News Summary
On December 15, 2025, Heliostar announced it acknowledges positive media reports from Mexico regarding the permitting status of its La Colorada Mine in Sonora. The reports quote Mexican government officials stating the expansion project is underway, with a restart of open-pit mining anticipated in the first quarter of 2026.
Heliostar confirms it applied for the permit to expand the Veta Madre open pit in Q2 2025, completed all required submissions and payments in November 2025, and entered a twenty-business day review period. The company notes that this review period has passed without any requests for additional information, and it expects to receive formal documentation confirming the permit in Q1 2026.
Material Impact
The news is a positive confirmation that a key permitting process is advancing as expected. The acknowledgement of supportive commentary from government officials significantly de-risks the timeline for the La Colorada expansion, which is crucial for increasing the company’s near-term production and cash flow.
Reviewing the historical news, this development is the logical next step following the updated La Colorada technical report from October 17, 2025, which outlined improved economics (US$66.2M NPV5, 24.4% IRR at $2,300/oz gold) for the mine. Securing this permit is necessary to realize that value.
While this is not the final permit grant, the “positiva ficta” process in Mexico, where an application is deemed approved if no response is received within a specific timeframe, provides a high degree of confidence. The news aligns perfectly with the company’s stated timelines and strategy of using cash flow from its operating mines to fund growth.
The impact is rated Routine – Positive. It is not a game-changer like a new discovery or a major financing, but it is a necessary and positive step that confirms the company is executing its plan. It reinforces the investment thesis by reducing a key operational risk and solidifying the production growth profile for 2026.
Catalysts
– Formal Permit Grant for La Colorada: The key catalyst will be the official news release announcing the formal receipt of the Veta Madre expansion permit, expected in Q1 2026.
– Q4 and Full-Year 2025 Results: Look for confirmation that the company met its 2025 production guidance of 31,000 to 41,000 GEOs and any updates to cost performance (AISC guidance was $1,950-$2,100/oz).
– Ana Paula Drill Results: The company is running an expanded 20,000-metre drill program at its flagship Ana Paula project. Continued high-grade results will be critical for the upcoming Feasibility Study.
– San Agustin Restart Update: Any news on the restart of mining at the Corner area of San Agustin, which is planned to generate significant free cash flow in 2026.
– Ana Paula Feasibility Study Progress: Updates on the timeline and progress of the Feasibility Study, which is the main event for unlocking the value demonstrated in the November 2025 PEA.
Materiality Conclusion
The announcement on La Colorada’s permitting is a positive, incremental de-risking event. It confirms management is effectively navigating the permitting process in Mexico and keeps the company on track for its planned production restart in Q1 2026. In the context of the transformative progress made in the past year—from becoming a producer, publishing robust economic studies for three assets (La Colorada, Ana Paula, Cerro del Gallo), and delivering spectacular drill results—this news fits the pattern of methodical execution. It is routine in that it was an expected step, but positive as it removes uncertainty.
