Heliostar Metals Advances Ana Paula Project with Strong Economics, Targets 2028 Production

Stonegate Capital Partners has updated its coverage on Heliostar Metals Ltd (TSXV: HSTR), highlighting the company's continued advancement of its flagship Ana Paula project in Guerrero, Mexico. The project recently received a positive preliminary economic assessment showing promising economics for a high-grade underground development operation.

The Ana Paula PEA outlines total recovered production of approximately 875,000 ounces over a nine-year mine life, with mill feed averaging 5.37 grams per tonne gold. The proposed 1,800 tonne-per-day underground operation would produce roughly 101,000 ounces annually at cash costs of approximately US$923 per ounce and all-in sustaining costs of about US$1,011 per ounce. At current gold prices of US$2,400 per ounce, the project delivers a post-tax NPV5 of US$426 million, a 28% internal rate of return, and a 2.9-year payback period, demonstrating strong leverage to higher gold prices.

Management is currently progressing engineering work, metallurgical studies, and a 15,000-meter drill program designed to upgrade inferred resources, extend the high-grade and parallel panels, and support a feasibility study targeted for mid-2026. First underground production remains on track for 2028, according to company timelines available at https://heliostarmetals.com.

Heliostar's producing assets at La Colorada and San Agustin continue to serve as the cash-flowing core of the company's portfolio. Both mines, acquired in the November 2024 Florida Canyon transaction, provide low-capital expenditure ounces to support corporate overhead, early-works spending at Ana Paula, and the broader project pipeline. These operations are expected to contribute meaningfully to funding the planned approximately US$300 million initial capital expenditure at Ana Paula and the approximately US$15 million decline extension and underground early-works program scheduled for 2026.

Beyond Ana Paula, Heliostar's growth pipeline includes the Cerro del Gallo project in Guanajuato, which continues through metallurgical and engineering work ahead of a planned pre-feasibility study in the fourth quarter of 2025. The San Antonio project in Baja California Sur remains under strategic review following its January 2025 PEA, while the Unga project in Alaska is expected to see follow-up drilling as part of the medium-term exploration program.

Company management maintains 2025 guidance of 31,000 to 41,000 gold equivalent ounces at cash costs of US$1,800 to US$1,900 per ounce and all-in sustaining costs of US$1,950 to US$2,100 per ounce. Production is expected to rise significantly to 150,000 ounces by 2028 and 300,000 to 500,000 ounces by 2030, representing substantial growth from current levels. Near-term priorities include completing the 15,000-meter drill program, filing an underground permit amendment in the first quarter of 2026, and advancing decline extension and early works to support a potential construction decision in the first half of 2027.

Stonegate Capital Partners' valuation analysis applies an enterprise value to net asset value range of 0.4x to 0.7x with a midpoint of 0.6x, resulting in a valuation range of $2.71 to $4.57 with a midpoint of $3.64. Using an enterprise value to reserves valuation method with a multiple range of 50.0x to 80.0x and midpoint of 65.0x produces a valuation range of $2.36 to $3.64 with a midpoint of $3.00. The company's strategic approach aims to leverage a mix of internal cash flow and project financing to minimize equity dilution while building toward its production targets.