Q4 2025 Heliostar Metals Ltd Earnings Call

March 23, 2026

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Speaker #2: If you sort of look at the, we'll go through the production profile from the Colorado and San Augustine last year, but I think big picture it's delivering on what we laid out as a strategy.

Charles Funk: We'll go through the production profile from La Colorada and San Agustin last year. I think big picture, it's delivering on what we laid out as a strategy. It's using the production of our existing assets to bring forward more production at higher margins, and that's Ana Paula and Cerro del Gallo coming along behind. If we look back for the full calendar year, we were in the middle of our guidance range and in the middle of our cost range. Something I'm particularly proud of what the team was able to deliver given that we were taking on new assets.

Speaker #2: It's using the production of our existing assets to bring forward more production at higher margins, and that's Annapola and Saratoga coming along behind. And so if we look back for the full calendar year, we were in the middle of our guidance range, and in the middle of our cost range.

Speaker #2: Something I'm particularly proud of is what the team was able to deliver, given that we were taking on new assets, and so that production number was just over 34,000 gold equivalent ounces of gold in the calendar year.

Charles Funk: That production number was just over 34,000 gold equivalent ounces of gold in the calendar year, at $1,541 cash cost, which read through to a $2,028 all-in sustaining costs. Above and beyond that, we restarted the La Colorada mine at the beginning of the year. With the permit to San Agustin, we were able to restart San Agustin at the end of last year. We completed five technical reports, which I think went a long way from a share price perspective in showing the value of the portfolio. We're able to receive a number of key deliverables in terms of operating the expansion permits. Sort of more fundamentally, we just built that solid operating base and experience that we can grow from in 2025. Vitalina, I'll hand over to you to talk through the operating results.

Speaker #2: At a $1,541 cash cost, which read through to a 2028 all-in sustaining cost. Above and beyond that, we restarted the Colorado mine at the beginning of the year with the permit to San Augustine.

Speaker #2: We were able to restart San Augustine at the end of last year. We completed five technical reports, which I think went a long way, from a share price perspective, in showing the value of the portfolio.

Speaker #2: We're able to receive a number of key deliverables in terms of operating expansion permits, and sort of more fundamentally, we just built that solid operating base and experience that we can grow from in 2025.

Speaker #2: Vitolina, I'll hand over to you to talk through the operating results.

Speaker #3: Thank you. So, as you can see on this chart, since acquisition on November 7, 2024, our production has been fairly steady, and this was a combination of La Colorada re-leaching activities as well as the mining of the junkyard and the re-leaching activities performed at San Augustine, which exceeded our expectations.

[CFO] (Heliostar Metals Ltd.): Thank you. As you can see on this chart, since acquisition on 7 November 2024, our production has been fairly steady. This was a combination of La Colorada re-leaching activities as well as the mining of the junkyard and the re-leaching activities performed at San Agustin, which exceeded our expectations. We restarted mining at San Agustin in Q4 of 2025. Overall, in calendar 2025, we produced 34,098 gold equivalent ounces. Since acquisition on 7 November 2024, we generated $65.9 million in operating mine earnings. All of this with our costs remaining below our 2025 budget. Next slide, please. As Steven mentioned, late in 2025, we changed our year-end from 31 March to 31 December to align better with our operations as well as with our peers.

Vitalina Lyssoun: Thank you. As you can see on this chart, since acquisition on 7 November 2024, our production has been fairly steady. This was a combination of La Colorada re-leaching activities as well as the mining of the junkyard and the re-leaching activities performed at San Agustin, which exceeded our expectations. We restarted mining at San Agustin in Q4 of 2025. Overall, in calendar 2025, we produced 34,098 gold equivalent ounces. Since acquisition on 7 November 2024, we generated $65.9 million in operating mine earnings. All of this with our costs remaining below our 2025 budget. Next slide, please. As Steven mentioned, late in 2025, we changed our year-end from 31 March to 31 December to align better with our operations as well as with our peers.

Speaker #3: And we restarted mining at San Augustine in Q4 of 2025. So overall, in calendar 2025, we produced 34,098 gold equivalent ounces, and since acquisition on November 7, 2024, we generated $65.9 million in operating mine earnings.

Speaker #3: And all of this with our costs remaining below our 2025 budget. Next slide, please. As Stephen mentioned, late in 2025, we changed our year-end from March 31st to December 31st, so it aligns better with our operations as well as with our peers.

Speaker #3: So all of the information presented here is for the nine-month period being April 1st to December 31st, 2025. So in that period, we generated $91.8 million in revenue and $47.4 million in mine operating earnings.

[CFO] (Heliostar Metals Ltd.): All of the information presented here is for the nine-month period, 1 April to 31 December 2025. In that period, we generated $91.8 million in revenue and $47.4 million in mine operating earnings. We also had net income of $12.4 million, which is $0.04 per share, considering that $13.4 million of cash was spent on what came from our operating cash flow, and we spent just over $13 million in our exploration activities. Our free cash flow being operating cash flow less investment activities was $8.1 million. We had cash balance of $40.6 million, which was increase of $13 million from previous year-end to 31 March. We continue with no debt. Back to you, Charles.

