Stonegate Capital Partners has updated its coverage on Heliostar Metals Ltd (TSXV: HSTR), emphasizing the company's progress on its flagship Ana Paula project in Guerrero, Mexico, and its broader multi-asset growth strategy. The update comes as Heliostar continues to advance toward production, with a preliminary economic assessment (PEA) from November 2025 outlining a nine-year underground mine producing 101,100 ounces of gold per year after ramp-up. The study, based on a gold price of $2,400 per ounce, estimates cash costs of $923 per ounce and all-in sustaining costs (AISC) of $1,011 per ounce, yielding an after-tax net present value (NPV5) of $426.0 million and an internal rate of return (IRR) of 28.1%.
Heliostar has also been active in reserve conversion and expansion drilling, with recent results from the Expansion Zone including 25.45 meters at 8.26 grams per tonne gold, including 8.30 meters at 19.99 grams per tonne. The company notes that mineralization remains open to the north, northwest, and at depth, suggesting potential for resource growth. Management is advancing a feasibility study expected for the first half of 2027 and plans to continue development of the existing 412-meter decline in 2026, targeting first production in the second half of 2028.
Key takeaways from the update highlight that 2026 is focused on self-funded execution, with guided production of 50,000 to 55,000 ounces, $40.6 million in cash exiting 2025, and a $27 million exploration program expected to be funded from mine cash flow. Heliostar is building multi-asset growth optionality through its portfolio, which includes the Cerro del Gallo project, adding a project with an NPV5 of $424 million and an IRR of 33.1%, and the Goldstrike project in the U.S., a past-producing heap-leach asset with a 2018 PEA showing average annual production of approximately 95,000 ounces. Goldstrike's PEA estimates initial capital expenditure of $113.2 million, an after-tax NPV5 of $129.5 million, and an IRR of 29.4% at a gold price of $1,300 per ounce. This U.S. asset adds meaningful optionality for Heliostar as it continues to develop its Mexican operations. For more details, the full announcement is available here.
