Core Viewpoint - Canyon Resources Limited has made significant progress in the development of its Minim Martap Bauxite Project in Cameroon, having completed the first drawdown from a US$140 million Credit Facility, which will facilitate the procurement of essential infrastructure and rolling stock for the project [2][3][8]. Financial Update - The initial drawdown amounted to XAF 15 billion (approximately US$26 million) before fees, which will be utilized for purchasing rolling stock and advancing key infrastructure works [3][8]. - The Credit Facility was secured on favorable terms, reflecting confidence in the Minim Martap Project as a tier-one asset [8]. Project Development - Canyon has placed orders for locomotives from CRRC Ziyang Co. Ltd and wagons from Texmaco Rail & Engineering Limited, with first deliveries expected in Q1 2026, aligning with the scheduled first bauxite shipment in the first half of 2026 [4][5]. - The company is on track to complete an updated Definitive Feasibility Study (DFS) in August 2025, which is a critical milestone for the project [5][8]. Strategic Objectives - The company aims to establish itself as a key and reliable supplier of high-quality bauxite ore to the international market, with production expected to commence in early 2026 [5][6]. - The drawdown of funds marks a transition from planning to execution, indicating a pivotal moment for the project [6][8].

Company Overview - Metro Mining is a low-cost, high-grade Australian bauxite producer with double-digit mine life and extensive lease holdings, totaling 114.4 Mt of reserves and resources as of December 31, 2024[15, 17] - The company has successfully expanded to a 7 million wet metric tonnes (WMT) per annum capacity, driving margin growth[25] - Metro Mining aims to be the lowest global delivered cost supplier to China[35] Financial Performance & Production - Metro Mining achieved record production of 5.7 million WMT in 2024[27] - Site margins increased to $18 per WMT by Q4 2024, and the company repaid $39 million in junior debt[27] - Q2 2025 site EBITDA was $54 million, with a margin of $32 per WMT[27] - The company is on track for 6.5 to 7.0 million WMT for CY2025[27] Market Dynamics - China's bauxite imports in the first half of 2025 increased by 33% year-over-year[28] - Metro Mining's volume is under contract, with 80% negotiated quarterly, resulting in record pricing for Q2 2025, up 41% from Q4 2024[28] - Approximately 27% of Guinea's productive bauxite capacity has been affected by government license cancellations[34] Future Strategy - The company is prioritizing securing and investing to maximize value at Skardon River with organic growth[38] - Metro Mining is targeting Opex of less than US$30 per dry metric tonne (DMT) CIF China, 8 Mt/a production, increased mine life, zero net debt, and dividend payments, aiming for Q1 cash positive in 2026[39] - Exploration is planned for Q3 and Q4 2025 across multiple exploration permit for minerals (EPMs)[43]

Financial Data and Key Metrics Changes - The company reported record shipments for Q2, achieving a production rate of 7 million tonnes, which is up 19% year on year [4] - The net FOB unit revenue increased by approximately 41% to $72 per tonne, with significant margin improvements, reflecting a 500 basis point increase from the same quarter last year and an 83% increase over Q4 2024 [5][6] - Cash balance has improved, with a trade receivables balance of around $25 million as of June 30 [22][33] Business Line Data and Key Metrics Changes - The company faced operational challenges due to a tropical storm that restricted barging capacity, resulting in a loss of approximately 1,400 tonnes per barge [7] - Despite these challenges, the company is targeting a production of around 5 million tonnes in the second half of the year, aiming to recover from the previous quarter's tonnage loss [20] Market Data and Key Metrics Changes - The bauxite market is experiencing structural stability, with alumina pricing stabilizing around RMB 3,000 per tonne, allowing most customers to maintain profitability [12] - Record bauxite imports were noted, with over 100 million tonnes imported in the first half of the year, indicating strong demand despite some price volatility [14][15] Company Strategy and Development Direction - The company is focusing on expansion and exploration activities, including greenfield projects and pit extensions, to enhance its operational capacity [25][26] - The management is optimistic about cash generation potential and aims to achieve a net cash position on the balance sheet by the third quarter [49] Management Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in the bauxite market, particularly due to government actions in Guinea affecting production capacity [16][17] - The company expects to see a reduction in site costs as production rates increase, targeting mid-25s for site costs in Q3 [47] Other Important Information - The company has successfully paid all deferred royalties amounting to $9 million, marking a significant milestone [23] - A restructuring of the hedge book for foreign exchange has been completed, improving the company's position relative to current spot rates [24] Q&A Session Summary Question: Discussion on the drop in shipping costs - The drop in shipping costs is attributed to long-term contracts signed last year and reduced penalties due to improved contract specifications [30][31] Question: Confirmation of trade receivables balance - The trade receivables balance of approximately $25 million as of June 30 was confirmed [33] Question: State royalty payments structure - State royalties are based on FOB revenue and will continue for the life of the mine [34] Question: Solutions for silt buildup in the river - The company conducts regular bed leveling and is exploring options for dredging to address silt buildup, which impacts operations [35][41][43] Question: Grade expectations for Pit 5 - Pit 5 is expected to provide more flexibility in operations due to areas of low silica material, enhancing grade control [44] Question: Expectations for FX hedging - The company expects to be fully hedged for sales through the balance of calendar 2025 [46] Question: Anticipated reduction in site costs - A reduction in site costs is expected as production rates increase, with a target of mid-25s for Q3 [47]

