Q1 2026 Heliostar Metals Ltd Earnings Call

May 13, 2026

Steven: Hello, everyone. We'll give people just a few seconds to get logged on here and get going very shortly. Okay. Top of the hour. Let's go. Thank you everyone for joining us today for the Heliostar Metals Q1 quarterly update, covering our financial and operating results for the first three months of 2026. With me today is our CEO, Charles Funk, our COO, Gregg Bush, and CFO, Vitalina Lyssoun, who will be presenting the results and giving an update of the business and the path forward for the remainder of the year. With that, I'll hand it over to you, Charles.

Speaker #2: Hello everyone. We'll give people just a few seconds to get logged on here, and get going very shortly. Okay. Top of the hour, let's go.

Speaker #2: Thank you everyone for joining us today. For the Heliostar Metals Q1 quarterly update, covering our financial and operating results for the first three months of 2026.

Stephen Soock: Thank you everyone for joining us today for the Heliostar Metals Q1 quarterly update, covering our financial and operating results for the first three months of 2026. With me today is our CEO, Charles Funk, our COO, Gregg Bush, and CFO, Vitalina Lyssoun, who will be presenting the results and giving an update of the business and the path forward for the remainder of the year.

Speaker #2: With me today is our CEO, Charles Funk; our COO, Greg Bush; and CFO, Vitolino Lissoon, who will be presenting the results and giving an update of the business and the path forward for the remainder of the year.

Speaker #2: With that, I'll hand it over to you, Charles.

Stephen Soock: With that, I'll hand it over to you, Charles.

Charles Funk: Yeah. Perfect. Thank you, Steven. Very pleased to present our quarter this year for two reasons. One, it was a very strong quarter for us. Records on a number of fronts, including step up in our production profile, in the revenue and the mine operating earnings, the bit that actually matters. We were able to invest considerably in our assets, as we'll explain throughout the presentation. We were able to keep our costs well under control for the quarter. A very strong quarter for us as we deliver on our plan for the company. If we move forward, please, Steven, through the slides. You know, I think the most pleasing part of what we've done for the quarter is our strategy is really clear.

Charles Funk: Yeah. Perfect. Thank you, Stephen. Very pleased to present our quarter this year for two reasons. One, it was a very strong quarter for us. Records on a number of fronts, including step up in our production profile, in the revenue and the mine operating earnings, the bit that actually matters. We were able to invest considerably in our assets, as we'll explain throughout the presentation. We were able to keep our costs well under control for the quarter. A very strong quarter for us as we deliver on our plan for the company. If we move forward, please, Stephen, through the slides. You know, I think the most pleasing part of what we've done for the quarter is our strategy is really clear.

Speaker #3: Yeah, perfect. Thank you, Stephen. Very pleased to present our quarter this year. For two reasons. One, it was a very strong quarter for us.

Speaker #3: Records on a number of fronts, including a step-up in our production profile, in the revenue, and the mine operating earnings—the bit that actually matters.

Speaker #3: We were able to invest considerably in our assets as we'll explain throughout the presentation. And we were able to keep our costs well under control for the quarter.

Speaker #3: So a very strong quarter for us as we deliver on our plan for the company. If we move forward, please, Stephen, through the slides.

Speaker #3: I think the most pleasing part of what we've done for the quarter is our strategy is really clear. We are maximizing cash flow via the gold price is strong.

Charles Funk: We are maximizing cash flow while the gold price is strong this year and next. We're using that to build Ana Paula, which is the next major build we have in plan, that we plan to commence in H2 of next year, and take us to our long-stated goal of being a 500,000 ounce a year producer. We're doing that on the back of very strong production as now Steven's caught up, thanks for the slides, on that quarter for gold and silver. We'll go through the details that breaks down the records that we got in earnings income and our working capital, a big step up in our working capital. For those who don't know the company very well, the next slide breaks down our assets. We had strong production.

Charles Funk: We are maximizing cash flow while the gold price is strong this year and next. We're using that to build Ana Paula, which is the next major build we have in plan, that we plan to commence in H2 of next year, and take us to our long-stated goal of being a 500,000oz a year producer. We're doing that on the back of very strong production as now Stephen's caught up, thanks for the slides, on that quarter for gold and silver. We'll go through the details that breaks down the records that we got in earnings income and our working capital, a big step up in our working capital. For those who don't know the company very well, the next slide breaks down our assets. We had strong production.

Speaker #3: This year and next. And we're using that to build Annapola. Which is the next major build we have in plan that we plan to commence in the second half of next year.

Speaker #3: And take us to our long-stated goal of being a $500,000-a-year producer. We’re doing that on the back of very strong production, as now Stephen’s caught up. Thanks for the slides.

Speaker #3: On that quarter for gold and silver, and we'll go through the details that breaks down the records that we got in earnings income and our working capital a big step up in our working capital.

Speaker #3: For those who don't know the company very well, the next slide breaks down our assets. We had strong production and largest production by mine was at the Colorado for the quarter.

Charles Funk: Our largest production by mine was at La Colorada for the quarter, with some quite innovative approaching to the injection leaching that's delivering a lot of fairly, relatively low-cost gold, as Gregg will touch on. Very pleasing to have restarted San Agustin, and we'll talk about particularly Ana Paula progress and Goldstrike, which we purchased in the quarter. Moving ahead, Steven. I'll hand over to our CFO Vitalina. If you could run through the high level financial numbers, and then we'll move to Gregg for an asset-by-asset discussion.

Speaker #3: With some quite innovative approaching to the injection leaching that's delivering a lot of fairly relatively low-cost gold as Greg will touch on. Very pleasing to have restarted San Augustine.

Speaker #3: And we'll talk about in particularly Annapola progress and Goldstrike, which we purchased in the quarter. Moving ahead, Stephen. So I'll hand over to our CFO, Vitolino, if you could run through the high-level financial numbers and then we'll move to Greg for an asset-by-asset discussion.

Charles Funk: I'll hand over to our CFO Vitalina. If you could run through the high level financial numbers, and then we'll move to Gregg for an asset-by-asset discussion.

Speaker #4: Thank you, Charles. So Heliostar had a very strong quarter of 2026. We had production of a few hundred thousand 743 ounces of gold, which we sold 9,980 ounces.

Vitalina Lyssoun: Thank you, Charles. Heliostar had a very strong quarter of 2026. We had production of 11,743 ounces of gold, which we sold 9,980 ounces, and we're on track for our production for the guidance for the year. The production was from both mines, with La Colorada completing stockpile mining in the quarter, while San Agustin achieved steady state production from the mining activities that restarted in late December. The cash costs of just over $1,600 per ounce of gold sold and AISC of $1,996 per ounce of gold sold are well below our guidance. We're well on our way to be within guidance for the year. Next, please. Operationally, you can see that Q1 of this year was our record quarter as we continued production from both mines.

Speaker #4: And we're on track for our production for the guidance for the year. The production was from both mines, with La Colorada completing stockpile mining in the quarter, while San Agustin achieved steady-state production from the mining activities that restarted in late December.

Speaker #4: The cash costs of just over 1,600 per ounce of gold sold in the ASIC of 1,996 per ounce of gold sold are well below our guidance.

Speaker #4: So we're well on our way to be within guidance for the year. Next, please. Operationally, you can see that Q1 of this year was our record quarter, as we continued production from both mines.

Speaker #4: As mentioned, we stockpile mining at La Colorada has now completed. With timed with successful ramp-up of mining at San Agustin and with fairly stable costs to date.

