Stonegate Capital Partners has updated its coverage on Heliostar Metals Ltd (TSXV: HSTR), focusing on the company's continued advancement of its flagship Ana Paula project in Guerrero, Mexico. The November 2025 Preliminary Economic Assessment (PEA) outlined a nine-year underground mine producing 101,100 ounces of gold per year after ramp-up, with cash costs of $923 per ounce and all-in sustaining costs of $1,011 per ounce. At a gold price of $2,400 per ounce, the study generated an after-tax net present value (NPV5) of $426.0 million and an internal rate of return (IRR) of 28.1%.
Heliostar has also continued reserve conversion and expansion drilling, including recent Expansion Zone results of 25.45 meters at 8.26 grams per tonne gold, including 8.30 meters at 19.99 grams per tonne. The mineralization remains open to the north, northwest, and at depth. Management is advancing the Feasibility Study for the first half of 2027 and expects to continue development of the existing 412-meter decline in 2026, supporting targeted first production in the second half of 2028.
Key takeaways from the update include that 2026 is about 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, as Cerro del Gallo adds a project with $424 million NPV5 and 33.1% IRR, while Goldstrike brings a past-producing heap-leach asset with approximately 95,000 ounces average annual output based on the 2018 PEA. Goldstrike adds meaningful U.S. optionality, with the acquired project carrying a 2018 PEA showing approximately 95,000 ounces average annual gold production, $113.2 million initial capex, $129.5 million after-tax NPV5, and 29.4% IRR at $1,300 per ounce gold.
