Soma Gold (SOMA) AI Stock Analysis

• Market Cap: C$189.97M
• Dividend Yield: N/A
• Average Volume (3M): 366.58K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.22
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$2.00 ▲(19.76% Upside)

Soma Gold's overall score is driven by strong financial performance and positive corporate events. The technical analysis supports a bullish outlook, while the valuation is fair. The company's ability to manage leverage and capitalize on exploration successes are key strengths, although high leverage remains a risk.

Positive Factors

Operational Efficiency

High EBITDA and EBIT margins indicate effective cost management and operational efficiency, which can enhance profitability and competitiveness over time.

Cash Generation

A strong operating cash flow to net income ratio suggests robust cash generation, supporting reinvestment in growth opportunities and financial stability.

Return on Equity

High return on equity reflects efficient use of shareholder funds to generate profits, indicating strong management performance and potential for shareholder value creation.

Negative Factors

Revenue Decline

Declining revenue can signal challenges in market demand or competitive positioning, potentially impacting long-term growth and profitability.

High Leverage

High leverage can increase financial risk, limit flexibility, and strain cash flows, especially in volatile market conditions, impacting long-term stability.

Decline in Free Cash Flow

A decline in free cash flow reduces the company's ability to fund operations, invest in growth, and return capital to shareholders, potentially affecting future performance.

Soma Gold Business Overview & Revenue Model

Company Description

Soma Gold Corp. is a Canadian-based mining company focused on gold and mineral exploration and production. The company operates in the resource sector, primarily engaging in the exploration, development, and mining of gold properties in Colombia and other regions. Soma Gold aims to enhance shareholder value through the sustainable development of its mining operations, leveraging advanced technologies and responsible mining practices to extract valuable minerals from its properties.

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 demonstrates strong financial health with robust revenue growth and solid profitability. The company has effective cash flow management, although high leverage remains a concern. Overall, the financial performance is positive, driven by efficient operations and substantial returns on equity.

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	93.94M	89.37M	81.16M	52.96M	39.97M	23.05M
Gross Profit	27.83M	25.09M	27.95M	15.54M	12.06M	8.36M
EBITDA	38.25M	33.17M	31.11M	12.56M	11.15M	12.84M
Net Income	8.83M	4.23M	2.80M	257.54K	-1.22M	6.72M
Balance Sheet
Total Assets	100.04M	79.25M	74.10M	51.51M	34.53M	32.39M
Cash, Cash Equivalents and Short-Term Investments	16.69M	7.84M	1.78M	529.67K	251.61K	2.42M
Total Debt	21.20M	34.91M	31.30M	28.79M	19.14M	15.67M
Total Liabilities	47.71M	63.28M	59.95M	48.75M	36.05M	32.47M
Stockholders Equity	52.34M	15.96M	14.15M	2.77M	-1.52M	-74.20K
Cash Flow
Free Cash Flow	17.43M	9.46M	6.08M	-9.85M	-3.71M	-3.20M
Operating Cash Flow	31.47M	20.99M	19.17M	10.24M	4.75M	-535.75K
Investing Cash Flow	-21.89M	-11.54M	-15.35M	-19.72M	-7.96M	-9.28M
Financing Cash Flow	7.06M	-714.20K	-3.21M	9.40M	1.18M	12.04M

Soma Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.67 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.44, and above the 200-day MA of 1.17, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 27.09 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	78 Outperform	C$189.97M	17.54	58.09%	―	12.05%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WGO	47 Neutral	$241.36M	-88.10	-2.02%	―	―	-40.00%
OMI	44 Neutral	C$154.65M	8.61	―	―	―	―
CCM	43 Neutral	C$88.25M	-39.22	-4.63%	―	―	45.79%
AE	39 Underperform	C$82.37M	-9.80	-48.84%	―	―	17.15%

Soma Gold Corporate Events

Soma Gold Extends High-Grade Gold Veins at Cordero Mine

Soma Gold Corp. has announced promising drill results from the Atenas Zone of the Cordero Mine in Colombia, extending the veins by 60 meters along strike and 160 meters down dip. These results, which include high-grade gold assays, are expected to enhance mining operations by increasing contained gold ounces and improving resource confidence, potentially impacting the company’s market positioning positively.

Soma Gold Corp. Reports Q3 Financial Results Amid Labor Disruption

Soma Gold Corp. reported its third-quarter financial results, which were adversely impacted by a labor strike that halted operations for 22 days. Despite the disruption, the company achieved a revenue of $18.1 million in Q3 2025 and $69.0 million for the nine months ending September 30, 2025, marking a 7% increase compared to the previous year. Soma’s net income for Q3 was $0.4 million, with a total of $5.2 million for the nine months. The company raised $17.3 million through a private placement and made significant strides in debt reduction. Soma is focused on restoring full production capacity and advancing its expansion plans, anticipating higher production levels in the coming year.

Soma Gold Extends Copper Anomaly to 4.5 km at Machuca Project

Soma Gold Corp. has announced an extension of its copper soil anomaly at the Psyche 2 target area within the Machuca Project in Antioquia, Colombia. The soil sampling program has added 2.5 km to the anomaly’s strike length, now totaling 4.5 km. This development is significant for Soma’s exploration efforts, as it indicates the potential for substantial copper resources. The company plans to further investigate the anomaly with a maiden diamond drill program, which could have implications for its operational growth and market positioning.

Soma Gold Resumes Production Post-Strike, Upgrades Boost Recovery

Soma Gold Corp. has resumed production at its Cordero Mine and El Bagre Gold Complex after a 57-day strike by unionized employees. The strike has led to a reduction in 2025 gold production by approximately 5,000 ounces, impacting third and fourth quarter revenue and profit. However, recent upgrades, including a new leach circuit and oxygen infusion system, have increased gold recovery rates, helping to mitigate some of the impacts. The company expects full operational capacity by early January 2026, with no changes to its 2026 production forecast.

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.

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.

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.

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.

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.

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.