Vitalina Lyssoun: All of the information presented here is for the nine-month period, 1 April to 31 December 2025. In that period, we generated $91.8 million in revenue and $47.4 million in mine operating earnings. We also had net income of $12.4 million, which is $0.04 per share, considering that $13.4 million of cash was spent on what came from our operating cash flow, and we spent just over $13 million in our exploration activities. Our free cash flow being operating cash flow less investment activities was $8.1 million. We had cash balance of $40.6 million, which was increase of $13 million from previous year-end to 31 March. We continue with no debt. Back to you, Charles.

Speaker #3: We also had net income of $12.4 million, which is 4 cents per share, considering that $13.4 million of cash was spent and came from our operating cash flow, and we spent just over $13 million in our exploration activities.

Speaker #3: Our free cash flow, being operating cash flow less investment activities, was $8.1 million, and we had a cash balance of $40.6 million, which was an increase of $13 million from the previous year-end to March 31st.

Speaker #3: And we continue with no debt. And back to John.

Charles Funk: Perfect. No, I think the key there, from my perspective is that as well as committing to those exploration programs and the development expenditure at Ana Paula, we were still able to grow our cash balance quarter-on-quarter, I think speaking to the strength of performance. What that set us up looking forward to 2026 is an approximate 60% increase in our production year-on-year. That's an updated guidance of 50,000 to 55,000 ounces of gold for the year, fairly evenly spread between the two operating assets. We've been able to hold our costs at the AISC level, similarly over year-over-year and for our guidance. We're forecasting those 50,000 to 55,000 ounces of gold to be produced at between $2,025 and $2,125 gold price.

Speaker #2: Perfect. No, I think the key there from my perspective is that as well as committing to those exploration programs and the development expenditure at Annapola, we were still able to grow our cash balance quarter on quarter.

Speaker #2: I think, speaking to the strength of performance, what that sets us up for looking forward to 2026 is an approximate 60% increase in our production year on year.

Speaker #2: That's an updated guidance of 50,000 to 55,000 ounces of gold for the year, fairly evenly spread between the two operating assets. And we've been able to hold costs at the AISC level, similarly, year over year.

Speaker #2: And for our guidance, so we're forecasting those 50 to 55,000 ounces of gold to be produced at a between 2025 and 2125 gold price.

Speaker #2: So I think that's a really nice step forward, and we think even next year, beyond that, we might be able to increase our production profile again.

Charles Funk: I think that's a really nice step forward, and we think even next year beyond that, we might be able to increase our production profile again. If we look back now, we'll hand over to you, Gregg, to give an update on an asset-by-asset performance basis.

Speaker #2: But if we look back now, we'll hand over to you, Greg, to give an update on an asset-by-asset performance basis.

Gregg Bush: Okay. Thanks, Charles. Yeah. So, the quarter very little change in Q4 from Q3. We stacked a little bit lower tonnage and at a little bit lower grade as we were working our way through the last of the stockpile material. And we started to see a bit more silver production as we're, you know, kind of focusing more on secondary leaching. Looking forward at La Colorada this year, we expect the majority of our production, I mean, we will have the tail end of the production from the ore that was stacked at the end of last year and what we've stacked through the early part of this year.

Speaker #4: Okay. Thanks, Charles. Yeah. So, for the quarter, there was very little change in the fourth quarter from the third quarter. We stacked a little bit lower tonnage and a little bit lower grade as we were working our way through the last of the stockpile material.

Speaker #4: And we started to see a bit more silver production as we kind of focusing more on secondary leaching. So looking forward at La Colorada this year, we expect the majority of our production to kind of I mean, we will have the tail end of the production from the ore that was stacked at the end of last year.

Speaker #4: And what we've stacked through the early part of this year, we lose back there, Charles. So, we'll have that tail end of the production, and we'll also— we're doing a lot of— we're doing a lot of injection leaching on the leach pad.

Gregg Bush: We lose the-

Charles Funk: Take it away.

Gregg Bush: Back there, Charles. We'll have that tail end of the production and we're also doing a lot of injection leaching on the leach pad. Almost, you know, all of our production for next year is coming from residual at La Colorada. We expect to start stripping the Veta Madre pit in July. If you wanna go to the next slide, Charles. This just show the pit on the far right-hand side of that image is the old Veta Madre pit. Our next phase of mining will be there.

Speaker #4: So, almost all of our production for next year is coming from residual at La Colorada. We expect to start stripping the Better Monitoring pit in July.

Speaker #4: So if you want to go to the next slide, Charles. So this is show the pit on the far right-hand side of that image is the old better monitoring pit.

Speaker #4: And so, our next phase of mining will be there. We have all the permits we need to start mining that, but with the higher gold price and some of the drilling that we did, we saw an opportunity to expand that pit. It was enough of a change that we felt like we needed to redo the—also, I guess aside from the change in the pit size, we learned a few things as we were doing the technical report on Crestone.

Gregg Bush: We have all the permits we need to start mining that, but with the higher gold price and some of the drilling that we did, we saw an opportunity to expand that pit. It was enough of a change that we felt like we needed to redo the technical report. I guess aside from the change in the pit size, we learned a few things as we were doing the technical report on Crestone. We decided to go back and do a little bit more geotech work on that pit before we start mining. Our schedule has us starting that in July.

Speaker #4: So we decided to go back and do a little bit of more a little bit more geotech work on that pit before we start mining.

