Canyon Resources Limited · ASX:CAY
Canyon Resources — Investor Presentation (February 2021)
28 slides from Canyon Resources's investor presentation, February 2021
Slide 1: Developing a Global Tier One Bauxite Asset
Developing a Global Tier One Bauxite Asset February 2021
Slide 2: Disclaimer
Disclaimer Competent Person’s Statement – Ore Reserves Ore Reserve estimate The information in this report that relates to Ore Reserves is based on information compiled or reviewed by Mr John Battista, The data in this announcement that relates to the Ore Reserve estimate estimates for the Minim Mar
Slide 3: Contents
Contents 1 Introduction to Canyon 4 2 History and Future 10 3 The Project 13 4 The Path to Mining 20 CAMEROON 5 The Team 26 www.canyonresources.com.au I Page: 3
Slide 4: Introduction to Canyon Resources
Introduction to Canyon Resources Overview 4
Slide 5: Executive Summary
Executive Summary Minim Martap is recognised as a world class high grade bauxite project Project located in Cameroon, West Africa Total JORC compliant resource base of 1.0 billion tonnes at 45.2% Al2O3 with considerable upside potential Contains a high-grade resource of: 484 Mt at 48.8% Al
Slide 6: Corporate Overview
Corporate Overview Market Capitalisation and Enterprise Value Share price / volume history (A$; millions) 0.20 6.0 Market Details Units Value 0.18 5.0 Shares outstanding m 623.9 Last close (15 Feb 2021) A$/share 0.12 0.15 4.0 Volume (m) Price (A$) Market Capitalisation A$m 74.9 0.13 3.0 Cash (31 Dec
Slide 7: Why Canyon’s Minim Martap Project?
Why Canyon’s Minim Martap Project? Tier 1, globally One of the largest undeveloped, high grade direct shipping bauxite deposits held outside of the existing major significant, high 1 industry players grade bauxite JORC Resource of 1 Billion tonnes at 45.2% Al2O3 with low silica (~2%) deposit Sup
Slide 8: Minim Martap – Product Typicals
Minim Martap – Product Typicals Minim Martap bauxite offers a superior balance of critical characteristics compared with other seaborne bauxite sources. With high alumina content appearing mainly as gibbsite (>90%), and very low reactive silica. Minim Martap Product Specification Minim Martap vs oth
Slide 9: Industry Thematics
Industry Thematics Growing import demand from Major growth driver remains decline in both quality and quantity of domestic China 1 China, the largest importer of bauxite supply bauxite in the world Environmental restrictions on mining also impacting domestic China bauxite supply High grade bau
Slide 10: History and Future
History and Future Review of milestones met and upcoming 10
Slide 11: Canyon has progressed the project rapidly
Canyon has progressed the project rapidly Significant milestones have been met in a short time Maiden JORC Rail Resource Minim Martap Resource Scoping Study Maiden 20yr upgrades Port of Douala increased to project granted upgrade complete PFS Complete Ore Reserve announced MoU signed +1Bt Camrail Mo
Slide 12: Catalytic milestones are in the pipeline
Catalytic milestones are in the pipeline The project will deliver significant milestones: catalysts for the company Complete Q2 2021 Q3 2021 Q3 2021 Q3 2021 Q4 2021 Q2 2021 Q2 2021 Grade Mining Q2 2021 Q3 2021 Definition Updated Ore Mining Permit Secure Mining Secure Secure rail and Financing Conven
Slide 13: The Project
The Project Defined by a PFS, supported by reserves and underpinned by high grade resources 13
Slide 14: Resource is large, high grade and open
Resource is large, high grade and open High grade resource Favorable geology Significant resource upside Gibbsite dominant Al(OH)3 or Al2O3.3H2O Mature laterite 12 Gibbsite dominant Plateaux in Resource +1B 484 Minimal Boehmite or Diaspore Plateaux hosted 2 518 Plateaux newly drilled tonne
Slide 15: PFS has delivered the Maiden Ore Reserve
PFS has delivered the Maiden Ore Reserve Pre-Feasibility Study Production Avg-Yr Discount NPV (USD Valuation IRR Production rate Mt 4.9 rate 000) Project return - pre tax 10.00% 374,600 40% Capital Total Project return - post tax 10.00% 290,700 37% Total USD 000 119,600 Tax and Royalty Duration Rate
