Shares of Jiaxin International Resources (03858) have surged more than 9% again. As of writing, the stock is up 9.22% to HK$88.25, with a turnover of HK$180 million.

The catalyst for the move is the recent signing of a non-binding memorandum of understanding between Jiaxin International Resources and PIMCO Municipal Income Fund (PMF). The agreement outlines plans to jointly seek mineral resource development opportunities in Kazakhstan.

Focus of the collaboration

The partnership will specifically target medium to large-scale porphyry copper-gold deposits, polymetallic deposits containing copper, zinc, lead, gold, and silver, as well as tungsten-molybdenum deposits.

Strategic objective of the partnership

The ultimate goal is for PMF to identify, screen, and acquire mineral projects or interests with development potential in the target region. At an opportune time, Jiaxin International Resources will then selectively acquire these assets to incorporate them into its listed company portfolio.

Positive backdrop in the tungsten market

Analysts note a recent recovery in the tungsten market. A report highlighted that the speculative bubble in tungsten prices has dissipated, and the panic selling pressure from previously hoarded scrap tungsten has largely concluded. This has allowed market risks associated with the high-price correction to be released.

Inventory and demand dynamics

Current industry inventories are undergoing continuous optimization, with downstream stockpiles having returned to normal levels. This sets the stage for a new round of restocking demand. On the demand side, the application of tungsten continues to expand in high-end manufacturing, military, and new energy sectors, indicating considerable growth potential.

With the tungsten market showing signs of warming up and prices rebounding, market observers suggest paying attention to companies like Jiaxin International Resources.