Minim Martap Project Boasts $835M NPV and $215M Equity Raise

A World-Class Bauxite Asset Ready for Takeoff

Canyon Resources Limited is advancing rapidly towards production at its Minim Martap Bauxite Project in Cameroon, positioning itself as the next major ASX-listed bauxite producer. The project boasts a tier-one status, with an ore reserve of 144 million tonnes grading 51% alumina and a remarkably low silica content of 2%, placing it among the highest-grade deposits globally.

The recent Definitive Feasibility Study (DFS) underpins the project's robust economics, revealing a pre-tax net present value (NPV) exceeding US$830 million and an internal rate of return (IRR) of 29%. These metrics reflect a long-life, low-cost operation with an initial mine plan spanning 20 years and staged production ramping up to 10 million tonnes per annum.

Infrastructure and Financing – Foundations for Fast-Track Development

One of Minim Martap’s key advantages is its access to significant existing infrastructure, including an 800-kilometre rail line connecting the mine site to the port facilities at Douala. This infrastructure, coupled with a dedicated inland rail facility currently under construction, facilitates a streamlined logistics chain critical to meeting the targeted production start in early 2026.

Financially, the project is well supported. Canyon has secured a US$140 million debt facility from AFG Bank Cameroon and is conducting an equity raising to raise approximately A$215 million. This capital raise includes a two-tranche placement and an options exercise, with strategic investments from major shareholders Eagle Eye Assets (EEA) and Afriland Bourse & Investissement. Post-equity raise, EEA will maintain a 56.5% stake, while Afriland will emerge as a significant 10.1% shareholder, reinforcing strong institutional backing.

Operational Readiness and Market Outlook

Mining operations are scheduled to commence in the first quarter of 2026, with the first bauxite shipment expected in the first half of the year. The project’s low strip ratio and use of proven surface mining technology promise efficient extraction and cost-effective operations. Canyon’s ownership stake in Camrail, the rail operator, further de-risks the logistics chain.

Market fundamentals support the project’s outlook. Global bauxite demand is forecast to grow at a compound annual growth rate of approximately 3.5% over the next decade, driven by expanding alumina and aluminium production. Minim Martap’s high-alumina, low-silica ore is expected to command a premium price exceeding US$11 per tonne over the benchmark GBIX index, enhancing revenue potential.

Governance, ESG, and Regional Support

Canyon emphasizes strong environmental, social, and governance (ESG) principles, with a focus on biodiversity preservation, water stewardship, and community engagement. The company reports that 97% of its workforce comprises Cameroonians, and it is committed to local infrastructure development and transparent operations through its wholly-owned subsidiary, Camalco.

Cameroon’s supportive mining jurisdiction, bolstered by World Bank and African Development Bank infrastructure investments, provides a stable backdrop for project development. Canyon’s management team brings over 200 years of combined industry experience, including extensive African mining expertise, positioning the company well to navigate the complexities of project delivery.

Risks and Forward Outlook

Despite the promising outlook, investors should remain mindful of risks inherent in mining projects in emerging markets, including geopolitical uncertainties, regulatory approvals, and financing execution. The DFS assumptions, while robust, are subject to change with evolving market conditions and operational realities.

Looking ahead, Canyon’s forthcoming Annual General Meeting will be pivotal in securing shareholder approval for the conditional tranche of the equity raise and strategic investments. Successful execution of the development plan and infrastructure upgrades will be critical to realizing the project’s full potential and delivering value to shareholders.