For personal use only. The Achmmach Tin Project A Development Ready Tin Opportunity

Transcription

1 The Achmmach Tin Project A Development Ready Tin Opportunity Austmine Presentation Perth, 5 November 2015

2 DISCLAIMER Certain oral and written statements contained or incorporated by reference in this presentation, including information as to the future financial or operating performance of Kasbah Resources Limited ( Kasbah, ASX:KAS, KAS, or the Company ) and its projects, constitute forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements. The words believe, expect, anticipate, contemplate, target, plan, intend, continue, budget, estimate, may, will, schedule and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of tin or other metal production and prices, operating costs and results, capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates. Forward-looking statements are necessarily based upon a number of estimates and assumptions related to future business, economic, market, political, social and other conditions that, while considered reasonable by the Company, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: competition; mineral prices; ability to meet additional funding requirements; exploration, development and operating risks; uninsurable risks; uncertainties inherent in ore reserve and resource estimates; dependence on third party smelting facilities; factors associated with foreign operations and related regulatory risks; environmental regulation and liability; currency risks; effects of inflation on results of operations; factors relating to title to properties; native title and aboriginal heritage issues; dependence on key personnel; and share price volatility and also include unanticipated and unusual events, many of which are beyond the Company s ability to control or predict. For further information, please see the Company's most recent annual financial statement, a copy of which can be obtained from the Company on request or at the Company's website: The Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, not to put undue reliance on such statements. A Achmmach Meknes Ore Reserve announced to the ASX on 18 March The cut-off is based on a tin price of US$23,000/t, mining costs of US$33.75/t of ore, including sustaining capital, processing cost of US$18.13/t of ore, G&A costs of US$4.67/t of ore, mine development costs of US$1,309/m and shipping & concentrate treatment charges of US$1,173/t of tin. B Achmmach Western Zone Shallow Resource Estimate announced to the ASX on 6 February The Sn grade in this table has been rounded to the nearest 0.05% Sn. The open pit resource has been reported within an optimised Whittle pit shell using a tin price of US$23,000/t and overall slope angles of 45. The 0.35% Sn cut off is based on a tin price of US$23,000/t, with open pit mining costs of US $2/t of rock for waste and $3/t for ore. The strip ratio within the pit shell is 18:1, giving an overall mining cost of $2.1/t. Total processing costs (including smelting) are US$38/t of ore, with processing recoveries of 75% at an average head grade of 0.9% Sn. C Achmmach Meknes Trend Resource Estimate announced to the ASX on 10 September The tin grade has been rounded to the nearest 0.05% Sn. The 0.5% Sn cut-off grade used for reporting the resource is based on a tin price of US$23,000/tonne and a total estimated operating cost of US$79/tonne (mining US$27/tonne, processing US$38/tonne and smelting US$14/tonne). Processing recovery for tin at an average head grade of 0.85% Sn will be approximately 70%.Bulk density was estimated by Ordinary Kriging, and has an average value within the mineralised zones of 2.89t/m3. The Company confirms that it is not aware of any new information or data that materially affects the Reserve and Resource Estimates included above and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. 2

3 Tin and KASBAH Today s Presentation 1. ASX: KAS our growth strategy 2. Kasbah who we are 3. Tin 101 a commodity overview 4. Today s Sn market 5. The Achmmach Tin Project 6. Kasbah s value proposition 3

4 1. KASBAH - Our Growth Strategy for Tin Kasbah s corporate strategy is multi-tiered: 1 ACHMMACH Tin Project, Morocco» Grow into a new generation producer of high quality tin (Sn) concentrates» Leverage our exploration expertise into new tin production opportunities; 2 3 Other Morocco Bou El Jaj Sn Central African Tin Strategy (CATS) and» Diversify our product offering and enhance profitability through downstream processing. 5 4 Consolidation and Production Assets Vertical Integration 4

5 2. KASBAH Who We Are Kasbah Resources Limited (ASX : KAS) a new generation Sn company Building value in tin through exploration, feasibility and development capability Two Sn assets in Morocco - strategic holdings in two under-explored tin fields Achmmach Tin Project (75% Kasbah, 20% Toyota Tsusho, 5% Nittetsu Mining Co. Ltd) 15Mt JORC Resource / 9 Mt JORC Reserve Enhanced DFS complete, all major approvals in place 2 strategic partners at project level Off take largely uncommitted - 75% of all production remains to KAS account Quality share register World Bank (IFC), African Lion (AFL) and major Sn industry players Experienced Board and capable, tin focused management team Achmmach is the only Development Ready tin asset of scale. 5

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7 KASBAH Corporate Snapshot Major Shareholders IFC (World Bank) 17.7 % African Lion 16.1 % Mgmt. & Directors 3.5 % Shareholders who need Sn Thaisarco (#5 tin smelter) 5.6 % Traxys (tin trader) 5.3 % Capital Structure Shares on Issue 556 M Options on Issue 11.5M Market Cap (@2.6 cps) $14.4M 30/09/15 $3.3M ASX : KAS Strategic Partners in Achmmach Toyota Tsusho Corp 20% Nittetsu Mining Co. 5% 7