Speaker #4: So our schedule has us starting in July.

Speaker #2: Yeah. I think that's a key focus going forward, Greg, for La Colorada. So with the ability with the permit that we received late last year, we had the ability to restart better monitoring, but we recognized there's something in the order of at the moment 28,000 additional ounces that could come into a larger pit and we're doing a drilling that might lead to additional ounces above and beyond that as well as then the modified geotechnical design required to do that.

Charles Funk: Yeah, I think that's a key focus going forward, Gregg, for La Colorada. With the permit that we received late last year, we had the ability to restart Veta Madre. But we recognized there's something in the order of, at the moment, 28,000 additional ounces that could come into a larger pit, and we're doing a drilling that might lead to additional ounces above and beyond that, as well as then the modified geotechnical design required to do that. The intention is to restart stripping and active open pit mining in July 2026, and the bulk of the 2027 production from La Colorada will come from the Veta Madre pit on the back of that.

Speaker #2: So, the intention is to restart stripping and active open pit mining on July 26th. And the bulk of the 2027 production from La Colorada will come from the Better Monitoring pit on the back of that.

Charles Funk: I think the team's done an excellent job of finding production outside of these pits that have given us the cash flow to be able to fund that expansion internally, which I think has been a significant de-risk from a shareholder perspective in terms of equity needs and equity uses. Being able to start with very low CapEx, very profitable production from stockpiles and injection leaching, using that to fund the stripping and increasing the production profile from La Colorada. The focus right now from an exploration perspective is in and under the Veta Madre pit. We see that potential that I touched on to expand resources further. In H2, we're gonna move more out to the brownfield environment.

Speaker #2: I think the team's done an excellent job of finding production outside of these pits that have given us the cash flow to be able to fund that expansion internally, which I think has been a significant de-risk from a shareholder perspective in terms of equity needs and equity uses.

Speaker #2: Being able to start with very low capex, very profitable production from stockpiles and injection leaching, using that to fund the stripping and increasing the production profile from La Colorada.

Speaker #2: So the focus right now from an exploration perspective is in and under the Better Monitoring Pit. We see that potential that I touched on to expand resources further, and then in the second half of the year, we're going to move more out to the brownfield environment.

Charles Funk: I've been on record saying I think La Colorada is one of the most immature brownfields environments we've seen. There's almost no drilling outside of that main trend of three pits, and so we look forward to drilling after having worked up some of those step-out targets in H2 of this year. For those who are sort of new to Heliostar, we've already grown it from care and maintenance to a six-year mine life. I'm confident there's a lot more potential with open resources and near infrastructure targets to test at the project. On to San Agustin, Gregg.

Speaker #2: I've been on record saying I think La Colorada is one of the most immature brownfields environments we've seen. There's almost no drilling outside of that main trend of three pits.

Speaker #2: And so we look forward to drilling after having worked up some of those step-out targets in the second half of this year. For those who are sort of new to Heliostar, we've already grown it from care and maintenance to a six-year mine life.

Speaker #2: I'm confident there's a lot more potential with open resources and nearby infrastructure targets to test at the project. On to San Augustine, Greg.

Gregg Bush: Okay. San Agustin is, you recall, we didn't put any ore on the pad in 2025 at San Agustin. It was, our production was all from secondary leaching. We had planned to start mining this pushback that we're mining now in the Q4 of the year. For reasons not related to any technical issues, that was delayed, that startup. We started mining it in December, and got a little bit ore on the pad, but we didn't really see any production in December from the new production. Since that time, you know, the operations in both the pit and the crushing circuit and the stacking circuit have, you know, leveled out.

Speaker #4: Okay. And so, San Augustine, as you recall, we didn't put any ore on the pad in 2025 at San Augustine. So our production was all from secondary leaching.

Speaker #4: We had planned to start mining this pushback. They were mining now in the fourth quarter of the year. For reasons not related to any technical issues, that startup was delayed.

Speaker #4: So we started mining in December and got a little bit of ore on the pad, but we didn't really see any production in December from the new production.

Speaker #4: So since that time, the operations in both the pit and the crushing circuit and the stacking circuit have leveled out. And I think we're outperforming the reserve model, or the reconciliation is outperforming the exploration model so far.

Gregg Bush: I think we're, you know, I think we're outperforming. The reconciliation is outperforming the exploration model so far by a significant amount. The crushing circuit, we're, you know, able to get the planned number of recoverable ounces up on the pad. We don't expect any surprises through the year. Charles, I'll hand it back over to you for-

Speaker #4: By a significant amount. And the crushing circuit, we're able to get the planned number of recoverable ounces up on the pad. So we don't expect any surprises through the year.

Speaker #4: So, Charles, I'll hand it back over to you for...

Speaker #2: I think you're right. I think the second half of Q1 and Q2 sets us up for strong performance at San Augustine, which is pleasing. We also recently put out, last week, the first drill results from San Augustine.

Charles Funk: I think you're right. I think second half of Q1, Q2, it sets us up for strong performance at San Agustin, which is pleasing. We also recently put out last week the first drill results from San Agustin. We kept that discipline that until we're able to receive permits to expand the pit, that we hadn't invested in the future of the mine. As soon as we got those, we obviously looked to extending that mine life. It's generating significant operating cash flow for us. Every quarter, every year of additional production is very meaningful for us ahead of Ana Paula. The main area that we stepped out on and of significance is the corner expansion zone that you can see in the graphic.

