Stonegate Capital Partners Updates Coverage on Heliostar Metals Ltd, Highlighting Ana Paula Project Progress and Multi-Asset Growth Strategy

Stonegate Capital Partners has updated its coverage on Heliostar Metals Ltd (TSXV: HSTR), focusing on the company's continued progress at its flagship Ana Paula project in Guerrero, Mexico. The November 2025 preliminary economic assessment outlined a nine-year underground mine plan with projected annual production of 101.1 thousand ounces of gold after ramp-up, featuring cash costs of $923 per ounce and all-in sustaining costs of $1,011 per ounce. At a gold price assumption of $2,400 per ounce, the study generated an after-tax net present value discounted at 5 percent of $426.0 million and an internal rate of return of 28.1 percent.

Heliostar has continued reserve conversion and expansion drilling at Ana Paula, with recent results from the Expansion Zone including an intercept of 25.45 meters grading 8.26 grams per tonne gold, including a higher-grade section of 8.30 meters at 19.99 grams per tonne gold. The company noted that mineralization remains open to the north, northwest, and at depth, indicating potential for further resource growth. 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 a targeted first production in the second half of 2028.

The 2026 operational focus is described as self-funded execution, with guided production of 50,000 to 55,000 ounces of gold. The company exited 2025 with $40.6 million in cash, and a planned $27 million exploration program is expected to be funded from mine cash flow. This financial positioning reduces near-term dilution risk for shareholders as the company advances its key project. For more detailed information on the company's plans, the full announcement is available at https://www.stonegateinc.com.

Beyond Ana Paula, Heliostar is building multi-asset growth optionality. The Cerro del Gallo project adds a second asset with an after-tax NPV5 of $424 million and an IRR of 33.1 percent. Furthermore, the Goldstrike project in the United States provides meaningful optionality, having been a past-producing heap-leach operation. A 2018 preliminary economic assessment for Goldstrike indicated approximately 95,000 ounces of average annual gold production, with initial capital expenditure of $113.2 million. At a $1,300 per ounce gold price, that study showed an after-tax NPV5 of $129.5 million and an IRR of 29.4 percent.

The update underscores Heliostar's transition from an exploration-focused entity to a developer with a clear path to production, backed by a portfolio of assets that offer leverage to gold prices and geographic diversification. The combination of an advanced flagship project with robust economics and additional projects with established studies provides a pipeline for potential future growth, which is significant for investors seeking exposure to gold development companies with multiple catalysts. The strategic advancement of Ana Paula toward production, coupled with the value inherent in the Goldstrike and Cerro del Gallo assets, positions the company to potentially create shareholder value through project development and resource expansion in a supportive gold price environment.