Canada’s productivity dilemma

In a speech at the Association des économistes québécois (ASDEQ) and CFA Québec on November 19, Bank of Canada (BoC) deputy governor Nicolas Vincent declared that Canada is facing a “systemic problem” when it comes to productivity.

“To put it bluntly, we’re stuck in a vicious circle,” Vincent said. “There is no quick or easy way to improve productivity, and no single sector can do it alone.

“If we want to fix this, we’ll need to be thoughtful, systematic and resolute,” he added, suggesting that policymakers should focus on improving the country’s investment climate, increasing competition and developing talent.

Vincent’s comments echoed an earlier opinion shared by BoC Governor Tiff Macklem, who, following the bank’s most recent cut to its benchmark lending rate last month, warned that Canadians could face a lower standard of living unless governments and businesses can find ways to improve productivity.

Macklem added that the recent federal budget could enhance the country’s productivity, “but it’s going to come down to execution.”

Building on these concerns, Polson explained that for Canada to move beyond incremental progress and truly improve productivity and competitiveness, the country must tackle long-standing hurdles. “We’re looking for a reduction in interprovincial trade barriers… It’s becoming increasingly necessary…that we have to act cohesively there.”

Historically low and rapidly declining R&D investment was another factor negatively impacting Canadian productivity, identified in a report from the Council of Canadian Academies. The authors suggest that addressing this requires more than just a single policy or tax incentive.

Polson also highlighted the need to move beyond incremental measures and focus on disciplined, systematic changes that foster efficient capital allocation and strengthen the foundations of business decision-making.

From his vantage point, the modernization and expansion of the SR&ED tax credit program can be a nudge in the right direction. “(This country has) blessings in terms of resources, in terms of outstanding universities…there is all kinds of great knowledge and innovation happening here, but no commercialization. People go elsewhere for it.

“The SR&ED credit is going to do exactly the right thing. It’s going to keep (innovation) here. It’s going to hit one of those other really big issues for our economy, which is we need better-paying blue-collar jobs. It’s (also) going to spur entrepreneurship and help us capture a bigger portion of the innovation that happens here.”

To build on that, Polson described the transformation of Canadian jobs driven by technology. “I would almost call it sky blue collar, a beautiful mix of part white, part blue (collar jobs),” he said to categorize emerging roles that combine the technical skills of traditional blue-collar work with the knowledge and productivity advances typically associated with white-collar jobs.

The budget’s approach to productivity and growth

Hanson, a CPA and 20-year SR&ED expert, explained the changes to the SR&ED tax credit program, which include increasing the enhanced 35 percent credit’s expenditure limit to C$6 million. The budget also raises the phase-out thresholds more broadly, allowing more businesses, especially SMEs, to benefit from the credit.

“They’ve also opened it up to public companies,” he added.“Now this is a really big one. You’re going to see public companies that are not profitable now applying, as well as more companies actually looking to the public market in order to raise funds, because they weren’t previously able to do so without losing the benefits of the program,” he explained.

By expanding the eligibility and scale of the credit, Hanson sees the government intending to incentivize greater R&D spending. “I think that being able to raise these limits is very significant, and I think that the government kind of knows this.”

In addition to SR&ED reforms, the budget introduces accelerated Capital Cost Allowances (CCA) for technology asset investment. This enhanced CCA allows faster deduction of eligible capital costs, targeting sectors like clean energy, advanced manufacturing and digital infrastructure to boost productivity.

“A big part of manufacturing was the capital assets being able to claim those … now that that’s actually back in the program, we’re actually going to see a huge bump in manufacturing companies,” he said.

Fiscal challenges and transparency concerns

Despite comprehensive measures, the budget has gaps. The Parliamentary Budget Officer (PBO) flagged concerns about fiscal transparency and the government’s optimistic capital investment classifications.

The PBO estimates that actual productive capital investments from 2024-25 to 2029-30 total approximately C$217 billion, about C$94 billion less than the budget’s reported figures.

This discrepancy arises because the government’s broadened definition of capital investments includes expenditures that, under international standards such as the System of National Accounts, would typically be classified as operating spending rather than capital formation.

The report advised the government to establish an independent expert body to define federal capital investments, in order to improve transparency and fiscal discipline.

Researchers for the PBO forecast the government will likely miss its Budget 2025 fiscal anchors: balancing operating spending by 2028-29 and maintaining a declining deficit-to-GDP ratio. Stress testing showed only a 7.5 percent chance that the deficit-to-GDP ratio will fall annually between 2026-27 and 2029-30.

New spending and higher program costs mean the operating balance is projected to remain in deficit through 2029-30. The PBO warned the government now has limited fiscal room for tax cuts or increased spending if it aims to stabilize the long-term debt-to-GDP ratio.

