Charles Funk, President and CEO of Heliostar Metals (TSX.V:HSTR – OTCQX:HSTXF – FRA: RGG1) joins me to take a step back and recap the Company’s transition to become a gold producer this year in Mexico. I have Charles explain how he tapped into the equity and debt markets to take advantage of an opportunity to acquire gold assets (some currently producing) from Argonaut Gold, as well as continue to advance the Ana Paula Project.
We then discuss all the catalysts and news coming from the Company into Q1 of next year. Take a look at the table below, provided by Tim Sorensen from TSCG Capital. It’s a great overview of what’s on tap and the potential impacts for shareholders.
Please email me at Fleck@kereport.com with any follow up questions for Charles.
Click here to visit the Heliostar Metals website to learn more about the Company.
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# |
Catalyst |
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Potential |
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Impact |
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Timing |
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1 |
Ana Paula Drilling Results |
grow HG resource by 50%+ |
could increase production by 20%+ pa and/or LOM |
Oct start (every 3-4 weeks) |
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2 |
Closing Acquisition |
dramatically increases HSTR asset base |
transition HSTR from explorer/developer to cash flowing growing producer |
Oct/Nov |
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3 |
2024 Production Guidance |
15-20k oz net to HSTR |
demonstrates cash flow generation |
Nov |
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4 |
La Colorado Drilling |
prove junkyard grade and tonnage and show waste to ore conversion at Creston |
Junkyard should produce ~20k in 2025, Creston capex could reduce $10-20M and LOM expand from 6 to up to 10 years |
Nov start (every 3-4 weeks) |
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5 |
San Agustin heap rehandling |
add recovery of ounces on SA heap pads |
could add 20-25k oz of production pa for 4 years = ~US$100M CFO |
Jan |
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6 |
Updated Creston Cutback study |
demonstrate economics of original cutback plan (prior to new drilling) |
should show La Colorado will produce 50k oz pa for 6 years starting in 2026 and support HSTRs base case prod’n |
Jan |
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7 |
Expansion Permits |
add near term production at San Agustin and La Colorado’s Veta Madre pit |
would add 80k oz of production over 2025-26 time frame = US$80-100M CFO |
Q1 |
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8 |
2025 Guidance |
to add to 40k oz base case |
60-100K oz = US$60-100M CFO vs. $40M |
Jan |
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9 |
San Antonio Updated Techinical Report |
demonstrate a much higher NPV for San Antonio than US$175M in original study |
NPV for San Antonio could double or more as last study used $1300 Au. At 10% NPV could be worth US$35M+ |
Jan |
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10 |
Cerro Del Gallo Updated Technical Report |
add 2.8M oz Au and 80M oz Ag to HSTRs M&I and show a significant increase in historic US$175M NPV |
At C$20/oz AuEq CDG would add $70M to HSTR valuaton, not a stretch for an asset that is at the permiting stage and could have an NPV > US$300M |