Core Viewpoint - The tungsten sector's third-quarter reports have exceeded market expectations, leading to a significant increase in the stock price of Jiaxin International Resources [1] Company Summary - Jiaxin International Resources (03858) saw its stock price rise over 7%, currently trading at 39.22 HKD with a transaction volume of 53.51 million HKD [1] - The company is focused on developing the Bakuta tungsten mine project in Kazakhstan [1] Industry Summary - Xiamen Tungsten's third-quarter net profit attributable to shareholders reached 810 million CNY, a year-on-year increase of 109.85% [1] - China Tungsten High-Tech's third-quarter net profit excluding non-recurring items was 297 million CNY, up 725.45% year-on-year [1] - Recent price increases in the tungsten market include a 3.73% rise in black tungsten concentrate prices to 278,000 CNY/ton and a 3.70% increase in ammonium paratungstate prices to 406,000 CNY/ton [1] - The supply side is experiencing a reduction in tungsten concentrate mining quotas, leading to a slowdown in production and tightening circulation in the industry [1] - Domestic demand remains stable, primarily driven by essential procurement [1] - In late October, major companies announced long-term contract prices, with 55% black tungsten concentrate prices around 273,000 CNY/standard ton, supporting high price fluctuations [1]

Core Viewpoint - The competition for tungsten mines in Kazakhstan has escalated into a strategic national-level contest between the United States and China, highlighting the importance of tungsten as a critical resource in global power dynamics [1][24]. Group 1: U.S. Involvement - The U.S. government, led by the Secretary of Commerce, is actively facilitating American companies' bids for the tungsten mines, indicating the strategic importance of this endeavor [3][5]. - American companies are proposing to operate independently and process the tungsten locally in Kazakhstan before exporting it back to the U.S., aiming to establish a supply chain that does not rely on China [5][7]. - U.S. financial institutions are backing these initiatives, emphasizing the national security implications of securing critical mineral resources [5][21]. Group 2: China's Response - In response to U.S. actions, Chinese companies are also entering the bidding process with competitive offers, aiming to maintain their dominant position in tungsten resources [8][10]. - China has a well-established tungsten industry, with significant advantages in resource reserves, processing technology, and supply chain integration, making it crucial for China to protect its strategic resource control [10][12]. Group 3: Kazakhstan's Role - Kazakhstan is positioned as a key player in this competition, seeking to balance its relationships with both the U.S. and China while maximizing its benefits from the situation [15][17]. - The Kazakh government is likely to pursue a joint venture model, allowing both U.S. and Chinese companies to participate while retaining control over the resources [17][19]. - The historical context of the tungsten deposits, which were discovered during the Soviet era but remained undeveloped, has now changed due to the shifting global resource landscape [15][19]. Group 4: Global Implications - The competition for tungsten is indicative of a broader trend where critical resources are increasingly viewed as strategic assets, influencing global supply chains and geopolitical relations [21][24]. - The outcome of this bidding war could set a precedent for future competitions over other critical minerals, such as lithium and rare earth elements, as nations seek to secure their resource independence [21][26]. - The evolving dynamics suggest that resource control will be determined not just by market forces but by national interests and strategic partnerships [26].

Summary of Tungsten Industry Conference Call Industry Overview - The tungsten industry is experiencing significant price fluctuations influenced by supply-demand dynamics and procurement strategies. Concentrated purchasing has led to short-term price declines, while mine production halts and restarts directly affect market supply [1][2][3]. Key Points Price Trends - Tungsten concentrate prices have been rising since 2021 due to supply-demand imbalances, with demand exceeding supply. Notably, prices surged from May to September 2025, driven by concentrated purchasing activities [2][4]. - In the first half of 2025, mine profit margins reached 42.73%, while smelting companies saw profit margins increase to 2.18%. Overall, the price increases have had a minimal impact on profit margins across the industry [1][4]. Supply and Demand Dynamics - The supply of tungsten concentrate is expected to remain tight until 2026, with limited new production capacity and anticipated demand growth. This ongoing supply-demand conflict is likely to drive prices higher [1][5]. - Despite an increase in imports, the growth rate may slow down, and domestic new capacity is lagging, contributing to sustained supply tightness [1][6]. Regulatory Impact - The delay in the issuance of the second batch of tungsten mining quotas has had some impact on the industry, but the overall effect is limited due to China's quota management system, which controls illegal mining and ensures resource utilization [1][7]. Export Restrictions - In 2025, China implemented export restrictions on tungsten products such as APT, tungsten carbide, and tungsten oxide, leading to a significant decrease in export volumes compared to 2024. For instance, APT exports dropped from 489 tons in 2024 to 222 tons in 2025 [10][11]. Challenges in the U.S. Market - The U.S. faces challenges in rebuilding a complete tungsten supply chain, relying heavily on imports for smelting. The country has limited operational mines and smelting facilities, making it difficult to establish a self-sufficient industry [13][22]. Future Projections - By the end of 2027, it is projected that the total new tungsten concentrate supply will increase by at least 40,000 tons, with monthly increments of 1,800 to 2,000 tons. However, several projects face risks of delays [16][17]. Applications and Market Space - Tungsten's applications in nuclear fusion and military sectors are being explored, but the demand in these areas is not expected to lead to significant market growth in the near term. The military's demand for tungsten is relatively small, with some applications potentially being replaced by other metals [18][20][21]. Additional Insights - The historical context of tungsten quotas shows that the Chinese government has adjusted production limits to balance supply and demand, with recent reductions in quotas reflecting the need to manage resources effectively [8][9]. - The U.S. government is exploring the development of tungsten resources in Kazakhstan, with investments aimed at critical mineral projects, although these new mining areas are smaller in scale compared to existing operations [22][23].

