Soma Gold (SOMA) AI Stock Analysis

• Market Cap: C$245.38M
• Dividend Yield: N/A
• Average Volume (3M): 366.58K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.19
• Revenue Growth: 12.05%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): <0.01
• Shares Outstanding: 117,971,360
• 10 Day Avg. Volume: 360,864
• 30 Day Avg. Volume: 366,582
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: C$2.50 ▲(49.70% Upside)

The score is driven primarily by mixed financial performance: strong operating margins and solid cash conversion are offset by declining revenue, falling free cash flow, and high leverage. Technicals are supportive due to a clear uptrend, but overbought momentum indicators raise near-term pullback risk. Valuation is only fair given the P/E and lack of dividend yield data.

Positive Factors

Strong operating margins

High gross, EBITDA and EBIT margins indicate the company’s mining operations run with durable cost discipline and favorable extraction economics. These sustained operating efficiencies support profitability across commodity cycles, enabling reinvestment, margin resilience, and long-term operational stability.

Solid cash conversion

An operating cash flow to net income ratio of 1.83 shows Soma reliably converts accounting earnings into cash. Durable cash generation supports capex for mine development, servicing debt, funding exploration, and reduces reliance on external financing over the medium term.

High return on equity

A 53.9% ROE signals highly efficient use of shareholder capital to generate profits, suggesting effective capital allocation and operational leverage. Combined with a moderate equity ratio, this supports shareholder value creation over time if earnings remain stable.

Negative Factors

Elevated leverage

A debt-to-equity of 1.48 reflects significant leverage that raises fixed obligations and financial risk. In capital-intensive mining, elevated leverage limits flexibility during commodity or operational downturns, increases refinancing risk, and can amplify earnings volatility long-term.

Declining revenues

A 4.4% TTM revenue decline suggests production or pricing pressures that, if persistent, erode economies of scale and reduce funds available for reinvestment. For a producer, sustained top-line contraction undermines long-term growth and can stress margins and project funding.

Falling free cash flow

A 27.2% drop in free cash flow materially reduces discretionary capital for exploration, development, and debt reduction. Sustained FCF declines can force external financing, delay projects, and weaken balance sheet resilience, constraining strategic flexibility over the medium term.

Soma Gold Business Overview & Revenue Model

Company Description

Soma Gold Corp. is a Canadian-based mining company focused on gold and mineral exploration and production. The company operates in the resource sector, primarily engaging in the exploration, development, and mining of gold properties in Colombia and other regions. Soma Gold aims to enhance shareholder value through the sustainable development of its mining operations, leveraging advanced technologies and responsible mining practices to extract valuable minerals from its properties.

How the Company Makes Money

Soma Gold generates revenue primarily through the extraction and sale of gold. Its business model is centered around operating gold mines, where the company mines ore containing gold and processes it to produce gold bullion. The revenue streams include the direct sale of gold to refiners and other buyers in the commodities market. Additionally, Soma Gold may benefit from partnerships with other mining companies or financial entities that provide funding or operational support, which can enhance its production capabilities and market reach. The company also focuses on maintaining cost efficiencies in its operations to maximize profit margins and is involved in exploration activities that can lead to the discovery of new gold deposits, further increasing potential revenue sources.

Soma Gold Financial Statement Overview

Summary

Mixed fundamentals: strong gross profit (31.1%), EBITDA (41.9%), and EBIT (22.0%) margins show solid operating efficiency, but TTM revenue declined (‑4.4%) and leverage is high (debt-to-equity 1.48). Cash generation is good versus earnings (operating cash flow to net income 1.83), though free cash flow fell 27.2% TTM.

Income Statement

Soma Gold's income statement shows a mixed performance. The company has a healthy gross profit margin of 31.1% and a strong EBITDA margin of 41.9% for the TTM, indicating efficient cost management. However, the net profit margin is relatively low at 9.8%, and there is a concerning revenue decline of 4.4% in the TTM. Despite these challenges, the EBIT margin remains robust at 22.0%, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.48, indicating significant leverage, which could pose financial risks. However, the return on equity is strong at 53.9%, reflecting effective use of equity to generate profits. The equity ratio stands at 52.3%, showing a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis highlights a decline in free cash flow by 27.2% in the TTM, which is a concern. However, the operating cash flow to net income ratio is strong at 1.83, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.73, suggesting that the company is generating sufficient free cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	93.94M	89.37M	81.16M	52.96M	39.97M	23.05M
Gross Profit	27.83M	25.09M	27.95M	15.54M	12.06M	8.36M
EBITDA	38.25M	33.17M	31.11M	12.56M	11.15M	12.84M
Net Income	8.83M	4.23M	2.80M	257.54K	-1.22M	6.72M
Balance Sheet
Total Assets	100.04M	79.25M	74.10M	51.51M	34.53M	32.39M
Cash, Cash Equivalents and Short-Term Investments	16.69M	7.84M	1.78M	529.67K	251.61K	2.42M
Total Debt	21.20M	34.91M	31.30M	28.79M	19.14M	15.67M
Total Liabilities	47.71M	63.28M	59.95M	48.75M	36.05M	32.47M
Stockholders Equity	52.34M	15.96M	14.15M	2.77M	-1.52M	-74.20K
Cash Flow
Free Cash Flow	17.43M	9.46M	6.08M	-9.85M	-3.71M	-3.20M
Operating Cash Flow	31.47M	20.99M	19.17M	10.24M	4.75M	-535.75K
Investing Cash Flow	-21.89M	-11.54M	-15.35M	-19.72M	-7.96M	-9.28M
Financing Cash Flow	7.06M	-714.20K	-3.21M	9.40M	1.18M	12.04M