The office added that a lack of clarity on how incentives will spur business activity, as well as heavy reliance on complex tax credit compliance, may hinder smaller innovators.

Ensuring delivery

The budget’s success ultimately rests on ensuring its incentives are not undermined by complex compliance or slow processing.

“Because of the changes, we are going to see a lot more filers as a result. The time to process these claims (is) simply going to take longer,” said Hanson, adding that companies will need to factor wait times into their budgeting.

Additionally, Hanson described a current government consultation aimed at introducing “upfront technical approval” for certain classes of companies seeking SR&ED claims. “I would like to see them move forward with that. I think that is a great idea, and I think that will provide a lot more certainty for larger (and) smaller companies.”

For Canadian businesses, the 2025 Budget is a promise; its value now depends entirely on delivery.

Bitcoin and Ether price update

Bitcoin (BTC) was priced at US$91,586.78, up by 1.1 percent over 24 hours. Its lowest price of the day was US$90,485.83, and its highest was US$91,839.31.

Bitcoin price performance, November 28, 2025.

Chart via TradingView

Meanwhile, Ether (ETH) was at US$3,060.34, up by 1.4 percent over 24 hours. Its lowest price on Friday was US$2,986.86 and its highest was US$3,061.67.

Altcoin price update

• XRP (XRP) was priced at US$2.24, up by 0.6 percent over 24 hours.

• Solana (SOL) was trading at US$141.20, down by 0.2 percent over 24 hours.

Fear and Greed Index snapshot

Chart via CoinMarketCap.

CMC’s Crypto Fear & Greed Index continues to climb steadily after plunging into ‘extreme fear territory’ in the last to weeks, currently settling at 20 and inching closer to ‘fear.’

Bitcoin’s rebound from the mid-US$80,000 zone has triggered a swift and notable shift in market sentiment, accelerating far faster than most traders anticipated. After briefly cooling near US$80K, many expected a sluggish recovery phase.

Instead, optimism snapped back, with the sentiment index rising ten points over the week and marking one of its sharpest moves in recent months. The increase corresponds with heavier buying activity and reduced caution among traders who had previously stayed on the sidelines during the pullback.

Today’s crypto news to know

Visa expands stablecoin settlement push with Aquanow partnership

Visa (NYSE:V) has deepened its stablecoin strategy by teaming up with Aquanow to support faster settlement across Central and Eastern Europe, the Middle East, and Africa.

The deal plugs Aquanow’s infrastructure directly into Visa’s payment rails, allowing banks and payment firms in the region to settle transactions in approved stablecoins such as USDC.

Visa says the upgrade is aimed at institutions seeking cheaper and quicker cross-border settlement options as demand for digital-asset rails grows. The company also aims to modernize the “back-end plumbing” of payments by reducing reliance on traditional networks with multiple intermediaries.

Aquanow, which processes billions in crypto transactions each month, will provide liquidity and technical support for the integrations.

The collaboration follows Visa’s recent stablecoin payout pilot, Visa Direct, which lets businesses fund transactions in fiat while recipients opt to receive stablecoins directly in their wallets.

UK backs “no gain, no loss” tax model for DeFi activity

The U.K. government has endorsed a major shift in how decentralized finance transactions are taxed, moving to eliminate capital gains charges when users deposit tokens into lending protocols or liquidity pools.

Under the current rules, deposits can be treated as disposals, often generating tax liabilities even when investors haven’t realized any economic gain. HMRC’s updated guidance supports a “no gain, no loss” approach that would tax users only when they withdraw assets and eventually sell them.

The proposal comes after two years of industry feedback from firms, many of which argued that the existing system distorts reality and burdens ordinary users with excessive record-keeping.

The new model would apply to both simple lending and automated market makers, ensuring that only genuine gains or losses are captured for tax purposes.

Australia introduces digital assets bill

Australia has tabled a new digital assets bill aimed at ending years of regulatory uncertainty and preventing a repeat of past offshore failures such as FTX and Celsius. T

The proposed Corporations Amendment (Digital Assets Framework) Bill 2025, would require platforms holding customer crypto to meet the same licensing and conduct standards applied across the financial sector.

Officials said the legislation is designed to bring crypto businesses fully into the regulated economy, ensuring transparency, custody safeguards, and clear accountability.

The bill includes exemptions for smaller operators that process under US$10 million annually and hold less than US$5,000 per customer, mirroring existing thresholds for low-risk financial products.

The government argues that modernizing the rules could unlock as much as US$24 billion a year in productivity and efficiency gains.

Investor Insight

Heliostar offers a rare combination of immediate cash flow from two producing mines and a significant growth story driven by the high-grade Ana Paula development project. This blend of near-term production, strong margins and a robust pipeline positions the company as a compelling emerging mid-tier gold producer.