Vitalina Lyssoun: As mentioned, stockpile mining at La Colorada has now completed timed with successful ramp up of mining at San Agustin and with fairly stable costs to date. We also continued with investments in exploration and advancing our projects, as well as acquisition of Goldstrike project in Utah from Liberty Gold in April, just subsequently to the quarter-end. On the financial side, we had record revenues of $54.4 million and mine operating earnings of $30.9 million, which led to net income of $14.1 million or $0.05 per share. As Charles also mentioned, we significantly increased our working capital from $49 million to $70 million, of which $38.7 million was in cash, and $11.7 million in sales receivable, which majority of which was received in April, and we continue to be invested. Thank you.

Speaker #4: We also continued with investments in exploration and advancing our projects, as well as acquisition of Goldstrike project in Utah from Liberty Gold in April just subsequently to the quarter end.

Speaker #4: On the financial side, we had record revenues of $54.4 million. And mine operating earnings of $30.9 million, which led to net income of $14.1 million or 5 cents per share.

Speaker #4: As Charles also mentioned, we significantly increased our working capital from $49 million to $70 million, of which $38.7 million was in cash and $11.7 million in sales receivable, majority of which was received in April.

Speaker #4: And we continue being debt-free. Thank you.

Charles Funk: We'll just jump in and provide a bit of color on the working cap and the cash number. For those who follow the gold price closely, we always like to get our gold sold within the quarter so that matches our production numbers. Although, you know, it was about, what? A week or 10 days before the end of the quarter, that the war on Iran commenced. It led to a pretty significant drawdown in the gold price. I think at its lowest, around below $4,200 gold. Before the end of the quarter, that rebounded above $4,700 gold. We just chose not to sell into that weakness. We subsequently sold that gold before the quarter end, in and around that $4,700 range.

Speaker #3: We'll just jump in and provide a bit of color on the working cap and the cash number. So, for those who follow the gold price closely, we always like to get our gold sold within the quarter so that matches our production numbers.

Speaker #3: Although it was about, what, a week or 10 days before the end of the quarter end that the war on Iran commenced, it led to a pretty significant drawdown in the gold price.

Speaker #3: I think at its lowest around below $4,200 gold. Before the end of the quarter, that rebounded above $4,700 gold. So we just chose not to sell into that weakness.

Speaker #3: We then subsequently sold that gold before the quarter end. In and around that $4,700 range. So we got a better outcome for selling that gold by just being a bit more patient.

Charles Funk: We got a better outcome for selling that gold by just being a bit more patient. That's why you see the disconnect between the working cap going up, because those funds were received, I think on 6 April, I think we received them all by. For anyone sort of tracking that difference, the difference between the cash balance being relatively flat and the big jump in working cap is just timing for us. You know, we're not like Newmont or Barrick that sells every day. We sell 3 or 4 times a month, picking those windows is particularly important, and we did it to achieve a higher overall gold sale price. We remain on track as Vitalina forecast on our 50,000 to 55,000 ounces of gold production this year. We're well on track.

Speaker #3: That's why you see the disconnect between the working cap going up, because those funds were received, I think, on April 6th. I think we received them all by then.

Speaker #3: And so, for anyone sort of tracking that difference, the difference between the cash balance being relatively flat and the big jump in working cap is just timing for us.

Speaker #3: We're not like New Model Barrack that sells every day. We sell three or four times a month. So picking those windows is particularly important.

Speaker #3: And we did it to achieve a higher overall gold sale price. We remain on track, as Vitolino forecast, on our 50,000 to 55,000 ounces of gold production this year.

Speaker #3: We're well on track. It's always nice to start ahead of the curve from a cost perspective. Below the bottom end of our cash cost and all in sustaining cost range.

Charles Funk: It's always nice to start ahead of the curve from a cost perspective, below the bottom end of our cash cost and all-in sustaining cost range. We expect to be able to deliver on that production guidance. Greg will touch on it, but we really only saw about 2 months of production from the restart at San Agustin, so that bodes very well for Q2 and for us achieving our guidance throughout the year. Pleased to reiterate our guidance remains the same. If we can move ahead, please, Steven. Greg, I'll hand over to you for some detail at each of the operations.

Charles Funk: It's always nice to start ahead of the curve from a cost perspective, below the bottom end of our cash cost and all-in sustaining cost range. We expect to be able to deliver on that production guidance. Greg will touch on it, but we really only saw about 2 months of production from the restart at San Agustin, so that bodes very well for Q2 and for us achieving our guidance throughout the year. Pleased to reiterate our guidance remains the same. If we can move ahead, please, Steven. Gregg, I'll hand over to you for some detail at each of the operations.

Speaker #3: We expect to be able to deliver on that production guidance. Greg will touch on it, but we really only saw about two months of production from the restart at San Augustine.

Speaker #3: So that bodes very well for Q2 and for us achieving our guidance throughout the year. So pleased to reiterate our guidance remains the same.

Speaker #3: If we can move ahead, please, Stephen. And Greg, I'll hand over to you for some detail at each of the operations.

Speaker #5: Okay. Thanks, Charles. Good morning, everyone. So at La Colorado, we had a good quarter. There were no recordable injuries in the quarter. We continued to process stockpile material a bit longer than we anticipated when we put out our guidance.

Gregg Bush: Okay. Thanks, Charles. Good morning, everyone. At La Colorada, we had a good quarter. There were no reportable injuries in the quarter. We continued to process stockpile material a bit longer than we anticipated when we put out our guidance. We found some additional material that we put on the pad. We wound that down in the latter half of March. In the same period, we were ramping up the production from the injection leaching.

Speaker #5: We found some additional material that we put on the pad, so we wound that down in the latter half of March. And in the same period, we were ramping up.

Speaker #5: We were ramping up the production from the injection leaching. And so the kind of the impact on the cost of that was we were we spent a lot of money drilling out the production wells for the injection process.

Gregg Bush: The kind of the impact on the cost of that was we spent a lot of money, you know, drilling out the production wells for the injection process. We saw those costs hit in the quarter plus some mining costs that were not in the budget because there was more, we, like I say, we put a bit more ore on the pad. The on the cost side, I touched on the is that we spent a bit more money on the mining side and also on the jets.

Speaker #5: So, we saw those costs hit in the quarter, plus some mining costs that were not in. Like I say, we put a bit more ore on the pad.

Speaker #5: So the on the cost side, I touched on the we spent a bit more money on the mining side. And also on the jacks.

Speaker #5: So our site costs were a bit above what we anticipated for the quarter, but it was offset by the fines sales at the end of the quarter.

Gregg Bush: Our site costs were a bit above what we anticipated for the quarter, but it was offset by the fine sales at the end of the quarter. We expect to be back on track on the site cost by the end of this coming quarter or this current quarter. Looking forward, if we can we switch to the next slide there, Charles? Looking forward, I just wanted to touch on the Veta Madre pit. We anticipate starting up there in the early part of Q3.

Speaker #5: We expect to be back on track on the site costs by the end of this coming quarter or this current quarter. So looking forward, if we can can we switch to the next slide there, Charles?

Speaker #5: Yeah. So looking forward, I just wanted to touch on the Vetimandry on the Vetimandry pit. Or we anticipate starting up there in the early part of Q3.

Gregg Bush: The reason we're delaying that a little bit is the pit got a fair bit larger with the higher gold price. We ended up with a pit design that was out into volumes where we had insufficient geotech information. We're doing some infill drilling and we're doing some, yeah, we're doing some geotech drilling. We're just waiting to finish that off, and update the resource model in the pit high wall design. Other than that, like I said, we'll be ramping up For the remainder of the year, our production is gonna come from, you know, from the injection leaching at La Colorada.

