scroll

St George Mining (ASX: SGQ) and Innovaero Technologies Ltd (ASX: INN)

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 03/10/2026

St George Mining (ASX: SGQ) and Innovaero Technologies Ltd (ASX: INN)

Hi Team - First time, and thank you for rescuing us from Stock Specialist 2+ years ago ! ... Very much appreciate the timely & professional reporting on all fronts, and in a format/language easy to understand/digest. Further to today's announced SID between Lynas Rare Earths (LYC) and Meteoric Resources (MEI) whereby Lynas will acquire 100% of the shares in Meteoric (incl Caldeira Rare Earths Project Brazil) by way of SoA, I understand that St George is on it's way to developing it's own rare earths Araxa Project in Brazil, said to have a substantial resource base as well. I realise any production through Araxa would be at least a couple years out, but would there be any possibility for St George to also become a potential takeover target going forward ? Importantly, they also seem to have the backing of the Brazilian government. However, future funding is the question, as SGQ shares have already been seriously diluted by numerous capital raisings/placements to date, and I'm wondering if MM has a view on this or the above thanks. IPO_INNOVAEROINN (INN) - In a stable akin to Electro Optic Systems Holdings (EOS) I presume - MM's thoughts please on this new listing. And again, very much appreciate the support! Cheers Peter g

Answer

Hi Peter,

The Stock Specialist situation was a disappointing affair, but all too common unfortunately – we’re glad we could help!

You’ve asked about two very different companies today, both a first for the MM report:

St George Mining (ASX: SGQ) – a very speculative $295mn company which has transformed from a small WA explorer into a Brazilian niobium/rare-earth development story, with Araxá now overwhelmingly the key value driver. The opportunity is real, but it remains pre-production, hence the major questions are common for miners in this position: metallurgy, development costs, permitting, financing and ultimately whether the resource can be converted into an economic mine.

The company had A$98mn cash at the end of June primarily from an equity raise completed in the quarter. Encouragingly, Hancock Prospecting lifted its stake to 10.3%, and Amperex Technology became a shareholder through a restructure of the Lithium Star venture.

While we cannot get away from its speculative nature the support it received in the recent raise suggests the risk/reward is ok ~6c but it’s an informed “punt” not an investment.

Innovaero Technologies Ltd (ASX: INN) – is a $133mn Australian drone and precision-weapons manufacturer, which listed on the ASX last week. The company offering investors exposure to the push for sovereign defence capability and the rapidly growing use of autonomous weapons.

However, unlike established defence companies such as DroneShield and Electro Optic Systems, INN is still at an early commercialisation stage, making successful certification, production scaling and conversion of defence programs into larger orders key to the investment case.

It’s very much pre-revenue, but INN gives investors a new way into Australian defence drones, a theme that has rewarded investors in recent years. however, the valuation rests on winning an OWL-B production order and we are cognisant this is a new company listing into an already “hot” sector.

We would rather buy INN at a higher price once a contract has been secured.

chart

St George Mining (SGQ)

LAST UPDATED 02/10/2026 14:17

Latest Reports

Weekend report 03/10/2026

Weekend Q&A: Has the ASX 200 found its low?

The ASX 200 finished a volatile week up +0.2%, almost as if Thursdays ~2% plunge to fresh four month lows didn’t exist. The weekly change masked significant volatility as investors digested the RBA’s fourth rate hike of 2026 alongside softer-than-expected inflation data. Technology was the standout sector, surging 7.3%, while the dominant theme remained interest rates, with the cash rate reaching a 15-year high of 4.6%, although softer CPI and Governor Bullock’s subsequent comments tempered expectations for further tightening.

Afternoon report 02/10/2026

The Match Out: ASX bounces back as broker upgrades lift market out of two-day funk

The ASX bounced today following yesterday’s broad-based sell-off with the rebound driven by a recovery in Technology, while nine of the 11 sectors finished higher. The move leaves the index up +0.2% for the week after a volatile few sessions, with the market still looking for confirmation that the recent surge in bond yields and oil prices has potentially peaked.