Overview

Heliostar Metals (TSXV:HSTR,OTCQX:HSTXF,FRA:RGG1) is an emerging mid-tier gold producer focused on unlocking high-grade gold production in Mexico’s premier mining regions.

The company rapidly expanded its asset base by acquiring a diverse portfolio of producing and development-stage assets. This positions it for long-term, scalable production growth supported by both high-grade underground and large open-pit heap-leach operations.

The company is positioned for strong year-over-year production growth as San Agustin restarts in Q4 2025, La Colorada executes its updated 2025 mine plan, and Ana Paula advances toward construction and expected first production in 2028, following a positive underground PEA in November 2025 and an ongoing feasibility study. These milestones support the company’s strategy of building a multi-asset production base with increasing scale and margins.

Looking ahead, the company has a long-term vision of achieving 500,000 ounces of gold production annually by 2030. This growth will be driven by the development of Ana Paula, followed by Cerro del Gallo and San Antonio, with continued exploration success and strategic acquisitions supplementing organic growth.

Company Highlights

• Heliostar Metals is rapidly advancing from a junior explorer to a mid-tier gold producer, targeting 150,000 oz per year in the near term and 500,000 oz annually by 2030.
• Heliostar has rapidly expanded its portfolio with key acquisitions, now controlling two producing mines and three advanced-stage growth assets in Mexico. Added 3.5 million measured and indicated gold ounces for just US$15 million, reinforcing a capital-efficient growth model.
• The company prioritizes capital discipline and low-cost acquisitions to expand its asset base and maintain a lean financial structure. Unlike many juniors that rely on dilution to grow, Heliostar leverages gold production cash flows to drive project development.
• Annual gold production at La Colorada and San Agustin mines as of 2025 is between 30,000 to 40,000 oz, with mine operations earning $14.2 million in Q3 2025. Cash flow from these two mines funds Heliostar’s exploration and development without significant dilution.
• CEO Charles Funk leads a seasoned team of mine builders and exploration experts with a track record of developing world-class deposits.
• The company also features a favorable shareholder registry: 53 percent institutional investors, 42 percent high-net-worth and retail investors, and 5 percent held by the board and management.

Key Projects

Ana Paula (Flagship Development Project)

Ana Paula is Heliostar’s flagship high-grade underground gold project located in the Guerrero Gold Belt, one of Mexico’s most prolific precious metals regions.

The November 2025 underground PEA confirms Ana Paula as a low-cost, high-margin development opportunity with a nine-year mine life producing approximately 875,000 ounces of gold, averaging roughly 101,000 ounces per year after ramp-up. The project benefits from a wide, high-grade panel that continues to demonstrate strong continuity and exceptional grades, supported by a mineral resource of 710,920 ounces of measured and indicated gold at 6.6 grams per ton (g/t) and 447,500 ounces of inferred gold at 4.24 g/t.

Heliostar has transitioned the project to an underground-only development plan to enhance economics, minimize surface disturbance and reduce capital intensity. The company is advancing engineering and permitting programs, including a permit amendment to convert the existing open-pit approval into an underground operation. A recently expanded 20,000-metre drill program is underway to upgrade inferred resources, expand the mineral envelope and support the ongoing feasibility study. Recent results included 83.2m grading 17.35 g/t gold from 76.0 m and 70.7 m grading 9.38 g/t gold from 49.65 m.

Heliostar intends to advance the existing decline in 2026 to access underground drilling platforms and complete bulk sampling, enabling a construction decision shortly thereafter and positioning the project for first production in 2028. Ana Paula is expected to become the cornerstone asset underpinning Heliostar’s long-term production growth.

La Colorada Mine

La Colorada, located in Sonora, Mexico, is a fully operating open-pit heap-leach mine that underwent a major turnaround in early 2025. Mining was restarted in January 2025, and an updated October 2025 technical report outlines a significantly strengthened operation with a 6.1-year mine life and total production of 286,000 ounces of gold. The mine is expected to produce between 17,500 and 23,800 gold-equivalent ounces in 2025 at competitive cash costs and all-in sustaining costs, benefiting from strong gold prices and improved operational performance.

La Colorada has meaningful opportunities for growth through drilling of the Veta Madre Plus area, which could add up to 28,000 ounces of additional near-surface resource, and the evaluation of the underground potential at El Creston, where deeper drilling has returned high-grade gold and silver intercepts. Further optimization of low-grade stockpiles also offers a route to additional production with minimal capital requirements. With its expanded reserves, improving margins and active exploration pipeline, La Colorada remains a key cash-flow generator and a vital contributor to Heliostar’s self-funded growth strategy.

