ord minnett research update (on sight)

Update 7 March after on sight visit.

Should be updated again because of Toyota deal. Calculated cost of capital (125M) will be much lower.

Kasbah Resources
Achmmach Site Visit
Ord Minnett (OML) has recently conducted a site visit to Kasbah Resources
Limited’s (Kasbah) Achmmach Tin Project in Morocco. The site visit was hosted by
Kasbah’s Managing Director Wayne Bramwell and entire senior management team
including the full exploration department.
Overall we were very impressed with the progress on site and with the Achmmach
project. Key points from the site visit include:

Based on recent drilling results we now expect the resource increase to
exceed our previous estimate of up to 10 million tonnes and have revised our
forecast to 10-11 million tonnes or an increase of between 40-60% over the
current JORC resource of 7 million tonnes at 0.8% tin.

In addition to the substantial increase in tonnage we now envisage that the
resource grade will also improve to 0.9% tin due to recent results announced.

Re-interpretation of the structures and controls on mineralisation has lead to
Kasbah identifying an additional trend of mineralisation, which is parallel to the
current resource.

We were highly encouraged by the exploration advancement and now
consider there to be significant potential for further mineralisation to be
delineated at Achmmach.

Furthermore, early stage exploration at the recently acquired Bou El Jaj tin
prospect has highlighted the regional exploration potential and we consider
Bou El Jaj to be a high priority exploration target for Kasbah in addition the
further exploration at Achmmach.
In summary we were surprised on the upside by the advancement of Achmmach
and the identification of additional exploration targets. We remain very positive
on the outlook for tin in general and Kasbah in particular. OML’s base case
valuation of Kasbah has been revised on the back of our increased expectations
for the impending resource increase due in March and the exploration potential
both locally and regionally at Achmmach. Our base case is $0.32 per share
(previously $0.30) with an upside valuation of $0.61 per share (previously $0.53).
We maintain our Buy recommendation for Kasbah with a revised 12-month price
target of $0.48 per share (previously $0.41).