Heliostar Metals Ltd. (TSXV: HSTR, OTCQX: HSTXF, FSE: RGG1) reported a strong start to 2025, delivering solid operational and financial results for the first quarter, which ended March 31. The company’s latest update highlights significant progress at its producing assets in Mexico and has outlined a path for growth through the remainder of the year.
For Q1 2025, Heliostar achieved gold equivalent ounce (GEO) production of 9,082 GEOs and sold 8,034 GEOs. These figures put the company on track to reach its annual sales guidance of 31,000 to 41,000 GEOs for the year. Production was driven by the La Colorada, San Agustin, and El Castillo operations, with ore processing totaling 959,365 tonnes. Gold production reached 8,777 ounces, while silver output came in at 27,421 ounces for the quarter.
The company reported preliminary interim consolidated cash costs of $1,175 to $1,275 per GEO sold, with all-in sustaining costs (AISC) between $1,375 and $1,475 per GEO sold for the quarter. These cost metrics are well below the company’s annual guidance, which remains at $1,800 to $1,900 per GEO sold for cash costs and $1,950 to $2,100 per GEO sold for AISC. The average realized gold price for the quarter was $2,875 per ounce, supporting healthy margins.
Heliostar ended the quarter with $27 million in cash and no debt, providing a strong foundation for ongoing operations and growth initiatives. This robust cash position enables the company to expand its drilling program at La Colorada and launch its largest drilling campaign to date at the flagship Ana Paula project, targeting an increase in high-grade underground resources.
CEO Charles Funk described the first quarter as a strong, full quarter of production, highlighting the successful restart at La Colorada, the repayment of acquisition debt, and costs that were lower than budgeted. He noted that Q2 production is expected to decrease temporarily as the company draws down inventory on the leach pad at San Agustin, ahead of a planned restart of primary mining activities later in 2025.
Looking ahead, Heliostar’s priorities for the second quarter include delivering an updated technical report to support increased production at La Colorada and completing permitting for the restart of mining at San Agustin. The company plans to use operating cash flow to increase annual gold production from both active mines and to advance the development of Ana Paula, aiming to minimize equity dilution for shareholders.
| Metric | La Colorada | San Agustin | El Castillo | Total |
|---|---|---|---|---|
| Ore Processed (tonnes) | 959,365 | – | – | 959,365 |
| Gold Production (oz) | 4,109 | 4,412 | 257 | 8,777 |
| Silver Production (oz) | 18,279 | 8,595 | 546 | 27,421 |
| GEO Production (oz) | 4,312 | 4,507 | 263 | 9,082 |
| Gold Sold (oz) | 3,112 | 4,172 | 497 | 7,781 |
| Silver Sold (oz) | 12,468 | 9,936 | 523 | 22,927 |
| GEO Sold (oz) | 3,250 | 4,282 | 502 | 8,034 |
| Cash Cost ($/GEO sold) | 1,175-1,275 | |||
| AISC ($/GEO sold) | 1,375-1,475 | |||
| Cash & Equivalents ($) | 27,000,000 |
Heliostar’s strategy centers on expanding production at its existing mines and advancing the Ana Paula project in Guerrero, Mexico. The company is positioned to leverage its strong balance sheet to fund exploration and development activities, with the goal of increasing its resource base and production profile over the coming quarters.
The company is hosting a corporate webinar scheduled for May 13, 2025 to provide a more comprehensive update and expects to release full fiscal year-end results in late July.
Heliostar Metals’ first quarter results reflect disciplined operational execution, cost control, and a focus on growth. With a solid cash position, no debt, and clear operational targets, the company is positioned to deliver on its 2025 guidance and advance its long-term growth ambitions.