San Agustin Mine

San Agustin is a heap-leach gold mine in Durango, Mexico, that produced approximately 14,700 ounces of gold in 2024 and continues to generate cash flow through stockpile processing in 2025. The mine is scheduled to restart active mining in the fourth quarter of 2025 following approval of the Corner Permit Area, with the restart plan outlining roughly 44,500 ounces of total gold production over a 1.2-year mine life. The restart requires just US$4.2 million in initial capital, funded entirely from Heliostar’s balance sheet, and delivers strong economics with significant leverage to higher gold prices. Beyond the restart, San Agustin provides meaningful growth potential through near-surface oxide expansion and deeper sulfide and breccia targets, where drilling has identified encouraging mineralization.

Cerro del Gallo Project

Cerro del Gallo is a large-scale, gold-silver development project in the Guanajuato district with 2.86 Moz of measured and indicated gold resources and an additional 1 Moz inferred. The project is advancing through permitting and a pre-feasibility study expected in Q4 2025, which is evaluating a long-life heap-leach operation targeting 80,000 to 100,000 ounces of annual gold production. With its scale, simple metallurgy and strong development profile, Cerro del Gallo represents a cornerstone growth asset supporting Heliostar’s strategy to expand production later this decade

San Antonio Project

San Antonio is an open-pit heap-leach development project in Baja California Sur hosting 1.74 million ounces of measured and indicated gold resources. A January 2025 PEA outlines robust economics, including 1.1 Moz of total production over 13 years, low AISC and an after-tax NPV5 of US$715 million at US$2,600 gold. The project is progressing through additional studies and environmental permitting and provides significant medium-term growth potential within Heliostar’s pipeline.

Unga Project

The Unga project in Alaska is a high-grade gold exploration asset, with an inferred resource of 384,000 oz gold (13.8 g/t). While not a primary focus, the project remains a long-term high-grade growth opportunity.

Management Team

Charles Funk – President & CEO

Charles Funk brings over 18 years of experience in business development and exploration. Before joining Heliostar, he held senior roles at Newcrest Mining and OZ Minerals, two of the world’s most prominent mining companies. Funk led the Panuco discovery for Vizsla Silver in 2020, demonstrating his strong expertise in identifying and advancing high-potential gold and silver deposits. Under his leadership, Heliostar has pursued transformational acquisitions that have rapidly expanded the company’s asset base while maintaining capital efficiency.

Gregg Bush – Chief Operating Officer

A highly regarded mine builder, Gregg Bush has a strong track record in mine development, project integration, and operations management. He previously served as COO of Capstone Mining for nine years and as SVP of Mexico for Equinox Gold. With deep experience in Latin American mining operations, Bush plays a pivotal role in advancing Heliostar’s production assets, optimizing operations and ensuring efficient project execution.

Sam Anderson – VP Projects

Sam Anderson brings 20 years of experience in mine geology and project management, including 17 years at Newmont, where he served as mine geology superintendent and senior manager of exploration business development. He played a significant role in the development of Newmont’s Merian Mine in Suriname, from resource stage to steady-state operation. His expertise in mineral resource expansion and project evaluation is crucial to advancing Ana Paula and Cerro del Gallo toward production.

Mike Gingles – VP of Corporate Development

With over 35 years of corporate and entrepreneurial experience in the mining industry, Mike Gingles has been a key player in major mining deals. He led the Pueblo Viejo and Turquoise Ridge transactions for Placer Dome, two of the largest gold assets in North America. His expertise in strategic partnerships, corporate finance, and project acquisitions has positioned Heliostar for transformational growth.

Hernan Dorado – VP Sustainability & Special Projects

As a fifth-generation miner, Hernan Dorado has more than 20 years of experience in the mining sector, including a founding role at Guanajuato Silver, where he served as COO. He has extensive experience in Mexican mining operations, permitting and sustainability practices, ensuring that Heliostar’s projects meet the highest environmental and social responsibility standards.

Vitalina Lyssoun – Chief Financial Officer

Vitalina Lyssoun is a chartered professional accountant (CPA, CA) with over 16 years of financial expertise with a focus on the resource sector. She has strengths in Canadian and US public company reporting, regulatory and tax compliance, and internal controls. She is fluent in Spanish and has experience in operations based in Mexico, Central America and West Africa. Most recently, Lyssoun built and led the corporate accounting team at Gatos Silver, including through their recent merger with First Majestic Silver.

Stephen Soock – VP Investor Relations & Development

Stephen Soock has been in the mining industry for almost 20 years in both technical and capital markets roles. He has worked in various technical roles at mine sites across Canada, including Vale’s Thompson Nickel operation, Mosaic’s Belle Plaine solution potash mine and Rio Tinto’s Diavik Diamond mine complex. Prior to joining Heliostar, Stephen spent eight years as a sell-side research analyst covering growth and development companies in the junior precious metals space. He graduated from Queen’s University with a B.Sc. in Mining Engineering, is a CFA Charterholder, and a Brendan Woods ranked analyst.