As mentioned it can repair and looks like the it hasn’t intruded into the oil cavity...but if you are repairing then getting a replacement skeg fin....worth me saying that you should get a real good welder or shop to do it, if you not decent yourself.
Ally welding is a tricky thing, but there is also the for an against argument around how it should be done. With or without oil in the gear case. Some say without for safety and fire prevention... I’m in the with oil camp so it has a fair cooling effect on the gear case and more crucially the bearings and gear. Just need to go easy. Tough one.