Soma Gold (TSX-V:SOMA) has restarted production at the Cordero Mine and the El Bagre Gold Complex in Colombia, after 57 days of work stoppage as a result of a strike by unionised employees.
As a result of the strike, gold production for 2025 is expected to be reduced by 5,000 ounces. The company says this shortfall will impact Q3 and Q4 revenue and profit.
Soma notes a further, though relatively minor, reduction in output may result from delays in the remediation of the El Bagre Mille and the full commissioning of the El Limon Mill. However, these issues are expected to be resolved in the coming weeks.
The 2026 production forecasts remain unchanged.
CEO Geoff Hampson says the company is confident both mills will be operating at full capacity by early January 2026.
“Soma remains committed to enhancing operational efficiency and is investing in incremental improvements across all aspects of the operation,” Hampson says.
“The payback on the investment in additional leach tank capacity is less than one year.
“For every 1% increase in recovery, based on current production levels and a gold price of US$3,800, approximately US$1 million ($1.53 million) in additional annual revenue is generated, which flows directly to the bottom line.”
Commissioning of the new leach circuit and oxygen infusion system at the El Bagre processing plant was completed prior to the initiation of strike action by the union.
Soma says the addition of this new tank increases gold recovery from 87.5% to 89.1%. The extra capacity is now helping to offset the impact of repairs to the damaged tank. The capital program took six months to complete at a cost of US$475,000.
The Cordero Mine, part of the El Bagre Gold Mining Complex, achieved commercial production in 2023. Cordero supplies the mill feed for El Bagre and, as mine production warrants, the restart of the Limon Mill.
As previously reported, the El Limon Mill is expected to operate at full capacity by December 2025, achieving 200 tonnes of gold per day by Q1 2026.
Write to Aaliyah Rogan at Mining.com.au
Images: Soma Gold
