Stonegate Capital Partners Updates Coverage on Heliostar Metals Ltd (HSTR) 2Q26

The most recent news release, dated 2025-11-21, announces an update to research coverage on Heliostar Metals Ltd (HSTR) by Stonegate Capital Partners. This update highlights key project economics and corporate progress, specifically: - Ana Paula Project PEA Results: Reiterates strong economics for the underground project with a post-tax NPV5 of US$426 million, an Internal Rate of Return (IRR) of 28%, and a payback period of 2.9 years, based on a US$2,400/oz gold price. The project is projected to produce 101,000 ounces of gold annually over a 9-year mine life, with cash costs of US$923/oz and an All-In Sustaining Cost (AISC) of US$1,011/oz, requiring an initial capital expenditure of US$300 million. - Q2 2026 Financial/Operational Metrics: Reports Quarterly Revenue of US$26.8 million, Net Income of US$1.3 million, and notes La Colorada and San Agustin projects are in production. The reference to "Annual Gold Production: 101,000 oz" in the operational details within this news refers to the projected annual production from the Ana Paula project, not the company's current consolidated annual production.

This news is categorized as "Routine - Positive" because it primarily reiterates and summarizes previously disclosed material information regarding the Ana Paula PEA and the Q3 2025 financial results. While the information is highly positive for the company, it does not introduce new material facts or significantly alter the company's outlook beyond what was already established by the Ana Paula PEA release on 2025-11-06 (Material - Positive) and the Q3 2025 financial results on 2025-11-20 (Routine - Positive).

The Ana Paula PEA's robust economics are a significant milestone, positioning the project as a substantial future cash flow generator. The low AISC of US$1,011/oz and the strong NPV/IRR figures are highly attractive, especially in the current gold price environment. The target of 101,000 oz/year from Ana Paula is central to the company's long-term strategy to become a mid-tier producer.

The Q3 2025 financial results, also highlighted in this update, show continued operational performance with strong cash balance growth (US$34.576 million) and successful internal funding of the San Agustin restart preparations. The year-to-date production (25,643 GEOs) suggests the company is on track to meet its 2025 annual guidance of 31,000-41,000 GEOs. The increase in Q3 AISC to US$1,825/GEO (from Q2's US$1,541/GEO) is noteworthy, though still within annual guidance range.

The consistent positive reporting from an independent firm like Stonegate Capital Partners contributes to investor awareness and validates the company's progress, but it is not a "Game Changer" as the underlying news has been previously disseminated and assessed.

Heliostar Metals Ltd. is a gold exploration, development, and production company with assets primarily in Mexico. The company has transformed from an exploration-focused junior to a gold producer through the acquisition of three Mexican mines (La Colorada, San Agustin, El Castillo) and two development projects (Ana Paula, Cerro del Gallo, San Antonio) in late 2024.

Flagship Project: The primary flagship development project is the Ana Paula Project in Guerrero, Mexico. It is being advanced as a high-grade underground gold development asset. - Development Stage: The project recently completed a Preliminary Economic Assessment (PEA) for underground mine development. The company is now progressing towards a Feasibility Study (FS). - Key Economics (from 2025-11-06 PEA): - Post-tax NPV5%: US$426.0 million (at US$2,400/oz gold price) - Internal Rate of Return (IRR): 28.1% - Payback Period: 2.9 years - Mine Life: 9 years - Average Annual Gold Production: 101,000 ounces (after initial ramp-up) - Average All-In Sustaining Cost (AISC): US$1,011/oz - Initial Capital Cost (CAPEX): US$300 million - Mill Feed Grade: 5.37 g/t Au - Production Target: 2028 - Development: The company is undertaking its largest drill program (15,000 meters starting April 2025, expanded to 40,000-50,000 meters by year-end 2025) at Ana Paula to convert inferred resources to higher confidence categories, expand boundaries, and test exploration targets, all to support the Feasibility Study. - Funding Strategy: The company aims to self-fund the development of Ana Paula primarily through cash flow generated from its operating mines (La Colorada and San Agustin) to minimize equity dilution.

Operating Projects: - La Colorada Mine (Sonora, Mexico): An open-pit heap leach operation. Mining operations ceased in September 2023 but restarted in January 2025 by crushing and stacking ore from the Junkyard stockpile. An updated technical report (October 2025) shows improved economics with a post-tax NPV5% of US$66.2 million and IRR of 24.4% (at US$2,300/oz gold price), with a 6.1-year mine life and average annual production of 46,106 GEO/year. Initial CAPEX for this updated plan is US$44.5 million. - San Agustin Mine (Durango, Mexico): Also an open-pit heap leach operation. Mining ceased in August 2024, with re-leaching ongoing. Restart of mining (Corner Area) is planned for Q4 2025, with initial production expected in Q4 2025. This restart is supported by a Phase 4 permit received in July 2025. A technical report (January 2025) indicated a post-tax NPV5% of US$12.7 million and IRR of 156.1% (at US$2,100/oz gold price), with low initial CAPEX of US$4.2 million. - El Castillo Mine: Currently in reclamation, with nominal production from rinsing residual leach pads.

Other Development Projects: - San Antonio Project (Baja California Sur, Mexico): A Preliminary Economic Assessment (PEA) filed in January 2025 indicated strong economics with a post-tax NPV5% of US$398.7 million and IRR of 40.7% (at US$1,900/oz gold price). Initial CAPEX is US$131.3 million. A strategic review (3-4 months duration) is underway. - Cerro del Gallo Project (Guanajuato, Mexico): A Pre-Feasibility Study (PFS) is planned for completion in 2025, followed by a strategic review.