Heliostar Metals Ltd. (HSTR:TSX.V; HSTXF:OTC; RGG1:FRA) reported that the first official gold pour from restarted mining operations at its 100% owned San Agustin mine occurred in late January 2026.
The company previously announced on December 18, 2025, that it resumed mining, crushing, and stacking of new ore on the leach pad in the fourth quarter of 2025. According to the company, the restart was completed on time and on budget. Heliostar stated that the operation continued to ramp up and exceeded internal targets for ore mining rates and recoverable ounces stacked on the pad to date. The company reported that the mine was on track to meet production guidance of 30,000 to 32,700 ounces of gold in 2026.
Charles Funk, chief executive officer, commented in the news release, "It is an extraordinary time in the gold market to bring new production on line. Bringing San Agustin on line has increased our year-on-year consolidated production guidance by over 60% whilst maintaining a low approximately US$2,000 AISC in 2026. At our 2026 budget gold price of US$3,800 per ounce, cash flow from San Agustin allows us to fund our company-wide exploration programs and capital programs, including a pit expansion at La Colorada and decline development at Ana Paula. At current spot prices, we can do all this and build our cash position more rapidly to help fund the Ana Paula capex planned for 2027/2028. At San Agustin, the next key update will be results from the drill program targeting mine life extension. These results are expected in mid- to late Q1 2026."
Supply Constraints Collide With Sustained Demand in the Gold Market
A February 3 report from Ahead of the Herd said gold mining companies had spent much of the past decade high-grading their deposits, extracting the most accessible and higher-grade ore to protect margins during periods of lower metal prices. The report stated that this approach contributed to growing operational challenges as mining advanced to deeper levels and average grades declined. Citing World Gold Council data, the report said global mine production totaled 3,661.2 tonnes, while total gold demand reached 4,974 tonnes. It added that "even though major gold miners are high-grading their reserves, mining all the best gold and leaving the rest, they still didn't manage to satisfy global demand for the precious metal."
The Ahead of the Herd report also referenced Wood Mackenzie commentary, noting that Rory Townsend, head of gold research, said, "If all our probable projects were to come online before 2025, this would almost meet the requirement to maintain 2019 production levels." The report added that project delays and scope changes were expected to limit progress.
On February 4, Bloomberg reported that investor interest in gold remained elevated following a market correction. In an article by Ruth Carson, Bernadette Toh, and Yihui Xie, Fidelity International money manager George Efstathopoulos said, "A lot of the froth has been taken out, and the structural sort of medium-term themes are very much in place." He cited persistent inflation, a weakening U.S. dollar, continued central bank buying, and a shift away from U.S. assets as supporting factors. According to the article, bullion reached an all-time high of US$5,595.47 per ounce before pulling back, which was followed by renewed buying activity. Efstathopoulos said "massive buying from central banks" remained a favorable trend and added, "Gold makes sense because it just creates a more robust portfolio."
A February 5 report from Leede Financial, citing the World Gold Council's Full-Year Gold Demand Trends, stated that total gold demand reached a record 5,002 tonnes in 2025. The report attributed the increase to ongoing geopolitical and economic uncertainty and valued annual demand at approximately US$555 billion. Leede reported that global investment demand totaled 2,175 tonnes, which it described as "the main driver behind gold's remarkable and record-breaking year." The report said 801 tonnes were added to exchange-traded funds, while global bar and coin demand reached 1,374 tonnes, valued at approximately US$154 billion. Central banks added 863 tonnes during the year, mine production rose to 3,672 tonnes, and recycling increased slightly. Although jewelry demand declined 18% by volume, Leede reported that the total value of gold jewelry demand increased 18% year over year to US$172 billion.