Speaker #5: And the reason we're delaying that a little bit is the pit got the bit got the pit got a fair bit larger with the higher gold price.

Speaker #5: And so we ended up with we ended up with a pit design that was out into volumes where we had insufficient geotech information. So we're doing some we're doing some infield drilling and we're doing some and we're doing some geotech drilling.

Speaker #5: So we're just waiting to finish that off update and update the resource model and the pit high wall design. So and other than that, as I said, we'll be ramping up.

Speaker #5: We'll be ramping up for the remainder of the year. Our production is going to come from this injection, from the injection leaching at La Colorado.

Speaker #5: So

Charles Funk: Before I move to the exploration there, Steven, if you can go back a slide. Yeah, I think there's two things that Gregg covered. The Veta Madre Plus. I'm sorry, it's always nice to look at the site layout, Steven. In slide 11, please. Veta Madre Plus will have additional ounces, we believe, above and beyond the technical report. That's why we're doing that work. We think we're gonna make more money by mining the larger pit that we call Veta Madre Plus there. For those who aren't familiar with injection leaching, it's technology that's quite commonly used in the copper space, particularly companies like Freeport-McMoRan using it in Arizona. We see considerable residual gold in the leach pad.

Speaker #3: Before I move to the expiration there, Stephen, if you can go back a slide. Yeah, I think there's two things that Greg covered. The Vetimandry Plus.

Speaker #3: Sorry, it's always nice to look at the site layout, Stephen. In slide 11, please. Is the Vetimandry Plus will have additional ounces, we believe, above and beyond the technical report.

Speaker #3: So that's why we're doing that work. We think we're going to make more money by mining the larger pit that we call Vetimandry Plus there.

Speaker #3: And then for those who aren't familiar with injection leaching, it's technology that's quite commonly used in the copper space, particularly companies like Freeport Marin using it in Arizona.

Speaker #3: We see considerable residual gold in the leach pad. It's a very clean draining leach pad. With quite coarse gold, many grains over many multiple millimeters.

Charles Funk: It's a very clean draining leach pad, with quite coarse gold, many, many grains over many multiple millimeters. If you can keep the active solution in contact with the gold for longer, or you can get active solution deeper into the leach pad, you can recover relatively low-cost gold ounces. So the team led by Gregg Bush did all the design and study work. We've been doing it for about 4 months. We drill holes into the leach pad. We inject that solution in such that we can saturate more of the column for longer, and we can get more active solution deeper into the leach pad. It's proving to be a very low cost, very successful way to produce gold.

Speaker #3: And so if you can keep the active solution in contact with the gold for longer, or you can get active solution deeper into the leach pad, you can recover relatively low-cost gold ounces.

Speaker #3: So the team led by Greg did all the design and study work. We've been doing it for about four months. We drill holes into the leach pad.

Speaker #3: We inject that solution in such that we can saturate more of the column for longer. And we can get more active solution deeper into the leach pad.

Speaker #3: And it's proving to be a very low-cost, very successful way to produce gold. So, incredibly, at La Colorado, from the original $80 million capex that was going to be required for the Creston pit, give or take, we've gone from stockpiles to injection leaching to the smaller Vetimandry pit to the larger Creston pit.

Charles Funk: Incredibly at La Colorada, you know, from the original $80 million CapEx that was gonna be required for the Creston pit, give or take, we've gone from stockpiles to injection leaching to the smaller Veta Madre pit to the larger Creston pit. We've found a way to put a 6-year mine life together at just under 50,000 ounces of annual production without any external CapEx, which is a credit to Gregg and the team at La Colorada. It's probably surprised us how well we've been able to tic-tac-toe at this asset to scale up production. Right now the focus is on drilling, the geotechnical work at Veta Madre. In H2 of the year, it'll move to exploration.

Speaker #3: And we found a way to put a six-year mine life together at just under 50,000 ounces of annual production, without any external capex, which is a credit to Greg and the team at La Colorado.

Speaker #3: It's probably surprised us how well we've been able to tic-tac-toe at this asset to scale up production. And so right now, the focus is on drilling the geotechnical work at Vetimandry.

Speaker #3: And in the second half of the year, it'll move to expiration. So as Stephen moves to the next slide, nearly all of the drilling, there's about 2.5 million ounces if you look at mined history and resources.

Charles Funk: As Steven moves to the next slide, nearly all of the drilling, there's about 2.5 million ounces if you look at mine history and resources in that main mine trend. There's very little drilling outside of that. It's one of the most immature brownfield environments that I've seen in a long time. There's many, you know, +1 gram rock chip sample areas that haven't seen drilling. There's soils anomalies above the cutoff grade of the pit. We'll probably start initially at Las Duendas target and move out from there. We've got about $5 million allocated to exploration at La Colorada in H2 of the year. Once we bed down Veta Madre, look for that to be a focus.

Speaker #3: In that main mine trend, there's very, very little drilling outside of that. It's one of the most immature brownfield environments that I've seen in a long time.

Speaker #3: There are many plus-one-gram rock chip sample areas that haven't seen drilling. There are soil anomalies above the cut-off grade of the pit. We'll probably start initially at the Lost Wenders target and move out from there.

Speaker #3: So we've got about five million dollars allocated to expiration at La Colorado in the second half of the year. And so once we bed down Vetimandry, look for that to be a focus.

Charles Funk: Continuing ramp up of production, the advancement of the Veta Madre pit, and a look to exploration is the focus going forward at La Colorada.

Speaker #3: So continuing ramp-up of production the advancement of the Vetimandry pit and a look to expiration is the focus going forward at La Colorado.

Charles Funk: Continuing ramp up of production, the advancement of the Veta Madre pit, and a look to exploration is the focus going forward at La Colorada.

Gregg Bush: Yeah, so at San Agustin, things went, you know, pretty much according to plan for the quarter. We did have one recordable safety incident in the quarter. Charles already mentioned, we basically got production out of, you know, the fresh ore for the last 2 months of the quarter. We were a little bit delayed on the startup last year, so that just pushed the production curve out almost 1 month. The mine so far, I think the most significant development at La Colorada or at San Agustin for the quarter or with the Amador Corner is the reconciliation has outperformed, you know, I'd say significantly.

Speaker #4: Okay. Yeah. So at San Augustine, things went pretty much according to plan for the quarter. We did have one recordable safety incident in the quarter.

Speaker #4: We, and Charles already mentioned, we only got—we basically got production out of the fresh ore for the last two months of the quarter.

Speaker #4: So, we were a little bit delayed on the startup last year, so that just pushed the production curve out almost a month.

Speaker #4: So the mine so far I think the I think the most significant development at La Colorado or at San Augustine for the quarter or with the Amador corner is the reconciliation has outperformed I'd say significantly.

Speaker #4: That's had several consequences for the operation. One is the we've had we're having to move a lot less waste to get the ore on the pad.

Gregg Bush: That's had several, you know, consequences for the operation. One is, you know, we've had, you know, we're having to move a lot less waste to get the ore on the pad. We've got a savings in the mining cost. It does, however, put us a little bit behind topographically from where we should be at this stage. That means the grade ramps up, you know, as we mine down into that. It's, it put us a little bit behind on the number of ounces we placed on the pad. We're rapidly catching up now as we, you know, during this quarter.

Speaker #4: So we've got a savings in the mining cost. It does, however, put us a little bit behind topographically from where we should be at this date.

Speaker #4: So that means we're the grade ramps up. As we mine down into that, so it put us a little bit behind on the number of ounces we placed on the pad.