Speaker #2: So we kept that discipline, that until we're able to receive permits to expand the pit, we hadn't invested in the future of the mine.

Speaker #2: But as soon as we got those, we obviously looked to extending that mine life. It's generating significant operating cash flow for us. And so, every quarter, every year of additional production is very meaningful for us ahead of Annapola.

Speaker #2: And so the main area that we stepped out on and from significance is the Corner Expansion Zone that you can see in the graphic.

Charles Funk: We got interesting results from all three areas, but where we're particularly excited is seeing that trend of mineralization continue beyond the reserve boundary. You know, widespread 20- to 50-meter intercepts at sort of 0.1 to 0.6 grams per ton gold equivalent. Similar grades that we're currently mining in the corner reserve area in that pushback that Gregg referred to. It significantly increased the potential of mine life expansion at San Agustin. We've got 2 rigs turning now, and we've got 9 across the company operating, 2 of them here at San Agustin, where we've increased the program to 15,000 to 18,000 meters this year, focused predominantly on the oxide expansion potential.

Speaker #2: We got interesting results from all three areas, but where we're particularly excited is seeing that trend of mineralization continue beyond the reserve boundary. Widespread 20- to 50-meter intercepts at sort of 0.1 to 0.6 grams per tonne gold equivalent.

Speaker #2: Similar grades that we're currently mining in the corner reserve area, in that pushback that Greg referred to. So it's significantly increased the potential of mine life expansion at San Augustine.

Speaker #2: We've got two rigs turning now. We've got nine across the company operating, two of them here at San Augustine. We've increased the program to 15,000 to 18,000 meters this year.

Speaker #2: Focused predominantly on the oxide expansion potential. The idea is to spend $9.75 million here to put out an updated resource that we can turn into a reserve, which we can use to have an expansion of the mine life next year, should all things work out as we'd hope they do.

Charles Funk: The idea is to spend $9.75 million here to put out an updated resource that we can turn into reserve, that we can use to have an expansion of the mine life next year should all things work out as we'd hope they do. Very, very pleasing results from San Agustin.

Speaker #2: But very, very pleasing results from San Augustine.

[Company Representative] (Heliostar Metals Ltd.): The strategy remains the same, that we expect the cash flow from the previous two mines, excuse me, to fund the equity component of the Ana Paula project. As you can see in our results, you know, the financial support that they're able to provide is very significant, and we're on track, if not ahead of track from a cash flow perspective to be able to put that money towards Ana Paula. 2026 will be a big year for Ana Paula following on the results of the PEAs we put out late last year, showing the economics of the underground project for the first time, 100,000 ounces a year at a $1,000 all-in sustaining cost.

Speaker #4: And the strategy remains the same—that we expect the cash flow from the previous two projects, or the previous two mines, excuse me, to fund the equity component of the Annapola project.

Speaker #4: As you can see in our results, the financial support that they're able to provide is very significant. And we're on track, if not ahead of track from a cash flow perspective, to be able to put that money towards Annapola.

Speaker #4: 2026 will be a big year for Annapola, following on the results of the PEAs we put out late last year. Showing the economics of the underground project for the first time: 100,000 ounces a year at a $1,000 all-in sustaining cost.

Speaker #4: We're now advancing this project from the PEA level directly into the Feasibility Study level, with all the associated technical work going on to support that in the background.

[Company Representative] (Heliostar Metals Ltd.): We're now advancing this project from the PEA level directly into the feasibility study level, with all the associated technical work going on to support that in the background, I'll say, which we're likely to give an update on midway through the year. In addition to that, we've also wrapped up a 20,000m drill program that was started last year to be able to continue to primarily upgrade the inferred material, and to be able to include it in the feasibility study. Also on some step-out, a success of adding an additional or excuse me, 10,000m planned for 2026 to test near-mine mineralization near planned underground infrastructure.

Speaker #4: I'll say, which we're likely to even update on midway through the year. In addition to that, we've also wrapped up a 20,000-meter drill program that was started last year to be able to continue to primarily upgrade the inferred material and to be able to include it in the feasibility study.

Speaker #4: But also on some step-out success of adding an additional 10,000 meters planned for 2026 to test near mineralization, near planned underground infrastructure. So things that will likely not make it into the FS mine plan, but will make it into a subsequent mine plan as we operate Annapola going forward.

[Company Representative] (Heliostar Metals Ltd.): Things that will likely not make it into the FS mine plan, but will make it into a subsequent mine plan as we operate Ana Paula going forward. The other significant portion of the Ana Paula project to look forward to this year is the restart of the decline advancement. This is a 400m decline that was extended by previous operator. The work stopped when they were acquired for a different asset.

Speaker #4: The other significant portion of the Annapola project to look forward to this year is the restart of the decline advancement. This is a 400-meter decline that was extended by the previous operator, and the work stopped when they were required for a different asset.

