Soma Gold (SOMA) AI Stock Analysis

• Market Cap: C$121.81M
• Dividend Yield: N/A
• Average Volume (3M): 119.50K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.48
• Revenue Growth: 15.89%
• EPS Growth: 426.28%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 92,281,820
• 10 Day Avg. Volume: 154,355
• 30 Day Avg. Volume: 119,497
• PEG Ratio: 0.17
• Price to Book (P/B): -14.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.11
• 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

• Rating: 70 Outperform
• 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 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 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

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
	EBIT
17.22M	20.85M	12.63M	6.69M	2.37M
	EBITDA
33.17M	31.11M	12.56M	11.15M	12.95M
	Net Income Common Stockholders
4.23M	2.80M	257.54K	-1.22M	6.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.84M	1.78M	529.67K	251.61K	2.42M
	Total Assets
79.25M	74.10M	51.51M	34.53M	32.39M
	Total Debt
34.91M	31.30M	28.79M	19.14M	15.67M
	Net Debt
27.07M	29.52M	28.26M	18.89M	13.25M
	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: 1.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOMA	70 Outperform	C$121.81M	17.05	40.43%	―	15.89%	426.28%
Sector *	51 Neutral	$2.04B	-1.21	-21.10%	3.95%	2.90%	-30.45%
WGO	47 Neutral	C$52.38M	―	-2.14%	―	―	―
OMI	44 Neutral	£50.12M	―	9.99%	―	―	67.15%
CCM	43 Neutral	C$71.78M	―	-4.68%	―	―	24.91%
AE	39 Underperform	C$82.90M	―	-43.86%	―	―	-52.93%

Soma Gold Corporate Events

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.

Soma Gold Expands Mineral Rights in Colombia, Alters Mill Feed Strategy

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.