DALLAS, TX -- March 26, 2026 -- Heliostar Metals Ltd (TSXV: HSTR): Stonegate Capital Partners updates their coverage on Heliostar Metals Ltd (TSXV: HSTR). Heliostar continued advancing its flagship Ana Paula project in Guerrero as its primary development asset and next major source of growth. The November 2025 PEA outlined a nine-year underground mine producing 101.1 koz of gold per year after ramp-up, with cash costs of $923/oz and AISC of $1,011/oz. At $2,400/oz gold, the study generated an after-tax NPV5 of $426.0M and 28.1% IRR. The Company has also continued reserve conversion and expansion drilling, including recent Expansion Zone results of 25.45m at 8.26 g/t gold, including 8.30m at 19.99 g/t, while noting mineralization remains open to the north, northwest, and at depth. Management is advancing the Feasibility Study for 1H27 and expects to continue development of the existing 412 meter decline in 2026, supporting targeted first production in 2H28.
Producing Assets: La Colorada and San Agustin remain Heliostar’s near-term operating base and are central to management’s strategy of funding growth from mine cash flow. At La Colorada, management expects 20,000- 22,300 ounces of production at an AISC of $1,775-$1,875/oz, while beginning pre-stripping at Veta Madre in early Q3 2026 to access 43,000 ounces of in-situ reserves in 1H27. At San Agustin, following the restart of mining in December 2025, the Company expects 30,000-32,700 ounces of production at AISC of $2,150-$2,250/oz in 2026.
Exploration Portfolio: Beyond Ana Paula, Heliostar continues to position Cerro del Gallo as its second core development project. The December 2025 PFS outlined a 15.3-year mine life producing 85.7 koz GEOs per year at AISC of $1,390/GEO, with initial capex of $195.3M. At $2,400/oz gold, the project generated an after-tax NPV5 of $424.0M and 33.1% IRR. Heliostar also announced on March 23, 2026 that it entered into a binding agreement to acquire a 100% interest in the Goldstrike project in Utah for total consideration of US$72.5M. Goldstrike is a past-producing, oxide, open-pit heap-leach project in Washington County, Utah. Liberty Gold’s 2018 PEA outlined a 7.5-year mine life, average annual gold production of approximately 95 koz, initial capex of US$113.2M, and an after-tax NPV5 of US$129.5M with a 29.4% IRR at a US$1,300/oz gold price. Elsewhere, San Antonio remains a longer-dated development asset, while Unga provides additional exploration optionality.
Outlook: Management’s message is increasingly centered on building Heliostar into a mid-tier gold producer by using cash flow from its operating mines to fund a pipeline of higher-margin growth assets. The Company exited 2025 with $40.6M of cash, and management expects to fund a $27M exploration program from operating cash flow in 2026. Near-term priorities include executing at La Colorada and San Agustin, advancing Ana Paula toward a Feasibility Study in 1H27 and production in 2028, and progressing the broader development pipeline which now includes Goldstrike. For 2026, Heliostar guided consolidated production of 50,000-55,000 ounces of gold, with cash costs of $1,850-$1,950/oz and AISC of $2,025-$2,125/oz.
Valuation: When valuing HSTR we apply a EV/NAV range of 0.4x to 0.6x with a midpoint of 0.5x which results in a valuation of $3.19 to $4.69 with a mid-point of $3.94. When using an EV/Reserves valuation method we apply a multiple range of 50.0x to 100.0x with a midpoint of 75.0x which results in a valuation of $2.37 to $4.54 with a mid-point of $3.45.
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.