[Company Representative] (Heliostar Metals Ltd.): Now that we've got certainty of cash flow from primarily San Agustin this year, but also aided by La Colorada, we intend to spend the money to advance that into the deposit, allowing us to both de-risk the deposit and establish an underground drill platform to continue to test down dip extensions of the high-grade mineral system. We're especially excited about the ability to do that given our recent down dip drill results. We hit 25 meters at 8 grams a ton about 70 meters below the lowest planned opening of the PEA mine plan. We've drilled additional holes from surface. Of course, it gets harder and harder to go deeper from surface, so that's where the underground platform will really allow us to tackle that in a major way.

Speaker #4: Now that we've got certainty of cash flow from primarily San Augustine this year, but also aided by Black Colorada, we intend to spend the money to advance that into the deposit, allowing us to both de-risk the deposit and establish an underground drill platform to continue to test down-dip extensions of the high-grade mineral system.

Speaker #4: We're especially excited about the ability to do that, given our recent down-dip drill results. We hit 25 meters at 8 grams a tonne, about 70 meters below the lowest planned stope in the PEA mine plan.

Speaker #4: We drilled additional holes from surface. Of course, it gets harder and harder to go deeper from surface. So that's where the underground platform will really allow us to tackle that in a major way.

Speaker #4: In addition to expanding the, call it, mine plan mineralization, we're also looking for that potential contact scarn, just like it's found at Los Filos or the Morelos Complex for Torex.

[Company Representative] (Heliostar Metals Ltd.): In addition to expanding the, call it mine plan mineralization, we're also looking for that potential contact skarn, just like it's down at Los Filos or the Morelos complex for Torex, just in the same neighborhood. You know, that underground drill platform will really give us the ability to tackle that in a meaningful way. You know, it's more of a 2027 piece to our story, but stay tuned to see if we've got a true tier one deposit below what will be one of the most profitable mines on a per ounce basis that we're bringing to production, starting with construction starting next year.

Speaker #4: Just in the same neighborhood. And that underground drill platform will really give us the ability to tackle that in a meaningful way. So it's more of a 2027 piece to our story, but stay tuned to see if we've got a true tier one deposit below what will be one of the most profitable mines on a per-ounce basis that we're bringing into production, starting with construction next year.

Charles Funk: I think from a corporate perspective, you know, the business is operating well. We're seeing incredible margin, even with the recent pullback in the iron ore. It's an incredible time to be growing a gold business. 2025, I think, was a story of the assets performing and getting them set up in such a way that they can deliver the cash flow that we want for our growth profile. Ana Paula, as Stephen was describing, remains, you know, the premier growth project in our portfolio and one of the best growth options, I think, in the marketplace. That becomes the main focus. We did today, however, add another portfolio asset to the company. We announced today that we're acquiring the Goldstrike project of Liberty Gold.

Speaker #3: And so I think, from a corporate perspective, the business is operating well. We're seeing incredible margin, even with the recent pullback in the Iran war.

Speaker #3: It's an incredible time to be growing a gold business. And 2025, I think, was a story of the assets performing and getting them set up in such a way that they can deliver the cash flow that we want for a growth profile.

Speaker #3: Annapola, as Stephen was describing, remains the premier growth project in our portfolio, and one of the best growth options, I think, in the marketplace.

Speaker #3: So that becomes the main focus. We did today, however, add another portfolio asset to the company. We announced today that we're acquiring the Goldstrike project.

Speaker #3: Off Liberty Gold. It's approximately a 1-million-ounce deposit in Utah that we're looking forward to providing some additional technical disclosure on as soon as we're able to in the next couple of days.

Charles Funk: It's approximately 1 million ounce deposit in Utah that we're looking forward to providing some additional technical disclosure on as soon as we're able to in the next couple of days. What we liked about it was, you know, we're paying approximately $75 an ounce in a staged structure which sort of fits the Heliostar model quite well. It's an advanced project. We think there's a pathway into advancing the historic PEA and securing the water that would be needed to make it a production project. We think that there's a number of opportunities to the upside. It's a very large Carlin footprint that's seen very little deeper drilling. The classic target of these Carlin systems is the Paleozoic rocks that really haven't been touched in this system.

Speaker #3: What we liked about it was we're paying approximately $75 an ounce in a staged structure, which sort of fits the Heliostar model quite well.

Speaker #3: It's an advanced project. We think there's a pathway into advancing the historic PEA and securing the water that would be needed to make it a production project.

Speaker #3: We think that there's a number of opportunities to the upside. It's a very large carbon footprint that's seen very little deeper drilling. The classic target of these carbon systems is the Paleozoic rocks.

Speaker #3: That really haven't been touched in this system. So we think that provides nice exploration upside and sort of fits our view of looking for assets with potential.

Charles Funk: We think that provides nice exploration upside and sort of fits our view of looking for assets with potential. There's also an intriguing critical mineral aspect. There's some very high-grade antimony results in a former small-scale antimony mine area known as Antimony Ridge. We plan to follow up on those and look for the potential of those. Those grab sample results while selective, are indicative of very high antimony grades on the project. We see it as having two options for us as a company. One, it's a potential sort of medium-term development opportunity behind Ana Paula and Cerro del Gallo, that we're able to buy from Liberty Gold as they focus on their Blackpine project.

Speaker #3: There's also an intriguing critical mineral aspect. There are some very high-grade antimony results in a former small-scale antimony mine area known as Antimony Ridge. We plan to follow up on those and look for the potential of those.