Speaker #4: We're rapidly catching up now as we during this quarter. So yeah. So where that left us at the end of the quarter, we're we spent less money.

Gregg Bush: Where that left us at the end of the quarter, we're, you know, we spent less money. We got a bit lower ounces on the pad, but that's just a, you know, like I say, it's just a dislocation in the topography. That'll be rectified. The other, you know, going, you know, forward-looking, we're wrapping up the capital construction for the Phase Four B leach pad. That will be that. That's the last major expenditure we had related to the restart. The other benefit of having all that Phase Four B leach pad available to us is we'll be able to stack the ore on lower lifts, so we'll get a better response time.

Speaker #4: We got a bit lower ounces on the pad. But that's, just like I say, it's just a dislocation in the topography, so that'll be rectified.

Speaker #4: And the other forward-looking, I think we're wrapping up the capital construction for the Phase 4B leach pad. So that will be—that's the last major expenditure we had related to the restart.

Speaker #4: And the other benefit of having all that phase 4B leach pad and available to us is we'll be able to stack the ore on lower lifts.

Speaker #4: So we'll get a better response time. So that's been part of—part of it's delayed a bit, the production, the fact that we've had to put so much material up on top of the leach pad.

Gregg Bush: That's been part of, you know, it's delayed a bit the production, the fact that we've had to put so much material up on top of the leach pad. Other than that, I'd say we're continuing to drill. I think Charles will talk a little bit about it, but we're continuing to drill outside of the, you know, basically a long strike of mineralization for the Amador Corner. I'll hand it back over to Charles.

Speaker #4: And other than that, I'd say we're continuing to drill. I and Charles have talked about a little bit about it, but we're continuing to drill outside of the basically a long strike from mineralization for the Amador corner, so.

Speaker #4: I'll hand it back over to Charles.

Charles Funk: Yeah. Thank you, Greg. No, I think, you know, San Agustin continues to deliver us, for us as a company. I think, you know, what Greg's saying is, we did identify it before we started mining that there was the potential that we could have positive reconciliation to be, put plainly, that there'd be more ounces than the reserve model showed. Net, net, that's a great positive for us. We're going to recover additional ounces than the mine plan suggested, which goes straight to profitability and cash build for us as a company. There's slightly delayed gratification in Q2 relative to Q1 for some of that. No, I think we're set up for a very strong Q2 at San Agustin and a longer mine life than the current tech report supports there.

Charles Funk: Yeah. Thank you, Gregg. No, I think, you know, San Agustin continues to deliver us, for us as a company. I think, you know, what Greg's saying is, we did identify it before we started mining that there was the potential that we could have positive reconciliation to be, put plainly, that there'd be more ounces than the reserve model showed. Net, net, that's a great positive for us. We're going to recover additional ounces than the mine plan suggested, which goes straight to profitability and cash build for us as a company. There's slightly delayed gratification in Q2 relative to Q1 for some of that. No, I think we're set up for a very strong Q2 at San Agustin and a longer mine life than the current tech report supports there.

Speaker #3: Yeah. Thank you, Greg. No, I think San Augustine continues to deliver for us as a company. I think what Greg's saying is and we did identify it before we started mining that there was the potential that we would have positive reconciliation to be talked plainly that there'd be more ounces.

Speaker #3: Then the reserve model showed. And net-net, that's a great positive for us. We're going to recover additional ounces than the mine plan suggested. Which goes straight to profitability and cash build for us as a company.

Speaker #3: They're slightly delayed gratification in Q2 relative to Q1 for some of that. But no, I think we're set up for a very strong Q2 at San Augustine.

Speaker #3: And a longer mine life than the current tech report supports there. Above and beyond that growth within the reserve, we also, in the quarter, started doing the first step-out drilling, looking to expand the mine life beyond the current study.

Charles Funk: Above and beyond that growth within the reserve, we also in the quarter started doing the first step-out drilling, looking to expand the mine life beyond the current study. If you sort of work back at the envelope that we're making at current gold price environments around $50 million a year from San Agustin, it's generating significant operating cash flow for us. Being able to extend that is incredibly powerful. Gregg's given a nod to an extension within the current reserve area. These results we put out in the quarter speak to potential beyond that. Over 200m beyond the edge of the pit, we're hitting, broadly speaking, the same grades and the same widths at the same depths that we're currently mining. It's giving us a lot of confidence that we're going to be able to extend that mine life.

Speaker #3: And so if you sort of work back of the envelope that we're making at current gold price environments around 50 million dollars a year from San Augustine, it's generating significant operating cash flow for us.

Speaker #3: Being able to extend that's incredibly powerful. Greg's given a nod to an extension within the current reserve area. And these results we put out in the quarter speak to potential beyond that.

Speaker #3: Over 200 meters beyond the edge of the pit, we're hitting broadly speaking the same grades and the same widths at the same depths that we're currently mining.

Speaker #3: So it's giving us a lot of confidence that we're going to be able to extend that mine life. I don't think the market's giving us a lot of value for it because right now they look like relatively low-grade oxide drill results.

Charles Funk: I don't think the market's giving us a lot of value for it, because right now they look like relatively low-grade oxide drill results. If we could add another 6, 12, 18 months of production, you know, 12 months is gonna be an approximately additional $50 million in cash flow. I think it's kind of a bit underrated in our share price, what the cash flow generation from Ana Paula is doing. Right now, we're in the middle of a $10 million program throughout this year at San Agustin that's doing reserve drilling, look to bring this into the mine plan, as well as some exploration drilling on new oxide and sulfide targets.

Speaker #3: But if we could add another 6, 12, 18 months of production, 12 months is going to be an approximately additional 50 million dollars in cash flow.

Speaker #3: So, I think it's kind of a bit underrated in our share price what the cash flow generation from Annapole is doing. Right now, we're in the middle of a $10 million program throughout this year at San Augustine.

Speaker #3: That's doing reserve drilling, to look to bring this into the mine plan, as well as some exploration drilling on new oxide and sulfide targets.

Speaker #3: So it's receiving significant expenditure as we believe that we can extend the mine life, which we think is going to add strong cash flow for us in the pre-Anapola period.

Charles Funk: It's receiving significant expenditure as we believe that we can extend the mine life, which we think is gonna add strong cash flow for us in the pre-Ana Paula period. I think that's one that I'd like to believe the market isn't paying attention to, that internally we're very excited about.

Speaker #3: So I think that's one that I'd like to believe the market isn't paying attention to, that internally we're very excited about.

Steven: That's a great segue into Ana Paula and an update and an overview here. As you recall, last quarter we put out the economics for the first time on the Ana Paula Underground Project as we've reimagined it since acquiring it, showing 100,000 ounces a year over a 9-year mine life at a $1,000 per ounce all-in sustaining cost. Ana Paula still remains a key goal for us with the cash generated from the operations at San Agustin and La Colorada, supporting about half of the project financing as we envision it right now, if not more, if the gold price remains elevated.

Stephen Soock: That's a great segue into Ana Paula and an update and an overview here. As you recall, last quarter we put out the economics for the first time on the Ana Paula Underground Project as we've reimagined it since acquiring it, showing 100,000 ounces a year over a 9-year mine life at a $1,000 per ounce all-in sustaining cost. Ana Paula still remains a key goal for us with the cash generated from the operations at San Agustin and La Colorada, supporting about half of the project financing as we envision it right now, if not more, if the gold price remains elevated.

Speaker #2: That's a great segue into our Annapola and an update and an overview here. As you recall, last quarter we put out the economics for the first time on the Annapola underground project as we've reimagined it since acquiring it.

