An Emerging Tin Producer Investor Presentation March 2013 Kasbah Resources Limited ASX : KAS
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 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: www.kasbahresources.com. 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.
The information in this announcement that relates to Kasbah Resources Limited’s March 2013 Mineral Resource estimate for the Achmmach Tin Project is based on information compiled by Michael Job, who is a full time employee of Quantitative Group Pty Ltd. and a Fellow of the Australasian Institute of Mining and Metallurgy. Michael Job has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves” (JORC Code). Michael Job verifies that this Report is based on and fairly and accurately reflects in the form and context in which it appears, the information in the supporting documentation relating to Mineral Resources. The information in this report which relates to Mineral Resources is based on information compiled by Michael V. McKeown who is a Fellow of the Australasian Institute of Mining and Metallurgy. Michael McKeown is employed by Mining One Pty Ltd and he has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Michael McKeown consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mining Inventory is based on information reviewed by Mr Bill Frazer, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Frazer is a Director and Employee of Mining One Consultants Pty Ltd. Mr Frazer has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).
COMPETENT PERSON’S STATEMENT
2
KASBAH’s Competitive Advantages
130 kT SnO2
Development partner
$ 19.1 M cash
Team
Funding options
Morocco
3
Nickel mine ≈ 186,000 t contained
1% Sn is ≈ 1.42% Ni
Copper mine ≈ 399,000 t contained
1% Sn is ≈ 3.05% Cu
Gold mine ≈ 1.95 M Oz contained 1% Sn is ≈ 4.6 g/t Au
IF ACHMMACH WAS A…
5 * Ni /Cu /Au /Sn prices as of 6/3/2013
Tin supply constrained and global mine
production declining
Producers facing lower grades, operating
problems and higher costs
New uses adding demand pressure
Few new, sustainable tin projects in
development….
Tin Sector Challenges…..
6
LME TIN Price – 4th peak approaching?
7
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
1900 1920 1940 1960 1980 2000 2012 2016
US$/t
WE ARE HERE
US $23,520 / t (5/3/2013)
?
DEMAND – Consumer electronics dominates
8
0
20,000
40,000
60,000
80,000
100,000
120,000
Construction Transport Consumerelectronics
Packaging Industrialequipment
Other
Sn t/y
Source: ITRI
Top 10 Tin Producers in 2012 Production
(tonnes)
Yunnan Tin (China) 69,760
Malaysia Smelting Corporation 37,792
PT Timah (Indonesia) 29,600
Minsur (Peru) 25,399
Thaisarco (Thailand) 22,847
Yunnan Chengfeng (China) 16,600
Guangxi China Tin (China) 14,034
Metallo Chimique (Belgium) 11,350
EM Vinto (Bolivia) 10,800
Gejiu Zi-Li (China) 7,000
% Change
+24.2%
-6.1%
-22.4%
-15.9%
-4.3%
+7.6%
-9.6%
+13.4%
-1.5%
-18.6%
SUPPLY – Production declining
Source: ITRI 9
#2 in Africa for FDI - stable political environment
Average GDP growth of 5.1% (2001 – 2010)
Export focused - FTA with US and special “EU Neighbour” status
Investment incentives for export industries
Simplified tax code and clear legal regime
Morocco has long mining history
Mining is largest GDP earner
WHY Morocco ?
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Major Shareholders
IFC (World Bank) 15.8 %
African Lion 15.1 %
Other Institutional > 8.5 %
Mgmt. & Directors 3.1 %
Shareholders Who Need Tin
Transamine (trader) 3.3 %
Traxys (trader) 3.3 %
Thaisarco (smelter) 2.0 %
Capital Structure
Shares on Issue 396 M
Options on Issue 23.4 M
Market Cap (@17cps) 67 M
ASX : KAS
KASBAH – Corporate Snapshot
Cash @ Dec 31
$19.1M
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Mike Spratt Non - executive
Chairman
Rod Marston Non - executive
Director
Trevor O’Connor CFO & Company
Secretary
Wayne Bramwell Managing Director
Mike Kitney Chief Operating
Officer
Rob Weinberg Non - executive
Director
Ian McCubbing Non - executive
Director
Gary Davison Non - executive
Director
KASBAH – Board & Management
Pierre Chaponniere Resource Dev.