Core Insights - The tungsten concentrate industry is crucial for strategic sectors like aerospace and defense, with a focus on high-density, high-melting-point, and high-hardness properties [1][5][11] - China, as the largest tungsten producer, faces rapid resource consumption and has implemented policies for total control and export regulation to transition from resource output to high value-added production [1][5][6] - The industry is characterized by a concentration of resources, with significant production capacity in provinces like Jiangxi and Henan, and a market dominated by state-owned enterprises [1][12][16] Industry Overview - Tungsten concentrate is extracted from tungsten ore through various processes, requiring a minimum tungsten trioxide (WO₃) content of 65% [2][3] - The global tungsten resource distribution is highly concentrated, with China holding 52% of the total reserves, while the domestic reserve-to-production ratio is only 36 years [10][11] Policy Analysis - China has established a policy framework focusing on resource protection and sustainable utilization, including total mining volume management and export controls [5][6][14] - Recent policies have refined the management of mining quotas and introduced stricter regulations on exports of tungsten-related products [6][14] Industry Chain - The tungsten concentrate industry chain includes exploration, mining, and processing, with a high concentration of mining enterprises and increasing prices due to supply constraints [8][12] - The downstream applications are diverse, with significant growth in demand for tungsten wire in the photovoltaic sector, while traditional sectors face cost pressures [8][12] Current Industry Status - The tungsten industry in China is experiencing a transformation, with a focus on high-end applications and a shift towards sustainable practices [13][15] - In 2024, the total tungsten concentrate production is projected to be 12.7 million tons, reflecting the impact of total control policies [14][15] Competitive Landscape - The industry is characterized by a "resource core, state-owned leadership, and collaborative ecosystem" model, with major players like Jiangxi Tungsten Industry Group and Xiamen Tungsten leading the market [16][17] - The market concentration is high, with the top five companies controlling 61% of the production capacity [16] Future Trends - The tungsten concentrate industry is expected to evolve towards resource consolidation, technological advancement, and global expansion [17][19] - Key trends include a shift from scale advantages to ecological dominance, with a focus on high-end applications and green transformation [17][18][19]

Core Viewpoint - Jaxin International Resources (03858) has seen a significant stock price increase, rising nearly 250% from its IPO price of HKD 10.92 to a peak of HKD 38.16, driven by rising tungsten prices and strong market performance [1] Company Summary - Jaxin International Resources is a tungsten mining company based in Kazakhstan, with its core asset being the Bakuta tungsten mine, which is the largest open-pit tungsten mine globally [1] - The company has commenced production at its core asset and is expected to increase output in the future, benefiting from the rising tungsten prices [1] Industry Summary - Since March 2025, tungsten prices in China have been on a continuous upward trend, with a significant spike in August, reaching historical peaks in early September, resulting in a doubling of major tungsten product prices within the year [1] - The increase in tungsten prices is anticipated to lead to substantial profit growth for companies like Jaxin International Resources [1]

Group 1 - The core viewpoint of the article highlights the significant increase in tungsten prices in China since March 2025, with a notable surge in August, reaching a historical peak in early September [1] - As of early September 2025, the price of 65% black tungsten concentrate rose from 143,000 yuan per ton at the beginning of the year to a peak of 288,000 yuan per ton, before slightly retreating to 271,000 yuan per ton, marking an approximate increase of 89.5% year-to-date [1] - The article mentions that Jaxin International Resources (03858) has seen its stock price rise over 6%, attributed to the favorable market conditions for tungsten [1] Group 2 - Jaxin International Resources' core asset is the Bakuta tungsten mine, which is the largest open-pit tungsten mine globally, possessing the highest designed tungsten production capacity among single tungsten mines [1] - The Bakuta tungsten mine has a resource volume of 107.5 million tons of tungsten ore with a grade of 0.211%, containing 22.7 thousand tons of WO₃, and a reserve of 68.4 million tons of tungsten ore with a grade of 0.206%, containing 14.08 thousand tons of WO₃ [1] - The company is expected to benefit from the rising tungsten prices, leading to a potential rapid growth in profits as production increases in the future [1]

