KAS (ASX) My reason for voting &quot;No&quot;.

Originally posted by Crocfest ↑

What I do know I will copy from my original post about the change in the resource environment over the last 19 months since KAS released their updated DFS with a capex of $150m.

In the March 2015 quarterly report, the following was written:

As announced on March 18, an updated project financial model and supporting EDFS data was provided to potential project financiers. Optimum Capital, Atlas Tin’s debt advisor, has begun receiving indicative offers from a range of International banks and Development Finance Institutions. These offers will be reviewed and refined during May, 2015.

So back in 2015, Kasbah had appointed Optimum Capital to assist in finding project financiers. I wonder if Kasbah continued to use Optimum Capital as the Small Start Operation was being finalised.

On July 29 2016 Kasbah released the SSO DFS and their June quarterly report, both on the same day. In the quarterly report they stated:

Indicative term sheets have been received and pending due diligence, final commercial negotiations and Kasbah Board approval, Kasbah would seek to raise the remaining equity needed to support a Decision to Mine over the next 6-9 months.

That comment/paragraph seems to contradict the statements that no one is willing to provide finance to Kasbah and this is when the DFS hadn't been officially released. Now that tin price has increased another $3,000/tonnes I wonder what would have happened with potential financiers.

So while I haven't read all the scheme document, I have read quarterlies, ASX releases and annual reports and I come to the conclusion that this deal doesn't make sense.

I hope there are other shareholders who also question this and vote no.

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Yes and I note you state the indicative term sheets were pending due diligence" perhaps the question to ask is - with a DFS released then a trading halt and a restated DFS with a huge error in it - restating NPV downwards - with a massive decrease in Capex - perhaps the due diligence process saw financiers off - for me the AMR guys seem to have generated cash from the worst ever nickel market - and I will look into them now but I see that they know how to mine and looks like when Pala funded in they were mining very quickly - carry forward losses mean nothing in mining - exploration potential and an operating plant and a team that know how to construct and operate a mine - that will do me - the risk to go it alone with a no vote for me is far worse than giving it a go - I will call these AMR guys and chat to them - I want tin out of the ground - tin price could be 30k but if you don't dig dirt - it means nothing...........