This article is a sponsored feature from Mining.com.au partner Heliostar Metals. It is not financial advice. Talk to a registered financial expert before making investment decisions.
It’s no secret that gold is the pin-up girl of the global resources industry, with every continent on the planet, aside from Antarctica, staking its claim on the precious metal.
According to the World Gold Council, China was the largest producer in 2025 with around 10% of total global production at 384.3 tonnes, followed by Russia (345 tonnes) and Australia (293.2 tonnes).
Perched at ninth spot sits Mexico, with 2025 production of 113.5 tonnes. And this is the juncture where Canada’s Heliostar Metals (TSX-V:HSTR) enters the gold rush.
In what it describes as a “bootstrapping growth story”, the company has its sights set on becoming a mid-tier gold producer south of the US border, with the first bar from its flagship Ana Paula Project poised to be poured before the end of 2028.
Heliostar is aiming to produce more than 500,000 ounces of gold per year before 2030.
A suite of strategic assets
Its primary focus is on increasing production (from the 33,000 ounces of gold produced last year) and developing new mines in Mexico, with a 100%-owned pipeline of five assets including the La Colorada Mine; San Agustin Mine; Ana Paula Project; Cerro del Gallo Project; and Goldstrike (in Utah, US).
Vice President of Investor Relations and Development Stephen Soock cites Ana Paula as the flagship project in Heliostar’s portfolio, as the company continues cash harvesting towards its future.
“The next six months should be more of a project execution phase,” Soock says.
“We have a series of staged profitable projects over the next couple of years which is really a cash-generating exercise to be able to fund construction of the Ana Paula Project without any additional equity dilution.
“The reason Ana Paula is our flagship project is because it has a special kind of cash flow profile. It’s an incredibly rare combination of high grade over bulk tonnage widths in an underground mine. Usually, it’s one or the other. At Ana Paula, we have the best of both worlds.
“When the mine’s up and running, it will produce 100,000 ounces a year at an all-in sustaining cost of just above $1,000 per ounce, placing it in the lowest 10% of the global cost curve.
“When you add all that up, it’s really going to be the cash engine that drives all future growth for Heliostar.”
Rivals and reality
When it comes to competitors in the North American space, Soock believes “very few” come close.
“There are probably only three other companies that are trying to do what we are doing. We’re probably a little bit ahead of the curve,” he says.
“We wanted to be a producer before it was in vogue a few years ago. We set the pieces in place to build this sort of company before a few others followed in behind.
“We’ve also maintained the course better than most. We’ve managed to limit dilution and maintain high-margin production, so we feel we continue to be a bootstrapping growth story.”
State of play
In early August, the Vancouver-based company recorded its strongest production quarter so far, delivering 14,803 ounces of gold and 79,710 ounces of silver, placing it on track to achieve production of 50,000–55,000 gold ounces in 2026.
A second injection leaching unit was brought online during Q2 2026 at its La Colorada Mine, with wells drilled to support injection leach through the remainder of the year.
Gold production at its San Agustin Mine increased by 49%, while grade control drilling resulted in positive ore tonnes reconciliation above the reserve model. Reserves at the Corner Reserve area currently being mined are estimated at 68,000 ounces of gold.
Soock unashamedly describes San Agustin as a “cash engine through 2026”.
“It will continue to generate significant cash flow. The rough maths is that for every additional week we can keep producing, there is another million dollars we can add to our cash flow,” he says.
A Feasibility Study on Ana Paula, between Mexico City and the Port of Acapulco, is scheduled for completion in Q2 2027.
Goldstrike in Utah has an indicated resource of 65.8 million tonnes at 0.46 grams per tonne gold for 975,000 ounces.
Heliostar is also advancing permitting and optimisation at its Cerro del Gallo Project which is a gold-silver open-pit heap leach development.
Mexico’s appeal
Soock believes its foray into Mexico is viewed as a “familiar jurisdiction” from a North American perspective.
“Mining has been part of its core culture for hundreds, if not thousands, of years. We joke you don’t really discover any new deposits in Mexico, you just mine it on a larger scale than the Spanish did 400 years ago,” he says.
“I don’t think the fact we are building a mining company starting in Mexico is anything unique or unusual, per se. There are a number of companies with significant operations in Mexico.
“It’s a wonderful place to operate. It’s got great skilled labour, supplies, suppliers, technical expertise, and a cultural acceptance of mining. The set rule of law is based on English common law.
“Mining has always been a core part of Mexico’s economy, and we hope to be a key part of that as we grow our business.”
The bottom line
Heliostar is also sitting pretty when it comes to its financial ledger, achieving a record cash position of US$43 million ($61 million) at the end of Q2, with no debt.
It also reported record revenues of US$56.5 million, driving record mining earnings of US$31.1 million and a net income of US$8 million.
CEO Charles Funk says Heliostar aims to be a “premier precious metals growth company”.
“Building mines that produce 100,000–250,000 ounces per annum has been abdicated by the major mining companies,” he says.
“Gold deposits regularly grow larger, and working in this space is a proven pathway to building a multibillion-dollar business.”
Community impact
Beyond its lofty economic objectives, Heliostar is fixated on “building more than just a company”.
Among its four social pillars is “local first” employment, drawing on Mexico’s strong labour pool. Some 98% of its employees are Mexican, while 3,840 hours of training and skills development were provided last year alone.
Community investment focuses on supporting primary and secondary school education, improving access to clean water, and supporting cultural programs, while water-efficiency initiatives have been implemented and local supply chains engaged.
The allure of gold
Despite a couple of blips in the past year, the global price of gold continues on an upward trajectory, with the current price at around US$4,300 an ounce.
Heliostar Metals’ share price seems to be following a similar path, rising 50% over the past year.
Soock says Heliostar considers any gold price above US$3,800 an ounce to be “comfortable”.
“I see many more reasons for the gold price to go up than down. Gold has always been a safe haven in times of uncertainty,” he says.
“I see the war in Iran as a black swan event. Any geopolitical ‘shock’ event that drives gold prices is typically short-lived and becomes a new normal in terms of global risk.
“Canada and Mexico have their own distinct relationship beyond the influence of the US. Regarding our project in Utah, the current US administration is trying to remove red tape in terms of permitting, which is a positive for bringing new projects like Goldstrike online.”
In the short to medium term at least, the universal appeal of gold shows no signs of waning.
“There is something about gold. Across the globe gold independently became important in different cultures,” Soock says.
“There’s something fundamental, psychologically ingrained in humans that attracts us to gold like nothing else.
“We have this need for gold in a way even we can’t quite understand.”
Write to Christine Retschlag at Mining.com.au
Images: Heliostar Metals
