Skip to main content

SGQ

St George Mining (ASX: SGQ) has started 2026 where it left 2025, with fantastic rare earths results rom is Brazilian operation. These results are seriously good. However, what do you do with your rare earths?

Seriously.

Yes, the last 2 announcements show great results and point to a long history of mining rare earths. But this mining has always resulted in exports to China for processing. There is no processing facility in Brazil. To remedy that, Australia and Brazil are sharing technology to fast-track production facilities, and the USA is providing a stack of cash to pay for it.

But it all takes time. Otherwise, I would expect to see SGQ's share price quite a lot higher.

Brazil has the potential to become the world leader in supply of rare earths, but they need to be able to process it in Brazil. That requires very specialised facilities, knowledge and skills. Universities need to catch up to provide a skilled labour base.

So I reckon, and this is only my opinion, that the development of solid production facilities is 3 years away, and that is what will constrain SGQ and other Brazilian-based operations.

I don't see the share price getting above 20 cents any time soon.

Comments

Post a Comment

Popular posts from this blog

BOT

 As far as quarterly announcements go, the one out today from BOT is one of the nest I have ever seen. And it only get beaten by the next quarterly. The only way this stock is going is up - with the potential of a takeover offer (nothing is certain).
Post a Comment
Read more

It's 31 Jan

 And that means we will hear about the AAR T/O offer of MXR today or tomorrow. Considering that MXR have not been sitting idle while AAR have been going through the data, I would like to think that the offer will be increased. Already the offer is at 7 cents (AAR scrip equivalent) in a share swap - no you don't get the cash, you get the shares in AAR. As I wrwite this, MXR is still at 6.3 cents, so there could be a quick profit to be made for those who can jump fast.
Post a Comment
Read more

A Couple of Updates

 Well, it's Monday morning and the week has started with a bang. First, PFE announced that there was an unexpected problem with their test drill and they have had to abandon that and go to a new test drill site. A delay, but no real issue apart from that. And the market hated that. Good news for those wanting to buy, not so good for existing holders. IMC released their AGM presentation which indicates that there will be some news in December and then a very busy (and hopefully productive) 2025. Sales are good and continuing to get better and better.
Post a Comment
Read more