Are These Buying Opportunities? Desert Gold, Rheinmetall and innoscripta in Focus

Desert Gold: On the Home Stretch

Desert Gold is approaching an important milestone. The company plans to gradually ramp up gold production at its SMSZ project in western Mali before the end of the current quarter. The 100% owned project covers approximately 440 km² and extends for about 38 km along one of West Africa's most significant gold structures. In the immediate geological vicinity are, among others, B2Gold's Fekola mine as well as Barrick's Loulo and Gounkoto mines. To date, more than 20 gold zones have been identified on the SMSZ project, and over 95,000 m of drilling have been completed. The resource stands at just over 1.2 million ounces of gold.

Now, the Barani zone is taking centre stage. According to CEO Jared Scharf, the gravity processing plant, with a capacity of 200 metric tons per day, has now arrived at the Barani site. Following installation and commissioning, processing operations are scheduled to begin in November. Delays caused by transportation issues, fuel shortages, and the rainy season had previously set the schedule back.

Operations are intended to demonstrate how the ore behaves under real-world conditions, what gold yields are actually achieved, and how robust the previous model assumptions are. This operational data will then form the basis for the next stage of development. In the future, a central processing plant could process material from multiple deposits within the SMSZ project. The company estimates the planned expansion will cost approximately USD 15 million and is relying on financing options such as streaming, offtake agreements or debt financing, which should minimize share dilution.

The November 2025 PEA considered a significantly larger scenario for Barani and Gourbassi, with a daily throughput of approximately 1,200 metric tons. The company's stock is currently trading at around CAD 0.13. This contrasts with a CAD 0.93 price target cited by the research firm GBC. The start of production and the expansion of operations could trigger a revaluation.

Rheinmetall: Growth and Falling Share Prices - How Does That Add Up?

Rheinmetall generates revenue from military vehicles, ammunition, air defense, and other security systems. Through acquisitions and partnerships, the group is tapping into new markets. But not everything is going according to plan. With the completed acquisition of Naval Vessels Lürssen, the group is positioning itself as a full-service provider of modern naval vessels, coast guard boats, and autonomous maritime surface systems. However, the company faced a significant setback in a multi-billion-euro frigate program; it failed to secure the contract it had hoped for. As a result, the defense giant had to revise its forecast downward for the current fiscal year.

Most recently, the group announced the start of series production of space satellites. Following preparatory work, including planning and setup, the company has moved on to industrial production in Neuss. These are SAR satellites being manufactured by a joint venture with the Finnish satellite operator Iceye. The German facility will produce about 50 satellites annually, and the first satellite is scheduled to launch on a SpaceX rocket early next year.

Market observers are increasingly focusing on Rheinmetall's order backlog and how quickly it can be fulfilled. At the end of the first half of the year, the order backlog stood at EUR 80.5 billion. With the share price now down to around EUR 935, the 2027 P/E ratio has fallen to 19. Analysts project 70% upside for the stock over the next 12 months. Things will get exciting next month with the release of the Q3 results on November 5. At the end of November, the company will host a Capital Markets Day.

innoscripta: Low P/E on the Surface, but Plenty of Question Marks

innoscripta supports companies with its Clusterix platform in documenting research and development and in securing research grants. According to the company, fees are typically incurred upon certification of eligibility for funding. The subsequent tax assessment follows separately. The company went public in May 2025 and is also expanding internationally.

innoscripta is growing strongly on an operational basis. Half-year revenue reached EUR 63.1 million, with EBIT at EUR 36.4 million, resulting in an operating margin of nearly 58%. At mid-year, the company reported net liquidity of approximately EUR 18 million. As recently as August, management projected annual revenue of at least EUR 140 million and EBIT of EUR 80 million.

Then, a few days ago, the bad news broke. At the beginning of the month, investigators raided two locations. According to the company's statement, the allegations concern aiding and abetting unjustified tax benefits related to research subsidies for individual customers. Based on current information, no business transactions from the current year are affected. The company also assured that it would cooperate fully with the authorities.

As a result of the announcement, the share price has plummeted from around EUR 88 to as low as EUR 31. Currently, it stands at EUR 44, giving the company a market capitalization of around EUR 440 million. The seemingly low P/E ratio of 7.8 for the current year and 6 for 2027, along with a dividend yield of around 10%, must be viewed in context given the remaining uncertainties. It remains to be seen whether the business model can continue to be pursued internationally as it has been to date.

Stock pickers are finding exciting stocks in many sectors. Desert Gold has entered the home stretch. After several delays, the Canadians aim to start gold production in Q4. This milestone could trigger a revaluation. Analysts remain bullish. At Rheinmetall, investors are waiting for new orders and a rapid reduction of the order backlog. innoscripta appears cheap on paper, while the ongoing investigations still make it difficult to reliably assess its future profitability.