"Producing Assets: La Colorada and San Agustin remained the cash-flowing core of Heliostar's portfolio"
In a January 6 equity research update, Stonegate Capital Partners, authored by Dave Storms, CFA, wrote that "Producing Assets: La Colorada and San Agustin remained the cash-flowing core of Heliostar's portfolio, providing low-capex ounces to support corporate overhead, early-works spending at Ana Paula, and the broader project pipeline." The report stated that "La Colorada is mining from the Junkyard stockpile while advancing pit expansions at Creston and Veta Madre, and San Agustin is re-leaching residual pads ahead of restarting primary mining in the Corner Area in 4Q25." Stonegate disclosed valuation work, stating that "when valuing HSTR we apply a EV/NAV range of 0.5x to 0.7x with a midpoint of 0.6x which results in a valuation of US$3.78 to US$5.22 with a mid-point of US$4.50." The firm also stated that an EV/Reserves valuation approach resulted in "a valuation of US$3.43 to US$4.24 with a mid-point of US$3.83." The report explicitly noted that Stonegate "does not provide ratings" and "does not provide price targets," but does provide valuation analysis.
In a February 5 commentary, Jeff Valks, Senior Analyst, wrote that Heliostar Metals completed its first official gold pour at its 100% owned San Agustin mine in late January following the restart of mining operations. Valks stated that mining, crushing, and stacking of new ore resumed in the fourth quarter of 2025 and that the restart was completed on time and on budget, with operations exceeding internal targets for ore mining rates and recoverable ounces stacked on the leach pad. He wrote that San Agustin was tracking toward production guidance of 30,000 to 32,700 ounces of gold in 2026 and quoted Chief Executive Officer Charles Funk as saying, “It is an extraordinary time in the gold market to bring new production online.” Valks stated that the return of San Agustin marked the completion of a second producing operation for the company and described the first gold pour as confirmation that the operation was producing metal following the restart.
In a February 6 research note, H&P Research, authored by Jonathan Guy, reported that "Heliostar Metals has announced the first gold pour from the San Agustin mine occurred in late January." The note stated that "mining operations were successfully resumed in Dec'25, with the restart both on time and budget," and that management highlighted the ramp-up "exceeded internal targets for mining rates and recoverable ounces stacked, with guidance for 2026 reiterated at 30Koz-32.7koz." H&P wrote, "we maintain our FY26 estimate for San Agustin at 31.35koz at an All In Sustaining Cost of US$2,171/oz," and stated that "drilling is essential to extend the mine life, with depletion currently forecast for 2027." The firm disclosed a valuation, writing, "We maintain our target valuation at CA$5.30/share."
San Agustin Operational and Exploration Milestones
The San Agustin mine restarted mining operations in the fourth quarter of 2025, with mining restarting in December 2025 following the receipt of regularity permissions and an investment decision made in July 2025. The restart included an upfront spend of approximately US$10 million, which covered land payments, working capital, and initial capital expenditures. The company stated that the restart was funded from the balance sheet, as covered in its February 2026 Investor Presentation.
The mine is operated as an open-pit oxide heap leach operation and is 100% owned by Heliostar. Probable reserves at San Agustin were reported at 68,000 gold ounces with a reserve grade of 0.29 grams per tonne gold. For 2026, the company reported production guidance of 30,000 to 32,700 ounces of gold and 160,000 to 175,000 ounces of silver. Cash cost guidance for 2026 was reported at US$2,000 to US$2,100 per ounce of gold, with all-in sustaining cost guidance of US$2,150 to US$2,250 per ounce of gold.
Streetwise Ownership Overview*
Heliostar Metals Ltd. (HSTR:TSX.V; HSTXF:OTC; RGG1:FRA)
A drill program totaling between 10,000 and 15,000 meters was reported as ongoing at San Agustin. The program was described as targeting oxide expansion around the open pit. The company also reported that residual leaching continued following the restart of mining operations.
The corporate presentation stated that drilling on oxide expansion targets was ongoing and that sulphide exploration potential existed beneath and adjacent to the current pit. Regional exploration targets were also described, including the Consejo vein target, which was reported to have historic intercepts including 1.3 meters grading 3,235 grams per tonne silver, 2.85 grams per tonne gold, 15.0% lead, and 8.7% zinc, as reported by Consejo de Recursos Minerales in 1985.
Ownership and Share Structure1
2.10% of Heliostar Metals is held by Management and Insiders. 14.14% is owned by Strategic Entities. Institutions own 23.51%. Of them, Franlin Advisors holds the most at 9.20%, followed by Euro Pacific Asset Management with 6.55%.
The company has 269.73 million outstanding shares, a market cap of CA$577.12 million, and a 52-week trading range of CA$0.72-CA$3.47.
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- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Heliostar Metals.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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