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Soma Gold Corp. (TSE:SOMA)
:SOMA

Soma Gold (SOMA) AI Stock Analysis

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Soma Gold

(SOMA)

Rating:70Outperform
Price Target:
C$1.50
▲(13.64%Upside)
Soma Gold's solid financial performance and positive corporate events are the primary drivers of its stock score. The bullish technical indicators are tempered by overbought signals and reasonable valuation metrics.

Soma Gold (SOMA) vs. iShares MSCI Canada ETF (EWC)

Soma Gold Business Overview & Revenue Model

Company DescriptionSoma 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 MoneySoma 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 demonstrates strong revenue growth and profitability with effective cost management. However, reliance on debt financing and past cash flow volatility present potential risks.
Income Statement
78
Positive
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
62
Positive
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
70
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
89.37M81.16M52.96M39.97M23.05M
Gross Profit
25.09M27.95M15.54M12.06M8.36M
EBIT
17.22M20.85M12.63M6.69M2.37M
EBITDA
33.17M31.11M12.56M11.15M12.95M
Net Income Common Stockholders
4.23M2.80M257.54K-1.22M6.72M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.84M1.78M529.67K251.61K2.42M
Total Assets
79.25M74.10M51.51M34.53M32.39M
Total Debt
34.91M31.30M28.79M19.14M15.67M
Net Debt
27.07M29.52M28.26M18.89M13.25M
Total Liabilities
63.28M59.95M48.75M36.05M32.47M
Stockholders Equity
15.96M14.15M2.77M-1.52M-74.20K
Cash FlowFree Cash Flow
9.46M6.08M-9.85M-3.71M-3.20M
Operating Cash Flow
20.99M19.17M10.24M4.75M-535.75K
Investing Cash Flow
-11.54M-15.35M-19.72M-7.96M-9.28M
Financing Cash Flow
-714.20K-3.21M9.40M1.18M12.04M

Soma Gold Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.32
Price Trends
50DMA
0.92
Positive
100DMA
0.76
Positive
200DMA
0.65
Positive
Market Momentum
MACD
0.13
Negative
RSI
75.80
Negative
STOCH
87.19
Negative
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 1.32 is above the 20-day moving average (MA) of 1.13, above the 50-day MA of 0.92, and above the 200-day MA of 0.65, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 75.80 is Negative, neither overbought nor oversold. The STOCH value of 87.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SOMA.

Soma Gold Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
C$121.81M17.0540.43%15.89%426.28%
51
Neutral
$2.04B-1.21-21.10%3.95%2.90%-30.45%
TSWGO
47
Neutral
C$52.38M-2.14%
TSOMI
44
Neutral
£50.12M9.99%67.15%
TSCCM
43
Neutral
C$71.78M-4.68%24.91%
TSAE
39
Underperform
C$82.90M-43.86%-52.93%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SOMA
Soma Gold
1.40
0.81
137.29%
TSE:OMI
Orosur Mining
0.16
0.08
112.33%
TSE:WGO
White Gold
0.26
-0.01
-3.70%
TSE:CCM
Canagold Resources
0.38
0.14
58.33%
TSE:AE
American Eagle Gold
0.57
-0.05
-8.06%

Soma Gold Corporate Events

Business Operations and Strategy
Soma Gold Expands Venus Gap Zone with High-Grade Gold Intersections
Positive
Jun 11, 2025

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.

Business Operations and StrategyFinancial Disclosures
Soma Gold Corp. Achieves Record Q1 2025 Financial Results and Plans for Expansion
Positive
May 29, 2025

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.

Business Operations and Strategy
Soma Gold’s Colombian Subsidiary Achieves Carbon Neutrality, Leading Environmental Initiatives
Positive
May 15, 2025

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.

Business Operations and Strategy
Soma Gold Corp. Reports Promising Drill Results at Machuca Project
Positive
May 6, 2025

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.

Business Operations and StrategyFinancial Disclosures
Soma Gold Reports Strong 2024 Financial Results Amid Operational Challenges
Positive
May 1, 2025

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.

Business Operations and StrategyFinancial Disclosures
Soma Gold Corp. Reports Strong Q1 2025 and Progress on Key Initiatives
Positive
Apr 17, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Soma Gold Expands Mineral Rights in Colombia, Alters Mill Feed Strategy
Positive
Apr 10, 2025

Soma Gold Corp. has expanded its mineral rights in Antioquia, Colombia, by acquiring two additional mining concessions from Grupo de Bullet SAS, increasing its property package to 41,427 hectares along the OTU Fault. This strategic acquisition enhances Soma’s coverage along a key mineral-bearing structure, potentially boosting its exploration and production capabilities. Additionally, Soma has terminated negotiations with Denarius Metals Corp. regarding mineralized rock processing due to contractual restrictions, opting instead to source feed for its El Limon Mill from its own surplus production.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.