Kasbah Resources - Exposure to the Tin Market

Writen by Scott Finlay

Kasbah Resources Limited (ASX:KAS) was listed on the Australian Stock Exchange on 27th April 2007 with the objective of bringing the Achmmach tin project in northern Morocco into commercial production. After completing the major evaluation steps and analysis, Kasbah Resources Limited (ASX:KAS) is in the final stages of preparing a definitive feasibility study to develop a 750ktpa underground mine and associated processing facility. Kasbah intends to produce an average of 4,500tpa of tin ore in concentrate (~1.3% of world production) over a 10 year mine life, mining current reserves, with  expectations of extending mine life through further resource conversion.

A key issue moving through calendar year 2018 will be the source of funding for the construction of Achmmach. As at the time of writing the company has approximately A$3.1M in cash with debt of A$1M owed to its main shareholder Pala Investments.
Assuming all inclusive initial capital costs of ~US$100M and if it can be agreed to by shareholders, JV partners and banks that a 50/50 debt to equity split is practical, then Kasbah would need to raise equity capital of ~US$37.5M (A$48M).


Latest Research