Heliostar Presents Fourth Quarter 2024 Financial Results
TSX.V: HSTR
OTCQX: HSTXF
Heliostar Presents Fourth Quarter 2024 Financial Results
Vancouver, Canada, February 28, 2025 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1)
(“Heliostar” or the “Company”) today reported financial results for the three months ended December
31, 2024 (“Q4 2024”), which corresponds to the third quarter of Heliostar’s fiscal reporting ye ar 2025.
The Company previously released its gold production for Q4 2024 (see News Release dated February 4,
2025)
Heliostar CEO, Charles Funk, commented, “Q4 2024 was a strong start to production for Heliostar. From
the close of the transaction on November 7, 2024, to the quarter end, our operating mines generated over
C$9.5M in cash flow. The Company’s cash position grew to C$7.7M, and we made the first repayment of
our acquisition debt, which has now been fully paid down. The Company also recogni zed a C$90.5M
accounting gain on the independent valuation of our Mexican assets, demonstrating the accretive nature
of the transaction. We proceed into 2025 with a strengthened balance sheet, growing production and
high-grade exploration results from Ana Paula and La Colorada. We are well set to build Heliostar further
in 2025.”
Q4 2024 Operational and Financial Highlights
Acquisition of Mexican Gold Assets . On July 17, 2024, the Company entered into a binding agreement
with Florida Canyon Gold Inc. (“FCGI”) to acquire (the “Acquisition”) a 100% interest in FCGI’s mining
assets in Mexico (“Mexican Gold Assets”) for a consideration of US$5 million. The acquired Mexican Gold
Assets had recently been spun out from Argonaut Gold Inc. and included the La Colorada mine, the San
Agustin mine, the El Castillo mine , and the Cerro de Gallo Project. In addition, as a consequence of the
Acquisition, conditional option payments and commercial obligations of the Company for the Ana Paula
Project and the San Antonio Project were extinguished. The closing o f the transaction was subject to
certain conditions, including approval of the TSX Venture Exchange and other consents and regulatory
approvals, including approval from the Mexican Federal Economic Competition Commission. On
November 7, 2024, the Company announced the successful fulfillment of the conditions precedent and
completion of the Acquisition. The Acquisition transformed the Company from an exploration and
development company into a gold production company with operating mines and a portfolio of m ining
development projects.
Total gold production of 5,429 ounces in Q4 2024. Following the Acquisition, between November 7, 2024,
and December 31, 2024, the Company produced 5,429 ounces of gold. The gold production was realized
from re -leaching of the heap leach piles at La Colorad a and San Agustin mines , with some additional
contribution from residual production from the leach pads at the El Castillo mine, which is currently in
care and maintenance. The mining of new ore restarted at the La Colorada mine in January 2025 , and,
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subject to regulatory approval of a change of land use permit, the mining of new ore at the San Agustin
mine will begin in 2025.
Total Cash Costs of US$1,241 per gold equivalent ounce (“GEO”) produced in Q4 2024. Following the
Acquisition, between November 7, 2024, and December 31, 2024, the combined cash costs (see “Non-
IFRS Measures”) for the three producing operations was C$1,755 per GEO sold (US$1,241 per GEO sold).
These unit operating costs were an improvement on the 2024 Guidance issued by the Company on
November 14, 2024 (“2024 Guidance”) and resulted from higher gold production at La Colorada mine and
operating cost reductions implemented by the Company.
Total all-in-sustaining costs (“AISC”) of US$1,477 per GEO sold in Q4 2024 . Following the Acquisition,
between November 7, 2024, and December 31, 2024, the combined AISC (see “ Non-IFRS Measures”) for
the three producing mines was C$2,089 per GEO sold (US$1,477 per GEO sold), lower than the 2024
Guidance and resulted from improved gold production at the La Colorada mine and operating cost
reductions implemented by the Company.
Mine Operating Earnings of C$9,562,172 in Q4 2024. This was the Company’s first reporting period with
metals production and the positive results reflected strong operational performance for the period
between November 7, 2024, and December 31, 2024, as well as the Company benefiting from selling into
a rising gold market.
