Economics

The following information is an extract from Kasbah’s ASX release of 10 August 2016 “DFS Confirms Project Economics for Achmmach Tin Project”. The study is currently under review and will be updated in the first half of 2018.

Table 1:  Achmmach SSO DFS Metrics

@ LME Sn price @ 21/07/16 of USD 17,830 / t

SSO Ore Reserve Life of Mine (LOM) Project Construction Capital USD All in sustaining costs (AISC) USD / t of tin in concentrate NPV8 after tax USDM (100% of Project) IRR %
DFS   6.56 Mt @ 0.85%
Sn for 55,500t
of contained tin
10.5 Years 61.7 M 11,507 51 20.6

Table 2:  2016 Achmmach SSO DFS - Sensitivity to LME Tin Price

LME Sn Price USD / t NPV8 after tax USD M (100% of Project) IRR  
16,000 14.6 11.8%
17,000 34.5 16.7%
DFS @ 17,830 50.9 20.6%
18,000 54.3 21.3%
19,000 74.1 25.7%
20,000 93.9 29.9%

Table 3:   2016 DFS - Staged Mining Metrics

DFS metrics Stage 1 Stage 2
Cut-off grade 0.8% Sn 0.55% Sn
ROM tonnes and grade 1.89 Mt @ 0.96 % Sn 4.67 Mt @ 0.80 % Sn
Delivering 18,235 t contained tin to mill 37,310 t contained tin to mill
Processing 0.5 Mtpa over 42 months 0.75 tpa over 80 months
Total Tin in Concentrate produced 12,255 tonnes   (292 tpm) 28,114 tonnes (351 tpm)

Table 4: Achmmach 2016 DFS Technical Summary

Parameter Units   DFS
Ore ReserveA Mt 6.56
Stage 1 mined ore grade % 0.96
Stage 2 mined ore grade % 0.80
Average annual tin in concentrate produced t 3,970
Total Tin concentrate shipped t 73,950
Tin Concentrate grade % 55
Total LOM Tin in concentrate shipped t 40,370
Total Project life months 132
Mine production period months 126
Mill production period months 122
Project construction capital USD M 61.7
Operating costs    
C1B USD/t tin 8,999
C3C USD/t tin 13,778
All in sustaining cost (AISC) USD/t tin 11,507

A Ore Reserve is derived from Measured and Indicated Mineral Resources that have had mining dilution and recovery factors applied to the mine design, and ore treatment and other surface operational cost factors applied to create an inventory of mineable stope and development tonnes, the extraction and treatment of which may be accomplished in an economic and environmentally acceptable manner.

B C1 cost is the sum of mining, processing, site administration and off-site refining.

C C3 cost is the sum of C1 cost, depreciation & amortisation, royalties and project related corporate costs.

Table 5:  Achmmach 2016 DFS Financial Summary

Parameter   DFS
Project construction capital USD M 61.7
   + First fill, spares and working capital USD M 8.2
   + Contingency USD M 5.4
   + VAT and other charges USD M 3.2
Total Project Investment to Peak Funding USD M 78.5
Revenue @ LME Sn price @ 21/7/16 of USD 17,830 USD M 678
Free cash USD M 120
Payback months 46
NPV8 after tax (100% of Project) USD 51
NPV8 after tax (Kasbah 75% share of Project) USD 38
Project IRR % 20.6

 

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