Soma Gold (SOMA) AI Stock Analysis

• Market Cap: C$130.65M
• Dividend Yield: N/A
• Average Volume (3M): 130.71K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.87
• Revenue Growth: 15.89%
• EPS Growth: 426.28%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 93,321,820
• 10 Day Avg. Volume: 113,650
• 30 Day Avg. Volume: 130,710
• PEG Ratio: 0.15
• Price to Book (P/B): 7.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.37
• 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: C$1.50
• Price Target Upside: 10.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: C$1.50 ▲(10.29%Upside)

Soma Gold's positive corporate developments and strong technical indicators are the primary drivers of its score. While financial performance is solid, reliance on debt and valuation concerns slightly temper the outlook. Overall, the company is well-positioned in the gold industry with promising growth prospects.

Soma Gold Business Overview & Revenue Model

Company Description

Soma Gold Corp. (SOMA) is a gold mining and exploration company primarily engaged in the acquisition, exploration, development, and mining of mineral resources. With operations concentrated in Colombia, the company focuses on producing gold and other precious metals through sustainable and efficient mining practices. Soma Gold is committed to enhancing its resource base and expanding its production capabilities, thereby contributing to the local economies while maximizing shareholder value.

How the Company Makes Money

Soma Gold generates revenue primarily through the sale of gold and other precious metals extracted from its mining operations. The company's revenue model relies on efficient mining and processing techniques to produce and sell gold at competitive market prices. Key revenue streams include the direct sale of extracted gold and any by-products to refineries and precious metal markets. Additionally, Soma Gold engages in partnerships and joint ventures with other mining companies and investors to optimize resource extraction and share operational costs, enhancing its profitability. The company's financial performance is significantly influenced by the global gold market prices, operational efficiencies, and the regulatory environment in Colombia.

Soma Gold Financial Statement Overview

Summary

Soma Gold has shown strong revenue growth and improving profitability margins, with effective cash flow management. However, reliance on debt financing and past volatility in cash flows highlight potential risks.

Income Statement

Soma Gold has shown a strong revenue growth trajectory with a notable increase from 2023 to 2024, alongside improving profitability metrics such as gross profit margin and net profit margin. Gross Profit Margin stands at approximately 28.1% and Net Profit Margin at 4.7% for 2024. Additionally, EBIT and EBITDA margins are healthy at 19.3% and 37.1% respectively, indicating effective cost management. However, the slight decline in gross profit margin from the previous year could be a concern if the trend continues.

Balance Sheet

The balance sheet reflects a mixed scenario with a manageable debt-to-equity ratio of 2.19, highlighting moderate leverage. The Return on Equity (ROE) for 2024 is strong at 26.5%, suggesting effective utilization of equity capital. However, with an equity ratio of just 20.1%, the company is heavily reliant on debt financing, which could pose risks in volatile market conditions. The improvement in stockholders' equity over the years is a positive sign.

Cash Flow

Soma Gold has shown a robust increase in free cash flow, with a significant growth rate from 2023 to 2024. The operating cash flow to net income ratio is favorable at 4.97, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 2.24 underscores strong cash flow coverage. However, past volatility in free cash flow requires cautious monitoring.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.37M	81.16M	52.96M	39.97M	23.05M
Gross Profit	25.09M	27.95M	15.54M	12.06M	8.36M
EBITDA	33.17M	31.11M	12.56M	11.15M	12.95M
Net Income	4.23M	2.80M	257.54K	-1.22M	6.72M
Balance Sheet
Total Assets	79.25M	74.10M	51.51M	34.53M	32.39M
Cash, Cash Equivalents and Short-Term Investments	7.84M	1.78M	529.67K	251.61K	2.42M
Total Debt	34.91M	31.30M	28.79M	19.14M	15.67M
Total Liabilities	63.28M	59.95M	48.75M	36.05M	32.47M
Stockholders Equity	15.96M	14.15M	2.77M	-1.52M	-74.20K
Cash Flow
Free Cash Flow	9.46M	6.08M	-9.85M	-3.71M	-3.20M
Operating Cash Flow	20.99M	19.17M	10.24M	4.75M	-535.75K
Investing Cash Flow	-11.54M	-15.35M	-19.72M	-7.96M	-9.28M
Financing Cash Flow	-714.20K	-3.21M	9.40M	1.18M	12.04M