Net income attributable to shareholders of C$84,442,649, or C$0.41 per share, for Q4 2024. Net income
of C$84,442,649 (C$0.41 per share) for Q4 2024 compared to a net loss attributable to shareholders of
C$4,592,823 (-C$0.03 per share) for Q4 2023. The results in Q4 2024 included a Gain on a Bargain Purchase
of C$90,453,747 based on an independent valuation of the Mexican Gold Assets and the elimination of
option payments that the Company previously had on the Ana Paula Project and San Antonio Project. The
valuation of these new assets and commercial benefits is provisional and unaudited and will be finalized
for reporting fiscal year-end 2025, which ends on March 31, 2025.
Strengthened financial position and liquidity : On December 31, 2024, the Company had cash and cash
equivalents of C$7,727,945 and working capital (defined as current assets less current liabilities) of
C$51,969,760. Debt facilities of up to US$10 ,000,000 arranged by the Company in Q3 2024 had a
combined outstanding balance of US$3 ,000,000 on December 31, 2024 : A ll debt was fully repaid by
February 13, 2025.
Restart of mining at La Colorada mine. Following the announcement of the Acquisition in July 2024, the
Company identified a potential new resource at the Junkyard Stockpile, a historic waste rock storage
facility at La Colorada. An evaluation of the Junkyard Stockpile was initiated in August, consisting of
drilling, resource modelling, and metallurgical testing. A first-time disclosure of a Mineral Resource and
Mineral Reserve estimate for the Junkyard Stockpile was included in the technical report prepared for the
La Colorada mine published on January 13, 2025, and with an effective date of October 31, 2024. The
mining of new ore restarted at the Junkyard Stockpile in January 2025.
Drilling success at the El Creston pit at La Colorada mine. On November 26, 2024, the Company
announced the initial results from an ongoing drilling program started in Q4 2024. The program, which
has included up to five drill rigs operational at one time, is designed to reduce the pre-strip requirement
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to expand the El Creston pit, potentially converting previously assumed waste into ore. As of January 31,
2025, 85 drill holes and 12,822 meters had been completed. Results from the drill program will be used
to prepare an updated mineral resource for El Creston and will be included in a new technical report
planned to be produced in mid-2025.
Continued drilling successes at the flagship Ana Paula Project. In September 2024, the Company
commenced a two-phase, 5,000-metre drill program at Ana Paula Project to test the east, west and down
dip extensions of the High Grade Panel and the Parallel Panel targets. As of December 31, 2024, a total of
15 holes had been completed for a total of 3,356 meters. Selected drill results continued to be reported,
including hole AP-24-317 with 87.8 metres @ 16.0 grams per tonne (g/t) gold , including 16.1 metres @
71.8 g/t gold, and hole AP-24-315 with 125.9 metres @ 4.02 g/t gold including 23.6 metres @ 12.5 g/t
gold. The holes grew the High Grade Panel to the north and down-dip, increased resource confidence and
locally improved gold grades compared to the resource model.
Technical Reports were produced for the La Colorada and San Agustin mine s, and a Preliminary
Economic Assessment (PEA) for the San Antonio Project. The Company completed Mineral Resource and
Mineral Reserve estimates and life -of-mine (“LOM”) plans for the La Colorada and for the San Agustin
mines, and a PEA based on Mineral Resource estimates for the San Antonio Project, all of which were
published on January 13, 2025.
Operational and Financial Results
Results are reported for the three months ended December 31, 2024 (“Q4 2024”), which corresponds to
the third quarter of Heliostar’s fiscal reporting year 2025. The Company has previously released its gold
production for Q4 2024.
