Soma Gold (SOMA) AI Stock Analysis

• Market Cap: C$141.89M
• Dividend Yield: N/A
• Average Volume (3M): 344.94K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.99
• Revenue Growth: 16.67%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Gold
• EPS (TTM): 0.02
• Shares Outstanding: 117,265,300
• 10 Day Avg. Volume: 492,740
• 30 Day Avg. Volume: 344,941
• 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: C$1.50
• Price Target Upside: 20.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: C$1.50 ▲(20.00% Upside)

Soma Gold's strong financial performance is the most significant factor, driven by robust revenue growth and profitability. Technical analysis indicates a positive long-term trend, though current momentum is neutral. Valuation is reasonable, supporting a balanced investment outlook. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates successful expansion efforts and strong market demand, which are crucial for long-term sustainability and competitiveness.

Cash Flow Management

Effective cash flow management enhances financial stability, allowing the company to reinvest in growth opportunities and manage debt obligations efficiently.

Profitability

Strong profitability margins reflect efficient operations and cost management, which support sustainable growth and competitive positioning in the industry.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to navigate economic downturns or invest in new opportunities.

Equity Financing

A moderate equity ratio indicates reliance on debt, which could constrain future financing options and increase vulnerability to interest rate changes.

Debt Management

While returns on equity are strong, the high debt levels require careful management to avoid potential liquidity issues and ensure long-term financial health.

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 sale of gold and other precious metals extracted from its mining operations. The company's revenue model is built around the production of gold, which involves the extraction, processing, and sale of the metal. Key revenue streams include direct sales of gold to refineries and bullion traders, as well as potential revenue from any byproducts generated during mining operations. Additionally, Soma Gold may benefit from strategic partnerships with local and international stakeholders, which can enhance operational efficiency and market access. The company's financial performance is also influenced by global gold prices, operational cost management, and successful exploration efforts that expand its resource base.

Soma Gold Financial Statement Overview

Summary

Soma Gold presents a solid financial profile with strong revenue growth and improving profitability margins. Efficient cash flow management supports its operational stability. However, reliance on debt financing and past volatility in cash flows highlight potential risks that need to be managed carefully.

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	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	12.95M
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: Negative
• Last Price: 1.25
• 50DMA: Negative
• 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 Negative. The current price of 1.25 is below the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.30, and above the 200-day MA of 0.89, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SOMA.

Soma Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOMA	73 Outperform	C$141.89M	11.61	58.09%	―	16.67%	―
Sector *	61 Neutral	$10.48B	7.52	-0.05%	2.87%	2.87%	-36.73%
CCM	43 Neutral	C$84.67M	―	-4.00%	―	―	61.33%
OMI	―	£65.82M	―		―	―	―
WHGOF	―	$105.63M	―	-2.04%	―	―	―
CRDOF	―	$102.62M	22.42	10.01%	―	―	―
AE	39 Underperform	C$91.62M	―	-40.63%	―	―	-12.20%

Soma Gold Corporate Events

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.

Soma Gold Secures Full Commitment for $15 Million Offering

Soma Gold Corp. announced the full commitment of its non-brokered private placement offering, expected to close soon, raising C$15 million. This offering, under the Listed Issuer Financing Exemption, will enhance Soma’s financial position, allowing further exploration and operational activities, potentially strengthening its industry standing.

Soma Gold Launches $15 Million Private Placement to Accelerate Growth

Soma Gold Corp. announced a non-brokered private placement offering of up to 13,043,478 units at C$1.15 per unit for gross proceeds of up to C$15 million, with an option to increase by 15%. The proceeds will support mill expansion, ore sorting infrastructure, exploration, and development of the Nechi mine. The company plans to convert C$10 million of insider-held debt into equity, demonstrating strong insider support. This initiative is expected to accelerate Soma’s growth strategy, enabling it to achieve production targets sooner and at a lower long-term cost.