Heliostar Metals (TSXV:HSTR): Valuation Check as San Agustin Restarts and La Colorada Expansion Advances

Heliostar Metals (TSXV:HSTR) is back moving rock at San Agustin, with mining, crushing and stacking restarted after interruptions and a fresh drill program underway that could extend the mine’s life and future cash flow.

See our latest analysis for Heliostar Metals.

The restart at San Agustin and progress on the La Colorada expansion help explain why Heliostar’s CA$2.74 share price sits on a powerful year to date share price return above 370 and a three year total shareholder return above 1,000, suggesting momentum is still building rather than fading.

If this kind of turnaround story has your attention, it could be a good moment to see what else is setting up for growth through fast growing stocks with high insider ownership.

With operations restarting, permits progressing and the share price already up several hundred percent, are investors still getting Heliostar at a discount, or is the market already pricing in the next leg of growth?

Price-to-Earnings of 17x: Is it justified?

At a last close of CA$2.74, Heliostar trades on a 17x price-to-earnings multiple, sitting below the wider Canadian metals and mining pack.

The price-to-earnings ratio compares today’s share price with earnings per share, giving a quick snapshot of how much investors are paying for current profitability in a sector where many peers are still loss making or highly cyclical.

For Heliostar, becoming profitable in the past year while the market still assigns a discount to the industry average multiple suggests investors are not fully pricing in its forecast revenue growth and high projected return on equity, even though the stock already reflects a strong turnaround.

Compared with the Canadian metals and mining industry average of 21.9x, Heliostar’s 17x multiple looks meaningfully cheaper, implying the market is valuing its earnings at a lower rate than peers despite standout metrics like outstanding current return on equity and revenue growth that is expected to comfortably outpace the broader Canadian market.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 17x (UNDERVALUED)

However, setbacks like permitting delays, exploration disappointments or weaker metals prices could quickly compress that valuation premium and stall the turnaround momentum.

Find out about the key risks to this Heliostar Metals narrative.

Build Your Own Heliostar Metals Narrative

If you see the numbers differently or want to dig into the details yourself, you can build a personalized view in minutes with Do it your way.

A great starting point for your Heliostar Metals research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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