Ana Paula Project PEA: $426M NPV, 28.1% IRR
Heliostar Metals Ltd.'s Ana Paula Project in Guerrero, Mexico has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $426M, an after-tax IRR of 28.1%, and initial capital of $300M. The mine plan runs 9 years at about 101000 oz/yr per year.
Heliostar Metals Ltd.'s Ana Paula Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Guerrero, Mexico. The study headlines an after-tax net present value of $426M at a 5% discount rate. It reflects Heliostar Metals Ltd.'s (HSTR.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $426M using a 5% discount rate. After-tax IRR is 28.1%. Initial capital expenditure is estimated at $300M, with life-of-mine sustaining capital of $76M. All-in sustaining costs are pegged at 1011 USD/oz. Economics are based on $3,800/oz gold and $2,400/oz.
Production and mine plan. The project envisions an underground operation. Life of mine is 9 years. Average annual production is approximately 101000 oz/yr. Average head grade is 5.37 g/t gold.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Heliostar Metals Ltd.'s technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 1.30 Mt | 7.60 g/t Au | 317,000 oz Au |
| Indicated | 2.97 Mt | 4.44 g/t Au | 424,000 oz Au |
| Measured & Indicated | 4.27 Mt | 5.40 g/t Au | 742,000 oz Au |
| Inferred | 4.04 Mt | 3.96 g/t Au | 514,000 oz Au |
Our Analysis
- IRR after-tax
- 28.1%
higher than 27% of 109 projects we track
- NPV after-tax
- $426M
higher than 47% of 144 projects we track
- Initial capex
- $300M
70% of NPV
costlier than 64% of 143 projects we track
- Mine life
- 9yrs
- Discount rate
- 5%
- Study price assumption
- $3,800/oz gold and $2,400/oz
- Spot gold today
- $4,476.60/oz
The 28.1% after-tax IRR ranks in the lower half of the 109 gold projects we track, and the $426M NPV sits near the middle of the pack. That is not a bad result, but it is an unremarkable one. Nothing about this study makes it an outlier, and for a diversified developer with a portfolio of eight tracked projects, the returns are simply adequate. The real question is whether this specific build makes sense relative to the company's size, and the funding math is where the tension sits.
The initial capex of $300M is roughly 0.6x the company's US$463M market cap, a large fraction of the entire equity value. That is the sharpest funding-risk signal here: a build of this size cannot be quietly absorbed by the balance sheet, and the company will need external capital or a partner. The NPV at about 0.9x market cap cuts both ways: it suggests the market has not assigned much premium to this asset, but it also reflects skepticism about financing, dilution, or the jurisdiction. The study's own price deck of $3,800/oz gold sits below today's $4,476.60/oz spot, which offers some cushion, but that does not erase the financing hurdle.
This is a PEA, scoping-level, so the capital estimate carries a wide band and the nine-year mine life is short. The 5% discount rate is at the low end of convention and flatters the headline NPV, so treat the absolute figure with caution. In Guerrero, Mexico, the jurisdiction is workable but not without risk. The deciding question is whether the company can finance a $300M build at roughly two-thirds of its market cap without diluting away the value the NPV promises. If it can, the project works; if not, the returns on paper will not matter.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.