A summary of the Company’s consolidated operational and financial results for the reporting period is
presented below:
Key Performance Metrics Q4 2024 Q4 2023
Operational
Gold produced 5,429 0
Gold sold 5,145 0
Gold equivalent ounces (“GEOs”) sold 5,277 0
Cost of sales C$1,849 0
Cash cost1 C$1,755 0
All-in sustaining costs1 (“AISC”) C$2,089 0
Financial
Revenues C$19,555,806 C$0
Mine Operating Earnings C$9,562,172 C$0
Gain on bargain purchase C$90,453,747 C$0
Exploration expenses C$2,812,403 C$3,385,606
Net (Loss) Earnings C$84,442,649 C$(4,592,823)
Cash and Cash Equivalents C$7,727,945 C$752,894
Total assets C$174,694,017 C$28,363,295
Working Capital1 C$51,969,760 C$(3,424,082)
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1 - Certain additional disclosures for these specified financial measures have been incorporated
by reference and can be found in the Company’s MD&A for Q4 2024, available on SEDAR+.
Operational Review
Consolidated Production and Costs
Q4 2024 was the Company’s first reporting period with metals production.
Gold production of 5,429 ounces of gold for Q4 2024 was from the La Colorada mine, the San
Agustin mine and the El Castillo mine. The combined gold production and GEO production were
an improvement on the 2024 Guidance issued by the Company.
The combined cash costs for the three producing operations w ere C$1,755 per GEO sold
(US$1,241 per GEO sold). The combined AISC for the three producing mines was C$2,089 per GEO
sold (US$1,477 per GEO sold). The combined cash costs and AISC were an improvement on the
2024 guidance issued by the Company.
La Colorada Mine
Operating results for Q4 2024 were as follows:
La Colorada Q4 2024 Q4 2024
Gold produced oz 1,640 1,640
Gold sold oz 1,617 1,617
Gold equivalent ounces (“GEOs”) sold GEO 1,684 1,684
Cost of sales $/GEO sold US$ 1,434 C$ 2,028
Cash cost1 $/GEO sold US$ 1,329 C$ 1,878
All-in sustaining costs1 (“AISC”) $/GEO sold US$ 1,805 C$ 2,551
In late 2023, the previous owners of La Colorada placed the mine under care and maintenance,
with metals production continuing from the re-leaching of residual leach pads. Since the
Acquisition, between November 7, 2024, and the end of the reporting period, the mine has
produced 1,640 ounces of gold. Total revenues of C$6,231,261 were reported from sales of 1,617
ounces of gold.
For the period since the completion of the Acquisition to the end of the quarter, cash costs were
C$1,878 per GEO (US$1,329 per GEO), which was significantly below the guidance of US$2,200 -
US$2,300. All-In Sustaining Costs (“AISC”) were C$2,551 per GEO (US$1,805 per GEO), which was
below the range of US$2,400 – US$2,500 per GEO, both due to higher gold production.
The Company completed Mineral Resource and Mineral Reserve estimates and a n LOM plan for
the La Colorada Operation . The technical report was published on January 13, 2025, with an
effective date of October 31, 2024. The La Colorada technical report included the first-time
disclosure of a Mineral Resource and Mineral Reserve estimate for the Junkyard Stockpile.
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As of December 31, 2024, the Company is continuing re -leaching the residual leach pads. The
mining of new ore restarted at the Junkyard Stockpile at La Colorada mine in January 2025. The
Company announced p roduction and cost guidance for 2025 from the La Colorada mine ,
published on February 4, 2025.
San Agustin Mine
Operating results for the reporting quarter ending December 31, 2024, were as follows:
San Agustin Q4 2024 Q4 2024
Gold produced oz 3,567 3,567
Gold sold oz 2,971 2,971
Gold equivalent ounces (“GEOs”) sold GEO 3,033 3,033
Cost of sales $/GEO sold US$ 1,418 C$ 2,004
Cash cost1 $/GEO sold US$ 1,364 C$ 1,928
All-in sustaining costs1 (“AISC”) $/GEO sold US$ 1,572 C$ 2,223
In September 2024, the previous owners of San Agustin placed the mine under care and
maintenance, with metals production continuing from the re-leaching of residual leach pads.
Since the acquisition of the mine on November 7, 2024, to December 31, 2024, the mine has
produced 3,567 ounces of gold . Total revenues of C$11,223,030 were reported from sales of
2,971 ounces of gold.
