Investor Perception
Heliostar Metals has a transparent, execution-focused technique. They’re on observe to go from no gold manufacturing in 2023 to 150,000 ounces of annual gold manufacturing in simply a few years. As one of many fastest-growing gold producers within the trade, Heliostar presents a compelling funding alternative for buyers trying to capitalize on a continued gold bull market.
Overview
Heliostar Metals (TSXV:HSTR,OTCQX:HSTXF,FRA:RGG1) is an rising mid-tier gold producer targeted on unlocking high-grade gold manufacturing in Mexico’s premier mining areas.
The corporate quickly expanded its asset base by buying a various portfolio of manufacturing and development-stage property. This positions it for long-term, scalable manufacturing progress.
The corporate holds two working mines (San Agustin and La Colorada), two superior growth initiatives (Ana Paula and Cerro del Gallo), and two further progress property (San Antonio and Unga in Alaska). In contrast to most of its friends, Heliostar is uniquely positioned to fund progress by inside money circulate whereas persevering with to broaden its useful resource base.
The corporate prioritizes capital self-discipline and low-cost acquisitions, considerably increasing its asset base whereas sustaining a lean monetary construction. In contrast to many juniors reliant on heavy dilution, Heliostar leverages inside money circulate from its producing property to drive undertaking growth.
Heliostar Metals is strategically positioned to scale its gold manufacturing to 150,000 ounces per yr within the close to time period by leveraging its producing mines and growth property. San Agustin and La Colorada present rapid money circulate and function the inspiration for manufacturing progress. At La Colorada, a permitted growth plan permits for low-cost will increase in output, whereas the development of Ana Paula Part 1 will considerably improve manufacturing capability.
Trying forward, the corporate has a long-term imaginative and prescient of reaching 500,000 ounces of gold manufacturing yearly by 2030. This progress will probably be pushed by the event of Cerro del Gallo and San Antonio, each positioned as next-generation mines. Moreover, Ana Paula Part 2 is predicted to scale manufacturing past 100,000 ounces per yr, additional solidifying Heliostar’s manufacturing base. The corporate can even pursue strategic mergers and acquisitions to complement natural progress and broaden its undertaking pipeline.
Heliostar’s focus is on minimizing shareholder dilution (and maximizing shareholder worth) by funding progress by inside money circulate. The corporate is reinvesting income from working mines into exploration and growth, guaranteeing environment friendly capital allocation to high-impact property. This self-sustaining strategy is additional strengthened by a powerful institutional investor base, which holds 53 % of the corporate’s shares, offering confidence in Heliostar’s progress trajectory.
Firm Highlights
- Heliostar Metals is quickly advancing from a junior explorer to a mid-tier gold producer, focusing on 150,000 oz per yr within the close to time period and 500,000 oz yearly by 2030.
- Heliostar has quickly expanded its portfolio with key acquisitions, now controlling two producing mines and 4 advanced-stage progress property in Mexico. Added 3.5 million measured and indicated gold ounces for simply US$15 million, reinforcing a capital-efficient progress mannequin.
- The corporate prioritizes capital self-discipline and low-cost acquisitions to broaden its asset base and keep a lean monetary construction. In contrast to many juniors who dilute shareholders to develop, Heliostar leveraged gold manufacturing money flows to drive undertaking growth.
- Its flagship undertaking, Ana Paula, is one in all Mexico’s highest-grade undeveloped gold initiatives. The Heliostar staff took on the permitted open pit design and revised it to an underground operation. The present mine plan has potential to provide greater than 100,000 gold ounces per yr.
- In 2024, Heliostar acquired the La Colorada and San Agustin gold initiatives. Manufacturing at these two mines present rapid money circulate. That funds Heliostar’s exploration and growth with out important dilution.
- CEO Charles Funk leads a seasoned staff of mine builders and exploration specialists with a observe document of growing world-class deposits.
- The corporate additionally incorporates a favorable shareholder registry: 53 % institutional buyers, 42 % high-net-worth and retail buyers, and 5 % held by the board and administration.
Key Tasks
Ana Paula (Flagship Growth Challenge)
Ana Paula Challenge NI 43-101 Technical Report Mineral Useful resource Estimate Replace efficient November 27, 2023.
The Ana Paula undertaking is Heliostar’s flagship high-grade underground gold deposit, situated within the Guerrero Gold Belt, Mexico. With 710,920 oz measured and indicated gold (6.6 g/t) and 447,500 oz inferred gold (4.24 g/t), the undertaking has important exploration upside. Initially envisioned as an open-pit operation, Heliostar has transitioned Ana Paula into an underground mining undertaking to enhance economics and scale back environmental influence. The corporate is at the moment conducting a feasibility examine, anticipated to be accomplished in late 2025, with a development choice to observe.
Part 1 manufacturing is projected at 50,000 oz per yr, scaling to greater than 100,000 oz in Part 2. Exploration is ongoing to broaden the high-grade panel, with distinctive drill outcomes, together with 125.9 meters @ 4.02 g/t gold (23.6 meters @ 12.5 g/t gold). Ana Paula is a high-impact, high-grade asset that may type the spine of Heliostar’s manufacturing progress.
