Heliostar Metals Ltd (HSTXF) (Q3 2026) Earnings Call Highlights: Record Revenue, Strong Cash ... GuruFocus News Fri, November 13, 2026 at 6:04 PM EST 7 min read HSTR.TO +1.35% GC=F +0.06% HSTXF +1.26% SI=F -2.83% This article first appeared on GuruFocus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Record revenue of $66.3 million and record cash balance of $53.6 million in Q3 2026.
All-in sustaining costs (AISC) of $1,948 per ounce, within the middle of the guidance range.
No lost-time injuries (LTI) or reportable environmental incidents during the quarter.
St. Augustine mine reached steady-state production, contributing to lower costs and increased gold output.
Ana Paula project advancing well: permit submitted, feasibility study on track for Q2 2027, and project debt financing discussions progressing with strong interest.
La Colorada production expected to be lean for the next couple of quarters until new ore from Vada Madre pit is available in late Q2 2027.
Silver production at St. Augustine is slightly behind guidance due to slower recovery kinetics and mining of shallower gold zones.
Costs are rising, particularly diesel and cyanide, though no supply issues have been encountered.
Exploration drilling at La Colorada is behind schedule due to success at St. Augustine, delaying some upside testing.
Cash balance is not expected to continue growing at the same pace as the company enters the capital deployment phase for Ana Paula.
Warning! GuruFocus has detected 1 Warning Sign with HSTXF.
Is HSTXF fairly valued? Test your thesis with our free DCF calculator.
Q: Based on year-to-date all-in sustaining costs (ASIC) versus guidance, is a significant increase expected in Q4, and how are diesel and leach processing chemical costs trending? A: CEO Charles Fonk stated that year-to-date ASIC is "smack in the middle of the range" and expects Q4 performance similar to Q2 and Q3, keeping the company within guidance. COO Greg Bush added that diesel and cyanide costs are rising, but the company has contracts at both sites and has experienced no supply issues, with no other major cost increases seen so far.
Q: What is the status of the Ana Paula decline, and can the timeline to first gold in late 2028 be fast-tracked? A: CEO Charles Fonk explained that the company is taking a conservative approach and will begin the decline only after receiving the permit and making a final investment decision (FID). He noted that underground development is not the rate-limiting step at Ana Paula; the plant build is the key factor dictating the timeline to first gold.
Q: Could Ana Paula become a very long-life mine, similar to neighboring mines, based on the contact skarn target? A: CEO Charles Fonk confirmed the resource is open and that neighboring deposits (Los Filos and Torrex) are much larger, in the 15 to 20 million ounce range. He stated it is possible Ana Paula could be much bigger, though not yet definitively proven, and that deeper drilling in the expansion zone is returning very attractive results.
Q: How does Heliostar evaluate uses of capital for M&A toward its 500,000-ounce target, and has the interest rate environment changed opportunities? A: CEO Charles Fonk said the company has a deep organic pipeline and can fund its pathway itself, but recognizes it trades at a low multiple versus producing peers. He noted M&A could get the company bigger more quickly but carries dilution risk, and that any acquisition would need to be a production asset with clear upside and accretive value. He emphasized the company does not need to do M&A but would if the right opportunity arose.
Q: What is the structure and timing guidance for the $200 million project debt financing for Ana Paula? A: Stephen (management) said the company is still evaluating options including traditional bank debt, Nordic bonds, and private equity packages, weighing flexibility and cost of capital. Given its ability to generate cash flow as a developer, Heliostar is looking at prorated debt drawdowns alongside cash generated from La Colorada and San Augustine, with finalization hoped for in the first half of next year.
Q: What is the production profile outlook at La Colorada quarter to quarter over the next year? A: COO Greg Bush said La Colorada faces a couple of fairly lean quarters, similar to the past quarter, with production coming from residual injection leaching until ore from the Veta Madre pit comes online in late Q2. Management noted an uptick expected in Q3 as Veta Madre ore reaches the pad, which matches well with the company's spending profile for Ana Paula.
Q: Is there potential to optimize the Creston pit design to reduce strip ratio or accelerate time to first ore? A: COO Greg Bush said the company has looked at this multiple times, but the geometry of the ore body means it is a big pre-strip with the ore at the bottom, and splitting phases would come at the cost of higher mining costs and lower efficiency. CEO Charles Fonk added that the team was creative in sequencing Veta Madre ahead of Creston to lower initial CapEx, and that underground mining would require additional ounces to justify.
Q: Is the company still on track to meet its silver production goals, and how has the mine plan at San Augustine evolved with respect to silver? A: COO Greg Bush said silver recovery kinetics have been slower than anticipated but are starting to pick up, evidenced by the Merrill Crowe circuit being put back online. CEO Charles Fonk added that because more shallow gold was found, mining is not as deep as forecast, and the high-grade silver is at lower benches, so silver is at the bottom end of the range but this is a net benefit given more gold production.
Q: How should investors view stock-based compensation going forward as a component of ASIC? A: CFO Vitalina Lysoon explained that Q2 stock-based compensation was very high due to the annual grant, high stock price, and immediate vesting. Q3 declined in line with the vesting schedule, and Q4 is expected to be similar but slightly higher than Q3, then tapering off into 2027 until the next grant.
Q: What are the key milestones and timeline for Ana Paula's feasibility study, permitting, and financing? A: Stephen (management) said the feasibility study is expected in Q2 next year, with updates in early December and Q1. The permit was submitted in Q3/early October and is tracking well for return in the first half of next year, supported by increased permitting activity in Mexico. Financing discussions for $200 million in project debt are advancing, with an announcement hoped for near the end of Q1 or into Q2 next year, targeting first gold before the end of 2028.
Q: What drove the record financial results in Q3, and what is the outlook for the cash balance? A: CFO Vitalina Lysoon reported record revenue of $66.3 million, mine operating earnings of $36.5 million, a cash position of $53.6 million, and net income of $10.2 million ($0.04 per share), with the company remaining debt free. CEO Charles Fonk noted the cash balance is not expected to keep stepping up at these levels as the company enters the deployment phase of capital toward Ana Paula, including long lead time item orders in Q4.
Q: What is the exploration upside at San Augustine, and how does it impact mine life? A: CEO Charles Fonk said step-out drilling up to 200 meters from the Corner reserve and the East Wall zone returned excellent results, including 100 meters at 0.4 g/t and 94 meters at 0.3 g/t gold equivalent. The company is targeting a two-year mine life extension, subject to resource modeling, metallurgical work, and permit modifications, and
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
