How Canyon Resources Is Building a $830M Tier-One Bauxite Giant in Cameroon

World-Class Bauxite Asset Confirmed

Canyon Resources Limited has delivered a compelling update on its flagship Minim Martap Bauxite Project in Cameroon, following the release of a Definitive Feasibility Study (DFS) and an Ore Reserves upgrade. The DFS underscores the project’s status as a world-class, tier-one bauxite operation, boasting an impressive net present value (NPV) exceeding US$830 million and an internal rate of return (IRR) of 29%. This robust economic profile positions Minim Martap as a significant player in the global bauxite market.

The Ore Reserves have been upgraded by 33% to 144 million tonnes of Direct Shipping Ore (DSO), featuring a high alumina grade of 51.2% and low silica content of 1.7%. These quality metrics are expected to command a long-term price premium of up to US$11 per tonne over the Guinea Standard bauxite benchmark, reinforcing the project’s competitive advantage.

Construction and Infrastructure Progress

Following the DFS, Canyon has commenced construction on critical infrastructure, including the Inland Rail Facility (IRF) at Makor and upgrades to the ore haulage road connecting the mine to the port of Douala. These developments are essential to the efficient transport and export of bauxite, with the company securing rail access and land for storage and loading at the port. Orders for locomotives and wagons have been placed, with first deliveries expected in early 2026, aligning with the planned first shipment of bauxite in the second quarter of 2026.

The project’s initial capital expenditure is estimated at under US$100 million, reflecting a focused and phased development approach. Mining operations are scheduled to commence in early 2026, marking a significant milestone towards production.

Strong Financial Position and Strategic Funding

Canyon has strengthened its financial footing through a strategic funding package comprising a two-tranche equity raise totaling approximately A$205 million. The first tranche, completed post-quarter, raised A$35.6 million, while the second tranche, subject to shareholder and regulatory approvals, is expected to raise an additional A$170 million. Key investors include Eagle Eye Asset Holdings, maintaining a 56.5% stake, and Afriland Bourse & Investissement, poised to become a 10.1% shareholder.

Additionally, the company has drawn down approximately US$26 million from a US$140 million credit facility with AFG Bank Cameroon, earmarked for rolling stock and infrastructure procurement. As of September 30, 2025, Canyon held a cash balance of A$30.8 million, supported by undrawn debt facilities, providing ample liquidity to advance project development.

Corporate Developments and Outlook

Leadership changes include the appointment of Peter Secker as Chief Executive Officer from July 2025 and the addition of Adjou Ait Ben Idir as a Non-Executive Director, bringing valuable expertise to the board. The company is progressing towards key upcoming milestones, including mining permit approvals for the Makan and Ngaoundal tenements, offtake negotiations, and the commencement of mining operations.

With a 20-year mine life outlined in the DFS, representing just over 13% of the total mineral resource, Canyon is well positioned for future expansion. The company is also advancing a feasibility study for an alumina refinery, expected to complete by Q3 2026, which could add further value to the project.