Canyon Resources (ASX:CAY) - Fast-Tracking World's Largest High-Grade Bauxite Development

Interview with Peter Secker, CEO of Canyon Resources

Recording date: 5th September 2025

Canyon Resources (ASX:CAY) is positioning itself as a major force in the global bauxite market through the rapid development of the Minim Martap project in Cameroon. The company owns what CEO Peter Secker describes as "the largest highest grade undeveloped bauxite deposit in the world," containing 1.1 billion tons of reserves grading 51% alumina with less than 2% silica.

The deposit's exceptional quality commands significant pricing premiums over industry standards. Guinea bauxite typically grades 40-45% alumina with 3-4% silica, giving Canyon a substantial metallurgical advantage. "Compared to the Guinea bauxite price which is currently around $75 per ton, we would be getting if we were selling today $85 or more dollars per ton," Secker explained, highlighting the 10-12% premium the superior ore commands.

Canyon's fast-track development timeline represents a departure from typical mining project schedules. Production is scheduled for Q1 2026 with first shipments by mid-2026, leveraging existing rail infrastructure and a World Bank commitment of $816 million for rail upgrades. The company has secured strategic positions throughout the logistics chain, including a 9% stake in rail operator Camrail and plans to operate its own locomotive fleet.

The project's capital structure reflects this streamlined approach, with phase one development requiring less than $100 million. Canyon has secured a $140 million debt facility, eliminating near-term funding risks. The mining operation capitalizes on unique geological characteristics, essentially removing the top 20 meters from a series of plateaus with an exceptionally low stripping ratio of 0.3 tons of waste per ton of ore.

At current market conditions, the operation would generate margins exceeding $30 per ton, with production scaling from 2 million tons initially to 10 million tons annually as infrastructure upgrades complete. This scalability positions Canyon to capture growing aluminum demand driven by electric vehicle adoption and aerospace applications in a supply-constrained global market.

View Canyon Resources' company profile: https://www.cruxinvestor.com/companies/canyon-resources

Sign up for Crux Investor: https://cruxinvestor.com