Soma Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.36
• 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 1.36 is above the 20-day moving average (MA) of 1.33, above the 50-day MA of 1.19, and above the 200-day MA of 0.75, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 25.70 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	76 Outperform	C$130.65M	16.57	40.43%	―	15.89%	426.28%
WGO	47 Neutral	C$58.31M	―	-2.14%	―	―	―
Sector *	44 Neutral	C$972.32M	-6.68	-13.73%	2.45%	17.55%	-32.57%
OMI	44 Neutral	C$46.99M	―	9.99%	―	―	67.15%
CCM	43 Neutral	C$65.34M	―	-4.68%	―	―	24.91%
AE	39 Underperform	C$90.02M	―	-43.86%	―	―	-52.93%

Soma Gold Corporate Events

Soma Gold Corp. to Acquire High-Grade La Escondida Mine in Colombia

Soma Gold Corp. has announced an agreement to acquire the La Escondida Mine in Antioquia, Colombia, which is a fully-permitted gold mine with a high-grade vein system. The acquisition aligns with Soma’s strategy to increase production, as the company plans to enhance operations at La Escondida to boost output and integrate the ore with its El Limón Mill. The mine’s potential for significant gold resources, along with planned drilling programs, suggests a promising expansion of Soma’s resource base, which could positively impact its market positioning and stakeholder interests.

Soma Gold Advances Mill Rehabilitation and Reduces Debt

Soma Gold Corp. has completed the rehabilitation of the El Bagre flotation circuit, resumed full production throughput, and is nearing the completion of the El Limon Mill rehabilitation. The company has also made significant debt repayments and plans to continue this trend. The enhancements at both mills are expected to increase overall throughput and gold production by 20-40%, positioning Soma for higher production levels in 2026 and beyond.

Soma Gold Expands Venus Gap Zone with High-Grade Gold Intersections

Soma Gold Corp. announced significant drilling results from the Venus Gap zone of the Cordero Mine, extending the known dip of the vein by 135 meters. The drilling revealed high-grade gold intervals, with the most notable being a 6.0-meter section averaging 7.5 g/t gold, which supports the development of deeper levels in the mine. This expansion is expected to enhance the mine’s resource base and operational plans.

Soma Gold Corp. Achieves Record Q1 2025 Financial Results and Plans for Expansion

Soma Gold Corp. reported record financial results for the first quarter of 2025, with a 44% increase in revenue to $27.9 million and a net income of $3.2 million, compared to a loss in the same period last year. The company plans to re-commission the el Limon mill in June, which is expected to boost gold production by 20-30% in the second half of 2025, and is advancing exploration and permitting processes for future growth.

Soma Gold’s Colombian Subsidiary Achieves Carbon Neutrality, Leading Environmental Initiatives

Soma Gold’s Colombian subsidiary, Operadora Minera SAS, has achieved carbon neutrality for the 2023 reporting period, becoming the first mining company in Colombia to do so under the PAS 2060:2014 standard. This achievement, verified by Bureau Veritas, involved significant reductions in greenhouse gas emissions, a transition to renewable energy, and the use of carbon credits. Additionally, Operadora has signed a voluntary agreement with CORANTIOQUIA to promote environmental regeneration in areas affected by illegal mining, reflecting Soma’s commitment to responsible mining and environmental stewardship.

Soma Gold Corp. Reports Promising Drill Results at Machuca Project

Soma Gold Corp. has announced initial drill results and exploration updates for the Machuca Project in Antioquia, Colombia, specifically at the Psyche 2 target area. The exploration has extended the strike length of the structural zone to approximately 2.4 km, revealing high-grade gold occurrences. The findings suggest significant potential for additional mineralized quartz vein structures, which could enhance Soma’s position in the gold mining sector and offer promising implications for stakeholders.

Soma Gold Reports Strong 2024 Financial Results Amid Operational Challenges

Soma Gold Corp. reported a 10% increase in revenue to $89.4 million for 2024, with net income rising by 51% to $4.2 million. Despite a decrease in gold production due to lower grades and operational challenges, the company benefited from higher gold prices and stable cash costs. Soma plans to enhance its operations with the restart of the El Limon Mill and the advancement of the Nechi Mine, positioning itself for strong financial performance in 2025. The company is also exploring additional deposits to expand its resource base.

Soma Gold Corp. Reports Strong Q1 2025 and Progress on Key Initiatives

Soma Gold Corp. announced a successful first quarter of 2025 with gold production aligning with budget expectations and a significant repayment on the Conex Loan. The rehabilitation of the El Limon Mill is progressing well, expected to be operational by mid-June, and is under budget. The company is also advancing the formalization of small miners on its property, which could increase production capacity. Additionally, Soma is participating in a tax program that allows income tax payments to be redirected to local community projects, such as road paving, enhancing its community relations. The strong gold price has enabled Soma to reduce debt and build cash reserves, positioning it for a robust 2025.