Speaker #2: Showing 100,000 ounces a year over a nine-year mine life at a $1,000 per ounce all-in sustaining cost. Annapola still remains a key goal for us, with the cash generated from the operations at San Augustine and La Colorada.

Speaker #2: Supporting about half of the project financing as we envision it right now, if not more, if the gold price remains elevated. You can see in our quarterly results that that strategy is being borne out quarter over quarter, with our cash balance building and building towards being able to bring Annapola online.

Steven: You can see in our quarterly results that that strategy is being borne out, quarter over quarter with our cash balance building, and building towards being able to bring Ana Paula online. We see this as a really major step change for the company as it, we're able to bring this into production, so remaining on track to come online, ramping up to that 100,000 ounces per year mark in H2 2028. Just quickly, to go through what Ana Paula is. You know, it's a project that's had $100 million invested into it, significant infrastructure that allowed us to get a really good head start here.

Stephen Soock: You can see in our quarterly results that that strategy is being borne out, quarter over quarter with our cash balance building, and building towards being able to bring Ana Paula online. We see this as a really major step change for the company as it, we're able to bring this into production, so remaining on track to come online, ramping up to that 100,000 ounces per year mark in H2 2028. Just quickly, to go through what Ana Paula is. You know, it's a project that's had $100 million invested into it, significant infrastructure that allowed us to get a really good head start here.

Speaker #2: We see this as a really major step change for the company as it we're able to bring this into production still remaining on track in to come online ramping up to that 100,000 ounce per year mark in the second half of 2028.

Speaker #2: Just quickly, to go through what Annapola is, it's a project that's had 100 million dollars invested into it, significant infrastructure that allowed us to get a really good head start here.

Steven: At Heliostar, we've reimagined the project from what was a permitted open pit project now to a compact, high-grade bulk tonnage underground, which drives the significant economics of the Ana Paula mine as we showed in that PEA. We've still on track for a feasibility study for H1 2027, supported by our ongoing drill programs, which have both been focused on infill drilling the inferred resources to be able to move from the PEA stage and include those resources at the M&I category in a feasibility study, as well as a success-driven 100,000 meters that we've added beyond that, looking at step out and, more specifically, step down mineralization, continuing to chase the high-grade system at depth.

Speaker #2: It's Heliostar we've reimagined the project from what was a permitted open pit project now to a compact high-grade bulk tonnage underground. Which drives a significant economics of the Annapola mine as we showed in that PEA.

Stephen Soock: At Heliostar, we've reimagined the project from what was a permitted open pit project now to a compact, high-grade bulk tonnage underground, which drives the significant economics of the Ana Paula mine as we showed in that PEA. We've still on track for a feasibility study for H1 2027, supported by our ongoing drill programs, which have both been focused on infill drilling the inferred resources to be able to move from the PEA stage and include those resources at the M&I category in a feasibility study, as well as a success-driven 100,000 meters that we've added beyond that, looking at step out and, more specifically, step down mineralization, continuing to chase the high-grade system at depth.

Speaker #2: We're still on track for our feasibility study for the first half of 2027, supported by our ongoing drill programs, which have both been focused on infill drilling the forward resources to be able to move from the PEA stage and include those resources at the MNI category in a feasibility study.

Speaker #2: As well as a success-driven 100,000 meters that we've added beyond that looking at step-out and more specifically step-down mineralization continuing to chase the high-grade system at depth.

Speaker #3: Yeah, I think so. The corporate priority is the feasibility study. You'll note that we've reorganized our internal structure a little bit, and we've moved to an underado as our VP of Operations now that we've kind of got them bedded down and performing at the steady state that we set out last year.

Charles Funk: Yeah, I think so. The corporate priority is the feasibility study. You'll note that we've reorganized our internal structure a little bit, and we've moved Hernan Dorado as our VP of Operations now that we've kind of got them bedded down and performing at the steady state that we set out last year. We're giving Gregg some more capacity to focus on the Ana Paula feasibility and ultimately build next year. Internally, the reorganization to focus on Ana Paula and deliver that feasibility, you know, is our biggest focus going forward. I'll touch at the end on what I think are some different valuation comps and why Ana Paula is so important for what it does to our share price.

Speaker #3: And we're giving Greg some more capacity to focus on the Annapola feasibility and ultimately build next year. So internally, the reorganization to focus on Annapola and deliver that feasibility is our biggest focus going forward.

Speaker #3: And I'll touch at the end on what I think are some different valuation comps and why Annapola is so important for what it does to our share price.

Charles Funk: Separate to the feasibility study, and, as Steven said, we've drilled about 25,000 meters focused on inferred to reserve conversion in that study. We spent $4.6 million in the quarter at Ana Paula. What I really like about our quarter is the working cap increase, the cash flow generation, despite significant spends at Ana Paula and our exploration properties. It's the power of this market for growth companies like ours, in that you can do more quickly to bring forward value. We've got a 10,000 meter drill program ongoing beyond the scope of the feasibility study drilling, and that's because of some of these deeper results we've hit.

Speaker #3: So separate to the feasibility study and as Stephen said, we've drilled about 25,000 meters focused on inferred to reserve conversion in that study. We spent 4.6 million dollars in the quarter at Annapola.

Speaker #3: So what I really like about our quarter is the working cap increase, the cash flow generation despite significant spends at Annapola and our exploration properties.

Speaker #3: It's the power of this market for growth companies like ours, in that you can do more quickly to bring forward value. And so we've got a 10,000-meter drill program ongoing, beyond the scope of the feasibility study drilling.

Speaker #3: And that's because of some of these deeper results we've hit. So we've consistently been drilling the 20- to 70-meter wide intercepts at 10 grams plus in the high-grade panel as we've done the conversion drilling.

Charles Funk: You know, we've consistently been drilling, you know, the 20 to 70 meter wide intercepts at 10 grams plus in the high grade panel as we've done the conversion drilling. You know, they speak to why Ana Paula is gonna be such a high margin producer. We'd also had some inferred resources. The top right graphic is looking to the north. The bottom left graphic is looking to the west. You can see that we're gonna complete the decline and use that for production, focused mostly on the high grade panel. We're also going to put an elbow down and then spiral down to some inferred resources deeper. We initially were drilling those off to come into the feasibility study, but we're always excited to drill deeper because it was open.

Speaker #3: And they speak to why Annapola is going to be such a high-margin producer. But we’d also had some inferred resources—the top right graphic is looking to the north.

Speaker #3: The bottom left graphic is looking to the west, and you can see that we're going to complete the decline and use that for production, focused mostly on the high-grade panel.

Speaker #3: But we're also going to put an elbow down and then spiral down to some inferred resources deeper. And so, we initially were drilling those off to come into the feasibility study.

Speaker #3: But we're always excited to drill deeper because it was open. In our first holes down deep at the expansion zone, we stepped out 70 meters and we hit 25 meters at over 8 grams per ton.

Charles Funk: In our first holes down deep at the expansion zone, we stepped out 70 meters and we hit 25 meters at over 8 grams per ton. A really impactful first hit. We followed up with another six results, about three weeks ago, headlined by 101 meters at 5.3 grams per ton from the expansion zone. You know, these are incredible grades and widths. The upper 30-odd meters was from an inferred stope, and the 70 meters of that intercept was down below that, and it remains open, and we're currently drilling that.

Speaker #3: So, really impactful first hit. And then we followed up with another six results about three weeks ago, headlined by 101 meters at 5.3 grams per ton from the expansion zone.

