Heliostar Presents Second Quarter 2025 Financial Results Q2 2025 Quarter Highlights
TSX.V: HSTR
OTCQX: HSTXF
Heliostar Presents Second Quarter 2025 Financial Results
Q2 2025 Quarter Highlights
• Q2 2025 production of 7,396 Gold Equivalent Ounces (GEOs)
• Q2 2025 sales of 8,556 GEOs
• Consolidated cash costs of $1,413 per GEO sold and consolidated a ll-in sustaining costs (“AISC”)
of $1,541 for Q2 2025
• The Company is on track to achieve its annual sales guidance of 3 1,000 to 41,000 GEOs, annual
cash cost of $1,800-1,900 per GEO sold and AISC of $1,950-2,100 per GEO sold for 2025
• Mine operating earnings of $14.3M in Q2 2025
• Closing the quarter with $29.7M in cash, $51.7 million in working capital and no debt
Vancouver, Canada, September 2, 2025 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1)
(“Heliostar” or the “Company”) today reported unaudited financial results for the three months ended
June 30, 2025 (“Q2 2025”), which corresponds to the first quarter of Heliostar’s fiscal reporting year 2025.
Results are presented in US dollars, unless stated.
Heliostar CEO, Charles Funk, commented, “Q2 2025 was another strong quarter for Heliostar with the
mines continuing to perfor m as expected, funding our production and resource growth programs , and
further strengthening our financial position. Our consolidated margin continues to expand in a strong gold
price environment, with the Company reporting an o perating margin of 51% . Looking forward, the
Company is restarting mining at San Agustin in late 2025 and expects to expand its production profile in
Q4 202 5 and into 2026. We continue to deliver on our commitment to grow the Company to a mid-
tier gold producer.
The strong balance sheet and operating cash flow allow Heliostar to accelerate our growth plans. At La
Colorada, we are drilling additional historical stockpiles with the objective of extending production through
2026 ahead of the planned pit expansion at Veta Madre. At San Agustin, the Company has satisfied all
permitting requirements to dev elop the Corner area, and preparations are ongoing to restart mine
operations before the end of the year. This restart is fully funded from cash on the Company’ s balance
sheet. Further, the Company has committed to an expanded $9.5 million program at Ana Paula in 2025,
including a minimum 15,000 metre drilling with the objective of delivering mineral reserves to support a
10-year life of mine in the upcoming feasibility study.
In the quarter, the Company has been working on a number of technical reports to unlock additional value
from our assets. The slightly delayed, updated La Colorada technical report will be completed in the
coming weeks. A pre-feasibility study is planned for Cerro Del Gallo this year, and the feasibility study for
Ana Paula is continuing to progress.”
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Second Quarter 2025 Quarterly Conference Call
Heliostar will host a quarterly conference call on T hursday, September 4, 2025, at 1 1:00 AM, Eastern
Time/8:00 AM Pacific Time. The call will provide a corporate update following the release of our financial
and operating results for the second quarter of 2025.
Please use the link here to register for the call or visit the Company website at www.heliostarmetals.com.
Q2 2025 Operational and Financial Highlights
Total gold production of 7, 396 gold equivalent ounce s (“GEO”) (7,262 gold ounces) in Q2 2025. Gold
production was realized from mining the Junkyard Stockpile at the La Colorada mine, as well as re-leaching
the previously stacked ore at the La Colorada and the San Agustin mines. Consolidated production also
benefited from a nominal contribution from residual production from the rinsing of residual leach pads at
the El Castillo mine. Production year-to-date (“YTD”) 2025 is consistent with the 2025 guidance issued by
the Company on February 4, 2025, which remains unchanged.
Total Cash Cost of $1,413 per GEO produced in Q 2 2025. The combined YTD cash cost (see “Non-IFRS
Measures”) is $1,257 per GEO.
Total AISC of $1,541 per GEO sold in Q 2 2025. The consolidated YTD AISC (see “ Non-IFRS Measures is
$1,602 per GEO.
Both Total Cash Costs and AISC are ahead of the 2025 guidance range; however, the Company anticipates
costs will increase in the lat ter half of the year as residual leaching at San Agustin decline s ahead of
stacking new ore from the Corner area, and particularly due to one -off capital costs incurred to restart
primary mining from the Corner area.
