cosors
👀
The whole article/report:
Here in Germany, the spread is ~30% (buy vs sell and market maker prices). Hopefully that will change now, and I can consider joining in.
SGQ Thread
- Thread starter cosors
- Start date
The whole article/report:
Here in Germany, the spread is ~30% (buy vs sell and market maker prices). Hopefully that will change now, and I can consider joining in.
cosors
👀
"St George Mining’s (ASX:SGQ) Araxa Project is next to the largest niobium mine on Earth, and a big few months await
August 1, 2025St George Mining (ASX:SGQ): Araxa keeps getting bigger
Thanks to its Araxa project, St George Mining is one of the few companies that can boast of a project right next to the world’s largest mine for its commodity.Granted, niobium isn’t as well known as gold…but this is gradually changing. Just look at the fact that SGQ was able to raise $5m at a 13.1% premium to its 30-day VWAP just a few weeks ago. SGQ has more than doubled its market capitalisation and grown its 12-month trading volume more than 30-fold in the past 3 months. This is no accident.
A way to play the niobium opportunity
First of all, because it is one of the few ASX stocks with exposure to niobium. Niobium is a metal traditionally used in High-Strength Low-Alloy (HSLA) steel to make it lighter and stronger, but is increasingly being used in lithium-ion batteries. There are very few current operating mines, one of which is the neighbouring mine that has a MRE of 896Mt at 1.49%. But there is an urgent need for more as demand growth has been more than 6% for more than two decades now.Consequently, the few companies showing potential to stumble across a major resource attract investor excitement. The most prominent example is WA1 Resources (ASX:WAK) which re-rated from A$10m to over $1bn in 3 years given its Luni discovery. Looking at rare earths more generally, there is even further precedent for companies at a development stage to re-rate.
Arafura’s (ASX:ARU) Nolans Project is A$430m and it has a Measured and Indicated Resource of 34.9 Measured and Indicated Mt at a TREO grade of 3.2% and an NdPr grade of 0.69%. Moreover, the price of niobium has been strong, with quotations north of US$75 per kilogram in China in late 2024, much higher than the US$45 level of several years ago.
Araxa is an appealing project
Now, let’s look at SGQ’s Araxa project. It lies in Minas Gerais, Brazil, right next to the largest niobium mine in the world. St George has defined a total niobium resource of 41.2 million tonnes at 0.68% Nb2O5 (6,800ppm Nb2O5) comprising 1.9 million tonnes Measured, 7.37 million tonnes Indicated, and 31.93 million tonnes inferred. The company defined a total Rare Earths Resource of 40.6 million tonnes at 4.13% TREO (41,300ppm TREO). Araxa contains 280,000 tonnes of niobium oxide and 1.7 million tonnes of TREO.For comparison’s sake, consider that Lynas’ Mt Weld mine has 106Mt @ 4.1% TREO. With Araxa already having 40.6Mt @ 4.13% TREO with just 10% of the project area prospected (and at no deeper than 100m), there is significant potential for a greater resource to be formed.
Other positive traits the project shares include its infrastructure (i.e. sealed roads and power), access to skilled labour, low sovereign risk, strong commercial interest, how the project is open in all directions and the potential for other rare earths like neodymium and praseodymium.
A major drilling campaign is underway
SGQ’s plan is to grow the resource and develop Araxa into a major niobium mine. In June 2025, it commenced a drilling campaign, the first since its acquisition of the project. The campaign will be 10,000m and comprise of a mix of auger, reverse circulation and diamond drilling. Drilling will test extensions of known mineralised zones and follow up on targets generated from previous exploration and ongoing geophysical work.SGQ plans to send samples for lab assay analysis on an ongoing basis, so there should be no shortage of news flow for investors. Parallel to the drilling, the company is undertaking geophysical surveying to provide detail on the lateral and depth potential of the mineralised system.
Moreover, we expect global developments in the rare earths space to continue and these could also help SGQ’s cause with investors. Some in the recent months have been MP Materials (NYSE:MP) – the company that owns the USA’s only rare earths mine; receiving a multi-billion dollar investment from the Department of Defence (DoD) and Apple investing US$500m to support the establishment of a rare earths processing facility in the US.
Conclusion
Our friends at Pitt Street Research have modelled Araxa at an NPV of US$1,281.5m or A$2,066.9m in a base case scenario and US$1,978.6m or A$3,191.2m in an optimistic case. Pitt Street has suggested SGQ could realistically trade at 25% of its project NPV (up from 5% now). This would equate to $0.13-0.21 per share. If SGQ can continue to progress Araxa, this current market capitalisation will not last for long.
