en.Wedoany.com Reported - Canadian gold company Heliostar Metals (TSX-V:HSTR) plans to grow into a mid-tier gold producer with a focus on Mexico, targeting annual gold production of over 500,000 ounces by 2030. Its flagship project, Ana Paula, is expected to pour its first gold bar by the end of 2028, positioning the company as a "self-funded growth story."
According to data from the World Gold Council, China was the world's largest gold producer in 2025, with output of 384.3 tonnes, accounting for approximately 10% of global production; Russia ranked second with 345 tonnes, Australia third with 293.2 tonnes, and Mexico ninth with 113.5 tonnes.
Heliostar holds 100% ownership of five assets: the La Colorada mine, the San Agustin mine, the Ana Paula project, and the Cerro del Gallo project in Mexico, as well as the Goldstrike project in Utah, USA. The company produced 33,000 ounces of gold last year and has set a 2026 production guidance of 50,000 to 55,000 ounces.
Stephen Soock, Vice President of Investor Relations and Corporate Development, noted that Ana Paula is the flagship project in the company's portfolio, with a ore body featuring both high grade and large-tonnage mineralization widths, which is rare among underground mines. Once operational, the mine is expected to produce 100,000 ounces annually, with all-in sustaining costs slightly above $1,000 per ounce, placing it in the lowest 10% of the global cost curve. The company plans to accumulate cash for Ana Paula's construction over the coming years through profits from phased project development, avoiding additional equity dilution.
Soock believes that very few companies in North America can match this strategy, "possibly only three other companies are attempting something similar." The company positioned itself as a producer before this model became a trend, and has since maintained this growth trajectory by controlling dilution and sustaining high-margin production.
On the operational front, Heliostar recorded its strongest production quarter to date in Q2 2026, delivering 14,803 ounces of gold and 79,710 ounces of silver. During the quarter, La Colorada added a secondary leach injection unit and drilled water wells to support leaching operations in the second half of the year; San Agustin saw gold production increase by 49%, with grade control drilling resulting in ore tonnage reconciliation outperforming the reserve model. The Corner Reserve area currently being mined at San Agustin holds reserves of 68,000 ounces of gold. Soock described the mine as the "cash engine for 2026," roughly estimating that each additional week of production adds approximately $1 million in cash flow.
The Ana Paula project is located between Mexico City and the Port of Acapulco, with its feasibility study scheduled for completion in Q2 2027. The Goldstrike project in Utah holds indicated resources of 65.8 million tonnes at a gold grade of 0.46 g/t, containing 975,000 ounces of gold. The company is also advancing permitting and optimization work for the Cerro del Gallo open-pit gold-silver heap leach project.
Soock believes that from a North American perspective, Mexico is a "familiar jurisdiction." Mining has been part of the local culture for hundreds or even thousands of years, and the company jokes internally that in Mexico, there's no need to discover new deposits—just mine on a larger scale than the Spanish did 400 years ago. He noted that Mexico has a skilled workforce, a complete supplier ecosystem, and technical expertise, with high social and cultural acceptance of mining, a legal system based on English common law, and many mining companies already operating significant businesses there. Mining has long been a core sector of Mexico's economy, and the company hopes to become a key part of it as its business grows.
Financially, as of the end of Q2, Heliostar's cash position reached a record $43 million (CA$61 million), with no debt; quarterly revenue was $56.5 million, mining earnings were $31.1 million, and net income was $8 million. CEO Charles Funk stated that the company's goal is to become an "exceptional precious metals growth company." He also noted that major mining companies have abandoned building mines with annual production of 100,000 to 250,000 ounces, yet developing mines of this scale is a proven path to building a multi-billion-dollar business.
In terms of community engagement, the company lists "local-first" employment as one of its four core social pillars. Currently, approximately 98% of employees are Mexican, and the company provided 3,840 hours of training and skills development in the past year alone. Community investment focuses on primary and secondary education, access to clean drinking water, and cultural programs, alongside water conservation initiatives and local supply chain procurement.
With international gold prices currently around $4,300 per ounce, Heliostar's share price has risen 50% over the past year. Soock stated that gold prices above $3,800 per ounce are "comfortable" for the company.
He believes there are more reasons for gold prices to rise than to fall, as gold serves as a safe-haven asset during uncertain times. He also noted that the Iran war is a black swan event, and while geopolitical shocks are typically short-lived, they become part of the new normal of global risk; regarding the Utah project, the current U.S. government is attempting to streamline permitting processes, which is favorable for bringing new projects like Goldstrike online.
Speaking to the universal significance of gold, Soock said that gold has independently become important across different cultures worldwide. He said gold has a fundamental, psychologically ingrained appeal, a demand that cannot even be fully understood.
