SOMA GOLD REPORTS FIRST QUARTER FINANCIAL RESULTS

Soma Gold reported first‑quarter 2026 financials that missed even the already‑low‑ered expectations set by prior production updates. Revenue dropped 19% to $22.5 M, the company swung to a net loss of $2.1 M (vs. a $3.2 M profit a year earlier), and adjusted EBITDA fell to $4.7 M from $13.5 M. AuEq ounces sold plunged to 3,788 (‑45% YoY). The Cordero mine’s average grade collapsed to 3.58 g/t (life‑of‑mine average 6.25 g/t), driving attributable cash costs to a staggering US$2,894 per ounce – more than double the year‑ago level and well above the realized gold price. Management blamed the lingering effects of the Q4 2025 strike and mechanical issues that kept the mill from reaching full capacity until Q1 2026, while promising that higher‑grade feed from small mines would begin to improve costs in Q2.

These numbers expose a much deeper operational crisis than earlier releases had suggested. While the market already knew Q1 production was weak (3,617 oz forecast vs. 3,788 oz reported), the cash‑cost figure of US$2,894/oz is shocking and indicates that the company is burning significant cash. With a per‑ounce margin deeply negative when adding G&A and sustaining capital, Soma is likely using its existing cash reserves at an accelerated pace. The balance‑sheet cushion – $6.3 M cash at year‑end 2025, probably lower by now – appears dangerously thin.

The news is not just a routine continuation of the strike recovery; it reveals that the core Cordero mine is delivering grades well below anything the 43‑101 resource would imply, calling into question the mine plan’s viability. If grade control does not improve dramatically, even the H2 ramp‑up targets may be at risk. In an environment where Soma already relies heavily on a single processing complex and carries leverage, this release materially raises the probability of a dilutive equity financing or a distressed restructuring. The stock already crashed from $2.46 in January to $0.89 before the release, but the severity of the Q1 loss and the suicidal cash cost still constitute new, genuinely negative information. Material – Negative is appropriate.

Soma Gold Corp. is a junior gold producer operating in the Antioquia district of Colombia. Its flagship asset is the El Bagre Gold Complex, which hosts the producing Cordero Mine and a 450‑tpd mill. The company also owns the El Limon Mill, recently refurbished, and the development‑stage Nechi Project. Soma’s strategy is to grow production toward a medium‑term target of 60–70 koz/year through organic expansion, ore‑sorting technology, and formalizing small‑scale miners on its large land package.

The Cordero Mine is an underground vein deposit. Current resources (2022) include Indicated 78 koz @ 6.9 g/t Au and Inferred 192 koz @ 7.9 g/t Au. Nechi holds 49 koz Indicated @ 4.9 g/t and 85 koz Inferred @ 6.5 g/t. Despite these grades, operational execution has been the Achilles’ heel.