Canyon Resources (CAY) Update / Briefing Transcript

Canyon Resources Limited Investor Webinar Summary Company Overview - Company: Canyon Resources Limited - Project: Minim Martap Bauxite Project - Location: Cameroon - CEO: Peter Secca, appointed July 1, 2023 Key Points and Arguments Project Development - The Minim Martap Bauxite Project has over 1.1 billion tons of resource with a grade of over 51% bauxite and less than 2% silica, positioning it as a world-class project [5][6] - The project is set to commence mining operations in Q1 2026, with the first shipment of bauxite expected in Q2 2026 [6][9] - The feasibility study indicates a net present value (NPV) of over $830 million and an internal rate of return (IRR) of 29% [6][14] Financials - The capital expenditure (CapEx) required is less than $100 million, with a debt facility already secured for $140 million [7][11] - The average life of mine cost is projected to be just under $35 per ton [14][24] - The company anticipates selling bauxite at approximately $85 per ton, factoring in a premium over Guinea bauxite prices [8][23] Infrastructure and Logistics - The project benefits from an 800-kilometer rail line connecting to the port of Douala, which is crucial for logistics [4][6] - The company has secured access to the port and is upgrading stockpile capacity to over 150 million tons [22] - Orders have been placed for locomotives and wagons from China to facilitate transportation [21][12] Market Dynamics - The bauxite market has seen significant growth, with prices previously exceeding $100 per ton due to unrest in Guinea [7][8] - The company is in discussions with six off-takers across Asia, the Middle East, and North America, aiming to secure long-term contracts [31] Future Projections - Initial production is planned at 1 to 2 million tons per year, with potential to scale up to 10 million tons and possibly 14 to 15 million tons in the future [10][19] - The project has a 20-year mine life, but there is potential for significant extensions based on resource conversion rates [33] Community and Environmental Considerations - The project does not require community relocations, and the workforce will primarily be sourced from local communities [20][19] - The company plans to rehabilitate mining areas as operations progress [18] Regulatory and Government Support - The Cameroonian government has been supportive, facilitating permits and licensing, which is crucial for the project's success [39] Additional Important Information - The company has a joint venture with the Cameroonian government, holding 90% of the project [26] - The feasibility study for an alumina plant is also underway, expected to be completed by the end of 2026 [14][26] - The company has a current market cap of just over $470 million AUD and $51 million AUD in the bank [25][26] This summary encapsulates the critical aspects of Canyon Resources Limited's investor webinar, highlighting the project's potential, financial outlook, and strategic plans moving forward.