Cerro del Gallo Project PFS: $424M NPV, 33.1% IRR
Heliostar Metals Ltd.'s Cerro del Gallo Project in Guanajuato, Mexico has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $424M, an after-tax IRR of 33.1%, and initial capital of $195M. The mine plan runs 15 years at about 86000 koz GEO/yr per year.
Heliostar Metals Ltd.'s Cerro del Gallo Project has reported Pre-Feasibility Study (PFS) results for the gold project in Guanajuato, Mexico. The study headlines an after-tax net present value of $424M 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 $424M using a 5% discount rate. After-tax IRR is 33.1%. Initial capital expenditure is estimated at $195M. All-in sustaining costs are pegged at 1390 USD/GEO. Economics are based on $3,900/oz gold and $2,400/oz.
Production and mine plan. The project envisions an open pit, heap leach operation. Life of mine is 15 years. Average annual production is approximately 86000 koz GEO/yr.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: 3.75%.
These figures are extracted from Heliostar Metals Ltd.'s technical disclosures and reflect the most recent PFS 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 & Indicated | — | — | 4,900 Koz AuEq |
| Inferred | — | — | 400 Koz AuEq |
Our Analysis
- IRR after-tax
- 33.1%
higher than 38% of 109 projects we track
- NPV after-tax
- $424M
higher than 47% of 144 projects we track
- Initial capex
- $195M
46% of NPV
costlier than 52% of 143 projects we track
- Mine life
- 15yrs
- Discount rate
- 5%
- Study price assumption
- $3,900/oz gold and $2,400/oz
- Spot gold today
- $4,476.60/oz
Guanajuato sits squarely in the middle of the pack, and for a project at this stage, that is the honest headline. The 33.1% after-tax IRR ranks above only 38% of the 109 gold projects we track, and the $424M NPV ranks above 47% of 144. Neither figure is an outlier, but both clear the practical hurdle for project finance: a developer typically needs roughly a 15% after-tax IRR to attract capital, and this project has nearly double that. The rank, not the absolute number, is what tells you this is a financeable but not exceptional return profile, one that will live or die on execution rather than on the quality of the underlying math.
The constraint that matters most is the size of the company relative to the build. Initial capex of $195M is only 46% of NPV, which looks capital-light, but that figure flatters the picture. The build cost is about 0.4x the company's entire $463M market cap, a large fraction of equity value that cannot be quietly financed from cash flow or a small equity raise. The offset is that this is one of 8 projects we track for this company, a diversified portfolio, not a single-asset junior betting everything on one hole. That breadth gives the market reason to believe funding can be staggered or sourced from multiple assets, but it does not erase the dilution risk embedded in a build worth nearly half the company.
The study itself is a PFS, which narrows the estimate to roughly a plus or minus 25% band, not yet a build decision. The 5% discount rate sits at the low end of reporting convention and flatters the headline NPV, so treat the $424M as an upper-bound read. The study assumes $3,900/oz gold, well below today's spot of $4,476.60, which provides genuine upside cushion if prices hold. The two-sided read on the NPV-to-market-cap ratio of 0.9x is that the market has neither embraced nor dismissed this asset, it is pricing it roughly at study value. The single question that decides whether this works is whether the company can fund a $195M build without diluting away the value of that 0.9x gap, and the answer lies in the strength of its other seven projects.
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.