Core Viewpoint - Canyon Resources Limited has commenced construction of the Inland Rail Facility (IRF) in Makor, Cameroon, which is essential for the export supply chain of the Minim Martap Bauxite Project, with first production anticipated for early 2026 [2][3][6] Group 1: Project Development - The groundbreaking ceremony for the IRF was attended by senior government officials and Canyon's Executive Chairman, highlighting the project's significance and the company's commitment to fast-tracking development [3][6] - Canyon has also started upgrading the ore haulage access road connecting the Minim Martap Project to the IRF, marking two key development milestones [4][5] - The company has secured rail access from Makor to the Port of Douala and 65,000 m² of land for bauxite storage and loading at the port, enabling efficient storage and transportation of up to 6 million tonnes per annum (Mtpa) of bauxite ore, with plans to expand to 10 Mtpa [4][5] Group 2: Future Outlook - Canyon's CEO emphasized that the execution of these infrastructure projects will coincide with other developments to support the project's supply chain, including engineering and design work for critical rail and port infrastructure [5][6] - The company remains on track for the start of production in early 2026 and the first shipment of bauxite in the first half of 2026 [6]

Core Viewpoint - Canyon Resources Limited has secured a medium-term syndicated credit facility of approximately US$140 million from AFG Bank Cameroon to fund the development of its Minim Martap Bauxite Project in Cameroon, alongside additional funding from its major shareholder, Eagle Eye Asset Holdings [1][2][7]. Group 1: Credit Facility Details - The credit facility amounts to XAF 82,000,000,000 (approximately US$140 million) and is structured as a syndicated medium-term loan [11]. - The interest rate for the facility is fixed at 8.00% per annum plus VAT, with a repayment term of 8 years from the first drawdown [11]. - The drawdown is anticipated to occur in Q3 2025, with conditions including the opening of project accounts and guarantees from Canyon Resources Limited [3][11]. Group 2: Project Development - The funds from the credit facility will be utilized for acquiring locomotives, wagons, and developing rail and port infrastructure for the Minim Martap Bauxite Project [2]. - Since obtaining the Mining License in September 2024, Canyon has made significant progress, including securing key land for port and rail facilities, and is now focused on making a Final Investment Decision [5][6]. - The company aims to commence its first shipment of bauxite from Minim Martap in the first half of 2026 [5]. Group 3: Stakeholder Support - Eagle Eye Asset Holdings intends to exercise 350 million options for AU$24.5 million to further support the funding of Stage One operations at Minim Martap [2][7]. - AFG Bank Cameroon is recognized as a strong partner for Canyon, demonstrating expertise in structured financing and commitment to providing tailored financial solutions [4][7].

Core Viewpoint - Canyon Resources Limited has received a notice from its major shareholder, Eagle Eye Asset Holdings, to exercise 350 million options for a total of $24.5 million, which will enhance the company's cash reserves and increase Eagle Eye's ownership stake to 54.7% [1][6][9] Group 1: Investment Details - Eagle Eye Asset Holdings will exercise 350 million unquoted options at an exercise price of $0.07 each, resulting in the issuance of 350 million fully paid ordinary shares [1][4] - The funds from the exercised options will be used to support the Definitive Feasibility Study (DFS) and other key development activities for the Minim Martap Bauxite Project, which is on track for completion in Q3 2025 [6][8] Group 2: Project Development - The exercise of options was contingent upon the granting of the Mining Licence for the Minim Martap Bauxite Project and the establishment of binding contracts for port access and rail transportation, which were fulfilled by April 28, 2025 [3][7] - The investment from Eagle Eye comes at a crucial time as Canyon advances its flagship Minim Martap Project towards production, with the goal of achieving the first bauxite shipment in 2026 [4][9] Group 3: Shareholder Support - Eagle Eye will retain 150 million unlisted options, each with an exercise price of $0.07, expiring on December 26, 2026, representing a potential further capital investment of $10.5 million [4][5] - The ongoing financial commitment from Eagle Eye reflects a strong relationship and long-term support for Canyon's growth and development initiatives [8][9]