Speaker #3: Those grab sample results, while selective, are indicative of very high antimony grades on the project. And we see it as having two options for us as a company.

Speaker #3: One, it's a potential sort of medium-term development opportunity behind Annapola and Cerro de Gallo, that we're able to buy off Liberty Gold as they focus on their Black Pine project.

Speaker #3: The other one is, we will review the potential to either spin out or sell our US portfolio as a way of generating additional cash flow for Annapola.

Charles Funk: The other one is we will review the potential to either spin out or sell our US portfolio, as a way of generating additional cash flow for Ana Paula. We love having optionality as a company. We think that either as a longer-term development project or as a chance to generate cash flow from Ana Paula, there's a lot of potential in the Goldstrike project for us as a company. That was the reason that we entered into the transaction.

Speaker #3: So we love having optionality as a company. We think that, either as a longer-term development project or as a chance to generate cash flow from Annapola, there's a lot of potential in the Goldstrike project for us as a company.

Speaker #3: So that was the reason that we entered into the transaction. We're paying $12.5 million on signing, and all the rest is on staged, either timed cash payments or milestones that we'll deliver as an asset.

Charles Funk: We're paying CAD 12.5 million on signing, and all the rest is on staged either time cash payments or milestones that we'll deliver as an asset, totaling CAD 72.5 million for the acquisition price. What that means for us as a company going forward, I kind of think our story breaks down in two parts. I think we're a very focused company for H1, prospects in H2 of the year. The reason I call that, Steven referred to, we're looking forward to getting more of those. We demonstrated that the drill results at San Agustin, and we look forward to following those drill results up. Then on top, we've been drilling for what's potential at Veta Madre, or what's potentially even more in our pit at Veta Madre.

Speaker #3: Totaling $72.5 million for the acquisition price. So, what that means for us as a company going forward, I kind of think our story breaks down in two parts.

Speaker #3: I think we're a very focused company for the first half process in the second half of the year. And the reason, as Stephen referred to, we're looking forward to getting more of those.

Speaker #3: We demonstrate that the drill bits have San Augustine, and we look forward to following those drill results up. And then, as a top, we've been drilling for what's potentially at Veta Madre.

Speaker #3: Or what's potentially even more in our pit at Veta Madre. And so, if we're able to have success there, we look forward to putting together more results from the Colorado.

Charles Funk: If we are able to have success there, we look forward to putting together more results from La Colorada. In H2, it moves more to de-risking the company in engineering progress at Ana Paula, starting the decline at Ana Paula, starting the stripping of the Veta Madre pit at La Colorada. Some big steps that I think will show. Really, you know, if you think what's holding back our valuation apart from, you know, swings in the market for macro events, it's, I think, we're sort of halfway between a developer valuation and a producer valuation. As we show that steady state open pit mining at La Colorada and de-risking Ana Paula, I think we move to that higher valuation. We also look forward to continuing to deliver our quarter in, quarter out production.

Speaker #3: Then in the second half of the year, it moves more to de-risking the company, and in engineering progress at Annapola, starting the decline at Annapola.

Speaker #3: Starting the stripping of the Veta Madre pit at the Colorado. Some big steps that, I think, will show. And really, if you think about what's holding back our valuation, apart from swings in the market or macro events, I think we're sort of halfway between a developer valuation and a producer valuation.

Speaker #3: And as we show that steady-state open pit mining at the Colorado and de-risking Annapola, I think we move to that higher valuation. We also look forward to continuing to deliver our quarter-in, quarter-out production.

Charles Funk: We're on track for our guidance for Q1 this quarter. I think Gregg touched on the potential for a stronger quarter next quarter at San Agustin on the back of the performance that we've seen. The company continues to deliver on its base operations. We continue to build our cash flow for Ana Paula, and we remain aggressive in terms of potential to grow the company or use the drill bit to grow our reserve spaces. We think there's a tremendous opportunity in the Heliostar share price at the moment, and we look forward to delivering on those goals that I think will further grow that share price. Now I'm gonna pause and take a moment to answer questions. I'll stop sharing my screen in a second so we can read those questions.

Speaker #3: We're on track for our guidance for Q1 this quarter, and I think Greg touched on the potential for a stronger quarter next quarter at San Augustine, on the back of the performance that we've seen.

Speaker #3: So the company continues to deliver on its base operations. We continue to build our cash flow for Annapola. And we remain aggressive in terms of potential to grow the company or use the drill bit to grow our resource bases.

Speaker #3: We think there's a tremendous opportunity in the Heliostar share price at the moment, and we look forward to delivering on those goals that I think will further grow that share price.

Speaker #3: Now I'm going to pause and take a moment to answer questions. I'll stop sharing my screen for a second so we can read those questions.

Speaker #3: So feel free to type in, and we'll look to answer any of those questions we can over the next 10 or 15 minutes. There should be a Q&A box on the webinar here.

Charles Funk: Feel free to type in, and we'll look to answer any of those questions we can over the next 10 or 15 minutes.

[Company Representative] (Heliostar Metals Ltd.): Should be a Q&A box on the webinar here. Please submit your questions, and we'll try and get through as we're able to. Okay, I'm gonna give you just one second to compile them here. We've got some questions around stockpile processing at La Colorada, primarily in terms of the other old stockpile that was a potential opportunity for us as well as the truck shop stockpile. Maybe-

Speaker #3: Please submit your questions, and we'll try and get through them as we're able to. Okay, I'm going to give it just one second to compile them here.

