SOMA GOLD REPORTS 2025 YEAR-END FINANCIAL RESULTS

The most recent release, dated May 1, 2026, details Soma Gold's 2025 fiscal year-end financial results. The company reported a net loss of $2.9 million for FY2025, reversing from a net income of $4.2 million in 2024. Revenue declined slightly by 2% to $87.3 million, with Q4 revenue dropping 27% year-over-year. Gold production and sales fell significantly (18,669 oz produced vs 27,460 oz in 2024) primarily due to a labor strike at the El Bagre Gold Mining Complex that lasted from September 9 through November 5, 2025 (58 lost days).

Despite the operational setback, the company highlighted balance sheet improvements: $17.3 million was raised via private placement in 2025, and long-term debt was reduced by $15 million ($5 million cash, $10 million equity conversion). Cash on hand stands at $6.3 million with working capital of $17.2 million. A significant management change occurred with the resignation of CFO Greg Hayes, prompting a search for a replacement. Management forecasts production to recover to planned rates by end of H1 2026, maintaining long-term targets unchanged.

The financial results are largely consistent with prior operational disclosures made in late 2025 regarding the labor strike and its impact on throughput. The shift from profit to loss was anticipated following the November 2025 announcement that production would be reduced by approximately 5,000 ounces due to the strike. Therefore, the financial miss is expected rather than unexpected.

However, two elements introduce negative sentiment: - CFO Resignation: The departure of the Chief Financial Officer during a period of operational recovery and debt restructuring adds uncertainty regarding financial oversight and capital allocation strategy. - Liquidity Position: While working capital is positive ($17.2 million), cash on hand ($6.3 million) is relatively low compared to annual operating costs, suggesting potential need for future financing if production ramp-up encounters further delays.

The debt reduction ($15 million) and successful private placement are positive mitigating factors that prevent this from being a Material - Negative event, as the balance sheet remains stable relative to peers. The news confirms previously known operational risks rather than revealing new hidden liabilities.

Soma Gold Corp. operates as a gold producer in Colombia with a strategy focused on organic growth through mill expansion, ore-sorting technology, and formalization of artisanal miners. - Flagship Asset: El Bagre Gold Mining Complex (Antioquia). Includes Cordero Mine and El Bagre Mill. Currently undergoing mechanical remediation post-strike. - Secondary Assets: El Limon Mill (ramping up), Nechi Project (permitting stage, expected to add 25,000 oz/year), Escondida Mine (acquired, early production). - Strategy: Targeting 60,000–65,000 ounces annually by 2028 through capacity expansion and new mine development.