indicating robust expansion. The company maintains healthy profitability with a gross profit margin of 31.1% and a net profit margin of 9.8% in the TTM. EBIT and EBITDA margins are also strong at 22.0% and 41.9%, respectively, reflecting efficient operations. The consistent improvement in these metrics over the years highlights a positive trajectory in financial performance.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.48 in the TTM, which suggests significant leverage but has improved from previous years. Return on equity is impressive at 53.9%, indicating effective use of equity to generate profits. The equity ratio stands at 26.9%, showing a moderate level of equity financing. Overall, while leverage remains a concern, the company is effectively generating returns on its equity.

Cash Flow

Soma Gold's cash flow performance is strong, with a free cash flow growth rate of 27.66% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 1.83, and the free cash flow to net income ratio is 0.73, both reflecting solid cash flow management. The company has shown consistent improvement in cash flow metrics, supporting its operational and financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.23M	89.37M	81.16M	52.96M	39.97M	23.05M
Gross Profit	30.56M	25.09M	27.95M	15.54M	12.06M	8.36M
EBITDA	41.11M	33.17M	31.11M	12.56M	11.15M	12.84M
Net Income	9.60M	4.23M	2.80M	257.54K	-1.22M	6.72M
Balance Sheet
Total Assets	80.82M	79.25M	74.10M	51.51M	34.53M	32.39M
Cash, Cash Equivalents and Short-Term Investments	3.82M	7.84M	1.78M	529.67K	251.61K	2.42M
Total Debt	32.25M	34.91M	31.30M	28.79M	19.14M	15.67M
Total Liabilities	59.08M	63.28M	59.95M	48.75M	36.05M	32.47M
Stockholders Equity	21.73M	15.96M	14.15M	2.77M	-1.52M	-74.20K
Cash Flow
Free Cash Flow	23.94M	9.46M	6.08M	-9.85M	-3.71M	-3.20M
Operating Cash Flow	32.67M	20.99M	19.17M	10.24M	4.75M	-535.75K
Investing Cash Flow	-16.04M	-11.54M	-15.35M	-19.72M	-7.96M	-9.28M
Financing Cash Flow	-9.09M	-714.20K	-3.21M	9.40M	1.18M	12.04M

Soma Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SOMA, the sentiment is Positive. The current price of 1.61 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.34, and above the 200-day MA of 1.10, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 69.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SOMA.

Soma Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOMA	75 Outperform	C$144.24M	11.80	58.09%	―	12.05%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WGO	47 Neutral	$207.53M	―	-2.02%	―	―	-40.00%
OMI	44 Neutral	£138.66M	7.95	―	―	―	―
CCM	43 Neutral	C$91.16M	-47.47	-4.63%	―	―	45.79%
AE	39 Underperform	C$85.57M	-8.28	-48.84%	―	―	17.15%

Soma Gold Corporate Events

Soma Gold Ends Strike at El Bagre Operation

Soma Gold Corp. has successfully reached an agreement with the union representing its El Bagre operation employees, ending a 57-day strike. The resolution was facilitated by the Colombian Vice Ministry of Labor, and Soma is now preparing to restart operations and assess the financial impact of the strike.

The most recent analyst rating on (TSE:SOMA) stock is a Buy with a C$1.50 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold Reports Promising Ore Sorting Results at Cordero Mine

Soma Gold Corp. announced positive results from a preliminary ore sorting study at the Cordero Mine in Colombia, indicating significant potential to enhance gold production without increasing plant capacity. The study demonstrated that the ore is amenable to sorting, achieving a 275% increase in grade while maintaining high metallurgical recovery, which could effectively double throughput and production at their mills.

