Heliostar Metals Strengthens Financial Position and Advances Ana Paula, Says Stonegate Capital Partners

Stonegate Capital Partners has updated its coverage on Heliostar Metals Ltd (TSXV: HSTR), noting that the company's Q2 results have improved its forward outlook by strengthening the operating cash-flow bridge to the Ana Paula project and clarifying the earnings capacity of its producing assets. The report highlights that San Agustin reaching steady state and low-cost La Colorada production contributed to record production and a record cash balance, despite a sequential decline in net income attributed to the annual option grant, higher taxes, and foreign exchange effects rather than weaker mine performance.

Gold production increased 26% quarter-over-quarter to a record 14,803 ounces, while revenue reached $56.5 million, mine operating earnings were $31.1 million, and cash increased to $43.0 million even after the initial $10 million Goldstrike payment. This operational strength provides a solid base to support Heliostar's development pipeline, with near-mine reserve growth expected to improve visibility beyond 2026.

Ana Paula remains the principal step-change growth project, with the feasibility study targeted for the second quarter of 2027, underground permit submission expected in the third quarter, and first gold targeted before the end of 2028. The Expansion Zone presents potential upside beyond the current development case, while permitting and project financing are identified as the key execution variables. Stonegate emphasizes that key markers for investors include reserve conversion, Veta Madre execution, and Ana Paula permitting.

Goldstrike adds 1.065 million ounces of attributable gold resources plus emerging antimony optionality, with surface work confirming mineralization at Antimony Ridge and identifying a new target, Antimony Knoll, located 1.7 kilometers west. An initial approximately 1,500-meter RC drilling program is underway, with results expected in the fourth quarter of 2026. Goldstrike broadens Heliostar's longer-term pipeline, although the remaining staged purchase consideration should be consistently reflected in valuation.

For more details, the full announcement is available at Stonegate's website.