Q2 2026 Heliostar Metals Ltd Earnings Call Transcript
Key Points
- Record gold and silver production in Q2 2026, with gold output of nearly 15,000 ounces and silver at approximately 80,000 ounces.
- Strong financial performance with $31.1 million in mine operating earnings and net income of $8 million for the quarter.
- Cash balance reached a record $43 million, even after a $10 million payment for the Gold Strike acquisition, supporting future growth without equity dilution.
- Successful injection leaching at La Colorada is recovering additional gold, with expectations to continue through mid-2027 and enhance production.
- St. Augustine mine reached steady state, with a 49% quarter-over-quarter production increase and a large ore stockpile that could extend mine life beyond current forecasts.
- Ana Paula project is advancing on schedule, with a feasibility study on track for Q2 2027 and permits for underground mining to be submitted soon, targeting first gold by end of 2028.
- Gold Strike acquisition adds a significant resource (975,000 ounces M&I) at a low cost, with potential for expansion and antimony credits.
- Corporate all-in sustaining costs (ASIC) exceeded the guided range at $21.55 per ounce, driven by one-off option grants, higher production costs, and reduced silver credits.
- Production at La Colorada is expected to decline in the second half of 2026 as residual leaching from fresh ore depletes, with uncertainty in meeting full-year guidance.
- St. Augustine's production profile is 'chunky' and difficult to predict due to alternating between lower-grade and higher-grade ore, leading to monthly variability.
- Costs are expected to remain at the upper end of guidance due to higher diesel and cyanide prices, influenced by global events, with no immediate moderation in sight.
- The decline at Ana Paula may be delayed pending permit feedback, potentially impacting the timeline for first gold production.
- Two minor safety incidents were reported at St. Augustine during the quarter, though they were relatively minor.
- The company faces challenges in quantifying injection leaching recoveries, making it difficult to accurately forecast production from this method.
Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time, I would like to welcome everyone to the HelioStar second quarter 2026 results conference call. All lines have been placed on mute to present any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions)
I would now like to turn the conference over to Stephen Sook, Vice President of Investor Relations and Development. Please go ahead.
Good morning, everyone, and thank you for joining us for our Q2 results conference call.
On the line with us today, our CEO. Charles Funk, CFO Vitalina Lyssoun, and COO Gregg Bush, who is having minor technical issues but should be back with us briefly. Today, we will cover our financial and operating results for the three months ended June 30th, or Q2, as we will refer to them.
We will, of course, be making forward-looking statements. Please review our safe
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