Speaker #3: We've got some questions around stockpile processing at Lac Colorado. Primarily, in terms of the other old stockpile that was a potential opportunity for us, as well as the truck shop stockpile.

Speaker #3: So maybe I'll try to stop and then pass over to Greg. So as I touched on, our strategy was trying to find the lowest CapEx pathways to production.

Charles Funk: I'll take the start and then pass over to Greg. I touched on our strategy was trying to find the lowest CapEx pathways to production at La Colorada. We had ultimately considerable success, you know, to the point that, you know, $66 million has been made in mine operating earnings since we acquired these assets from what you call non-reserve ounces. That is the stockpiles, that is the re-leaching and the injection leaching. Specifically to those questions, we've now exhausted the junkyard stockpile that provided the bulk of our production last year. We're mining the truck shop stockpile and just coming to the end of that as we speak. We ended up never putting a resource or reserve out. We just put that through our production profile.

Speaker #3: At the Colorado, and we had ultimately considerable success—to the point that $66 million has been made in mine operating earnings since we acquired these assets, from what you call non-reserve ounces.

Speaker #3: That is the stockpiles, that is the re-leaching and the injection leaching. And so, specifically to those questions, we've now exhausted the junkyard stockpile that provided the bulk of our production last year.

Speaker #3: We're mining the truck shop stockpile and just coming to the end of that as we speak. We ended up never putting a resource or reserve out.

Speaker #3: We just put that through our production profile. We tested another stockpile called the El Dorado Waste Up that we thought might be a stockpile last year.

Charles Funk: We tested another stockpile called the El Dorado waste dump that we thought might be a stockpile last year. That doesn't, at these gold prices, look like it has the grades to displace the injection leaching. Gregg, I'll hand over to you to discuss what we're doing with probably maximizing production out of the leach pad at La Colorada. I think quite a few ounces this year are gonna come from it, and it's quite innovative work led by yourself and the team.

Speaker #3: That doesn’t, at these gold prices, look like it has the grades to displace the injection leaching. And Greg, I’ll hand over to you to discuss what we’re doing with probably maximizing production out of the leach pad at the Colorado.

Speaker #3: I think quite a few ounces this year are going to come from it, and it's a quite innovative work led by yourself and the team.

Gregg Bush: Yeah. Well, I said that, yeah, as far as stockpiles, there you know, we have what we call the truck shop stockpile that may, you know, there's definitely some you know, some good pods of material in that. It won't be as simple as the junkyard. In other words, we can't just mine everything and throw it through the crusher. We'll have to sort through it a little bit. So that's one opportunity. But the bigger opportunity, I think, at La Colorada is this injection leaching. And so what we found is, you know, it's a very well-behaved heap. It drains, if anything, almost too well.

Speaker #5: Yeah. Well, as far as stockpiles, there's—we have what we call the truck shop stockpile. There's definitely some good pods of material in that.

Speaker #5: It won't be as—it won't be as simple as the junkyard in another way. We can't just mine everything and throw it through the crusher.

Speaker #5: We'll have to sort through it a little bit, so that's one opportunity. But the bigger opportunity, I think, at Lac Colorado, is this injection leaching. And so what we found is it's a very well-behaved heap.

Speaker #5: It drains, if anything, almost too well. So what we found—what we found is there's a lot of electrum in the leach pad that never leached.

Gregg Bush: What we found, you know, there's a lot of electrum in the leach pad that never leached. It's difficult to get, you know, if you're just adding solution at the top, it's difficult to get enough cyanide down in there to get that material. With this injection, we're finding that we're able to pick up a lot of residual gold and some silver along with it. We're just gonna systematically go through the leach pad this year, and that's what we're anticipating is gonna provide the bulk of our production.

Speaker #5: And it's difficult to get if you're just adding solution at the top. It's difficult to get enough cyanide down in there to get that material.

Speaker #5: So with this injection, we're finding that we're able to pick up a lot of residual gold, and some silver along with it. And so we're just going to systematically go through the leach pad this year.

Speaker #5: And that's what we're anticipating is going to provide the bulk of our production.

[Company Representative] (Heliostar Metals Ltd.): Yeah. Oh, I was just gonna say, I think it just speaks to something that, you know, the team is creative technically, strong technically, and evaluate what we see as potential opportunities to then narrow them down quickly to actionable path forward. I think that's exactly what Greg described. When we acquired the asset, you know, we saw all these potentials, we've tested all of them and then been able to optimize what makes the most sense for us to generate the most cash flow with the least amount of initial CapEx spend to get there. The injection leaching stood out as the opportunity to do that at the forefront.

Speaker #3: Yeah, go ahead. Oh, I was just going to say, I think it just speaks to something, that the team is creative technically—a strong technically.

Speaker #3: And evaluate what we see as potential opportunities, to then narrow them down quickly to actionable paths forward. And I think that's exactly what Greg was describing.

Speaker #3: When we acquired the asset, saw all these potentials, we've tested all of them, and then been able to optimize what makes the most sense for us to generate the most cash flow with the least amount of initial CapEx spend to get there, and the injection leaching stood out as the opportunity to do that at the forefront.