For the period since the Acquisition of the mine on November 7, 2024, to December 31, 2024,
cash costs of C$1,928 per GEO (US$1,364 per GEO) were above the guidance range of US$1,200-
$1,300 and AISC of C$2,223 per GEO (US$1,572 per GEO) were above the range of US$1,400 -
US$1,500 per GEO, due to lower gold production partially offset by and operating cost reductions
implemented by the Company.
The Company completed a Mineral Resource and Mineral Reserve estimate and a LOM plan for
the San Agustin mine, with a technical report published on January 13, 2025, with an effective
date of November 30, 2024.
As of December 31, 2024, the Company is continuing re-leaching the residual leach pads. Subject
to regulatory approval of a change of land use permit, the mining of new ore at the San Agustin
mine will begin in 2025. The Company announced production and cost guidance for 2025 for the
San Agustin mine was published on February 4, 2025.
El Castillo Mine
Operating results for the reporting quarter ending December 31, 2024, were as follows:
El Castillo Q4 2024 Q4 2024
Gold produced oz 222 222
Gold sold oz 557 557
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Gold equivalent ounces (“GEOs”) sold GEO 560 560
Cost of sales $/GEO sold US$ 334 C$ 472
Cash cost1 $/GEO sold US$ 316 C$ 447
All-in sustaining costs1 (“AISC”) $/GEO sold US$ 1,284 C$ 1,815
In late 2022, the previous owners of El Castillo placed the mine under care and maintenance,
with metals production continuing from the re-leaching of residual leach pads. Since the
acquisition of the mine on November 7, 2024, to December 31, 2024, the mine has produced 222
ounces of gold. Total revenues of C$2,101,514 were reported from sales of 557 ounces of gold.
From the Acquisition to the end of the reporting quarter, cash costs were C$447 per GEO sold
(US$316 per GEO) , while AISC w as C$1,815 per GEO sold (US$1,284 per GEO). Cash Costs and
AISC for the period from the Acquisition of the mine on November 7, 2024, to December 31,
2024, were in line with the guidance announced by the Company on November 14, 2024.
Reclamation expenditures at the El Castillo mine for the period November 7 to December 31,
2024, were C$1,562,320, which included rinsing of the east leach pad, reforestation initiatives in
the vicinity of the mine, pit lake modelling and studies addressing water quality. Further
reclamation work will continue to be performed in 2025.
Ana Paula Project
Exploration expenditures at the flagship Ana Paula Project were C$1,798,246 in Q4 2024
(C$1,125,639 in Q4 2023).
On September 17, 2024, the Company announced the commencement of a two-phase, 5,000-
metre drill program at the Ana Paula Project to test the east, west , and down-dip extensions of
the High Grade Panel and Parallel Panel targets. As of December 31, 2024, 15 holes had been
completed, totalling 3,355.6 metres. Drilling included geotechnical and water testing of potential
tailings facility locations.
Exceptional drill results continued to be reported from the Ana Paula Project. The results have
included hole AP -24-317 with 87.8 metres @ 16.0 grams per tonne (g/t) gold , including 16.1
metres @ 71.8 g/t gold, and hole AP-24-315 with 125.9 metres @ 4.02 g/t gold including 23.6
metres @ 12.5 g/t gold. The holes grew the High Grade Panel to the north and down -dip,
increased resource confidence , and locally improved gold grades compared to the resource
model.
Drilling and technical trade-off studies will continue at Ana Paula. The Company is completing a
Technical Report on Ana Paula in 2026 to allow for a construction decision shortly thereafter.
San Antonio Project
The Company completed a PEA based on Mineral Resource estimates for the San Antonio Project,
with a technical report published on January 13, 2025.
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The San Antonio Project requires further development planning and engineering. All major
environmental and other permits will need to be obtained before an investment decision can be
considered by the Company. Based on the encouraging results from the San Antonio Project
technical report: in 2025, the Company will conduct a strategic review of the Project with the
objective of identifying and evaluating the next development steps and challenges. The Company
will also consider additional work programs and al ternative business possibilities to potentially
add Project value to the San Antonio Project as presented in the PEA. This strategic review is
expected to require 3-4 months to complete.