8 KAS Board and Management Rod Marston Non - executive Chairman Wayne Bramwell Managing Director Gabrielle Moeller Non - executive Director Ian McCubbing Non - executive Director Giles Robbins Non - executive Director Mike Brook Non - executive Director Mike Kitney Chief Operating Officer Trevor O Connor CFO & Company Secretary Jeffrey Lindhorst Exploration Manager 8

9 3. Tin 101 A Commodity Overview Source ITRI Tin Market (2015 Forecasts) 2015 Refined tin production 351,000 t 2015 Refined tin consumption 362,300 t 2015 Global Market Balance -11,200 t World stock ratio (weeks consumption) 3.4 Tin Consumption Solders electronic and industrial 48.8% Chemicals 15.6% Tinplate 15.1% Lead acid batteries 5.3% Brass/bronze/ float glass/ other 15.2% 2015 LME Sn - has moved between US$13,365/t and US$16,600/t. 9

10 3. Tin Year Tin 2010 Peak LME Sn $33,000 / t 10 Year Average LME Sn $17,376 /t 3/11/15 LME Sn $14,990 / t 10

11 4. Today s Tin Market Tin mining in decline in top two producers China and Indonesia China is currently over-supplied from low cost Myanmar ore supply but is still a net importer of tin New Indonesian regulations to reduce tin exports to <70,000 tpa in 2016 LME stocks at 8 year low world stock ration 3.4 weeks 2016 Sn consumption ITRI forecast modest growth The effect of current tin price (@ Nov 3 LME Sn = US$14,990/t) Producers cutting production & artisanals switching Many new projects stalled Supply being withdrawn, stocks low and demand weak but positive 11

12 5. Achmmach Tin Project The Achmmach Tin Project in Morocco: A large, well drilled, primary tin deposit in Northern Morocco A Joint Venture between Kasbah (75%), Toyota Tsusho (20%) and Nittetsu Mining (5%) Granted Mining Permits and an approved ESIA Has grown from a 2Mt JORC Inferred resource in 2007 to 15Mt JORC Measured and Indicated resource in 2015 JORC Ore Reserve of % Sn for t of contained tin Orebody is cassiterite (SnO 2 ) dominant metallurgical recovery of 71.8% from conventional gravity and flotation Competitive C3 cost of tin production - USD / t tin in concentrate. Exploration upside is large from within the permits. 12

13 Achmmach 15,000,000 t of JORC Resource NEW WZ Indicated Resource B % Sn for 4.2kt Meknes Measured and Indicated Resource C % Sn for Kt Meknés Ore Reserve A % Sn for 71,300t 13

14 EDFS MINE DESIGN 1 Mtpa from 2 Declines 14

15 ACHMMACH March 2015 Reserve Update March 2015 Meknès Ore Reserve A (@ 0.55% Sn Cut-off grade for High Grade Ore and 0.25% Sn for Low Grade Development Ore) Achmmach Proven % Sn Probable % Sn Total % Sn Contained tonnes tonnes tonnes tin tonnes Total High Grade Ore Total Low Grade Development Ore 1,258, ,463, ,721, ,350 13, , , ,950 TOTAL 1,271, ,948, ,219, ,300 High Grade core 1.0% Sn 15

16 Achmmach A simple, conventional Sn flow sheet 16

17 HIGHLIGHTS March 2015 Enhanced DFS Parameter Unit EDFS EDFS Spot Case Base Case LME Cash Buyer Sn price 13/3/ Mth Avg Life of Mine Free Cash (post tax) USD M Pre-production Capital USD M Post-tax NPV 8% USD M IRR (ungeared) % Payback period years C3 costs USD/t tin in concentrate Achmmach confirmed as low cost, long life production opportunity. 17

18 Achmmach Small Start Option Tin price has fallen >20% in 2015 hence need to revise development model. Small Start Option (SSO) Start small - a lower capital development Reduced scale Mtpa, higher grade scenario Simplified mine design and contract mining Modular processing plant capable of expansion to 1 Mtpa Mine and mill designed to be expanded to 1 Mtpa SSO Evaluation underway now. 18

19 6. KASBAH Our Value Proposition Achmmach The most advanced of all tin development projects of scale. project is Development Ready and has scale 5,850 tpa tin in concentrate (EDFS) EDFS completed in March Mt JORC Ore Reserve A with a >9 year mine life 1 st Quartile production costs C3 of US$13,296/t an experienced Board and management team that is Tin focused 75% off-take uncommitted and available. Low tin price seeing production removed and existing producers cutting expenditure Sn price re-set underway SSO Lower cost, lower operating risk scenario Higher grade development scenario Start small and expand as commodity price moves. 19

20 Great People Strategic partners A Growth Strategy for Tin 2 Tin assets Tin Industry shareholders Clear Vision 20

21 Wayne Bramwell Managing Director 21