Stonegate Capital Partners has updated its coverage on Heliostar Metals Ltd (TSXV: HSTR), focusing on the company's flagship Ana Paula project in Guerrero, Mexico, as its primary development asset and next major source of growth. The update comes after Heliostar released a preliminary economic assessment (PEA) in November 2025 for Ana Paula, outlining a nine-year underground mine with an average annual production of 101,100 ounces of gold after ramp-up. The PEA estimates cash costs of $923 per ounce and all-in sustaining costs (AISC) of $1,011 per ounce, generating an after-tax net present value (NPV5) of $426.0 million and an internal rate of return (IRR) of 28.1% at a gold price of $2,400 per ounce.
Heliostar has continued its reserve conversion and expansion drilling at Ana Paula, with recent results from the Expansion Zone including 25.45 meters at 8.26 grams per tonne gold, comprising 8.30 meters at 19.99 grams per tonne. The mineralization remains open to the north, northwest, and at depth, highlighting further upside potential. Management is advancing a feasibility study targeted for the first half of 2027 and expects to continue development of the existing 412-meter decline in 2026, supporting first production in the second half of 2028.
Key takeaways from Stonegate's update include Heliostar's self-funded execution in 2026, 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. The company is building multi-asset growth optionality through its Cerro del Gallo project, which adds a project with an NPV5 of $424 million and 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, initial capital expenditure of $113.2 million, after-tax NPV5 of $129.5 million, and IRR of 29.4% at $1,300 per ounce gold.
The Goldstrike acquisition adds meaningful U.S. optionality for Heliostar, diversifying its project portfolio geographically. Stonegate Capital Partners, a leading capital markets advisory firm, provides investor relations, equity research, and institutional investor outreach services. Its affiliate, Stonegate Capital Markets (member FINRA), offers investment banking services for public and private companies.