Core Viewpoint - The company, Xiamen Tungsten Co., Ltd. (600549.SH), has provided details regarding its tungsten mining operations, including current production capacity and future plans for resource enhancement [1] Group 1: Current Operations - The company currently operates four tungsten mining enterprises, with three of them being active: Ninghua Xingluokeng, Duchang Jinding, and Luoyang Yulu [1] - The annual production capacity of the active tungsten mines is approximately 12,000 tons of tungsten concentrate (65% WO3) [1] Group 2: Future Plans - The company has a construction project for the Bo Bai Judian tungsten-molybdenum mine, which is expected to produce about 3,200 tons of tungsten concentrate annually upon reaching full capacity [1] - The company aims to enhance its tungsten resource security through various means and continuously improve its resource assurance rate [1] Group 3: Resource Information - For detailed information regarding the company's mining reserves, stakeholders are directed to refer to the "Basic Information of Self-owned Mines" section on page 50 of the "Xiamen Tungsten 2024 Annual Report" [1]

Group 1 - The Hong Kong IPO market has been active since 2025, with notable listings in the biopharmaceutical, technology, and consumer sectors, as well as a significant increase in resource companies going public [1][2] - Zijin Gold International, a spin-off from Zijin Mining Group, is set to launch its IPO on September 29, 2025, with an expected fundraising of approximately HKD 249.84 billion, making it the second-largest IPO in Hong Kong this year [2][3] - The funds raised by Zijin Gold International will be used for upgrading existing mines, acquiring the Raygorodok gold mine in Kazakhstan, general corporate purposes, and exploration activities [2][3] Group 2 - Since 2025, three resource companies have successfully listed in Hong Kong: Chifeng Jilong Gold Mining, Nanshan Aluminum International, and Jiexin International Resources, each with unique listing strategies [3][4] - Chifeng Jilong Gold Mining adopted a "A-share first, then H-share" model, aiming to enhance its international presence and attract global investment [3][5] - Nanshan Aluminum International focuses on developing and procuring bauxite and coal resources in Indonesia, while Jiexin International Resources is notable for being dual-listed in both Hong Kong and Kazakhstan [3][4] Group 3 - Several resource companies, including Jinxun Co., Zhihui Mining, and Jinyan High-tech, are currently in the process of seeking IPOs in Hong Kong, primarily to develop international markets and acquire overseas projects [4][5] - The trend indicates a growing preference for the Hong Kong capital market among resource companies due to its internationalization and diverse investor base [4][5]

Group 1 - The core viewpoint of the article highlights that Jiexin International Resources (03858) has seen a significant increase in stock price, rising over 6% to 30.2 HKD, with a trading volume of 90.225 million HKD [1] - The tungsten market is experiencing a notable decrease in transaction volume due to high prices, which are slowly being transmitted to downstream industries, particularly affecting the hard alloy sector [1] - SMM indicates that the supply-demand mismatch in the tungsten market remains unresolved, suggesting that a significant price correction is unlikely, with a prevailing trend of strong fluctuations expected [1] Group 2 - Jiexin International is focused on tungsten mining in Kazakhstan, specifically developing the Bakuta tungsten mine, which is currently in production [1] - According to招商证券, the core asset of the company is the Bakuta tungsten mine, which is expected to see production increases in the future, benefiting from rising tungsten prices and potentially leading to rapid profit growth [1]

Group 1 - The core viewpoint of the article highlights that Jaxin International Resources (03858) has seen a significant increase in stock price, rising over 6% to 30.2 HKD, with a trading volume of 90.225 million HKD [1] - The tungsten market is experiencing a notable decrease in transaction volume due to high prices, which are affecting downstream industries, particularly the hard alloy sector, leading to reduced operational activity [1] - Despite the current market challenges, SMM believes that the supply-demand mismatch in the tungsten market remains unresolved, indicating that a significant price correction is unlikely, with expectations of continued strong fluctuations [1] Group 2 - Jaxin International is focused on developing the Bakuta tungsten mine in Kazakhstan, which is currently in production [1] - According to招商证券, the core asset of the company is the Bakuta tungsten mine, which is expected to see production increases in the future, benefiting from rising tungsten prices [1] - The company's profits are anticipated to grow rapidly as a result of the upward trend in tungsten prices [1]