Speaker #3: These are incredible grades and width. The upper 30-odd meters was from an inferred stope, and 70 meters of that intercept was down below that, and it remains open.

Speaker #3: And we're currently drilling that. So maybe strictly speaking or in a tougher price environment, we might not do that expansion drilling. But it's pretty hard to not try and grow Annapola when you know it's going to add to mine life and you can see the exciting grades and widths that we're hitting.

Charles Funk: You know, maybe strictly speaking or in a tougher price environment, we might not do that expansion drilling, but it's pretty hard to not try and grow Ana Paula when you know it's gonna add to mine life and you can see the exciting grades and widths that we're hitting. We've got more drilling coming as we look to step out down deep, in parallel with the focus on the feasibility study that we're doing. Ana Paula continues to deliver on both fronts, moving forward through the engineering de-risking phase, moving to what's the best part of the Lassonde Curve as you go into construction and production. We're also still continuing to look at growth because we're able to fund that ourselves.

Speaker #3: So, we've got more drilling coming as we look to step out down deep, in parallel with the focus on the exploration—sorry, with the focus on the feasibility study that we're doing.

Speaker #3: So Annapola continues to deliver on both fronts. Moving forward through the engineering de-risking phase. Moving to what's the best part of the La Son curve as you go into construction and production.

Speaker #3: But we're also still continuing to look at growth because we're able to fund that ourselves. The other asset that we acquired in the quarter was the gold strike project.

Charles Funk: The other asset that we acquired in the quarter was the Goldstrike project. Again, you know, I think it fits our DNA to kind of find off-Broadway ideas that aren't being well valued. We identified this from Liberty Gold. Liberty's advancing a project in Idaho, and my interpretation is that they're demonstrating, trying to demonstrate to the market that they don't need equity, so they were happy to monetize what was a non-core asset. We look at Goldstrike through two lenses. We think that it represents an excellent growth opportunity in around 5 years to be another 100,000 ounces a year producer for us, with some geographical diversity, with some antimony upside, which I'll talk about in a second. Alternatively, you know, the development pipeline we have gives us great redundancy and optionality, as we build Ana Paula.

Speaker #3: Again, I think it fits our DNA to kind of find off-Broadway ideas that aren't being well valued. And we identified this from Liberty Gold.

Speaker #3: Liberty is advancing a project in Idaho, and my interpretation is that they're trying to demonstrate to the market that they don't need equity.

Speaker #3: So, they were happy to monetize what was a non-core asset. We look at Goldstrike through two lenses. We think that it represents an excellent growth opportunity in around five years to be another 100,000-ounce-a-year producer for us.

Speaker #3: With some geographical diversity, with some antimony upside, which I'll talk about in a second. Or alternatively, the development pipeline we have gives us great redundancy and optionality.

Speaker #3: As we build Annapola, so as long as in our view, we're buying and paying less than a dollar for assets we believe to be a dollar.

Charles Funk: As long as in our view, we're buying, you know, paying less than $1 for assets we believe to be $1, we think we can make money for shareholders and Goldstrike firmly fitted that. It has a very friendly acquisition price structure, $72.5 million staged over 5 years that fits our cash flow profile. We think the system has considerable upside with nearly all of the drilling less than 200 meters in the classic stratigraphy for Carlin deposits, for those who know the deposit type. Right now, we've got a team on the ground working out the next steps for particularly the antimony target, and we also step back and are focusing on what we need to do to put a PFS on Goldstrike.

Speaker #3: We think we can make money for shareholders and gold strike firmly fitted that. It has a very friendly acquisition price structure. 72 and a half million staged over five years that fits our cash flow profile.

Speaker #3: We think the system has considerable upside with nearly all of the drilling less than 200 meters in the classic stratigraphy for carbon deposits for those who know the deposit type.

Speaker #3: And so right now, we've got a team on the ground working out the next steps for particularly the antimony target. And we also step back and are focusing on what we need to do to put a PFS on gold strike.

Charles Funk: Broadly speaking, early next year, we haven't said exactly what that timing will be, we'll work up and show the economics of what we believe to be a very attractive project that we were able to acquire on very cheap terms. That continues to build out our growth pipeline that we think we can organically fund by going Ana Paula first, Cerro de Oro second, and then Goldstrike third. We believe that we have, you know, an absolute peer-leading development pipeline. We think if you look at sub 100,000 ounce a year producers, we're by some margin, one of the cheapest producers in that bracket, meaning that we're making more money from the gold that we produce. We think with one of the best growth pipelines in the industry, we're unique that we can fund it ourselves and space it.

Speaker #3: Broadly speaking, early next year—we haven't said exactly what that timing will be. But we'll work up and show the economics of what we believe to be a very attractive project that we're able to acquire on very cheap terms.

Speaker #3: That continues to build out our growth pipeline that we think we can organically fund by going Annapola first, Ceridigoi second, and then Goldstrike third.

Speaker #3: We believe that we have an absolute peer-leading development pipeline. We think if you look at sub-100,000 ounce a year producers whereby some margin one of the cheapest producers in that bracket meaning that we're making more money from the gold that we produce.

Speaker #3: So, we think with one of the best growth pipelines in the industry, we're unique that we can fund it ourselves and space it. Now, we've always said we reserve the right, if we can buy producing assets or grow resources, to issue equity.

Charles Funk: Now, we've always said, you know, we reserve the right, if we can buy producing assets or grow resources, to issue equity. Our plan and our main focus is on getting to Ana Paula without having to issue any further shares. In this gold price environment with the production profile that Gregg's quarter presentation of the quarter shows that we're delivering on, sets us up extremely well as a company to deliver what I like to consider per share performance, which is really the only metric that matters. If we look forward, I've sort of broken our catalysts down to drill result focused over the next couple of months. We've got more results to come from Ana Paula, from La Colorada and San Agustin. We're spending $27 million on exploration this year.

Speaker #3: But our plan and our main focus is on getting to Annapola without having to issue any further shares. And in this gold price environment, with the production profile that Greg's Q1 presentation shows, we're delivering on that.

Speaker #3: Sets us up extremely well as a company to deliver what I like to consider per share performance, which is really the only metric that matters.

Speaker #3: If we look forward, I've sort of broken our catalysts down to drill result focused over the next couple of months. We've got more results to come from Annapola from the Colorado and San Augustine.

Speaker #3: We're spending 27 million dollars on exploration this year. We think that's going to be able to grow resources across all of our projects. And then in the second half of the year, I think the development catalysts become the focus that will move our share price.

Charles Funk: We think that's going to be able to grow resources across all of our projects. In H2, I think the development catalysts become the focus that will move our share price. The pre-strip of Veta Madre, the engineering progress, the long lead time item purchases for Ana Paula. As I touched on before, as we move through, you know, the classic value generation part of the Lassonde Curve, as Ana Paula comes online with the feasibility study in Q2 next year, commencement of construction and ultimately bringing into production at the back of 2028. We continue to deliver quarter in, quarter out, and I'll take this opportunity to thank the team internally at Heliostar for all your work and for that very strong quarter.

Speaker #3: The pre-strip of Ada Madre the engineering progress, the long lead time item purchases for Annapola and as I touched on before as we move through the classic value generation part of La Son curve as Annapola comes online with the feasibility study in Q2 next year commencement of construction and ultimately bringing into production at the back of 2028.

Speaker #3: We continue to deliver quarter in, quarter out and I'll take this opportunity to thank the team internally at Heliostar for all your work and for that very strong quarter.