The most recent analyst rating on (TSE:SOMA) stock is a Buy with a C$1.50 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold Corp. Updates on El Limon Mill, Labor Negotiations, and New VP Appointment

Soma Gold Corp. has announced that the El Limon Mill is in the ramp-up stage, with full capacity expected by December despite challenges from a labor strike at El Bagre. The company has outsourced necessary services and is installing automation to improve processing reliability. Additionally, Soma has appointed Julian Storz as Vice President of Business Development to lead efforts in mergers and acquisitions, aiming for jurisdictional diversity and new production regions. Labor negotiations at El Bagre continue, with progress made on some issues, but significant disagreements remain. The company is hopeful for a resolution before the strike reaches 60 days, after which binding arbitration will commence.

The most recent analyst rating on (TSE:SOMA) stock is a Buy with a C$1.50 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold Advances El Limon Mill Operations Amid Labor Negotiations

Soma Gold Corp. has announced that the El Limon Mill is in the ramp-up stage, with full capacity expected by December. Despite a labor strike at El Bagre, Soma has outsourced necessary services to maintain operations. The company has also appointed Julian Storz as Vice President of Business Development to lead efforts in mergers and acquisitions, aiming for strategic growth and diversification. Labor negotiations at El Bagre continue, with the company optimistic about reaching an agreement before the strike enters binding arbitration. The El Limon Mill is expected to significantly contribute to Soma’s gold production, with plans to reach 200 TPD by early 2026.

The most recent analyst rating on (TSE:SOMA) stock is a Buy with a C$1.50 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold Corp. to Repurchase Royalty on El Limón Mine

Soma Gold Corp. has entered into a definitive agreement with Red Rock Resources PLC to repurchase the net smelter returns royalty on the El Limón gold mine. This move is expected to positively impact operating margins by streamlining the asset’s cost structure and demonstrates Soma Gold’s commitment to maximizing the value of its Colombian portfolio. The transaction, which involves a cash payment and issuance of warrants, is subject to TSX Venture Exchange approval and will be funded from existing working capital.

The most recent analyst rating on (TSE:SOMA) stock is a Buy with a C$1.50 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold Faces Operational Halt as Union Strike Commences in Colombia

Soma Gold Corp. announced that a union representing its Colombian subsidiary’s employees has initiated a strike, leading to a suspension of operations at its Cordero Mine and El Bagre Gold Complex. Despite Soma’s efforts to negotiate in good faith with offers of increased wages and benefits, the union declined the latest proposal and rejected binding arbitration. The strike poses challenges to Soma’s operations and underscores the importance of resolving labor disputes to maintain stability and community relations.

The most recent analyst rating on (TSE:SOMA) stock is a Buy with a C$1.50 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold Corp. Reports Strong Financial Turnaround and Operational Enhancements

Soma Gold Corp. reported a significant financial turnaround in the first half of 2025, with a 21% increase in revenue and a net income of $4.8 million compared to a loss in the previous year. The company has resolved mechanical issues at its el Bagre Mill and completed construction of a new leach tank, which is expected to enhance gold production. With the el Limon Mill ramping up and processing higher-grade ore, Soma anticipates increased annual production, positioning it for growth in the gold mining industry.

The most recent analyst rating on (TSE:SOMA) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold Completes $17.25 Million Financing to Boost Expansion and Exploration

Soma Gold Corp. has successfully completed the final tranche of its non-brokered private placement, raising a total of CAD$17.25 million. The funds will be used for mill expansion, ore sorting infrastructure, and accelerated exploration and development of the Nechi mine. This oversubscribed financing, which included strategic investors, provides Soma Gold with the flexibility to advance its growth plans and build long-term shareholder value.

The most recent analyst rating on (TSE:SOMA) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold Corp. Completes $15.5 Million Offering and Debt Settlement

Soma Gold Corp. has successfully closed the first tranche of its non-brokered private placement, raising approximately CAD$15.5 million. The funds will be used for mill expansion, ore sorting infrastructure, exploration, and development of the Nechi mine, as well as general working capital. The company also completed a CAD$10 million debt settlement into units, further supporting its strategic growth initiatives.