DALLAS, TX -- September 26th, 2025 -- Heliostar Metals Ltd (TSXV: HSTR): Stonegate Capital Partners initiates their coverage on Heliostar Metals Ltd (TSXV: HSTR). The Company’s flagship Ana Paula project in Guerrero is a high-grade underground development asset hosting approximately 1.2 million ounces grading 5.4 g/t gold in the High-Grade Panel. Active drilling is extending the Parallel Panel and upgrading inferred ounces. A preliminary economic assessment is underway and will be followed by a feasibility study in mid-2026, with first production targeted in 2028. Ana Paula is fully permitted for open-pit mining, and the Company intends to submit an underground permit amendment in 2026. This expansion is expected to be primarily self-funded from the below mentioned producing assets.
Company Updates:
Producing Assets: Heliostar operates two wholly owned producing mines in Mexico. Both mines were acquired in the November 2024 Florida Canyon transaction and are now generating consistent cashflow to fund growth. La Colorada is mining from the Junkyard stockpile while advancing pit expansions at Creston and Veta Madre, producing 3,464 ounces in 2Q25 at an AISC of US$1,425/oz. San Agustin is currently re-leaching residual pads ahead of restarting primary mining in the Corner Area in 4Q25, and delivered 3,564 ounces in 2Q25 at an AISC of US$1,597/oz.
Exploration Portfolio: Alongside its producing platform, Heliostar controls a pipeline of large-scale development and exploration projects anchored by its flagship Ana Paula project in Guerrero. Additionally, the Company has its Cerro del Gallo in Guanajuato, which is undergoing metallurgical and engineering work for a pre-feasibility study in 4Q25, while San Antonio in Baja California Sur is under strategic review following its January 2025 PEA. The Company also owns the Unga project in Alaska, which is slated for drilling in 2H25. These projects represent Heliostar’s medium- and long-term growth engine as it transitions into a mid-tier gold producer.
Financials: Heliostar Metals is an emerging multi-asset gold producer with a robust balance sheet and a strong operational start to its first full year of production. As of August 27, 2025, the Company had US$29.7 million in cash, US$51.7 million in working capital, and no debt. In March 2025, Heliostar completed a C$19.5 million bought deal financing, which included a C$5 million cornerstone investment from Eric Sprott, further strengthening its financial position. Operationally, the Company produced 7,262 ounces of gold and sold 8,375 ounces (8,556 GEOs) in 2Q25, generating US$27.9 million in revenue and US$14.3 million in mine operating earnings at a consolidated all-in sustaining cost (AISC) of US$1,541/oz.
Outlook: Management is guiding for 31–41 thousand GEOs in 2025 at cash costs of US$1,800–1,900/oz and AISC of US$1,950–2,100/oz, with production expected to rise to 150 thousand ounces by 2028 and 300–500 thousand ounces by 2030. The Company’s operating strategy emphasizes using low-capex ounces from La Colorada and San Agustin to self-fund Ana Paula, minimizing equity dilution.
Valuation: When valuing HSTR we apply a EV/NAV range of 0.4x to 0.7x with a midpoint of 0.6x which results in a valuation of $2.30 to $3.86 with a mid-point of $3.08. When using an EV/Reserves valuation method we apply a multiple range of 50.0x to 80.0x with a midpoint of 65.0x which results in a valuation of $2.32 to $3.57 with a mid-point of $2.94.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.