Charles Funk: I'll close from a value perspective before we ask questions. I'll note before I make this statement, there's a chat function that you can click in and ask questions. Steven will then present them to us. I think there's 3 ways to value, you know, growing, you know, developer/producer companies. The 1st of them is that discount to the value of your assets. We're trading at around, you know, 0.25, 0.3 on analyst consensus, which is around that developer bracket despite that cash flow. I suspect that's because of the sort of staged process of the way we're generating our cash flow internally. You know, we're just happy to generate significant cash flow and deliver on our goals. We understand that's sort of holding us back a little bit until Ana Paula comes online.

Speaker #3: I'll close ask questions and I'll note before I make this statement there's a chat function that you can click in and ask questions and Stephen will then present them to us.

Speaker #3: I think there's three ways to value growing developer/producer companies. The first of them is that discount to the value of your assets. We're trading at around 0.25, 0.3 on analyst consensus.

Speaker #3: Which is around that developer bracket, despite that cash flow. I suspect that's because of the sort of staged process of the way we're generating our cash flow.

Speaker #3: Internally, we're just happy to generate significant cash flow and deliver on our goals, and we understand that it's sort of holding us back a little bit until Annapola comes online.

Speaker #3: When that comes online, we should be trading at $0.60, $0.80. So that's a clear re-rate in our stock as we deliver on Annapola. The other one is, you look at where we're going in our production profile.

Charles Funk: When that comes online, we should be trading at 0.6, 0.8. That's a clear reroute in our stock as we deliver on Ana Paula. The other one is, you know, you look at where we're going in our production profile. If you look at any comp doing 100, 150, 200, 300,000 ounces of annual production, they're many billions of dollars of market cap larger than us. On just a basic metric, we think we've got a long way to go. The last one is to read through what the profitability of Ana Paula can be for us in 2028 onwards.

Speaker #3: If you look at any company doing 100,000, 150,000, 200,000, or 300,000 ounces of annual production, there are many billions of dollars of market cap larger than us.

Speaker #3: So, I'm just a basic metric. We think we've got a long way to go. Or, the last one is to read through what the profitability of Annapola can be for us in '28 onwards.

Charles Funk: You know, if you've got a mine producing 100,000 ounces a year at $3,500 margin, the free cash flow of that is incredible and, you know, coming up to one, only one or two times our current market cap. We know that that should be many multiples of that. Any way you look at our growth trajectory and our valuation, any of your preferred metrics, I think we can perform very strongly against as long as we continue to deliver as a management team.

Speaker #3: If you've got a mine producing 100,000 ounces a year at a $3,500 margin, the free cash flow of that is incredible. And coming up to only one or two times our current market cap.

Speaker #3: And we know that that should be many multiples of that. So, any way you look at our growth trajectory and our valuation, any of your preferred metrics, I think we can perform very strongly against, as long as we continue to deliver as a management team.

Speaker #3: And this is now our fifth quarter in a row of being able to deliver, and we look forward to continuing to do so for the remainder of the year.

Charles Funk: This is now our fifth quarter in a row of being able to deliver, and we look forward to continuing to do so for the remainder of the year, knowing that if we do, we should be able to make a Heliostar share worth more. Thank you all very much for your attendance in our quarterly update. Happy to take questions. Look forward to providing more drill results, more engineering progress throughout the remainder of the year.

Speaker #3: Knowing that if we do, we should be able to make a Heliostar share worth more. So thank you all very much for your attendance in our quarterly update.

Speaker #3: Happy to take questions. Look forward to providing more drill results more engineering progress throughout the remainder of the year.

Speaker #1: Thank you, Charles. And the rest of the team. I'll echo that again. There is a Q&A chat function if you could please type your questions in there.

Steven: Thank you, Charles and the rest of the team. I'll echo that again. There is a Q&A chat function. If you could please type your questions in there, I'll present them live now. We have a question around the timing of the decline into Ana Paula, something we've talked about before, and wondering what the status of that project is.

Stephen Soock: Thank you, Charles and the rest of the team. I'll echo that again. There is a Q&A chat function. If you could please type your questions in there, I'll present them live now. We have a question around the timing of the decline into Ana Paula, something we've talked about before, and wondering what the status of that project is.

Speaker #1: I'll present them live now. We have a question around the timing of the decline into Annapola, something we've talked about before, and we're wondering what the status of that project is.

Charles Funk: Yeah.

Steven: I think, Charles, yeah, sorry. I'll chuck that to you probably is best to take it.

Stephen Soock: I think, Charles, yeah, sorry. I'll chuck that to you probably is best to take it.

Speaker #1: I think Charles, yeah, sorry, I'll direct that to you. Probably is best to take it.

Charles Funk: Our plan is to complete the decline in H2 of this year. We're working through, you know, for a bit more detail, Ana Paula has an open pit mining permit that was given to it about five years ago. We're in the process of changing that to an underground permit. You know, you do let certain ancillary aspects of that retire out as we move to the new plan. We believe that we will commence that decline in H2 of this year. We know that there's a few more regulatory steps that we want a bit of clarification on before we 100% commit to that.

Speaker #2: Sorry, I'll wait next time to be. But yeah, jumping in. So our plan is to complete the decline in the second half of this year.

Speaker #2: We're working through, so again, for a bit more detail, Annapola has an open pit mining permit that was given to it about five years ago.

Speaker #2: We're in the process of changing that to an underground permit. You do let certain ancillary aspects of that retire out as we move to the new plan.

Speaker #2: So we believe that we will commence that decline in the second half of this year. We note that there's a few more regulatory steps that we want a bit of clarification on.

Speaker #2: Before we are 100% commit to that, I was probably a bit stronger on it in January that we definitely were. We don't want to delay any aspect of actually building the mine.

Charles Funk: I was probably a bit stronger on it in January that we definitely were. We don't wanna delay any aspect of actually building the mine. Interestingly, Ana Paula, the limitation to building Ana Paula is actually building the surface infrastructure, not doing the decline development, which is quite uncommon. Most mines are limited by the underground development. It's because Ana Paula is so shallow. Our plan is to commence the decline in H2 this year. I'm giving myself and the team a slight out while we move through a couple of those permitting steps to make sure that we don't interrupt or delay the permitting timelines. Slightly weaker than I presented in January, but still our plan to complete in H2 this year. Commence in H2 this year.

Speaker #2: And interestingly, Annapola the limitation to building Annapola is actually building the surface infrastructure, not doing the decline development, which is quite uncommon. Most mines are limited by the underground development.

Speaker #2: It's because Annapola is so shallow. So our plan is to commence the decline in the second half of this year. I'm giving myself and the team a slight out while we move through a couple of those permitting steps to make sure that we don't interrupt or delay the permitting timelines.

Speaker #2: So slightly weaker than I presented in January, but still our plan to complete in H2 this year. Or commence in H2 this year.

Steven: Great. Thank you, Charles. I have another question here on the remaining capital requirements for the year. If you could note some of the major items where we'll spend money to continue to reinvest and grow in the business. Anything you can provide on the timing of those.

Stephen Soock: Great. Thank you, Charles. I have another question here on the remaining capital requirements for the year. If you could note some of the major items where we'll spend money to continue to reinvest and grow in the business. Anything you can provide on the timing of those.

Speaker #1: Great. Thank you, Charles. I have another question here on the remaining capital requirements for the year. If you could note some of the major items where we'll spend money to continue to reinvest and grow in the business.

Speaker #1: And anything you can provide on the timing of those.

Speaker #2: Yeah. So I think there are three big steps. There is the commencement of the pre-strip of Ada Madre. In total, that's a $35 million pre-strip.

