Gold Producer Unlocks Environmental First in Colombia

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Soma Gold Corp.
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Soma Gold Corp. (TSXV:SOMA; OTC:SMAGF; WKN:A2P4DU) has announced that its wholly owned Colombian subsidiary, Operadora Minera SAS, has achieved carbon neutrality for the 2023 reporting year. The certification was granted under the internationally recognized PAS 2060:2014 standard by Bureau Veritas – BVQI Colombia Ltd., making Operadora the first mining company in Colombia to be certified carbon neutral across Scope 1, 2, and 4 emissions. Scope 1 refers to direct emissions from company-controlled operations such as fuel use, Scope 2 covers emissions from purchased electricity, and Scope 4 involves avoided emissions resulting from products or services that displace higher-emission alternatives.

This achievement follows a multi-year effort by Soma and Operadora to measure, reduce, and offset greenhouse gas (GHG) emissions. As part of the initiative, the company implemented a transition to 100% renewable hydroelectric power, adopted operational efficiencies, and purchased verified carbon offsets through REDD+ conservation projects in the Amazon rainforest. According to Soma, the total GHG reduction since 2021 equals 2,812 tons of CO₂e, while the remaining 1,345 tons emitted in 2023 were fully offset.

"We are proud to be the first mining company in Colombia to achieve carbon neutrality," said Héctor Meléndez, Soma's Colombia Country Manager, in the company's news release. "This achievement proves that mining can be part of the solution to the global climate challenge and reinforces our commitment to environmental leadership."

In parallel with the carbon neutrality milestone, Operadora Minera also signed a voluntary environmental regeneration agreement with CORANTIOQUIA and three formalized small-scale miners. The agreement aims to restore ecosystems impacted by illegal mining, focusing on reforestation, water rehabilitation, and biodiversity through sustainable development and education programs. Meléndez emphasized the company's dedication to these efforts, stating that the agreement reflects Soma's "life-centric values" and its "commitment to leaving a lasting legacy of environmental stewardship."

Soma's recent environmental achievement comes amid a period of steady operational and financial growth. For the 2024 fiscal year, the company reported revenue of CA$89.4 million from the sale of 27,668 gold equivalent ounces, representing a 10.1% increase over 2023. EBITDA for the year totaled CA$33.2 million, with net income rising to CA$4.2 million, up from CA$2.8 million the previous year. Average realized gold prices stood at US$2,411 per ounce, with a cash margin of US$1,152 per ounce. Total cash costs were reported at US$1,259 per ounce. 

Gold Mining in a High-Price, Stagflationary Environment

Gold developers operated in an increasingly favorable environment through mid-May, driven by macroeconomic pressure, investor demand, and elevated bullion prices. On May 7, Ahead of the Herd highlighted that rising inflation and slowing growth had contributed to a potential "stagflation for the ages," a condition historically beneficial for gold. The site noted, "Gold does well in stagflationary periods and outperforms equities during recessions," referencing a 32.2% average return for gold during past stagflationary periods.

As interest in the metal surged, Morris Hubbartt of Super Gold Signals suggested the junior mining segment had reached a key inflection point. On May 9, Morris Hubbartt of Super Gold Signals stated, "We're in the ‘blastoff' zone now for a lot of the junior miners," suggesting the technical setup favored further movement in the segment. His rebranding of the service to reflect "the growing global importance of gold" also underlined the sentiment shift.

Rob McEwen echoed that view in a Junior Stocks editorial dated May 12. He remarked that although gold itself had climbed significantly in 2025, many equities were "still playing catch-up." He described the sector's trajectory as potentially "explosive," supported by central bank demand and economic uncertainty. McEwen explained, "When gold rises like this, history shows us what happens next… the sector becomes truly electric—when the speculative frenzy hits and explorers with little more than a promising patch of dirt start seeing their market caps explode."

A May 15 report from Stockhead observed that although gold continued to dominate investor attention, the gold-silver ratio had climbed to an unusually high level of 100. With gold priced at US$3,200 per ounce and silver at US$32.80, the ratio stood well above its long-term average of 60. John Forwood of Lowell Resources Fund told Stockhead, "The gold-silver ratio is currently at historic highs of over 100:1," noting that a return to historical norms could drive silver prices significantly higher, even without further gains in gold. The report also pointed to growing industrial demand for silver, especially from the photovoltaic industry, which now represents roughly 20% of total industrial consumption and is expanding at an annual rate of 20 to 25%. However, global supply has remained relatively constrained, given the small number of silver-focused mining operations.

Analyst Signal Breakout Potential for Soma Gold

In a report from Technical Analyst Clive Maund, published on April 11, Soma Gold Corp. received a favorable assessment for its long-term technical setup and positioning within the precious metals sector.

According to Maund, the company had formed a "giant 5-year long Cup & Handle base pattern" that began during the market downturn triggered by the COVID-19 crash in early 2020. His analysis noted that Soma had not yet broken out of this pattern but suggested that a breakout appeared imminent given prevailing sector trends. Maund's report described the stock as "an immediate strong buy and hold for a long time," citing its chart formation and the broader momentum in gold stocks. It also cautioned that delaying entry in an attempt to optimize pricing could result in missing a potential move higher.

Where Expansion Meets Execution

Soma is currently scaling up operations at its Cordero and El Bagre complexes, as detailed in its May 2025 investor presentation. Production averaged 450 tons per day (TPD) in 2024 and is expected to rise to 500–550 TPD in the second quarter of 2025. The company plans to increase capacity further to 1,400 TPD by 2028. Exploration efforts are ongoing, with over 320,000 meters of diamond drilling completed to date and a US$7 million exploration program underway for 2025.

The El Limon mill, currently permitted for 225 TPD, is scheduled to restart in the second quarter of 2025, while the Nechi deposit is targeted for production ramp-up by late 2026. Soma is also progressing with ore-sorting technology tests and plans to expand mill capacity with a fully permitted US$6 million upgrade, which could raise annual output to 85,000 to 100,000 ounces.

As of April 30, 2025, Soma's market capitalization stood at approximately CA$71.9 million. The company reported 2024 average grades of 6.61 grams per tonne gold, with a recovery rate of 88.34%. According to Soma's investor materials, a new NI 43-101 resource estimate is anticipated in the first half of 2026, with a long-term strategy targeting over 1 million ounces of resource inventory.

Soma's properties cover approximately 41,000 hectares along Colombia's prolific Otú fault, adjacent to Aris Mining's Segovia mine. The company is also working to formalize artisanal miners under Colombia's national program and plans to scale up to 150–200 TPD through this channel over the next two years.

In a region that has seen over 100 million ounces of historical gold discoveries, Soma is positioning itself as both a sustainable and steadily expanding operator.

Ownership and Share Structure

According to Refinitiv, 18.13% of the company is held by management and insiders.

CEO and Chairman Geoffrey Hampson has 17.25%.

Stategic entities hold 44.24% with Conex Services Inc owning 43.68%.  A further 0.29% of control is vested in institutions. The rest is with retail investors.

Soma has 34.68 million free float shares, a market cap of CA$42.54 million and a 52 week range of CA$0.42 to 0.76.