Soma Gold (SOMA) AI Stock Analysis

• Market Cap: C$125.50M
• Dividend Yield: N/A
• Average Volume (3M): 104.70K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.50
• Revenue Growth: 15.89%
• EPS Growth: 426.28%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 92,281,820
• 10 Day Avg. Volume: 127,430
• 30 Day Avg. Volume: 104,702
• PEG Ratio: 0.15
• Price to Book (P/B): 4.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 82.02
• 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 ▲(10.29%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 operational efficiency, with solid EBIT and EBITDA margins. However, the company faces profitability challenges with negative net margins and high leverage reflected in its balance sheet. Cash flow remains a strong point, with positive operating cash flow despite profitability issues. Overall, the company should focus on improving net profitability and reducing leverage for better financial health.

Income Statement

Soma Gold has shown a significant growth trajectory in revenue over the years, with the most recent TTM revenue at $83.84 million, up from $23.05 million in 2020. The gross profit margin for TTM is approximately 21.74%, which is a healthy indicator of producing value over costs. However, the TTM net profit margin is negative at -5.57%, indicating profitability challenges. EBIT and EBITDA margins for TTM are 9.07% and 33.26% respectively, reflecting strong operational efficiencies but also highlighting the impact of non-operational costs on net income.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to substantial leverage, with TTM total debt at $33.84 million against a lower stockholders' equity of $11.28 million. The return on equity (ROE) is negative due to negative net income, indicating challenges in generating returns. The equity ratio is about 14.92%, suggesting heavy reliance on debt financing. The company needs to strengthen its equity position to improve financial stability.

Cash Flow

The cash flow statement shows positive operating cash flow of $11.78 million TTM, indicating good cash generation from core operations. There has been a small positive free cash flow of $0.65 million, showing improvement from previous years. The operating cash flow to net income ratio is negative due to negative net income, but cash operations remain robust, which is a positive sign for liquidity and operational efficiency.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
83.84M	81.16M	52.96M	39.97M	23.05M	0.00
	Gross Profit
18.23M	27.95M	15.54M	12.06M	8.36M	-22.38K
	EBIT
7.61M	20.85M	12.63M	6.99M	1.69M	-3.29M
	EBITDA
27.89M	31.11M	12.56M	10.16M	12.95M	-3.85M
	Net Income Common Stockholders
-4.67M	2.80M	257.54K	-1.22M	6.72M	-37.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.77M	1.78M	529.67K	251.61K	2.42M	45.15K
	Total Assets
49.45M	74.10M	51.51M	34.53M	32.39M	36.82M
	Total Debt
7.30M	31.30M	28.79M	19.14M	15.67M	9.28M
	Net Debt
6.91M	29.52M	28.26M	18.89M	13.25M	9.24M
	Total Liabilities
34.50M	59.95M	48.75M	36.05M	32.47M	46.03M
	Stockholders Equity
14.16M	14.15M	2.77M	-1.52M	-74.20K	-9.12M
Cash Flow		Free Cash Flow
651.42K	6.08M	-9.85M	-3.71M	-3.20M	-22.41M
	Operating Cash Flow
11.78M	19.17M	10.24M	4.75M	-535.75K	-3.87M
	Investing Cash Flow
-11.76M	-15.35M	-19.72M	-7.96M	-9.28M	-18.54M
	Financing Cash Flow
276.13K	-3.21M	9.40M	1.18M	12.04M	22.06M

Soma Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.36
• 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 1.36 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 0.90, and above the 200-day MA of 0.64, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 77.58 is Negative, neither overbought nor oversold. The STOCH value of 80.62 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$125.50M	16.57	40.43%	―	15.89%	426.28%
Sector *	51 Neutral	$2.04B	-1.15	-21.37%	3.64%	2.88%	-30.57%
CCM	43 Neutral	C$72.70M	―	-4.68%	―	―	24.91%
OMI		£24.49M	―		―	―	―
WHGOF		$38.20M	―	-2.14%	―	―	―
CRDOF		$68.19M	14.69	11.46%	―	―	―
AE	39 Underperform	C$81.21M	―	-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.