Slide 16: Product has been quantified
Product has been quantified PREMIUM BAUXITE Product Profile 60 Total Al2O3 Available Al2O3 @ 90% conversion 50 40 Percent 30 Total SiO2 (x10) Product Grade 20 Fe203 10 0 1 11 21 31 41 51 61 71 Quarter Offtake Technical Commercial • Bulk sampling • Offtakers testing samples • Mineralogy definition •
Slide 17: Canyon DSO is better than most peers
Canyon DSO is better than most peers Infrastructure overcrowding has led to Guinea government enforcing a policy of 3rd party Quality comparison puts Canyon’s product infrastructure sharing at the top of the grade spectrum Total Alumina PREMIUM BAUXITE 42% 44% 46% 48% 50% 52% 54% 56% 0% Total Silica
Slide 18: Product is favorable to LT refining
Product is favorable to LT refining PREMIUM BAUXITE Camalco Premium Bauxite is ideally suited to the Low-Temperature Bayer process refineries the most prolific and lowest cost Transport Crushing Digestion Clarification Precipitation Calcination Aluminium Fuel Electricity Heat Caustic Heat . STEP 1 S
Slide 19: Quality drives product price
Quality drives product price PREMIUM BAUXITE Camalco Premium Bauxite: Less transport fuel, less heat, less caustic and less red mud Fuel Heat Caustic Red mud shipping uses Gibbsitic bauxite 100 Less temperature Process plant inputs outputs ½ Sodium Hydroxide cost drivers t Less per trip relative to
Slide 20: The Path To Mining
The Path To Mining Canyon Resources is preparing to mine 20
Slide 21: Canyon is preparing to mine
Canyon is preparing to mine The transition to mining permits is underway with the BFS and partners in support Exploration Mining Convention Mining Permit Development 2021 Permit To be agreed with the Government of Pre-requisites: and operations • Draft Mining Convention Cameroon. Conditions: • DFS/B
Slide 22: BFS is defining a simple supply chain
BFS is defining a simple supply chain Mine and Site Existing Existing Existing Infrastructure Road Inland Rail Facility Rail Rolling stock Port Transhipping 1:0.4 strip ratio Upgrade road Stockpile Existing track 10 trains Reach-stacker 4 barges unloading 5 Mtpa DSO Extension to Box filling Minor up
Slide 23: Canyon has integrated ESG from the start
Canyon has integrated ESG from the start Environmental, Social and Governance Economic: Integrating appropriate management and metrics so that ESG risks are • +20 permanent treated with the same relative importance as economic concerns. employees • AUD 12.8M spent on the UNDERWAY Expert partners pro
Slide 24: Cameroon is ready for a mining industry
Cameroon is ready for a mining industry A country with the fundamentals for mining As a future JV partner and with resource industrialisation a national imperative the government continues to support Canyon. Relative abundance of natural resources. Besides oil and gas, minerals that are found in the
Slide 25: Existing infrastructure supports the value chain
Existing infrastructure supports the value chain PREMIUM BAUXITE Existing, enabling Stage 1 - Minimum-viable DSO bauxite project for fast start-up and proof of concept infrastructure Stage 2 - Expansion upside through Kribi deepwater port Scoping PFS BFS Funding Execution Operations Ports: Douala Ra
Slide 26: The Team
The Team Meet Canyon Resources 26
Slide 27: Canyon’s organisation is capable
Canyon’s organisation is capable Board Cliff Lawrenson Chairman Senior Executive Technical Services & Business Administration Phillip Gallagher David Netherway Managing Director Non-Executive Director Nick Allan Steve Zaninovich Chief Financial Officer Non-Executive Director Dimitri Bacopanos James
Slide 28: Thank you
Thank you Phillip Gallagher info@canyonresouces.com.au Address Canyon Resources Limited Level 9, 863 Hay Street Perth WA 6000 Postal Address PO Box 7606 Cloisters Square, Perth WA, 6850 Registered Address Canyon Resources Limited Level 9, 863 Hay Street Perth WA 6000 Phone +61 8 6382 3342 Fax +61 8
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