Heliostar Provides 2026 Guidance and Growth Plan

The news release dated January 13, 2026, provides consolidated 2026 production and cost guidance following the successful restart of the San Agustin mine in December 2025. Key highlights include: - Gold production guidance of 50,000 to 55,000 ounces, representing a significant increase from the 32,990 ounces produced in 2025. - Silver production guidance of 290,000 to 320,000 ounces. - Consolidated All-In Sustaining Costs (AISC) are projected between $2,025 and $2,125 per gold ounce. - A massive capital and exploration budget of approximately $42.6 million for 2026, distributed across La Colorada ($5.8M), San Agustin ($9.7M), and the flagship Ana Paula project ($21.6M total for studies and decline extension). - The company plans to advance Ana Paula through a Feasibility Study and begin extending the underground decline.

The news is Material - Positive in terms of production volume but reveals a high-cost operating environment that warrants caution. - Production Growth: Guiding for a 50% increase in gold production year-over-year is a material operational milestone. This confirms management’s ability to execute on the "restart" strategy for the acquired Mexican assets. - Margin Compression: The projected AISC ($2,025-$2,125/oz) is remarkably high. While the company benefits from currently high gold prices, there is very little margin for error if gold prices retreat toward $2,000/oz. San Agustin, in particular, has a guided AISC of $2,150-$2,250/oz, making it a marginal asset. - Cash Utilization: The company reported a $41 million cash balance on January 7, 2026. The 2026 budget calls for $42.6 million in spending. This implies that the company is fully committed to spending its current treasury on growth, relying entirely on 2026 operating cash flow to fund corporate overhead and sustaining capital. This creates a high-stakes "self-funding" environment. - Strategy Execution: The news reinforces the company's stated goal of using La Colorada and San Agustin as cash flow bridges to fund the development of Ana Paula without significant equity dilution.

Heliostar Metals transformed in late 2024 from an explorer into a producer by acquiring a portfolio of Mexican assets from Florida Canyon Gold for a bargain $5 million. - Flagship Project: Ana Paula (Guerrero, Mexico). A high-grade underground gold project. A November 2025 PEA outlined 101,000 oz/year production at a low AISC of $1,011/oz with a $426M NPV (at $2,400 gold). - Operating Mines: La Colorada (Sonora) and San Agustin (Durango). Both are open-pit heap leach operations that were recently restarted. - Growth Goal: 500,000 ounces per year by the end of the decade, largely driven by Ana Paula and later Cerro del Gallo.