Mine Operating Earnings of $14.3 million in Q2 2025. The Company continued to report strong results in
Q2 2025 with continued improvements in operating performance , as well as benefiting from selling into
a rising gold market. Mine operating earnings YTD 2025 are $26.1 million.
Net income attributable to shareholders of $1.9 million, or $0.01 per share, for Q2 2025. Net income of
$1.9 million ($0.01 per share) for Q2 2025 compared to a net loss attributable to shareholders of $2.3
million ($0.01 loss per share) for Q2 2024.
Strengthened financial position and liquidity: On June 30, 2025, the Company had cash of $29.7 million
and working capital (defined as current assets less current liabilities) of $51.7 million, with an increase in
working capital of $10.1 million over the prior quarter. As of June 30, 2025, the Company had no debt.
Achieved stable production at La Colorada mine. The mining of new ore restarted at the Junkyard
Stockpile in January 2025. Production from the Junkyard Stockpile has increased steadily during Q2 2025,
with operating costs as expected, grade in line with the reserve model and ore tonnes reconciling slightly
higher than expected . Production YTD 2025 was 7,850 GEOs (7,572 gold ounces). Ore feed from the
Junkyard Stockpile is planned to continue into 2026, with other historical stockpiles identified to provide
additional material to be crushed and stacked on the leach pad thereafter. Further, subject to receiving
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certain regulatory approvals, the Company intends to expand the Veta Madre pit to exploit 43k ounces of
gold reserves.
Restart of mining at San Agustin. The Company was able to complete the regulatory requirements to
enable the approval to restart mining at San Agustin from the Corner area. Preparation work to commence
mining is underway, and the Company anticipates production from the Corner starting in Q4 2025 and
continuing into 2027. Recoverable reserves at the Corner are estimated at 44.5k ounces of gold.
Continuing to advance the development of the flagship Ana Paula Project. In July 2025, the Company
commenced a n expanded $ 9.5 million exploration and development program , including a minimum
15,000 metre drill program at Ana Paula Project . The program has the objective of upgrading existing
inferred mineral resources to demonstrate more than a 10-year mine life in the upcoming feasibility study.
Technical and regulatory programs are being advanced in parallel and will continue through 2026 to
complete a bankable feasibility study.
Preparation of updated technical reports. The Company is concluding an updated technical report for La
Colorada and is planning to complete a prefeasibility study (“PFS”) for the Cerro del Gallo Project in 2025
and continues to advance the Ana Paula Project feasibility study.
Operational and Financial Results
Results are reported for the three months ended June 30 , 2025 (“Q2 2025”), which corresponds to the
first quarter of Heliostar’s fiscal reporting year 2026.
A summary of the Company’s consolidated operational and financial results for the reporting period is
presented below:
Key Performance Metrics Q2 2025 Q2 2024
Operational
Gold produced 7,262 0
Gold equivalent ounces (“GEOs”) produced 7,419 0
Gold sold 8,375 0
Gold equivalent ounces (“GEOs”) sold 8,556 0
Cash cost1 1,413 0
All-in sustaining costs1 (“AISC”) 1,541 0
Financial (in ‘000s)
Revenues 27,926 0
Mine operating earnings 14,256 0
Exploration expenses 1,916 1,502
Net income (loss) 1,892 (2,293)
Cash 29,703 2,379
Total assets 122,943 22,574
Working Capital 51,687 (1,121)
1. Non-IFRS measure. Refer to the “Non-IFRS Measures” section of this news release.
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Operational Review
Consolidated Production and Costs
Q2 2025 was the Company’s third reporting period with metals production. The Company had no
production in Q2 2024.
Gold production of 7,396 GEOs (7,262 gold ounces) for Q2 2025 was reported from the La Colorada mine
and the San Agustin mine , with a nominal amount reported from the El Castillo mine , which has
commenced reclamation . The combined YTD 2025 production of 16,477 GEOs of gold ( 16,039 gold
ounces) is consistent with the 2025 guidance issued by the Company.
The combined cash costs for the producing operations w ere $1,413 per GEO sold, and the consolidated
AISC was $1,541 per GEO sold. The combined cash costs and AISC are currently ahead of the 2025 guidance
issued by the Company, and full-year results are expected to be within the guidance range.
