SOMA PROVIDES POST-STRIKE PRODUCTION UPDATE
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On November 14, 2025, Soma Gold provided an update on production following the end of a 57-day strike at its operations in Colombia. - Production has recommenced, but the processing plant will run at only 70% capacity until the end of November, reaching full capacity in early December. - The ramp-up of the second mill, El Limon, is now delayed from mid-December 2025 to early January 2026. - As a direct result of the strike, the company is reducing its 2025 gold production guidance by approximately 5,000 ounces. - The production forecast for 2026 remains unchanged. - The company also noted that a new leach circuit and oxygen infusion system, completed prior to the strike for a cost of $475,000, has improved gold recovery by 1.6 percentage points (from 87.5% to 89.1%).
This news is materially negative as it quantifies the significant financial damage from the recently concluded strike. While the end of the strike (announced November 5) was positive, this release confirms the cost.
- Production and Revenue Loss: A 5,000-ounce reduction in production is a major blow. Using the company's own example of a US$3,800 gold price, this represents a top-line revenue loss of approximately US$19 million. For a company with a market cap under $200 million, this is a substantial hit to Q4 2025 revenue and profitability.
- Delayed Growth: The delay in the El Limon mill ramp-up from December to January 2026 pushes back a key growth catalyst. This mill is expected to increase overall throughput by 20-40% (as per the June 19, 2025 release), so any delay impacts the anticipated production growth profile.
- Mitigating Factors: The key positive takeaway is that management expects to contain the damage to 2025, as the 2026 production forecast remains unchanged. This suggests that the operational issues are temporary and they expect to make up for lost time next year. The stock price rallied from $1.22 to $1.51 in the week after the strike ended, indicating the market was relieved the stoppage was over. This news provides the hard numbers, which could temper that enthusiasm and lead to a short-term pullback.
- Operational Improvement: The 1.6% recovery improvement is a positive operational detail, but the work was completed before the strike, so it is not new information. It simply serves as a reminder of underlying operational progress amidst the disruption.
Overall, the market was anticipating an update on the financial impact, and this release confirms a material loss of revenue and a delay in growth plans.
Soma Gold Corp. is a gold producer and explorer with its primary assets located in Antioquia, Colombia. - Flagship Asset: The El Bagre Gold Complex, which includes the producing Cordero Mine and two processing facilities: the currently operating El Bagre Mill (450 tpd) and the El Limon Mill (225 tpd), which is being recommissioned. - Growth Strategy: The company's strategy is focused on organic growth. This involves: 1. Restarting and eventually expanding the El Limon Mill to significantly increase total processing capacity. 2. Acquiring and developing nearby, high-grade satellite deposits (e.g., La Escondida acquisition) to provide additional mill feed. 3. Aggressively exploring its large land package along the Otu fault to expand the resource base and extend the mine life. 4. Testing ore-sorting technology which could potentially double mill throughput by rejecting waste rock before processing.