Soma Gold Expands Mineral Rights in Colombia, Alters Mill Feed Strategy

Soma Gold ( (TSE:SOMA) ) has issued an announcement.

Soma Gold Corp. has expanded its mineral rights in Antioquia, Colombia, by acquiring two additional mining concessions from Grupo de Bullet SAS, increasing its property package to 41,427 hectares along the OTU Fault. This strategic acquisition enhances Soma’s coverage along a key mineral-bearing structure, potentially boosting its exploration and production capabilities. Additionally, Soma has terminated negotiations with Denarius Metals Corp. regarding mineralized rock processing due to contractual restrictions, opting instead to source feed for its El Limon Mill from its own surplus production.

Spark’s Take on TSE:SOMA Stock

According to Spark, TipRanks’ AI Analyst, TSE:SOMA is a Neutral.

Soma Gold faces key challenges with profitability and high leverage despite strong revenue growth and operational efficiencies. Technical indicators point towards a bearish trend, and the current valuation metrics highlight risks due to a negative P/E ratio and lack of dividends. Although corporate actions like stock options indicate internal confidence, the overall outlook remains cautious, focusing on improvements in financial health.

To see Spark’s full report on TSE:SOMA stock, click here.

More about Soma Gold

Soma Gold Corp. is a mining company focused on gold production and exploration, owning two adjacent mining properties in Antioquia, Colombia, with a combined milling capacity of 675 tpd. The company is committed to sustainability and community engagement and also owns an exploration property in Brazil under option to Ero Copper Corp.

YTD Price Performance: 18.18%

Average Trading Volume: 91,079

Technical Sentiment Signal: Sell

Current Market Cap: C$59.87M

For detailed information about SOMA stock, go to TipRanks’ Stock Analysis page.