Market Awaits Reason for Kasbah Price Spike
Kasbah Resources’ 50% share price spike before a trading halt pending an announcement about the reason reversed a recent price weakening. This week’s rise impacts imperceptibly on the 90% fall shown in the second chart during an arduous multi-year journey to bring the company’s Achmmach Moroccan tin property into production. Wires about Kasbah over the past two years (VIEW LINK) have been prompted by its unrealised above average potential while many others at a similar stage of development were floundering and while Kasbah itself faced some of the industry’s stereotypical headwinds preventing development. Consequently, Kasbah has had to reshape its plans to define a project with lesser capital needs. My most recent wire about Kasbah highlighted it as one of 10 companies with ‘bottom of the cycle’ leverage potential based on previously weak price performance and the quality of its project (VIEW LINK). Hopefully, this week’s price action signals a long awaited change in the tempo of the industry with reduced development risk for nascent projects of sufficient quality, not just for Kasbah, even without the need for a meaningful cyclical improvement.
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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