Soma Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.67 is below the 20-day moving average (MA) of 2.03, below the 50-day MA of 1.79, and above the 200-day MA of 1.37, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 14.61 is Positive, 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
MJS	71 Outperform	C$192.89M	16.67	7.20%	8.87%	28.21%	-9.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SOMA	60 Neutral	C$245.38M	19.85	58.09%	―	12.05%	―
AU	58 Neutral	C$264.53M	-41.82	-7.79%	―	―	-105.98%
RVG	52 Neutral	C$228.91M	-15.75	-22.63%	―	―	-6.54%
CBR	46 Neutral	C$192.87M	-11.35	-82.70%	―	―	-9300.00%

Soma Gold Corporate Events

Soma Gold Begins Drilling on Major Psyche 2 Copper Anomaly at Machuca Project in Colombia

Soma Gold has received drilling permits from the Colombian government and commenced a Phase 1 drill program on the Psyche 2 copper anomaly at its Machuca Project in Antioquia. The program will initially comprise four to five drill holes totaling about 2,000 metres, targeting the northern end of a roughly 4.5 km long north-south copper anomaly that coincides with a prominent magnetic high and radiometric low, as defined by soil geochemistry and 3D magnetic inversion work. The company aims to use fresh drill core to determine the source and style of mineralization associated with the copper and geophysical anomalies, which could materially enhance the project’s prospectivity if significant mineralization is confirmed. Additional soil sampling has also outlined multiple gold anomalies at Psyche 2, while Soma plans to continue drilling high-grade gold targets near the Colossa Mine and Aurum-Orion-Eros area into 2026, positioning the Machuca Property as a potentially important asset along the Otú fault trend and underscoring the company’s broader exploration push in the region.

The most recent analyst rating on (TSE:SOMA) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold to Install Sensor-Based Sorting Facility at El Bagre Mine in Colombia

Soma Gold has signed a definitive agreement to purchase and install a US$2.2 million sensor-based sorting facility at its flagship El Bagre operation in Colombia, with commissioning targeted for the first half of 2026, following encouraging bench-scale test results on lower-grade feed from the Cordero Mine. Test work on nearly one tonne of material showed high mass rejection rates of up to 55%, metallurgical recoveries as high as 97%, and a 62.5% upgrade in gold grade in the sorted product, indicating that sensor-based sorting can effectively treat a range of ore grades. Management expects the technology to enable higher gold production without expanding plant capacity by upgrading run-of-mine material and making previously sub-cutoff mineralized material economically processable, while also providing a pilot platform to evaluate various feed sources and fine-tune sorting parameters, potentially improving overall operational efficiency and resource utilization at Soma’s Colombian operations.

The most recent analyst rating on (TSE:SOMA) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold Extends Cordero Deposit with New Discoveries

Soma Gold Corp. announced the extension of the Cordero Deposit with new veins discovered 250 meters south of the Atenas Zone at the Bagre Project in Colombia. The 2025 drill program, which included 19 diamond drill holes totaling 5,587 meters, successfully delineated new veins and added 518 meters of strike length to the deposit. This development confirms that the Cordero Deposit remains open along strike and at depth, indicating potential for further resource expansion. The results are expected to be incorporated into the 2026-2027 mine plan, potentially enhancing the company’s resource base and operational capabilities.

The most recent analyst rating on (TSE:SOMA) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Soma Gold stock, see the TSE:SOMA Stock Forecast page.

Soma Gold Extends High-Grade Gold Veins at Cordero Mine

Soma Gold Corp. has announced promising drill results from the Atenas Zone of the Cordero Mine in Colombia, extending the veins by 60 meters along strike and 160 meters down dip. These results, which include high-grade gold assays, are expected to enhance mining operations by increasing contained gold ounces and improving resource confidence, potentially impacting the company’s market positioning positively.

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 Q3 Financial Results Amid Labor Disruption

Soma Gold Corp. reported its third-quarter financial results, which were adversely impacted by a labor strike that halted operations for 22 days. Despite the disruption, the company achieved a revenue of $18.1 million in Q3 2025 and $69.0 million for the nine months ending September 30, 2025, marking a 7% increase compared to the previous year. Soma’s net income for Q3 was $0.4 million, with a total of $5.2 million for the nine months. The company raised $17.3 million through a private placement and made significant strides in debt reduction. Soma is focused on restoring full production capacity and advancing its expansion plans, anticipating higher production levels in the coming year.

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 Extends Copper Anomaly to 4.5 km at Machuca Project

Soma Gold Corp. has announced an extension of its copper soil anomaly at the Psyche 2 target area within the Machuca Project in Antioquia, Colombia. The soil sampling program has added 2.5 km to the anomaly’s strike length, now totaling 4.5 km. This development is significant for Soma’s exploration efforts, as it indicates the potential for substantial copper resources. The company plans to further investigate the anomaly with a maiden diamond drill program, which could have implications for its operational growth and market positioning.

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 Resumes Production Post-Strike, Upgrades Boost Recovery

Soma Gold Corp. has resumed production at its Cordero Mine and El Bagre Gold Complex after a 57-day strike by unionized employees. The strike has led to a reduction in 2025 gold production by approximately 5,000 ounces, impacting third and fourth quarter revenue and profit. However, recent upgrades, including a new leach circuit and oxygen infusion system, have increased gold recovery rates, helping to mitigate some of the impacts. The company expects full operational capacity by early January 2026, with no changes to its 2026 production forecast.

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 Ends Strike at El Bagre Operation

Soma Gold Corp. has successfully reached an agreement with the union representing its El Bagre operation employees, ending a 57-day strike. The resolution was facilitated by the Colombian Vice Ministry of Labor, and Soma is now preparing to restart operations and assess the financial impact of the strike.

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.