Heliostar Metals Ltd. produced a record 14,803 gold ounces and 79,710 silver ounces during the second quarter of 2026, generating record revenues of $56.5 million and record mine operating earnings of $31.1 million.

The performance lifted output above the 11,743 gold ounces reported in the first quarter of 2026. Net income attributable to shareholders reached $8.0 million, or $0.03 per share, compared with $14.1 million in the previous quarter. The decrease was driven by annual stock-based compensation expenses, higher tax charges and a stronger Mexican peso, which offset lower exploration expenses.

Consolidated cash costs for Q2 stood at $1,654 per gold ounce sold, compared to $1,602 in Q1. Corporate all-in sustaining costs rose to $2,287 per gold ounce sold from $1,996 in the prior period. Per-ounce costs remained steady despite an increase in profit-sharing attributable to strong 2025 performance and elevated diesel prices. Year-to-date cash costs of $1,630 per gold ounce are tracking within full-year guidance of $1,850 to $1,950, while year-to-date AISC of $2,155 tracks near the top end of its $2,025 to $2,125 guidance range. Heliostar remains on track to achieve full-year production guidance of 50,000 to 55,000 gold ounces and 290,000 to 320,000 silver ounces.

The company finished the period with a record cash position of $43.0 million and $45.9 million in working capital with no debt. Working capital decreased from $70.0 million at the end of the first quarter, primarily due to the $10.0 million initial cash payment made to Liberty Gold Corp. upon closing the acquisition of the Goldstrike project in Utah during Q2. Heliostar acquired the Mexican assets hosting the San Agustin and La Colorada mines in November 2024.

Production growth was underpinned by a 49% quarterly increase in gold output from San Agustin, where the mine maintained steady-state production from the Corner reserve area. Grade control drilling at San Agustin has resulted in positive ore tonnes reconciliation above the reserve model, with reserves estimated at 68,000 ounces of gold. At La Colorada, production transitioned to injection and residual leaching following the cessation of mining, crushing and stacking activities at the Junkyard area in late Q1. The company has mobilized a contractor to start waste stripping at the Veta Madre pit to exploit 48,000 ounces of contained gold reserves, with ore production planned to start in late Q2 2027.

At the flagship Ana Paula project, development and exploration expenditures totaled $5.6 million in Q2, supporting ongoing infill and exploration drilling. Infill drilling encountered wide zones of high-grade mineralization, including 99.8 metres grading 10.9 grams per tonne gold, designed to convert inferred resources into mineral reserves for a 10-year mine life. Heliostar plans to submit the underground mine permit and associated surface infrastructure before the end of Q3 2026, with the bankable feasibility study scheduled for completion in Q2 2027.

The stock is currently trading at $2.03, up 7.98%.

“Q2 was Heliostar's strongest production quarter yet. Both our operating mines are in stable operations and producing gold at low costs. This allows us to continue to generate significant operating cash flow despite fluctuations in the gold price. We have built cash on our balance sheet to support the construction of Ana Paula next year while still investing in growth across multiple avenues. This includes investing in our producing mines with mine-life extension focused drilling and studies, such as Veta Madre Plus at La Colorada and the Corner Extension at San Agustin. It also includes growth outside of our Mexican portfolio with the closing of the Goldstrike acquisition.”

— Charles Funk, President and Chief Executive Officer

Read the full announcement: Heliostar Presents Q2 2026 Financial and Operating Results with Record Gold Production and Cash Balance