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Heliostar Metals Ltd. TSXV: HSTR / OTCQX: HSTXF

Introduction

Heliostar Metals Ltd. is an emerging gold producer and developer focused mainly on Mexico, with additional project exposure in the United States. The company’s current story is not just exploration. Heliostar has already crossed into producer status through its producing La Colorada and San Agustin mines, while its main growth engine is the high-grade Ana Paula underground gold project in Guerrero, Mexico.

The bull case is simple: Heliostar is trying to build a self-funded gold growth platform. Instead of relying only on equity dilution like many junior developers, the company now has operating cash flow from La Colorada and San Agustin. That cash flow is intended to help fund exploration, development, and early works at Ana Paula. Management’s larger ambition is to become a mid-tier gold producer, with a stated long-term target of more than 500,000 ounces of gold production per year by 2030.

What makes Heliostar interesting is the combination of near-term production, high-grade development upside, and a large optionality portfolio. The company owns 100 percent of a portfolio that includes La Colorada, San Agustin, Ana Paula, Cerro del Gallo, San Antonio, Goldstrike, and Unga. The portfolio contains producing mines, development-stage projects, and exploration optionality. Heliostar reports total measured and indicated gold resources of about 7.24 million ounces and inferred gold resources of about 1.43 million ounces across the portfolio.

The main risk is execution. Heliostar still needs to prove that the producing mines can deliver consistent cash flow, that Ana Paula can be permitted, financed, built, and operated as planned, and that the company can grow without over-diluting shareholders. The upside is meaningful, but the company is now moving from “story” into “delivery mode.”

The strongest upside comes from four things: current production from La Colorada and San Agustin, the high-grade Ana Paula development project, the large Cerro del Gallo growth project, and the ability to use cash flow instead of constant equity dilution to move the portfolio forward.

Projects / Location / MRE / Grades

Project 1: Ana Paula Project, Guerrero, Mexico (Flagship Growth Asset)

Main asset

Ana Paula is Heliostar’s flagship development project. It is located in Guerrero, Mexico, in the Guerrero Gold Belt. The company acquired Ana Paula in 2023 for US$10 million, despite more than US$100 million having previously been invested into the project. The project already has meaningful infrastructure, including an 84-person camp, surface rights ownership, strong local support, a portal, a 412-metre underground decline, and electrical grid connection.

This is important because Ana Paula is not starting from zero. A project with a camp, power access, portal, underground decline, and local support has a much better starting point than a remote greenfield project where everything needs to be built from scratch.

Ana Paula Resource / Grade Feel

Ana Paula is high grade. The current PEA mine plan is based on underground mining with a PEA mill feed grade of 5.37 g/t gold.

Resource Category	Tonnes	Grade	Contained Gold
Measured	1.30Mt	7.60 g/t Au	317,000 oz Au
Indicated	2.97Mt	4.44 g/t Au	424,000 oz Au
Measured + Indicated	4.27Mt	5.40 g/t Au	742,000 oz Au
Inferred	4.04Mt	3.96 g/t Au	514,000 oz Au

For an underground gold development project, these are strong grades. The key question is not whether the project has grade. It clearly does. The key question is whether Heliostar can convert enough of this resource into reserves, complete the feasibility study, secure permits, arrange financing, and build the mine without destroying shareholder value.

Ana Paula PEA

PEA Metric	Value
Mine type	Underground mine using long-hole open stoping
Throughput	1,800 tpd
Mine life	9 years
Processing	Flotation, BIOX and CIL
Initial capex	US$300M
AISC	US$1,011/oz AuEq
After-tax NPV5% at US$2,400/oz gold	US$426M
After-tax IRR at US$2,400/oz gold	28.1%
Average annual after-tax FCF	US$93.8M
Upside case at US$3,800/oz gold	US$1.012B after-tax NPV5% and 51.3% IRR

Ana Paula is the asset that could change Heliostar from a small producer into a serious growth company. Current production from La Colorada and San Agustin gives the company oxygen. Ana Paula is the engine that could give it real scale.

