Heliostar Metals (TSX: HSTR) has posted the most profitable quarter in its brief history as a producer, as a sharp drop in all-in sustaining costs helped lift mine operating earnings to a record US$36.5 million for the three months ended September 30.
Revenue rose 17% from the second quarter to US$66.3 million on a 22% increase in gold sales to 14,603 ounces. That growth came even as the average realized gold price slipped to US$4,243 per ounce from US$4,406 in the prior period.
Net income attributable to shareholders climbed to US$10.2 million, or US$0.04 per share, from US$8.0 million, or US$0.03 per share, in the second quarter. Pre-tax income reached US$23.3 million, up from US$18.1 million.
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Cash grew by US$10.6 million over the quarter to US$53.6 million, and the company carries no debt. Another US$3.3 million came in from warrant and option exercises after quarter end.
The build up comes as Heliostar advances Ana Paula, where a feasibility study is 34% complete and on track for the second quarter of 2027. “Our goal remains bringing the mine into production without additional equity dilution,” said CEO Charles Funk. The company said debt financing talks are advancing.
Gold production edged down 2% to 14,481 ounces as the two operations moved in opposite directions. San Agustin output rose 26% to 9,121 ounces on continued stacking from the Corner Reserve, while La Colorada fell 29% to 5,359 ounces, with production there coming from injection leaching until the Veta Madre Plus reserve starts producing in late second quarter 2027. Silver output increased to 83,067 ounces.
Cash costs eased to US$1,588 per ounce of gold sold from US$1,654, but the bigger move came in AISC, which fell to US$1,948 per ounce from US$2,287. The second quarter figure had sat well above guidance, and the reversal brings nine-month AISC to US$2,072, back inside the full year guidance range of US$2,025 to US$2,125.
Through nine months, Heliostar has produced 41,026 ounces of gold against unchanged 2026 guidance of 50,000 to 55,000 ounces, leaving roughly 9,000 to 14,000 ounces needed in the fourth quarter, a level it topped in each of the past two quarters. Management expects AISC to finish in the upper half of guidance, while year to date cash costs of US$1,613 per ounce are tracking below the guided US$1,850 to US$1,950 range.
Heliostar Metals last traded at $2.23 on the TSX.
