DALLAS, TX -- January 6th, 2026 -- Heliostar Metals Ltd (TSXV: HSTR): Stonegate Capital Partners updates their coverage on Heliostar Metals Ltd (TSXV: HSTR). Flagship Project: Heliostar continued to advance its flagship Ana Paula project in Guerrero as a high-grade underground development asset, now highlighted by a positive PEA released in early 4Q25. The study outlines total recovered production of ~875,000 ounces over a nine-year mine life, with mill feed averaging 5.37 g/t gold and a 1,800 tpd underground operation producing roughly 101 koz per year at cash costs of ~US$923/oz and AISC of ~US$1,011/oz. At US$2,400/oz gold, the PEA delivers a post-tax NPV5 of US$426M, a 28% IRR, and a 2.9-year payback, with strong leverage to higher gold prices. Management is progressing engineering, metallurgical work, and a 15,000m drill program to upgrade Inferred resources, extend the High-Grade and Parallel panels, and support a Feasibility Study targeted for mid-2026, with first underground production still expected in 2028.
Producing Assets: La Colorada and San Agustin remained the cash-flowing core of Heliostar’s portfolio, providing low-capex ounces to support corporate overhead, early-works spending at Ana Paula, and the broader project pipeline. Both mines, acquired in the November 2024 Florida Canyon transaction, continue to optimize recoveries from existing leach pads and stockpiles while advancing mine planning for higher-grade phases. La Colorada is mining from the Junkyard stockpile while advancing pit expansions at Creston and Veta Madre, and San Agustin is re-leaching residual pads ahead of restarting primary mining in the Corner Area in 4Q25. Management expects these operations, together with a future project finance facility, to contribute meaningfully to funding the planned ~US$300 million initial capex at Ana Paula and the ~US$15 million decline extension and underground early-works program scheduled for 2026.
Exploration Portfolio: Heliostar’s growth pipeline is anchored by Ana Paula, where the PEA outlines a low-cost underground mine producing ~101 koz per year at life-of-mine AISC of ~US$1,011/oz over nine years, positioning it as the Company’s cornerstone asset. Beyond Ana Paula, the Cerro del Gallo project in Guanajuato recently published its PFS highlighted by a base case NPV of $424.0M, 33.1% IRR and a 2.3 year payback period at $2,300/oz gold price. The San Antonio project in Baja California Sur remains under strategic review following its January 2025 PEA. The Unga project in Alaska is expected to see follow-up drilling in the medium-term.
Outlook: Management maintains 2025 guidance of 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. We expect updated guidance to be announced in January which should incorporate the current restarted San Agustin mining, adding 45,000 ounces of gold which is expected to generate $40.0M in cash at a gold price of $3,000/oz. Near-term priorities include completing the 15,000m drill program, filing an underground permit amendment in 1Q26, and advancing decline extension/early works to support a potential construction decision in 1H27.
Valuation: When valuing HSTR we apply a EV/NAV range of 0.5x to 0.7x with a midpoint of 0.6x which results in a valuation of $3.78 to $5.22 with a mid-point of $4.50. When using an EV/Reserves valuation method we apply a multiple range of 80.0x to 100.0x with a midpoint of 90.0x which results in a valuation of $3.43 to $4.24 with a mid-point of $3.83
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