Development status

Heliostar is targeting commercial production from Ana Paula in 2028. The company says the feasibility study is on track for the first half of 2027, with ongoing drilling, permitting work, metallurgical testing, decline advancement, financing discussions, construction, and production all part of the 2026–2028 development pathway.

Project 2: La Colorada Mine, Sonora, Mexico

La Colorada is one of Heliostar’s producing mines in Mexico. It is a 100 percent owned open-pit heap leach operation in Sonora. The mine is important because it provides near-term cash flow while the company advances Ana Paula.

For 2026, Heliostar guides La Colorada to produce 20,000–22,300 ounces of gold and 130,000–145,000 ounces of silver. Cash cost guidance is US$1,650–US$1,750 per ounce of gold, with AISC guidance of US$1,775–US$1,875 per ounce.

La Colorada has a probable reserve of 376,000 gold ounces at 0.68 g/t gold. The 2025 technical report shows a six-year mine life, with an upside case NPV5% of US$243 million and IRR of 168.4% at US$3,500/oz gold.

The major near-term catalyst is the Veta Madre expansion. Heliostar expects pre-stripping in the second half of 2026 and ore production from Veta Madre starting in the first half of 2027. The company is also studying Veta Madre Plus and deeper underground potential at La Colorada.

La Colorada is not high grade compared with Ana Paula. It is a lower-grade open-pit heap leach mine. But it has value because it is already producing, has infrastructure, and can generate cash in a strong gold price environment. The asset is not the main multibagger driver by itself, but it helps fund the real growth engine.

Key Item	Detail
Ownership / mine type	100% owned open-pit heap leach operation
2026 gold guidance	20,000-22,300 oz Au
2026 silver guidance	130,000-145,000 oz Ag
Cash cost guidance	US$1,650-US$1,750/oz Au
AISC guidance	US$1,775-US$1,875/oz Au
Probable reserve	376,000 oz Au at 0.68 g/t Au
Mine life in 2025 technical report	6 years
Upside case	NPV5% of US$243M and IRR of 168.4% at US$3,500/oz gold
Near-term catalyst	Veta Madre pre-stripping in H2 2026 and ore production in H1 2027

Project 3: San Agustin Mine, Durango, Mexico

San Agustin is Heliostar’s second producing mine in Mexico. It is a 100 percent owned open-pit heap leach gold-silver mine in Durango. Heliostar successfully restarted open-pit production in December 2025, poured first gold from newly stacked ore in late January 2026, and reached steady-state production in Q1 2026.

For 2026, San Agustin is expected to produce 30,000–32,700 ounces of gold and 160,000–175,000 ounces of silver. Cash cost guidance is US$2,000–US$2,100 per ounce of gold, with AISC guidance of US$2,150–US$2,250 per ounce.

San Agustin is not a low-cost mine, but it is a useful cash-flow bridge. In Q1 2026, San Agustin produced 4,853 ounces of gold and 10,318 ounces of silver, and management says mining of the Corner area reserve will continue through 2026 and into 2027.

San Agustin is low grade. The reserve grade is around 0.29 g/t gold. This is not the kind of asset that gets investors excited because of grade. The value is in the heap leach infrastructure, restart, cash flow contribution, and exploration around the pit. The company is drilling 15,000–18,000 metres to test oxide expansion targets and also sees sulphide exploration potential beneath and around the current pit.

Key Item	Detail
Ownership / mine type	100% owned open-pit heap leach gold-silver mine
Restart status	Open-pit production restarted in December 2025; steady-state production reached in Q1 2026
2026 gold guidance	30,000-32,700 oz Au
2026 silver guidance	160,000-175,000 oz Ag
Cash cost guidance	US$2,000-US$2,100/oz Au
AISC guidance	US$2,150-US$2,250/oz Au
Q1 2026 production	4,853 oz Au and 10,318 oz Ag
Grade feel	Low grade, with reserve grade around 0.29 g/t Au

Project 4: Cerro del Gallo Project, Guanajuato, Mexico

Cerro del Gallo is Heliostar’s second major development project after Ana Paula. It is a 100 percent owned gold-silver open-pit heap leach development project in Guanajuato, Mexico.

