Canyon Resources — Minim Martap remains on track

Canyon Resources (ASX: CAY)

Last close As at 10/12/2025

AUD0.18

0.00 (0.00%)

Market capitalisation

AUD372m

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Research: Metals & Mining

Canyon Resources — Minim Martap remains on track

Canyon Resources confirmed it remains on track to commission the Minim Martap bauxite project in line with previous expectations, as Cameroon returns to ‘business as usual’ following the presidential elections. It continues to aim for first production in early 2026 and first shipment around mid-2026. The company remains well capitalised, having completed a first tranche of the A$205m funding package, with the remainder expected to close in Q1 CY26. We maintain our project level valuation of A$735m, which adjusted for corporate overheads and pro forma net cash implies a value of A$0.35/share, before accounting for the project’s vast residual resource.

Written by

Andrew Keen

Managing director, head of content, energy and resources, industrials

Energy and resources

Project update

11 December 2025

Price AUD0.180
Market cap AUD371m

Net cash/(debt), pro forma at 24 November

AUD28.0m

Shares in issue

2,062.1m
Code CAY
Primary exchange ASX
Secondary exchange N/A
Price Performance
% 1m 3m 12m
Abs (2.7) (32.1) 5.9
52-week high/low AUD0.3 AUD0.2

Business description

Canyon Resources is a development and exploration company focused on expediting the development of the high-grade bauxite Minim Martap project in central Cameroon, through its in-country subsidiary Camalco.

Next events

Project commissioning

Q1 CY26

Analysts

Andrew Keen
+44 (0)20 3077 5700
Andrey Litvin
+44 (0)20 3077 5700

Canyon Resources is a research client of Edison Investment Research Limited

Note: PBT and EPS as reported by the company.

Year end Revenue (AUDm) EBITDA (AUDm) PBT (AUDm) EPS (AUc)
6/23 0.0 (4.5) (5.0) (0.54)
6/24 0.0 (10.1) (9.5) (0.80)
6/25 0.0 (11.6) (10.9) (0.72)
6/26e 0.0 (22.0) (30.6) (1.36)

Project update: Moving into production

In its latest update, Canyon noted that Minim Martap is on track for first bauxite production in February 2026 and first shipment in June 2026, in line with previous guidance and our modelling. More specifically, the inland rail facility (IRF) is due for completion by May and the road haulage of first ore from the mine to the IRF is scheduled for March, with first mining equipment arriving on site in January and mining commencing in February. Rolling stock is due to be delivered in Q1 CY26, while port access dredging will commence in January. The company is currently reviewing final tenders for transshipping. Importantly, rail access from the IRF to the port of Doula will be available from Q2 CY26, targeting initial capacity of 2Mpta and up to 10Mpta once the PQ2 rail upgrade is completed. The company is currently evaluating a further increase in capacity to up to 15Mpta.

Well funded to first production and beyond

Canyon ended Q126 with A$31m in cash (A$10m net debt) and has subsequently raised A$10m via an option exercise with its core shareholder EEA and another A$36m by completing the institutional tranche of the A$205m funding package, improving pro forma cash to c A$68m at 24 November. The second tranche consisting of the investments from Afriland (A$70m) and EEA (A$100m) is expected to close in Q1 CY26. While these funds and available debt will fund the project beyond initial production, Canyon is looking to increase its stake in Camrail from 9.1% to c 35%, which should afford it more influence over the crucial rail upgrade.

Valuation: Not reflecting the advanced stage

We retain our project level valuation of A$735m, or A$0.35/share when adjusted for corporate overheads and net cash, plus A$271m for residual resources. We will look to revisit our valuation shortly, once we get better visibility on actual costs and product pricing, and to account for the project’s advanced stage. With political uncertainty in Cameroon subsiding, the project being largely financially de-risked and the company taking further steps to de-risk the most sensitive rail leg of the project infrastructure, we believe Canyon shares remain significantly undervalued.

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