Canaccord sets Canyon Resources stock with Spec. Buy rating

Published 12/05/2025, 09:24
Canaccord sets Canyon Resources stock with Spec. Buy rating

On Monday, Canaccord Genuity initiated coverage on Canyon Resources Limited (CAY:AU) with a Speculative Buy rating and set a price target of AUD0.35. The new coverage focuses on Canyon Resources as a bauxite development company primarily engaged with the Minim-Martap Project in Cameroon. Canaccord Genuity’s assessment positions the project as one of the largest undeveloped, high-grade bauxite deposits on a global scale.

Located approximately 800 kilometers from Douala, Cameroon’s commercial capital, the Minim-Martap Project is well-connected to the port by rail, which is a critical factor for its development. Canaccord Genuity predicts that Canyon Resources will transition from a developer to a bauxite producer by 2026, emphasizing the rapid pace of this transformation. The staged production approach is highlighted, with the main challenges being transportation and logistics to fully leverage the deposit’s potential.

The company is expected to release an updated study in the third quarter of 2025, which will provide further details on the development pathway for the Minim-Martap Project. Canaccord Genuity’s report suggests that the project offers a large-scale, high-margin opportunity within the seaborne bauxite market.

The Speculative Buy rating reflects Canaccord Genuity’s positive outlook on Canyon Resources’ prospects in becoming a significant player in the bauxite industry, backed by the Minim-Martap Project’s strong fundamentals and strategic position. The price target of AUD0.35 has been justified by the firm with a valuation multiple of 0.66 times the project’s Price to Net Asset Value (P/NAV).

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