The December 2025 PFS shows a 15-year mine life producing about 86,000 gold-equivalent ounces per year at an AISC of US$1,390/GEO. Initial capex is estimated at US$195.3 million. At US$2,400/oz gold, the PFS shows an after-tax NPV5% of US$424 million and IRR of 33.1%. At US$3,900/oz gold, the upside case shows an after-tax NPV5% of US$972 million and IRR of 59.3%.

Cerro del Gallo is important because it gives Heliostar a second large growth leg after Ana Paula. Management’s strategy is to use Ana Paula and Cerro del Gallo to move toward 300,000 ounces of annual gold-equivalent production by the end of the decade.

Cerro del Gallo is not high grade. It is a large, lower-grade open-pit heap leach project. But the project has scale, mine life, and leverage to gold price. It is more of a long-life production platform than a high-grade underground story.

Key Item	Detail
Ownership / mine type	100% owned open-pit heap leach development project
Study	December 2025 PFS
Mine life	15 years
Average annual production	About 86,000 AuEq oz/year
AISC	US$1,390/GEO
Initial capex	US$195.3M
After-tax NPV5% at US$2,400/oz gold	US$424M
After-tax IRR at US$2,400/oz gold	33.1%
Upside case at US$3,900/oz gold	US$972M after-tax NPV5% and 59.3% IRR

Project 5: San Antonio Project, Baja California Sur, Mexico

San Antonio is another 100 percent owned development project in Mexico. It is an open-pit heap leach project with a 2024 PEA. The project has a 14-year mine life concept, US$131 million initial capex, and about 1.741 million ounces of measured and indicated gold resources. Heliostar describes it as attractive optionality with low capex, low AISC, and long mine life, but it still requires environmental permitting before development.

This is not the main near-term driver. It is portfolio optionality. If gold remains strong and permitting improves, San Antonio could become another development card in the future.

Key Item	Detail
Ownership / stage	100% owned development project
Mine type	Open-pit heap leach
Study	2024 PEA
Mine life concept	14 years
Initial capex	US$131M
M&I resource	About 1.741Moz Au
Current role	Optionality asset requiring environmental permitting

Project 6: Goldstrike Project, Utah, USA

Goldstrike is a pipeline asset in Utah, USA. Heliostar describes it as a Carlin-style gold system in the Great Basin with 975,000 ounces of measured and indicated gold resources grading 0.46 g/t gold. It also includes Antimony Ridge, giving the company some critical minerals exposure.

Goldstrike is not the main reason to own Heliostar today, but it adds jurisdictional diversification and future optionality. The asset could become more interesting if the company advances a PFS and demonstrates a clear economic development path.

Key Item	Detail
Asset type	Carlin-style gold system in the Great Basin
Resource	975,000 oz M&I gold grading 0.46 g/t Au
Additional optionality	Antimony Ridge critical minerals exposure
Current role	Pipeline development / exploration optionality

Share Structure / Ownership / Insiders

Capital Structure

As of April 30, 2026, Heliostar reported:

Capital Structure Item	Value
Issued and outstanding shares	279.1 million
Stock options outstanding	15.9 million
Restricted share units outstanding	1.4 million
Warrants outstanding	5.8 million
Fully diluted shares	302 million

The company’s website showed a TSXV share price of C$2.08 and OTCQX price of US$1.50 at the time of the stock information page. Using 302 million fully diluted shares and US$1.50 per OTCQX share gives an approximate fully diluted market cap of US$453 million. Using C$2.08 per TSXV share gives an approximate fully diluted market cap of C$628 million.

