CAY 3.03% 16.0¢ canyon resources limited

Strategic partners, JV partners and Off-take

  1. 1,973 Posts.
    lightbulb Created with Sketch. 465
    Now that Canyon has completed the PFS, they are actively in discussions with other major companies to accelerate the development timeline. This is no doubt a critical time for the project as it serves to be a major de-risking event.

    Canyon have managed to secure the services of Rick Smith as Chief Development Officer and he is leading the negotiations and his contacts throughout the world are extensive in the bauxite, alumina and aluminium industry. He has previously (and successfully) held a similar position as Project Director at the US$1.4 GAC bauxite mine in Guinea.

    Rick is now actively working at the same role at Canyon, and in my estimation will be successful again given that;
    • he has already done this once before in a neighboring country
    • selling a superior product (high grade low silica)
    • has established reputation and relationships with the all parties of the supply chain globally
    • lower capex hurdle (GAC - US$1.4 for 12mt annual production V CAY - US$120m for initial 5mt annual production)
    • a demonstrated pathway for refineries to diversify supply from an alternative jurisdiction to Guinea

    I have attached the following news article about the Winning International Group. They are a company already active in Guinea in the bauxite and shipping space and the article speaks of their experience in the SMB-Winning consortium. The article speaks for itself, but I thought it might serve as an example of how a project such as Canyon's Minim Martap project could develop as strategic partners come on board.

    Note, the third last paragraph which I think clearly marks the intent of Winning International Group, to pursue further opportunities in West Africa.

    Winning Group is also a party to Guinea’s US$14B Simandou iron ore project joint venture. Clearly an ambitious company. I would imagine that having such a prominent presence in West Africa, the people, infrastructure, shipping/barges (and also the balance sheet) that they would have a strong advantage in tendering to join Canyon.

    Looking forward to how these discussions with the majors develops.

    PS. I have no knowledge that Winning Group may or may not be a potential partner but I would be staggered if they were not included in discussions.
watchlist Created with Sketch. Add CAY (ASX) to my watchlist
(20min delay)
Mkt cap ! $91.36M
Open High Low Value Volume
17.0¢ 17.0¢ 16.0¢ $149.8K 923.6K

Buyers (Bids)

No. Vol. Price($)
3 208800 15.5¢

Sellers (Offers)

Price($) Vol. No.
16.0¢ 48603 2
View Market Depth
Last trade - 14.59pm 18/09/2020 (20 minute delay) ?
-0.005 ( 3.03 %)
Open High Low Volume
16.5¢ 16.5¢ 15.5¢ 392675
Last updated 15.45pm 18/09/2020 (live) ?
CAY (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.