St George Mining is client of Pitt Street Research. Pitt Street directors own shares in SGQ."
St George Mining's (ASX:SGQ) Araxa Project is next to the largest niobium mine on Earth, and a big few months await
Thanks to its Araxa project, St George Mining (ASX:SGQ) is one of the few companies boasting of a project next to the world's largest mine for its commodity.
stocksdownunder.com
Semmel
Top 20
Interesting company. I don't know management at all at this point but with similar vibes as talga some 5 years ago. Good quality deposit. Highly sought after outside China. Brazil obviously a bit less stable than the EU but also a lot less stupid in terms of permitting. Worth a gamble. But no clue about longer term prospects.
cosors
👀
There are practical tools for such things:
John Prineas – Executive Chairman
- Education: Bachelor of Economics and Bachelor of Laws; Fellow of FINSIA
- Experience:
- Founding shareholder and director of St George Mining
- Over 25 years of experience across mining, banking, and law
- Former Australian Country Head for Commerzbank*, focusing on project and acquisition finance in resources and infrastructure
- Expertise in corporate governance and strategic leadership in resource development
John Dawson – Non-Executive Director
- Experience:
- More than 30 years in finance and mining sectors
- Held senior roles at major investment banks:
- Managing Director of FICC (Fixed Income, Currency and Commodities) at Goldman Sachs Australia
- Global Head of Commodities and Country Head for Australia at Dresdner Kleinwort Wasserstein
- Brings deep insight into capital markets, commodities trading, and corporate strategy
Sarah Shipway – Non-Executive Director & Company Secretary
- Education: Bachelor of Commerce, Murdoch University; Chartered Accountant
- Experience:
- Appointed Non-Executive Director in June 2015
- Company Secretary since March 2012
- Extensive experience in:
- ASX company listings
- Financial reporting and corporate planning
- Equity and debt funding
- Member of the Institute of Chartered Accountants
Adolfo Sachsida – Advisor to the Board
- Role: Strategic advisor for the company’s niobium business in Brazil
- Experience:
- Held high-level positions in Brazil’s Federal Government:
- Minister of Mines and Energy**
- Chief Secretary of Economic Affairs at the Ministry for the Economy
- Secretary of Economic Policy
- Academic roles:
- Professor of Economics at the University of Texas
- Universidade Católica de Brasília
- Offers strategic insights into Brazilian regulatory and economic frameworks
- Held high-level positions in Brazil’s Federal Government:
*Perhaps an additional explanation as to why they were recently listed here in Frankfurt (Commerzbank is a German bank).
**Interesting, isn't it?! Perhaps that's why the permit topic seems so easy and don't appear to be an issue in Brazil. As former Minister of Mining, he certainly didn't choose just any mining company.
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cosors
👀
Perhaps someone here might be interested. I'm currently waiting for Talga. Well, since I'm a bit bored...
I've looked at the Araxa project, like Nunasvaara from Talga, and can summarise as follows:
- There is no conflict with any kind of protected area; neither the environment, water nor indigenous peoples pose a problem.
- The local recreation area next door is not protected except for the hotel itself. The complex has a radioactive mineralised thermal spring (I'll leave it up to everyone to decide what to make of that).
- The deposit is located for the most part on land that has already been declared and demarcated for mining. The road belongs to the neighbouring mining company CBMM and is closed to unauthorised.
- The deposit area is already well developed (CBMM).
- The city of Araxa begins just 2 km away and has 120,000 inhabitants.
- SGQ is offering local officials ~ 400M$ in investment and up to ~400 jobs in exchange for accelerated approval procedures for the project, access to state infrastructure, support from local labour and training opportunities and political backing for the strategic importance of rare earths.
- St George was selected last year as a partner for MagBras, Brazil's first planned production facility for REE permanent magnets, so it is not just about the ore.
You can find the area on the map here:
maps.app.goo.gl
diariodocomercio.com.br
Minas Gerais is the state
My first association was cocaine
St George, an Australian company developing the Araxá project in Minas Gerais, was the first company to deliver material from Brazilian rare earth oxide minerals for the MagBras project – from Mine to Magnet – of the Center for Innovation and Technology for Rare Earth Magnets (CIT SENAI ITR). With a total investment of R$73 million and the participation of 28 companies, the project aims to consolidate a national production chain of rare earth-based permanent magnets, essential for cutting-edge technologies and sectors such as clean energy, electric mobility, and defense. The sample delivered by St George presents a concentration of over 95% rare earth oxides, with a low impurity index of less than 0.2% in all non-rare earth elements. According to the technical report, this material also contains approximately 20% of the main magnetic materials, neodymium (Nd) and praseodymium (Pr). These two elements are essential for the production of magnets used in electrification and clean energy production. Furthermore, the sample contains significant levels of samarium (Sm) and dysprosium (Dy), elements also important for magnetic applications. The sample now enables the MagBras project to continue its activities, separating these elements for later application. "This delivery demonstrates Brazil's and Araxá's potential to participate in a strategic supply chain for the energy transition and technological advancement," explains Thiago Amaral, Director of ESG and Development at ST George Brasil. The material was received in April by CIT SENAI and has now been forwarded to Magbras, which will be responsible for refining the oxides as part of the national project. The delivery marks the first time a batch of locally processed Brazilian rare earths has participated in the coordinated effort to enable the domestic production of permanent magnets."
