Kasbah Resources Limited Annual Report 2018

8 Kasbah Resources Limited Annual Report 2018 Operations Review 1. TIN MARKET 1.1 Global Tin Price – Underpinning the promising DFS The LME Tin price continued to be strong throughout 2018, driven largely by record low tin inventory. The tin price traded above US$20,000 for most of the year, reaching a high of US$22,100 in January 2018. The average tin price for the year was US$20,612. LME tin inventory continued to be low, averaging 2,100 tonnes and reaching a minimum of 1,555 tonnes as global tin supply continues to decline. More recently, we have seen a slight decline in the tin price, along with a suite of other base metals. Global economic and trade developments appear to be an important factor in determining price movements, particularly the heightened threat of US tariffs on Chinese exports. The tin price is performing better than most of the base metals. Tin Stocks LM Tin $US/tonne 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 07/2015 08/2015 09/2015 10/2015 11/2015 12/2015 01/2016 02/2016 03/2016 04/2016 05/2016 06/2016 07/2016 08/2016 09/2016 10/2016 11/2016 12/2016 01/2017 02/2017 03/2017 04/2017 05/2017 06/2017 07/2017 08/2017 09/2017 10/2017 11/2017 12/2017 01/2018 02/2018 03/2018 04/2018 05/2018 06/2018 07/2018 08/2018 09/2018 10/2018 11/2018 12/2018 Tin Stocks (t) Tin Price US (t) The market has been in deficit in recent years and is expected to remain so in the near term. Market deficits are likely to continue in the future and as a result prices are forecast to increase to correct the market imbalance. As a result of current and forecast inventory levels and resulting market imbalance three forecast price scenarios are provided by the International Tin Association (ITA). 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 US$ Central Forecast Supply Constraint Scenario Weak Demand Scenario 2018 DFS LME Tin Price Overlay with LME Tin Stocks July 1, 2015 to July 13, 2018

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