La Colorada Mine
Operating results for Q2 2025 were as follows:
La Colorada Q2 2025 YTD 2025
Gold produced oz 3,464 7,572
Gold equivalent ounces (“GEOs”) produced GEO 3,538 7,850
Gold sold oz 3,631 6,743
Gold equivalent ounces (“GEOs”) sold GEO 3,747 6,997
Cash cost1 $/GEO sold 1,296 1,101
All-in sustaining costs1 (“AISC”) $/GEO sold 1,425 1,232
In January 2025, mining of new ore restarted at the Junkyard Stockpile by the Company , alongside re-
leach activities started by the previous operator.
During the reporting period, the La Colorada mine produced 3,538 GEOs (3,464 gold ounces ). Total
revenues of $12.0 million were reported from sales of 3,747 GEOs. A series of actions were implemented
at La Colorada to improve re -leaching performance, with gold production from re -leaching exceeding
plans. Production from the Junkyard Stockpile has increased steadily during Q2 2025 and continues to
meet all expected parameters.
For the reporting period, cash costs were $1,296 per GEO ($1,101 per GEO YTD 2025), and AISC was $1,425
per GEO ($1,232 per GEO YTD 2025), currently an improvement on 2025 guidance.
The Company plans to continue mining of the Junkyard Stockpile through 2025 and into 2026, with other
historical stockpiles identified to provide additional, continued feed to the crushers thereafter. Further,
subject to receiving certain regulatory approvals, the Company intends to expand the Veta Madre pit to
exploit 43k ounces of gold reserve, which will be timed sequentially with the ore feeds from the historical
stockpiles.
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San Agustin Mine
Operating results for Q2 2025 were as follows:
San Agustin Q2 2025 YTD 2025
Gold produced oz 3,564 7,975
Gold equivalent ounces (“GEOs”) produced GEO 3,622 8,129
Gold sold oz 4,595 8,752
Gold equivalent ounces (“GEOs”) sold GEO 4,660 8,930
Cash cost1 $/GEO sold $ 1,529 1,407
All-in sustaining costs1 (“AISC”) $/GEO sold $ 1,597 1,485
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.
During the reporting period, the San Agustin mine produced 3,622 GEOs ( 3,564 gold ounces) . Total
revenues of $14.9 million were reported from sales of 4,660 GEOs. A series of actions were implemented
at San Agustin to improve re-leaching performance, with gold production from re-leaching exceeding 2025
guidance.
For the reporting period, cash costs were $1, 529 per GEO ($ 1,407 per GEO YT D 2025), and the
consolidated AISC was $1,597 per GEO ($1,485 per GEO YTD 2025), which is currently an improvement on
2025 guidance.
The Company has completed regulatory requirements to enable the restart of mining at San Agustin from
the Corner area (see News Release dated July 22, 2025). Work to commence mining is underway, including
administrative programs and small ancillary capital projects, and the Company anticipates production
from the Corner starting in Q4 2025 and continuing into 2027. Recoverable reserves at the Corner are
estimated at 44.5k ounces of gold.
El Castillo Mine
Operating results for Q2 2025 were as follows:
El Castillo Q2 2025 YTD 2025
Gold produced oz 234 491
Gold equivalent ounces (“GEOs”) produced GEO 236 499
Gold sold oz 149 646
Gold equivalent ounces (“GEOs”) sold GEO 150 652
Cash cost1 $/GEO sold 782 866
All-in sustaining costs1 (“AISC”) $/GEO sold 2,679 1,729
In late 2022, the previous owners of El Castillo placed the mine under care and maintenance, and the mine
is now considered in reclamation. Some nominal metal production has been possible from the rinsing of
residual heap leach pad during reclamation activities.
During the reporting period, the El Castillo mine produced 236 GEOs (234 gold ounces). Total revenues of
$0.5 million were reported from sales of 150 GEOs.
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Reclamation expenditures at the El Castillo mine for the three months ended June 30, 2025, were $nil;
however, $1.1 million was incurred in indirect reclamation expenditures for maintenance of land, permits
and general expenses required to maintain the sit e in good standing. Further reclamation work will
continue to be performed in 2025.
Ana Paula Project
Development and Exploration expenditures at the flagship Ana Paula Project were $0.8 million in Q2 2025
($1.2 million in Q2 2024).