Manager 13
Bou El Jaj Tin Project
Kasbah Exploration
Base
El Hammam Fluorite Mine
Achmmach Tin Project
A virgin tin field
8 km
15
16
Sidi Addi Trend
(untested)
Meknes Trend
2013 Resource 15.3 Mt @ 0.85% Sn
for 130,900 t
ACHMMACH – 2 km long tin oxide ore bodies
0
20
40
60
80
100
120
140
160
180
200
KASCSD
SRZVMS
KASMLX
Minsur
54 58 71 81
131 151
181
Tin Resource/ Reserve (kt)
(HR) (HR)
(HR) (HR)
(HR) (HR)
(HR)
KAS 2011
KAS 2013
17 HR = hard rock
* Source - Company Presentations and ASX releases
ACHMMACH – Contained tin peer comparison
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Q3, 2013 - 20m in-fill targets Indicated to Measured
- 40m extensional targets Inferred & Indicated
Mineral Resource Estimate (undiluted) Achmmach Tin Project
March 2013 (0.5% Sn cut off)
Category Million Tonnes
% Sn
Contained Sn (Kt)
Measured 0.5 1.20 6.0
Indicated 14.2 0.85 120.7
Inferred 0.6 0.70 4.2
Total 15.3 0.85 130.9
ACHMMACH – Resource Confidence Growing
0
2
4
6
8
10
12
14
16
2007 2008 2010 2012 2013
Million (t)
Measured
Indicated
Inferred
Mineral Resource Category
ACHMMACH – Resource Category shifts up
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ACHMMACH 2012 Economics – PFS used 6.6 yr mining inventory
PFS Economics
PFS 6.6 yr
Mining Inventory & 90-Day LME
Average(1)
29/5/12
$21,961
6.6 yr
Mining Inventory &
LME Spot 1/3/13 (2)
$23,150
NPV10, US$M 79 106
IRR, % 23.8 28.1
Operating Margin
US$/tonne ore treated 29.2 32.6
Cash surplus, US$M 194 235
Target 10 yr
Mining Inventory &
LME Spot 1/3/13 (2)
$23,150 / t
188
32.6
40.0
438
1) LME 3 month sellers to 29th May 2012 2) The Indicative economics above are illustrative only and are calculated using the same inputs of the 2012 PFS Model with only the tin price and/or mine inventory inputs changed.
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INDICATIVE ECONOMICS – Mine life & Sn Price Impact on NPV
Sn @
$26,000 / t
Sn @
$27,000 / t
Sn @
$28,000 / t
273 303 333
41.5 44.5 47.5
54.6 59.7 64.8
588 640 693
Parameter 10 year mine life basis
NPV10, US$M
IRR, %
Operating Margin
US$/tonne ore treated
Cash surplus, US$M
Target 10 yr
Mining Inventory & LME spot
1/3/13
$23,150 / t
188
32.6
40.0
438
* The Indicative economics above are illustrative only and are calculated using the same inputs of the 2012 PFS Model with only the tin price and mine inventory inputs changed.
21
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ACHMMACH – DFS Underway
DFS base case
1Mtpa UG mine
Decline access and LHOS mining method
Conventional gravity and flotation plant
6,000 – 7,000 tpa tin in concentrate
All concentrate for export
Development partner – Toyota Tsusho
Q4 2013 completion
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ACHMMACH 2013 – E-W Long section (≈1.6km )
3 rigs on 20m spaced sections
1 rig on 40m spaced in-fill & extensional sections
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Project Task 2013 2014 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Drilling
EIA Approved
DFS Complete
Project Financing
Project Approved
Construction
Production
ACHMMACH – Project Schedule
25
DEVELOPMENT PARTNER – Toyota Tsusho
TTC can earn 20% interest in Achmmach by making 4 staged payments
3 payments ($16M) received to date
Last payment due 90 days > completion of DFS
Potential project finance from Japanese ECA’s and banks
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Toyota Tsusho Corporation (TTC) trades 8% of the global tin market
EXPLORATION UPSIDE – 3 targets
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EZS
• Shallow target (< 100m) within Achmmach Eastern Zone
• Drilling commenced February 2013 – results pending
SAT
• Parallel 2km system at Achmmach – untested outcrop and at depth
• Drilling to commence Q3 2013?
BLJ
• 8km from Achmmach, high grade tin outcrop evident
• First pass shallow drilling completed December 2012 – results pending
Eastern Zone Shallows (EZS)
Bou El Jaj Tin Project (BLJ)
Sidi Addi Trend (SAT)
KASBAH – The Value Proposition
Achmmach continues to be de-risked
High quality SnO2 resource is growing
Toyota Tsusho Corp (TTC) as development partner
Potential project financiers being evaluated
Off-takers positioned
Next resource upgrade Q3 2013
Exploration upside @ EZS, SAT and BLJ
DFS advancing - completion Q4 2013
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