Summary of Barclays Metals & Mining Conference Call Industry Overview - **Industry**: Metals & Mining, with a focus on the steel production sector in China and global commodity markets [1][7] Key Points and Arguments 1. **China's Steel Production**: - CISA estimates that nationwide steel production is up 5.4% year-to-date as of late April, contrasting with NBS's 1.1% increase to March [2] - Speculated output restrictions of 50 million tons of crude steel could lead to significant price increases due to low inventories, although rebar futures have fallen by 2.4% week-over-week [2] - Implementing a 50 million ton cut would require a 13.2% decline in average daily production for the remainder of the year, which may be challenging due to economic impacts on local economies [2] 2. **Commodity Price Movements**: - Iron ore prices have seen fluctuations, with a recent increase of 1% for 62% fines, currently at $98.2 per ton [14] - EU HRC prices remain stable at €652 per ton, with a 0% change week-over-week [15] - Copper prices increased by 1% to $9,473 per ton, reflecting a 10% rise over the past month [14] 3. **China's Economic Indicators**: - China's foreign exchange reserves increased by $41 billion month-over-month to approximately $3.3 trillion [9] - Total trade value in April reached 3.84 trillion yuan ($531.46 billion), up 5.6% year-over-year, with exports at 2.27 trillion yuan (+9.3% YoY) and imports at 1.57 trillion yuan (+0.8% YoY) [9] - The People's Bank of China (PBOC) announced a 0.5% cut in the reserve requirement ratio (RRR) for eligible financial institutions, expected to inject approximately 1 trillion yuan ($138.9 billion) into the market [9] 4. **Corporate Developments**: - De Beers is closing its lab-grown diamond business, reaffirming its commitment to traditional diamonds [8] - Guinea canceled a bauxite mining license held by EGA due to non-compliance with refinery construction requirements, impacting EGA's operations significantly [10] - KoBold Metals reached a preliminary agreement to acquire a stake in the Manono lithium deposit in the DRC, aiming to deploy over $1 billion for development [10] 5. **Market Sentiment**: - The market remains cautious with ongoing discussions about output restrictions in the steel sector and the impact of PBOC's monetary policy on market sentiment [12][13] - European steel plate prices have shown limited movement, with inquiries increasing but orders remaining low, indicating a cautious market environment [13] Additional Important Information - **Aluminium Market**: US aluminium inventories are expected to run dry by July, potentially leading to price increases due to tariffs [12] - **Copper Inventory Trends**: Copper inventories on the SHFE have declined by 60% month-over-month, indicating a tightening market [10] - **China's Real Estate Policy Changes**: Chinese officials are considering reforms to the housing market to stabilize prices, which may impact future demand [9] This summary encapsulates the key insights from the conference call, highlighting the current state of the metals and mining industry, particularly in relation to China's steel production and broader economic indicators.

Core Viewpoint - Canyon Resources Limited has secured port access approval for its Minim Martap Bauxite Project, marking a significant milestone in the project's development and facilitating efficient transportation of bauxite ore to market [1][7][8]. Group 1: Project Development - The approved storage area at the Port of Douala spans 65,000m² and enables the company to transport and store up to 6 million tonnes per annum (Mtpa) of bauxite ore, with plans to expand production to 10Mtpa [2]. - The port's existing infrastructure, including railway tracks and quay, will reduce the start-up capital expenditure (capex) for the Minim Martap Project, allowing for the first shipment by the first half of 2026 [2][4]. - The final investment decision (FID) for the Minim Martap Project is scheduled for Q2 2025, with the first bauxite shipment planned for the first half of 2026 [4][8]. Group 2: Financial and Strategic Implications - Securing port access is a prerequisite for Eagle Eye Asset Holdings Pte Ltd to exercise its 500 million options, priced at $0.07, which were approved by shareholders in November 2023 [6]. - The company has completed a strategic 9.1% investment in CAMRAIL S.A, enhancing rail access and further derisking the mine-to-port logistics [3][4]. - The Definitive Feasibility Study (DFS) is progressing as planned, with completion expected in Q3 2025, assessing a two-stage development approach to accelerate production [5]. Group 3: Infrastructure and Logistics - The port access approval allows for the commencement of detailed design for bauxite port loading infrastructure, with engineering design of the Inland Rail Facility approximately 50% completed [4]. - The established transport networks will play a critical role in the logistics of transporting bauxite ore from mine to port, supported by the Government of Cameroon and regional stakeholders [9]. - The first locomotive delivery is scheduled for Q1 2026, aligning with the project's timeline for initial shipments [4].