Soma Gold restarts production at Cordero, El Bagre

Executive Summary

• Soma Gold Corp. has resumed production at its Cordero mine and El Bagre gold complex following a 57-day union strike, though processing plant throughput is currently restricted to approximately 70% until the end of November.
• The company expects a reduction in 2025 gold production of approximately 5,000 ounces due to the strike-related disruptions, impacting Q3 and Q4 revenue and profit.
• Despite the production shortfall, the company completed a $475,000 capital program prior to the strike that increased gold recovery from 87.5% to 89.1% and improved leaching efficiency, with full mill capacity expected by early January 2026.

Key Details

• Production Status: Production has recommenced at the Cordero mine and El Bagre gold complex after a 57-day work stoppage.
• Processing Constraints: The processing plant will run at approximately 70% of full throughput until the end of November due to systems requiring maintenance after the prolonged stoppage.
• El Limon Mill Delay: The ramp-up at the El Limon mill (owned by a non-unionized subsidiary) was delayed from mid-December 2025 to early January 2026 due to the unavailability of technical assistance and personnel from El Bagre during the strike.
• 2025 Production Impact: 2025 gold production is expected to be reduced by approximately 5,000 ounces. This shortfall will impact both third and fourth-quarter revenue and profit.
• Additional Risks: A further minor reduction in output may result from delays in the remediation of the El Bagre mill and the full commissioning of the El Limon mill, though these are anticipated to be resolved in the coming weeks.
• 2026 Guidance: The company's 2026 production forecast remains unchanged.
• Capital Project Completion: Commissioning of the new leach circuit and oxygen infusion system at the El Bagre processing plant was completed prior to the strike.
  • Cost: $475,000.
  • Duration: Six months.
  • Recovery Increase: Gold recovery increased from 87.5% to 89.1%.
  • Efficiency Gains: The upgrade increases residence time by approximately 30%, enhances leaching kinetics, and provides greater metallurgical stability.
  • Operational Benefit: Added capacity allows older leach tanks to be taken offline for routine preventive maintenance without impacting throughput.
• Financial Impact of Efficiency: The CEO noted that for every 1% increase in recovery, based on current production levels and a gold price of $3,800 (U.S.), approximately $1-million (U.S.) in additional annual revenue is generated, flowing directly to the bottom line. The payback on the leach tank capacity investment is less than one year.

Notable Quotes

• "We are pleased to be back to work in Colombia and will address the various issues resulting from the processing plant shutdowns. We are confident that both mills will be operating at full capacity by early January, 2026." — Geoff Hampson, CEO
• "Soma remains committed to enhancing operational efficiency and is investing in incremental improvements across all aspects of the operation. The payback on the investment in additional leach tank capacity is less than one year. For every 1-per-cent increase in recovery, based on current production levels and a gold price of $3,800 (U.S.), approximately $1-million (U.S.) in additional annual revenue is generated, which flows directly to the bottom line." — Geoff Hampson, CEO