www.jornalinteracao.com.br
Here, the map can be customised in every respect using layers (top right-hand side "+" then select "Temas" (topics) and tick the boxes for what you want to be displayed).
________
2024 acquisition, 2025 drilling and DFS, 2026 construction, 2027 production. As a Talgarian, it makes me dizzy. In the interview above is claimed 9months instead of 3 to 4a.
I've looked at the Araxa project, like Nunasvaara from Talga, and can summarise as follows:
- There is no conflict with any kind of protected area; neither the environment, water nor indigenous peoples pose a problem.
- The local recreation area next door is not protected except for the hotel itself. The complex has a radioactive mineralised thermal spring (I'll leave it up to everyone to decide what to make of that).
- The deposit is located for the most part on land that has already been declared and demarcated for mining. The road belongs to the neighbouring mining company CBMM and is closed to unauthorised.
- The deposit area is already well developed (CBMM).
- The city of Araxa begins just 2 km away and has 120,000 inhabitants.
- SGQ is offering local officials ~ 400M$ in investment and up to ~400 jobs in exchange for accelerated approval procedures for the project, access to state infrastructure, support from local labour and training opportunities and political backing for the strategic importance of rare earths.
- St George was selected last year as a partner for MagBras, Brazil's first planned production facility for REE permanent magnets, so it is not just about the ore.
You can find the area on the map here:
19°38'53.7"S 46°56'17.3"W
O Portal de notícias da cidade de Araxá - MG
St George avança com o Projeto Araxá e reforça compromisso com o desenvolvimento sustentável no município
portalaraxa.com.br
St. George fecha acordo de R$ 2 bilhões para extração de nióbio e terras-raras do Projeto Araxá - Diário do Comércio
Os aportes da St. George contemplarão as fases de estudo, desenvolvimento e operação da mina, com construção planejada para 2026. Leia mais.
diariodocomercio.com.br
My first association was cocaine
"St George sample has concentration of over 95% of rare earths from Araxá
Ago 8, 2025St George, an Australian company developing the Araxá project in Minas Gerais, was the first company to deliver material from Brazilian rare earth oxide minerals for the MagBras project – from Mine to Magnet – of the Center for Innovation and Technology for Rare Earth Magnets (CIT SENAI ITR). With a total investment of R$73 million and the participation of 28 companies, the project aims to consolidate a national production chain of rare earth-based permanent magnets, essential for cutting-edge technologies and sectors such as clean energy, electric mobility, and defense. The sample delivered by St George presents a concentration of over 95% rare earth oxides, with a low impurity index of less than 0.2% in all non-rare earth elements. According to the technical report, this material also contains approximately 20% of the main magnetic materials, neodymium (Nd) and praseodymium (Pr). These two elements are essential for the production of magnets used in electrification and clean energy production. Furthermore, the sample contains significant levels of samarium (Sm) and dysprosium (Dy), elements also important for magnetic applications. The sample now enables the MagBras project to continue its activities, separating these elements for later application. "This delivery demonstrates Brazil's and Araxá's potential to participate in a strategic supply chain for the energy transition and technological advancement," explains Thiago Amaral, Director of ESG and Development at ST George Brasil. The material was received in April by CIT SENAI and has now been forwarded to Magbras, which will be responsible for refining the oxides as part of the national project. The delivery marks the first time a batch of locally processed Brazilian rare earths has participated in the coordinated effort to enable the domestic production of permanent magnets."
Amostra da St George tem concentração superior a 95% de terras raras de Araxá
www.jornalinteracao.com.br
Here, the map can be customised in every respect using layers (top right-hand side "+" then select "Temas" (topics) and tick the boxes for what you want to be displayed).
________
2024 acquisition, 2025 drilling and DFS, 2026 construction, 2027 production. As a Talgarian, it makes me dizzy. In the interview above is claimed 9months instead of 3 to 4a.
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