Shares of Fuse Group Holding Inc. (FUST), a mining industry consultant with a nearly $500 million market cap, have rocketed more than 250% since announcing a consulting agreement December 13, 2023 with the Chinese firm Beijing Jixiang Fengqi Tech Company Limited.

Originally founded as a digital marketing company in 2013, Fuse Group now touts its experience in all facets of the mining industry— specializing in copper, silver, aluminum, titanium and iron in Mexico and Central America.

Notably, the Chinese firm that hired Fuse Group is not in the mining industry.

Beijing Jixiang Fengqi Tech provides information technology (IT) and digital marketing services.
The company sells applications in Apple’s App Store that purports to use generative artificial intelligence (AI) to turn text into images, human faces, and avatars.

Yet Fuse Group CEO Umesh Patel seems to suggest Fuse Group’s consulting agreement with Beijing Jixiang Fengqi Tech is for expertise in the food services space:

“Fuse Group is looking to diversify its business and tap more resources into new growth”, said Umesh Patel, CEO of the Fuse Group, “I personally have 25 years’ experience in the catering and culinary consulting service business and we hope this cooperation with Jixiang Fengqi will help Fuse Group to attract more business opportunities in the future.”

In 2018, Fuse Group announced a memorandum of understanding to purchase five mines in Mexico for $1 million.

Noticeably absent from the announcement was what mineral the company would be mining.

Separately, after markets closed on the New Years holiday weekend, Fuse disclosed it had entered into an LOI with a Chinese businessman to acquire a California yogurt stand.

Terms were not disclosed.

Fuse Group shares were up more than 2,000% in 2023 and nearly 6,000% over the last three years.

During that period, sales have declined from $1.2 million to $200,000.

The consulting agreement with Jixiang Fengqi Tech will net Fuse Group $10,000 per month through December 2024.