La Colorada Mine
Positioned in Sonora, Mexico, La Colorada is one in all Heliostar’s cash-flow-generating property, at the moment in manufacturing with a 2025 steerage of 17,000 to 23,300 oz gold. The mine incorporates a permitted growth plan, together with the Creston Pit Cutback, which accommodates 220,000 oz possible reserves, and the Veta Madre Pit, which holds a further 163,000 oz possible reserves (awaiting allowing).
Heliostar is actively drilling under the prevailing pits, focusing on high-grade underground extensions. The corporate can be evaluating low-grade stockpiles and optimizing heap leach restoration to boost profitability. By Q1 2025, La Colorada’s growth will probably be restarted, resulting in a big improve in gold output.
San Agustin Mine
San Agustin is a low-cost, open-pit heap leach gold mine situated in Durango, Mexico, producing between 14,650 to 14,950 oz gold in 2024. The mine gives important upside by heap leach reprocessing, with a plan to get better 20 Mt of non-agglomerated, run-of-mine materials.
The Nook Allow Cutback accommodates a further 86,000 oz gold and 4.5 Moz silver, requiring approval earlier than mining. Moreover, San Agustin has sulfide mineralization potential at depth, which stays underexplored. The mine continues to be a constant money circulate generator, supporting Heliostar’s growth pipeline.
Cerro del Gallo Challenge
Cerro del Gallo is a large-scale, low-cost growth asset situated in Guanajuato, Mexico. With 2.86 Moz measured and indicated gold and 1 Moz inferred gold, the undertaking represents a long-term progress alternative for Heliostar.
The corporate is at the moment advancing allowing efforts to unlock the heap leach processing potential, which may considerably contribute to its mid-term manufacturing targets. Cerro del Gallo is predicted to turn out to be a core asset as Heliostar scales towards the longer-term 500,000 oz per yr manufacturing purpose.
Professional Forma Complete Gold Assets
San Antonio Challenge
situated in Baja California Sur, Mexico, San Antonio is an open-pit gold growth undertaking with a 1.74 Moz measured and indicated gold useful resource. The undertaking is at the moment awaiting environmental allowing, after which Heliostar will assess growth timelines. San Antonio’s favorable metallurgy and placement make it a strategic asset with potential for future near-term manufacturing.
Unga Challenge
The Unga undertaking in Alaska is a high-grade gold exploration asset, with an inferred useful resource of 384,000 oz gold (13.8 g/t). Whereas not a major focus, the undertaking stays a long-term high-grade progress alternative.
Administration Staff
Charles Funk – President & CEO
Charles Funk brings over 18 years of expertise in enterprise growth and exploration. Earlier than becoming a member of Heliostar, he held senior roles at Newcrest Mining and OZ Minerals, two of the world’s most distinguished mining corporations. Funk led the Panuco discovery for Vizsla Silver in 2020, demonstrating his sturdy experience in figuring out and advancing high-potential gold and silver deposits. Below his management, Heliostar has pursued transformational acquisitions which have quickly expanded the corporate’s asset base whereas sustaining capital effectivity.
Gregg Bush – Chief Working Officer
A extremely regarded mine builder, Gregg Bush has a powerful observe document in mine growth, undertaking integration, and operations administration. He beforehand served as COO of Capstone Mining for 9 years and as SVP of Mexico for Equinox Gold. With deep expertise in Latin American mining operations, Bush performs a pivotal function in advancing Heliostar’s manufacturing property, optimizing operations and guaranteeing environment friendly undertaking execution.
Sam Anderson – VP Tasks
Sam Anderson brings 20 years of expertise in mine geology and undertaking administration, together with 17 years at Newmont, the place he served as mine geology superintendent and senior supervisor of exploration enterprise growth. He performed a big function within the growth of Newmont’s Merian Mine in Suriname, from useful resource stage to steady-state operation. His experience in mineral useful resource growth and undertaking analysis is essential to advancing Ana Paula and Cerro del Gallo towards manufacturing.
Mike Gingles – VP of Company Growth
With over 35 years of company and entrepreneurial expertise within the mining trade, Mike Gingles has been a key participant in main mining offers. He led the Pueblo Viejo and Turquoise Ridge transactions for Placer Dome, two of the biggest gold property in North America. His experience in strategic partnerships, company finance, and undertaking acquisitions has positioned Heliostar for transformational progress.
Hernan Dorado – VP Sustainability & Particular Tasks
As a fifth-generation miner, Hernan Dorado has greater than 20 years of expertise within the mining sector, together with a founding function at Guanajuato Silver, the place he served as COO. He has intensive expertise in Mexican mining operations, allowing and sustainability practices, guaranteeing that Heliostar’s initiatives meet the best environmental and social duty requirements.
Vitalina Lyssoun – Chief Monetary Officer
Vitalina Lyssoun is a chartered skilled accountant (CPA, CA) with over 16 years of monetary experience with a give attention to the useful resource sector. She has strengths in Canadian and US public firm reporting, regulatory and tax compliance, and inside controls. She is fluent in Spanish and has expertise in operations primarily based in Mexico, Central America and West Africa. Most just lately, Lyssoun constructed and led the company accounting staff at Gatos Silver, together with by their current merger with First Majestic Silver.
