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

Core Insights - Heliostar Metals Ltd is advancing its Ana Paula project in Guerrero, supported by a positive Preliminary Economic Assessment (PEA) released in early Q4 2025 [1][6] - The PEA indicates a total recovered production of approximately 875,000 ounces over a nine-year mine life, with an average mill feed of 5.37 g/t gold [1][6] - The project is expected to produce around 101,000 ounces per year at cash costs of approximately US$923 per ounce and an All-In Sustaining Cost (AISC) of about US$1,011 per ounce [1][6] - At a gold price of US$2,400 per ounce, the PEA shows a post-tax Net Present Value (NPV5) of US$426 million and an Internal Rate of Return (IRR) of 28%, with a payback period of 2.9 years [1][6] - Management is focused on engineering, metallurgical work, and a 15,000-meter drill program to upgrade Inferred resources and support a Feasibility Study targeted for mid-2026 [1][6] Financial Performance - The company reported quarterly revenue of US$26.8 million and a net income of US$1.3 million, primarily supported by operations at La Colorada and San Agustin [6] - The path forward includes targeting a feasibility study by mid-2026 and an underground permit amendment in Q1 2026, with early works planned to enable production in 2028 [6]