Share structure feel

The share structure is reasonable for a small producer with multiple assets. It is not tiny, but it is also not broken. Fully diluted shares of about 302 million is acceptable, especially because the company now has producing assets, development assets, and no debt.

The key positive is that Heliostar is trying to use operating cash flow to fund growth. In Q1 2026, the company reported US$38.7 million in cash, US$70.0 million in working capital, and no debt.

This is important. Many junior miners must constantly issue shares to survive. Heliostar has a chance to reduce that pressure if La Colorada and San Agustin keep producing cash while Ana Paula advances.

Ownership / Insiders

Heliostar’s May 2026 presentation lists top shareholders as Eric Sprott at 15 percent, Franklin Templeton at 9.7 percent, and Adrian Day / Europac at 5.6 percent. It also shows the ownership mix as 53 percent institutional, 5 percent high-net-worth, and 42 percent retail.

This is positive. Eric Sprott’s involvement gives credibility in the precious metals market, while institutional ownership suggests Heliostar is already on the radar of larger capital pools. But ownership alone does not remove operational risk. The company still needs to execute.

People / Management

Charles Funk

President & CEO

Charles Funk is Heliostar’s President and CEO. His background includes more than 20 years in business development and exploration with companies including Newcrest Mining and OZ Minerals. Heliostar also credits him with leading the Panuco discovery for Vizsla Silver in 2020.

Management feel: Funk is highly relevant for Heliostar’s current phase. He has discovery and corporate development experience, and Heliostar’s acquisition strategy has already changed the company from a single-project developer into a producer with a development pipeline. His main test now is execution: production consistency, Ana Paula feasibility, permitting, financing, and disciplined growth.

Gregg Bush

Chief Operating Officer

Gregg Bush is Heliostar’s COO. The company describes him as a proven mine builder with a strong track record in mine development, project integration, and operations. He previously served as COO of Capstone Mining for nine years and SVP Mexico for Equinox Gold.

Management feel: This is a strong fit. Heliostar now needs real operating discipline, not just exploration promotion. A COO with mine-building and Mexico operating experience is important.

Hernan Dorado

VP Operations

Hernan Dorado has more than 20 years of mining experience in Mexico and internationally. Heliostar says he was a founding member of Guanajuato Silver and held roles including COO.

Management feel: This is useful because Heliostar’s core operating base is Mexico. Local operating knowledge matters, especially for permitting, labour, procurement, contractors, and community relationships.

Sam Anderson

VP Projects

Sam Anderson has 25 years of experience, including 17 years at Newmont as Mine Geology Superintendent and Senior Manager of Exploration Business Development. He also held significant roles at the Merian Mine in Suriname from resource stage through studies, construction, and steady-state operation.

Management feel: Strong project development background. This matters for Ana Paula because the company must move from PEA to feasibility, then from feasibility to construction.

Stephen Soock

VP Investor Relations & Development

Stephen Soock is a professional engineer and CFA. He previously spent eight years as a sell-side research analyst at Stifel covering growth and development companies in the junior precious metals sector.

Management feel: Useful capital markets and technical bridge. Heliostar will need to communicate clearly with investors as it moves through feasibility, financing, and construction decisions.

Risks / Catalysts / Timeline

Key Risks

Key Risk	Why It Matters
Permitting risk	Ana Paula still needs permitting amendments and approvals before underground production can become reality.
Development risk	Ana Paula is currently at PEA stage. The feasibility study is expected in H1 2027, but the project still needs to prove reserve conversion, engineering, metallurgy, capital cost control, and financing.
PEA risk	Ana Paula’s mine plan includes inferred resources. A PEA is preliminary, and there is no certainty that the economic results will be realized.
Operating risk	La Colorada and San Agustin must continue producing reliably. Any production miss, cost increase, or leach recovery issue could weaken the self-funded growth model.
Cost risk	San Agustin has relatively high AISC guidance of US$2,150–US$2,250/oz in 2026. This asset remains sensitive to gold price and operating execution.
Financing risk	Ana Paula initial capex is estimated at US$300 million. Even with operating cash flow, Heliostar may still need project debt, strategic financing, streaming, or equity depending on gold prices and market conditions.
Dilution risk	Heliostar’s strategy is to reduce equity dilution through cash flow, but development companies often still need capital. If market conditions weaken, dilution could return.
Mexico jurisdiction risk	Mexico remains an important mining jurisdiction, but permitting timelines, community relations, security, taxation, and political conditions must be monitored.
Metallurgical risk	Ana Paula uses flotation, BIOX, and CIL processing. Recoveries and payability must be proven at operating scale.
Execution risk	The company is trying to grow quickly from 50,000–55,000 ounces in 2026 toward 170,000–200,000 ounces in 2028 and eventually 300,000 ounces by 2030. Fast growth can create mistakes if management overextends.