Cerro de Gallo Project
The Cerro del Gallo Project requires further development planning and engineering. All major
environmental and other permits will need to be obtained before an investment decision can be
considered by the Company. In 2025, the Company will conduct a strategic review of the Project
with the objective of identifying and evaluating the next development steps.
Funding Overview
The Company secured funding for the purchase price of the Mexican Gold Assets, operating
working capital requirements, general and administration costs, and other expenditures from a
combination of different sources: private placements (for aggregate gross proceeds of
C$10,218,386, exercise of warrants (for aggregate gross proceeds of C$1,569,384), new debt
facilities, and free cash flow generated from the mining operations since July 11, 2024.
On November 7, 2024, the consolidated cash position in the entities purchased from FCGI was
C$5,980,958. As a condition of the acquisition of the Mexican Gold Assets, FCGI agreed that cash
generated in respect of the Mexican Gold Assets until the closing date, less US$5M in operating
cashflow, would be for the benefit of the Company.
2025 Guidance
On February 4, 2025, the Company published 2025 production and cost Guidance. In 2025, the
Company expects to produce 31,000-41,000 GEOs at an AISC of US$1,950-2,000 per GEO.
Project
Gold Production Silver Production GEO Production3 Cash Cost4 AISC4,5
(Ounces) (Ounces) (Ounces) (US$ per GEO) (US$ per GEO)
La Colorada Mine 17,000-23,300 42,500-51,500 17,500-23,800 1,800-1,950 1,850-1,975
San Agustin Mine1 8,500-11,000 - 8,500-11,000 1,500-1,650 1,700-1,850
San Agustin Restart2 4,500-5,700 34,000-43,000 5,000-6,200 2,350-2,500 2,900-3,035
Consolidated 30,000-40,000 76,500-94,500 31,000-41,000 1,800-1,950 1,950-2,100
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1,2,3,4,5 - Certain additional disclosures for these specified financial measures have been
incorporated by reference and can be found in the Company’s MD&A for Q4 2024, available on
SEDAR+.
Non-IFRS Measures. This news release refers to certain financial measures, such as all -in-sustaining costs,
which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS.
These measures may differ from those made by other companies and, accordingly, may not be comparable to
such measures as reported by other companies. These measures have been derived from the Company’s
financial statements because the Company believes that they are of assistance in understanding the results of
operations and its financial position. Certain additional disclosures for these specified financial measures have
been incorporated by reference and can be found in the Company's MD&A for Q4 2024, available on SEDAR+.
Cash costs. The Company uses cash costs per ounce of metals sold to monitor its operating performance
internally. The most directly comparable measure prepared in accordance with IFRS is the cost of sales. The
Company believes this measure provides investors and analysts with useful information about its underlying
cash costs of operations. The Company also believes it is a relevant metric used to understand its operating
profitability and ability to generate cash flow. Cash costs are measures developed by metals companies in an
effort to provide a comparable standard; however, there can be no assurance that the Company’s reporting of
these non-IFRS financial measures are similar to those reported by other mining companies. They are widely
reported in the metals mining industry as a benchmark for performance but do not have a standardized
meaning and are disclosed in addition to IFRS financial measures. Cash costs include production costs, refinery
and transportation costs and extraordinary mining duty. Cash costs exclude non -cash depreciation and
depletion and site share-based compensation.
AISC. All-in Sustaining Costs ("AISC ”) more fully defines the total costs associated with producing precious
metals. The AISC is calculated based on guidelines published by the World Gold Council (WGC), which were first
issued in 2013. In light of new accounting standards and to support further consistency of application, the WGC
published an updated Guidance Note in 2018. Other companies may calculate this measure differently because
of differences in underlying principles and policies applied. Difference s may also arise due to a different
definition of sustaining versus growth capital. Note that with respect to AISC metrics within the technical
reports, because such economics are disclosed at the project level, corporate general and administrative
expenses were not included in the AISC calculations.
Statement of Qualified Persons
Gregg Bush, P.Eng., Mike Gingles, and Stewart Harris, P. Geo., Qualified Persons, as such term is defined
by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, have reviewed the scientific
and technical information that forms the basis fo r this news release and has approved the disclosure