During Q2 2025, the Company initiated a $9.5 million exploration and development budget, including a
minimum 15,000 metre drilling program at Ana Paula with the objective of delivering mineral reserves to
support a 10-year life of mine. On August 27, 2025, the Company announced initial results from the first
resource conversion holes, including 30.2 metres at 6.29 grams per tonne gold.
During Q2 2025, the Company completed trade-off studies and determined a preferred process flowsheet
for the project. Technical and regulatory programs are being advanced and will continue through 2026 to
complete a bankable feasibility study.
Cerro del Gallo Project
The process of advancing the additional development and engineering required at t he Cerro del Gallo
Project is ongoing.
During Q2 2025, the Company began a strategic review of the Project and initiated technical programs
with the objective of identifying and evaluating the next development steps.
During Q2 2025, the Company commissioned the preparation of a prefeasibility study for the Cerro de l
Gallo Project. The study is planned to be completed in 2025 . All major environmental and other permits
will need to be obtained before an investment decision can be considered by the Company.
Funding Overview
In the three months ended June 30, 2025, 5,254,548 warrants and 422,082 stock options were exercised
for total proceeds of $1.3 million and 906,249 RSUs were converted.
As of June 30, 2025, the Company had no debt.
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
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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. Cas h 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. Differences may also arise
due to a different de finition 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 ha ve approved the disclosure
herein. Mr. Bush is employed as Chief Operating Officer of the Company, Mr. Gingles is employed as Vice
President of Corporate Development, and Mr. Harris is employed as Exploration Manager.
About Heliostar Metals Ltd.
Heliostar aims to grow to become a mid -tier gold producer. The Company is focused on increasing
production and developing new resources at the La Colorada and San Agustin mines in Mexico, and on
developing the 100% owned Ana Paula Project in Guerrero, Mexico.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Charles Funk
President and Chief Executive Officer
Heliostar Metals Limited
Email: [email protected]
Phone: +1 844-753-0045
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: [email protected]
Phone: +1 844-753-0045
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "Forward–Looking Statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and "forward –looking information" under applicable
Canadian securities laws. When used in this news rel ease, the words "anticipate", "believe", "estimate",
"expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or
expressions, identify forward –looking statements or information. These forward– looking statements or
information relate to, among other things: the Company’s goal of becoming a mid-tier producer, the mine
performance, production plans and the free cashflow generation from our operating mines, all profits
generated from operations to be reinvested directly into our Companies growth and this reinvestment will
focus on expanding production and growing resources across our portfolio.
Forward–looking statements and forward–looking information relating to the terms and completion of the
Facility, any future mineral production, liquidity, and future exploration plans are based on management's
reasonable assumptions, estimates, expectation s, analyses and opinions, which are based on
management's experience and perception of trends, current conditions and expected developments, and
other factors that management believes are relevant and reasonable in the circumstances, but which may
prove to be incorrect. Assumptions have been made regarding, among other things, the receipt of
necessary approvals, price of metals; no escalation in the severity of public health crises or ongoing military
conflicts; costs of exploration and development; the est imated costs of development of exploration
projects; and the Company's ability to operate in a safe and effective manner and its ability to obtain
financing on reasonable terms.
These statements reflect the Company's respective current views with respect to future events and are
necessarily based upon a number of other assumptions and estimates that, while considered reasonable
by management, are inherently subject to significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors, both known and unknown, could cause actual results,
performance, or achievements to be materially different from the results, performance or achievements
that are or may be expressed or implied by such forward– looking statements or forward -looking
information and the Company has made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: precious metals price volatility; risks associated with the
conduct of the Company's mining activities in foreign jurisdictions; regulatory, consent or permitting
delays; risks relating to reliance on the Company's management team and outside contractors; risks
regarding exploration and mining activities; the Company's inability to obtain insurance to cover all risks,
on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate
sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and
unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical
recoveries and capital and operating costs of such projects; contests over title to pr operties, particularly
title to undeveloped properties; laws and regulations governing the environment, health and safety; the
ability of the communities in which the Company operates to manage and cope with the implications of
public health crises; the economic and financial implications of public health crises, ongoing military
conflicts and general economic factors to the Company; operating or technical difficulties in connection
with mining or development activities; employee relations, labour unrest or unavailability; the Company's
interactions with surrounding communities; the Company's ability to successfully integrate acquired
assets; the speculative nature of exploration and development, including the risks of diminishing quantities