Catalysts

Timeline	Catalyst
2026	Continued production from La Colorada and San Agustin
2026	San Agustin steady-state production contribution
2026	La Colorada Veta Madre pre-stripping in H2 2026
2026	Ana Paula ongoing infill and step-out drilling
2026	Ana Paula permit submission and feasibility work
2026	Ana Paula decline advancement targeted in H2 2026
2026	Goldstrike technical report and PFS progress
2027	Ana Paula feasibility study expected in H1 2027
2027	La Colorada Veta Madre ore production expected in H1 2027
2027	Potential Ana Paula construction decision
2028	Targeted Ana Paula commercial production
2028 onward	Potential ramp toward 170,000–200,000 ounces per year
2030	Longer-term target to become a 300,000–500,000 ounce per year producer

Expected Timeline to Full Production

Timeline	Expected Progress Toward Production
2026	This is the execution year. Heliostar needs to show that La Colorada and San Agustin can generate cash flow while funding exploration and development. The company’s official 2026 guidance is 50,000–55,000 ounces of gold and 290,000–320,000 ounces of silver at consolidated AISC of US$2,025–US$2,125/oz gold. Ana Paula work should continue through drilling, permitting, metallurgical testing, feasibility study work, and decline advancement. La Colorada’s Veta Madre pre-stripping is planned for H2 2026.
2027	The key milestone is Ana Paula’s feasibility study, expected in H1 2027. If the feasibility study confirms the PEA economics and permitting progresses, the market may begin valuing Heliostar less like a small producer and more like a growth developer with a clear path to 100,000+ ounces per year from Ana Paula. La Colorada’s Veta Madre ore production is expected to begin in H1 2027, which should help production growth.
2028	Ana Paula is targeted for commercial production in 2028. If achieved, this is the transformational moment. Ana Paula could add around 101,000 ounces per year after ramp-up at low AISC, changing Heliostar’s margin profile and production scale.
2029-2030	If Ana Paula works and Cerro del Gallo advances, Heliostar could move toward 300,000 ounces of annual gold-equivalent production by the end of the decade. Management’s longer-term ambition is even larger, targeting more than 500,000 ounces per year by 2030.

Valuation

Valuation Assumption

This valuation is only an illustrative upside framework, not a prediction. It uses fully diluted shares of 302 million. For current operations, we assume 52,500 ounces of annual gold production at the midpoint of 2026 guidance and US$2,075/oz AISC midpoint, with a rough 70 percent after-tax conversion on mine-level margin. For Ana Paula, we extrapolate from the company’s PEA after-tax free cash flow figures of US$93.8 million at US$2,400/oz gold and US$168.0 million at US$3,800/oz gold.