Charles Funk: Yeah. There's a couple of questions here themed around safety and security in Mexico. Obviously, it's been topical in the quarter. Off the top, we haven't had to change or modify our operation, sorry, across our different assets, the producing mines or the development assets. We obviously recognize there's been some significant, you know, if one of the questions specifically referenced what's happened at Vizsla, very sad event that we believe to be geographically constrained and at this stage, unlikely to have an effect on our operations. More broadly, we're fortunate that the events that have happened, you know, the government/army moving against cartel members has not happened in areas that we operate. We've been able to continue to operate safely. We monitor the situation very closely, given that we've got operating gold mines.

Speaker #4: Yeah, so there's a couple of questions here themed around safety and security in Mexico. Obviously, it's been topical in the quarter. For off the top, we haven't had to change or modify our operations, sorry.

Speaker #4: Across our different assets, the producing mines or the development assets, we obviously recognize there's been some significant—if one of the questions specifically referenced what's happened at Vizsla, very sad event that we believe to be geographically constrained.

Speaker #4: And at this stage, it's unlikely to have an effect on our operations. More broadly, we're fortunate that the events that have happened—the government and army moving against cartel members—have not happened in areas where we operate.

Speaker #4: We've been able to continue to operate safely. We monitor the situation very closely, given that we've got operating gold mines. It's obviously a negative for sentiment in Mexico.

Charles Funk: It's obviously a negative for sentiment in Mexico. We would like and wish to see a safer operating environment in Mexico, but we see a safe enough operating environment that we've been able to get on and continue our business. We continue to monitor that daily as required.

Speaker #4: We would like and wish to see a safer operating environment in Mexico. But we see a safe enough operating environment that we've been able to get on and continue our business.

Speaker #4: We continue to monitor that daily, as required.

Rob Grey: Great. Thank you, Charles. Question here, just on the general strategy, when do you think you'll be able to get to the 300,000 ounces per year run rate as-

Speaker #3: Great, thank you, Charles. Question here just on the general strategy—when do you think you'll be able to get to the 300,000 ounces per year run rate?

Charles Funk: I think that's Serranilla coming online behind Ana Paula. Everything we're doing is targeting Ana Paula as much as possible online in late 2028. Therefore, a timeline would be around 2030 for us to bring Serranilla behind that. The intention's always been to use the cash flow from Ana Paula to then subsequently fund the development of Serranilla. We've always wanted to be 500,000 ounces at the end of this decade. We think we can get 300,000 of those organically, with Serranilla coming online at the very end of the decade.

Speaker #4: I think that's sort of coming online behind Annapola. So everything we're doing is targeting Annapola as much as possible online in late 2028. So, therefore, a timeline would be around 2030 for us to bring Cerro de Gallo behind that.

Speaker #4: The intention has always been to use the cash flow from Cerro de Gallo to fund the development, or so cash flow from Anapola, to then subsequently fund the development of Cerro de Gallo.

Speaker #4: So, we've always wanted to be at 500,000 ounces at the end of this decade. We think we can get 300,000 of those organically, with Cerro de Gallo coming online at the very end of the decade.

Rob Grey: Great. Thank you, Charles. Got one more question here on our current cash position, which I'm not sure we're able to comment on publicly, but Vitalina, maybe just addressing the warrant exercise, because this is something that has been notable in the stock and a notable event over the last couple of months that we've now put behind us and did bring in some money. Maybe if you can talk generally about the cash position end of the year and then what we've seen from the warrants subsequently.

Speaker #3: Great. Thank you, Charles. I've got one more question here on our current cash position, which I'm not sure we're able to comment on publicly, but maybe just addressing the warrant exercise, because this is something that has been notable in the stock and a notable event over the last couple of months that we've now put behind us and did bring in some money.

Speaker #3: So, maybe if you can talk generally about the cash position at the end of the year, and then what we've seen from the warrants subsequently.

Speaker #6: Yeah. So we've had about $6.6 million over the last little bit, both from warrants and stock option exercises. And without giving the exact cash position, we're still roughly around the same position of $40 million as we're adherent.

[CFO] (Heliostar Metals Ltd.): Yeah. We've had about $6.6 million over the last little bit, both from warrants and stock option exercises. Without giving the exact cash position, we're still roughly around the same position of $40 million as we were at year-end.

Vitalina Lyssoun: Yeah. We've had about $6.6 million over the last little bit, both from warrants and stock option exercises. Without giving the exact cash position, we're still roughly around the same position of $40 million as we were at year-end.

Speaker #3: Thank you, Vitalina. Aaron, I think that wraps up all the significant questions. For those of you, if you've still got questions that we haven't been able to answer, please reach out to the company.

Rob Grey: Thank you, Vitalina. I think that wraps up all the significant questions. For those if you've still got questions that we haven't been able to answer, please reach out to the company through the website or directly to our IR manager, Rob Grey. Thank you all very much for your time and for attending. With that, we'll draw our quarterly presentation to a close. Thank you very much.

Speaker #3: Through the website or directly to our IR manager, Rob Gray. Thank you all very much for your time and for attending. And with that, we'll draw our quarterly presentation to a close.

Speaker #3: Thank you very much.

Operator 2: Goodbye.

Operator: Goodbye.

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