Kasbah Resources Keeps Trying
Kasbah Resources illustrates many of the characteristics of the early stage mine developers during the current cycle as it confronts the classic ‘Phase I value trap’ - being passed the point it can generate positive exploration surprise but still short of being able to commit to development. Kasbah had seemed, in 2014, one of the most likely mine developers to make the transition. It is now embarking on the third variant of its Moroccan tin plans as it strives to keep its mining prospects alive. Like much of the sector, its share price appears to be forming a cyclical bottom. With that comes strong leverage to even minor improvements in market conditions. The result is barely evident in the longer term share price chart after a 95% decline but a slight improvement in market sentiment over the past month toward a still relatively well-positioned opportunity has produced a 50% share price revival. There are more comments on some lessons and the experience through the cycle of Kasbah Resources in my Mining Journal column: (VIEW LINK)
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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