Updated Valuation Summary Table

Illustrative value per fully diluted share, converted to CAD at 1.37 CAD/USD

Gold Price	Asset	Estimated Avg Annual After-Tax FCF	10× FCF / Share	15× FCF / Share	20× FCF / Share
US$6,000/oz	Current Ops	US$144.2M	C$6.54	C$9.81	C$13.08
US$6,000/oz	Ana Paula	US$284.6M	C$12.91	C$19.37	C$25.82
US$6,000/oz	Combined	US$428.8M	C$19.45	C$29.18	C$38.90
US$7,000/oz	Current Ops	US$181.0M	C$8.21	C$12.32	C$16.42
US$7,000/oz	Ana Paula	US$337.6M	C$15.31	C$22.97	C$30.63
US$7,000/oz	Combined	US$518.6M	C$23.53	C$35.29	C$47.05

Valuation feel: Heliostar has strong leverage to gold price because Ana Paula’s AISC is low relative to current gold prices. The current producing mines are useful, but Ana Paula is the real valuation driver. The market will likely reward Heliostar much more if the company delivers the feasibility study, permitting, financing and construction pathway without heavy dilution.

Summary & Quick Scorecard

Category	Points	Overall
Company Overview	Stock ticker: Heliostar Metals Ltd. Exchange: TSXV: HSTR / OTCQX: HSTXF Main metal: Gold Project phase: Producer + Developer Main jurisdiction: Mexico, with USA optionality	—
1. Management	Previous successful project, discovery, mine build, or company sale: Yes Exploration to development experience: Yes Big mining company experience: Yes Strong capital markets track record: Yes Management has discovery, operations, mine development, Mexico, and capital markets experience. This is a major positive because Heliostar is no longer only an explorer. It needs real operators.	✅ Strong
2. Projects	High grades: Yes, especially Ana Paula MRE size: Yes Optionality: Yes Existing production: Yes Ana Paula is high grade and potentially low cost. La Colorada and San Agustin provide production. Cerro del Gallo, San Antonio, Goldstrike, and Unga add optionality.	✅ Strong
3. Cost Structure	Low AISC: Yes for Ana Paula, no for San Agustin Low capex / existing infrastructure: Mixed, but positive overall Ana Paula’s projected AISC is very attractive at US$1,011/oz, but current operations have higher costs. San Agustin’s 2026 AISC guidance is above US$2,000/oz, so cost discipline must be watched.	✅ Good
4. Share Structure Discipline	Fully diluted shares: 302,000,000 Fully diluted market cap: Around US$453,000,000 based on US$1.50 OTCQX price Debt: US$0 reported in Q1 2026 The share count is acceptable for a producer-developer with multiple assets. The best part is no debt and working capital strength. The key risk is whether Ana Paula financing causes dilution later.	✅ Strong
5. Insider / Ownership	Eric Sprott: 15 percent Franklin Templeton: 9.7 percent Adrian Day / Europac: 5.6 percent Institutional / HNW / retail mix: 53 percent institutional, 5 percent HNW, 42 percent retail, insider aligned around 30%. The shareholder base is strong. Eric Sprott and institutional ownership give credibility. But ownership does not replace execution.	✅ Strong
6. Location	Mainly Tier 2. Mexico: Main operating and development jurisdiction USA: Optionality through Goldstrike and Unga Mexico is a real mining country with skilled labour and infrastructure but permitting and political risk must be monitored.	✅ Good

⭐ RT Rating, Commentary

Heliostar Metals is on our watchlist.

We would rate this as 5 out of 5 stars.

Heliostar ticks many important boxes: producer status, cash flow, no debt, strong shareholders, a high-grade flagship project, big resource base, and a management team with actual operating and development experience. The company is no longer just selling a dream. It has real mines, real ounces, real cash flow, and a serious plan to build Ana Paula.

Few drawback need to be careful execution risk and location risk. Ana Paula still needs feasibility, permits, financing, construction, and commissioning. San Agustin is also relatively high cost, and Mexico permitting risk needs to be respected. Heliostar has a very attractive setup, but it still has to prove that the self-funded growth model works.

The big prize is Ana Paula. If Heliostar can bring Ana Paula into production in 2028 without major dilution, this could become a very different company. Current operations keep the lights on. Ana Paula could change the valuation. Cerro del Gallo could add the second wave. That is the story. For now, Heliostar looks like a strong gold producer-developer with serious multibagger potential, but it must execute cleanly.

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