Kasbah Resources Limited (ASX: KAS) is listed mineral exploration and development company. Kasbah’s strategy is to grow the Company into a new generation producer of high-quality tin concentrates. Kasbah is led by a highly experienced board and management team and is supported by strong cornerstone shareholders and joint venture partners.
The company's objective is to:
The Company is the 75% majority shareholder of the Achmmach Tin Project, the most advanced greenfield tin project in the world. Kasbah’s joint venture partners are Toyota Tsusho Corporation and Nittetsu Mining Co Ltd. The Achmmach Tin Project will be a globally significant tin producer, producing an estimated 1.5% of the global tin market. The market is projected to be in deficit and requires significant new supply to meet the increasing demand. In fact, a recent study published by the Massachusetts Institute of Technology identified tin as the metal most impact by new technology.
The Achmmach Tin Project is located in the Kingdom of Morocco – a safe, secure, non-conflict and mining friendly jurisdiction. Morocco is a highly industrial country with excellent infrastructure and environment to facilitate business activity. Kasbah is very fortunate to be operating in a jurisdiction where we enjoy support from our host community and local, provincial and federal government.
The Achmmach Tin project is an underground tin mine with an initial mine life of 10 years and estimated to produced in excess of 44,000 tonnes of tin, averaging 60% tin. There is significant upside potential for the project as the ore body remains open along strike and at depth.
Kasbah released the Achmmach Tin Project 2018 Definitive Feasibility in July 2018. The 2018 DFS shows the project has a post-tax NPV of US$98.1 million and IRR of 23% using a tin price of US$21,000/tonne and a real discount rate of 8%. The capital cost for the project was estimated at US$96.4 million. C1 cash costs is estimated at US$9,176/tonne and AISC is estimated at US$11,435/tonne.
Since the release of the 2018 DFS, Kasbah has completed Front End Engineering Design and an Independent Technical Specialist Report. The completion of these key milestones confirms the financial and technical viability of the project.
The next steps towards the development of the Achmmach Tin Project includes securing project debt finance, securing offtake, selecting EPC and mining contractors as well as entering into contracts for grid power connection, laboratory, etc.
The Achmmach Tin Project is an extremely interesting project which looks to benefit from the supply/demand dynamics of the tin market. Industry experts are predicting that tin price will increase to anywhere between $25,000/tonne and $30,000/tonne in the medium term, which would make the Achmmach Tin Project one of the most lucrative investment opportunities in the market.