Charles Funk: Yeah. I think there's three big steps. There is the commencement of the pre-strip of Veta Madre. In total, that's a $35 million pre-strip as we see it at the moment, that's going to commence in July. That will be spread over H2 of this year and early the following year. We, in our budget model and all the numbers we've presented for Ana Paula are funding that internally. We'll have the decline when we commence that at Ana Paula of about $15 million that'll be spread over the back end of this year into next year. We're approximately a third of the way through the $27 million exploration spend we're talking about this year. They would be the three big capital steps.

Speaker #2: As we see it at the moment, that's going to commence in July. That will be spread over the second half of this year and early the following year.

Speaker #2: We are in our budget and model and all the numbers we've presented for Annapola are funding that internally. We'll have the decline when we commence that at Annapola of about 15 million dollars that will be spread over the back end of this year into next year.

Speaker #2: And we're approximately a third of the way through the 27 million dollar expiration spend we're talking about this year. They would be the three big capital steps.

Speaker #2: And again, it's what I kind of love about the proposition that we're laying out, is that we're able to fund all this and still build that cash balance.

Charles Funk: Again, it's what I kinda love about the proposition that we're laying out, is that we're able to fund all this and still build that cash balance. You know, next year we expect to be a strong cash flow harvesting year for us. Despite doing all the work, still a cash flow harvesting year for us this year. I think as a rule of thumb, and treat it as this, at about $3,800 gold, I think we would generate around $100 million this year and next year to go towards Ana Paula. At $5,000 gold, we'd generate about $200 million.

Speaker #2: Next year, we expect it to be a strong cash flow harvesting year for us. And despite doing all the work, it's still a cash flow harvesting year for us this year.

Speaker #2: I think, as a rule of thumb—and treat it as this—at about $3,800 gold, I think we would generate around $100 million this year and next year to go towards Annapola.

Speaker #2: At 5,000 dollar gold, we'd generate about 200 million. So the 150 million numbers sort of a middle of the range number. Based on a conservative gold production profile and a middle of the range gold price, which we've certainly been seeing for the last quarter plus.

Charles Funk: The $150 million number is sort of a middle of the range number, based on a conservative gold production profile and a middle of the range gold price, which we've certainly been seeing for the last quarter plus. We're strongly positioned to deliver on that. The $150 million of capital for Ana Paula is above all our G&A, all our exploration, all our CapEx spends on our existing operations. If gold price stays at these levels, I think we can potentially outperform that as well.

Speaker #2: So we're strongly positioned to deliver on that. The 150 million of capital for Annapola is above all our G&A, all our expiration, all our CAPEX spends on our existing operations.

Speaker #2: And if gold price stays at these levels, I think we can potentially outperform that as well.

Steven: Thank you for that. I've got one more question here in the chat, just asking about this, the state of kind of labor relations in Mexico and around Ana Paula specifically. If you could just kinda comment on what that situation for Heliostar looks like specifically.

Stephen Soock: Thank you for that. I've got one more question here in the chat, just asking about this, the state of kind of labor relations in Mexico and around Ana Paula specifically. If you could just kinda comment on what that situation for Heliostar looks like specifically.

Speaker #1: Thank you for that. I've got one more question here in the chat. Just asking about the state of kind of labor relations in Mexico and around Annapola specifically.

Speaker #1: If you could just kind of comment on what that situation for Heliostar looks like specifically.

Charles Funk: Yeah, I think, Greg, we might hand that over to you. We have annual meetings and presentation. I think more broadly, I expect to see pressure on labor costs, particularly later this year and next year. You know, every company in our industry has funding at the moment as a gross statement. That's gonna lead to demand for skilled labor. I expect to see, like we saw in sort of six, seven, eight in the last cycle, pressure on salaries. Greg, I'll hand it over to you to talk specifically relationships with unions in a view to Ana Paula looking forward.

Charles Funk: Yeah, I think, Gregg, we might hand that over to you. We have annual meetings and presentation. I think more broadly, I expect to see pressure on labor costs, particularly later this year and next year. You know, every company in our industry has funding at the moment as a gross statement. That's gonna lead to demand for skilled labor. I expect to see, like we saw in sort of six, seven, eight in the last cycle, pressure on salaries. Greg, I'll hand it over to you to talk specifically relationships with unions in a view to Ana Paula looking forward.

Speaker #2: Yeah, I think, Greg, we might hand that over to you. We have annual meetings and presentations. I think, more broadly, I expect to see pressure on labor costs, particularly later this year and next year.

Speaker #2: Every company in our industry has funding at the moment as a growth statement. That's going to lead to demand for skilled labor. So I expect to see, like we saw in sort of six, seven, eight in the last cycle, pressure on salaries.

Speaker #2: But Greg, I'll hand it over to you to talk specifically relationships with unions and a view to Annapola looking forward.

Gregg Bush: Okay. Yeah, I mean, as far as the, you know, as far as the two operating mines, we in April and in April, we wrapped up our negotiations with the unions and subsequently with the, you know, with the employees on site. We've got our, you know, we've got our pay structure going forward for, you know, for this year and into, you know, into May of next year. We, you know, we were pleased with the outcome. The unions were pleased. We don't anticipate any unrest on that front. With Ana Paula, you know, it's early. It's kinda early days.

Speaker #3: Okay. Yeah, I mean, as far as the as far as the two operating mines, we in April and in April, we wrapped up our negotiations with the unions and subsequently with the employees on site.

Speaker #3: So we've got our we've got our pay structure going forward for this year and into May of next year. So we were pleased with the outcome.

Speaker #3: The unions were pleased, so we don't anticipate any unrest on that front. With Annapola, it's early—it's kind of early days. I'm not anticipating that we're going to have, given what's been happening with some of the other big headline mines there in the district.

Gregg Bush: You know, I'm not anticipating that we're gonna have, you know, given what's been happening with some of the, you know, the other, you know, big headline mines there in the district. I don't anticipate that we're gonna have a big difficulty in, you know, attracting, you know, underground mining talent and, you know, operators and mechanics, that sort of thing. At this point we're, you know, not in a hiring mode really other than supporting the exploration programs.

Speaker #3: I don't anticipate that we're going to have a big difficulty in attracting underground mining talent and operators that mechanics, that sort of thing. So but at this point, we're not in a hiring mode, really, other than supporting the expiration programs.

Steven: Great. Thank you. Thank you, Greg. I see no further questions in the chat. Thank you, Charles, Greg, and Vitalina for the presentation today to give us an update on what is a record-setting quarter and the path forward for the rest of the year and beyond. Thank you everyone for joining us today. If you have any additional questions, please send us an email at info@heliostarmetals.com, and happy to continue the conversation there and through our social media. Thank you everyone, and have a great day.

Stephen Soock: Great. Thank you. Thank you, Gregg. I see no further questions in the chat. Thank you, Charles, Gregg, and Vitalina for the presentation today to give us an update on what is a record-setting quarter and the path forward for the rest of the year and beyond. Thank you everyone for joining us today. If you have any additional questions, please send us an email at info@heliostarmetals.com, and happy to continue the conversation there and through our social media. Thank you everyone, and have a great day.

Speaker #1: Great. Thank you. Thank you, Greg. I see no further questions in the chat. So thank you, Charles, Greg, and Vitalina for the presentation today to give us an update on what is a record-setting quarter and the path forward for the rest of the year and beyond.

Speaker #1: Thank you, everyone, for joining us today. If you have any additional questions, please send us an email at info@heliostar.com. We're happy to continue the conversation there and through our social media.

Speaker #1: Thank you, everyone, and have a great day.

[Company Representative] (Heliostar Metals): Goodbye.