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Blencowe Resources #BRES – Exercise of Share Options

Blencowe Resources Plc (LSE: BRES) announces that Executive Chairman Cameron Pearce has exercised share options in the Company.
The share options were issued on 16 December 2021, with a 6p exercise price and a term of five years to maturity. Cameron Pearce was issued 1,500,000 options respectively and is exercising 1,000,000 at 6p, resulting in proceeds of approximately £60,000 for the Company.
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Director |
Share Options Granted |
Exercise Cost at 6p |
Current Holdings |
Holdings on Admission* |
% Holdings on Admission |
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Cameron Pearce |
1,000,000 |
£60,000 |
16,516,667 |
17,516,667 |
3.40 |
Admission and Total Voting Rights
An application has been made for 1,000,000 new ordinary shares to be admitted to trading on the Equity Shares (Transition) category of the official list and the main market of the London Stock Exchange from 8.00 a.m. on 10 September 2026 (“Admission”).
In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the Company confirms that following Admission, the Company’s enlarged issued ordinary share capital will comprise 501,276,099 ordinary shares. The Company does not hold any ordinary shares in Treasury. Therefore, following Admission, the above figure may be used by shareholders in the Company as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA’s Disclosure Guidance and Transparency Rules.
Cavendish – Blencowe Resources #BRES Hypersonic rocket test further broadens hi-value pathway

Blencowe Resources reported further successful testing of graphite from its 100%-owned Orom-Cross project in Uganda, with material successfully incorporated into multiple critical components of a Pluto Aerospace hypersonic rocket, including an advanced ablative nozzle insert, performance-enhancing anti-friction and ice-phobic coatings applied to the fins, and a lithium-ion battery (LiB) powering its altimeter.
In the 18 August test, attended by US government agencies, the rocket achieved a speed of Mach 5.5 and acceleration approaching 150G, representing a substantial improvement on the previous test programme undertaken in April. Each rocket component containing Orom-Cross graphite successfully performed its intended function.
In our view, this result provides further evidence that Orom-Cross is one of the few graphite projects capable of supplying products of the quality required for demanding specialist, high value applications.
Price target 47.9p, implying 488% upside from current levels
Stockbox podcast with Alan Green, Mark Fairbairn and Dan Flynn covering #BRES, #DGQ, #VVV & #BUX
Stockbox podcast with Alan Green, Mark Fairbairn and Dan Flynn covers:
- Blencowe Resources #BRES
- Delta Gold Technologies #DGQ
- VVV Sports #VVV
- Buxton Resources #BUX
#BRES – Cavendish Note Blencowe Resources Lead-acid batteries: high-value pathway for USPG ‘waste’
Yesterday, Blencowe Resources provided further encouraging test results, demonstrating strong performance by graphite from its 100%-owned Orom-Cross project in Uganda in advanced lead-acid battery technologies, opening additional high-value sales channels spanning military, grid energy storage and other specialist applications.
In our view, this latest work supports Blencowe’s objective of achieving 100% utilisation of Orom-Cross concentrate and further demonstrates its strategy to differentiate the project through both product quality and end-market diversity. Together with the previously announced anti-radar coatings programme, this provides further evidence that Orom-Cross could command greater value through sales into higher-value specialist western markets.
Target Price 47.9p. Upside 495%
https://www.research-tree.com/companies/uk/industrial-metals-nonferrous/blencowe-resources-plc/research/cavendish/blencowe-resources-lead-acid-batteries-high-value-pathway-for-uspg-waste-/129_8dfc9f6b-aa87-4441-bdc1-4f4c462683ce/b361f66d-6310-4c74-b786-c1a96bed7ba9
#BRES Blencowe Resources PLC – Further Battery Testing Success for Orom-Cross Graphite
Blencowe Resources Plc (LSE: BRES), the natural resources company advancing the Orom-Cross graphite project in Uganda, is pleased to announce further test results using Orom-Cross graphite, demonstrating superior performance across multiple battery technologies. This follows the recent announcement of successful testing in advanced anti-radar coatings and other defence-related platforms which all open additional high value sales channels.
Two leading US graphite specialists, Apollo Energy Systems Inc. (“Apollo”) and American Energy Technologies (“AETC”), together with Blencowe, are also progressing a laboratory demonstration prototype designed to meet 4HN high-performance military battery specifications required by the US Defence Logistics Agency (“DLA”). Subject to successful completion of the prototype programme the parties plan to establish a US pilot production line to demonstrate future commercial prospects, targeting 100 lead-acid cells per month.
These latest results further demonstrate the versatility of Orom-Cross graphite across military, grid energy storage, data centre and other advanced battery applications.
They also provide a higher-value market for the waste product, being spheroidisation rejects generated through Blencowe’s planned uncoated spheronised purified graphite (“USPG”) beneficiation process in Uganda, supporting the Company’s strategy to maximise the value and utilisation of Orom-Cross graphite.
Highlights
· Apollo, AETC and Blencowe progressing a 4HN high-performance military battery prototype to US DLA specifications
· Subject to successful prototype development, the parties plan to establish a US pilot production line targeting 100 cells per month
· Opens additional potentially high-value markets across military, grid energy storage, data centres and other specialist applications
· Waste product produced within USPG beneficiation process using Orom-Cross graphite will be used as a performance enhancing additive within advanced lead-acid batteries manufactured by Apollo.
· Creates a substantially higher value sales pathway for approximately 30% of end product from the planned beneficiation facility, being the waste delivered from USPG production
· Supports Blencowe’s strategy to achieve maximum utilisation of Orom-Cross concentrates processed through its planned beneficiation facility
· Independent test work by leading graphite specialists continues to demonstrate Orom-Cross’s combination of high purity, superior conductivity and multi-market adaptability, which are all qualities sought by energy storage and defence-related agencies worldwide
These results follow testwork undertaken with Apollo and AETC on enhancing the performance of advanced lead-acid battery cells required for applications including grid energy storage, data centres and off-grid power. Testing has shown that Orom-Cross graphite can enhance key battery performance characteristics, with the detailed technical results set out in the Appendix to this announcement.
Military Battery Programme
Apollo’s batteries have multiple potential uses within military applications. Apollo, AETC and Blencowe are currently fabricating and testing a laboratory demonstration prototype to meet 4HN high-performance military specifications required by the DLA.
On successful completion of the prototype project, AETC, Apollo and Blencowe plan to set up a pilot line to produce 100 cells per month.
Apollo and AETC have also completed a Qualification Project for Blencowe, through which spheroidisation rejects from Orom-Cross graphite transformed into high surface area expanded delaminated (“HSAED”) graphite product processed by AETC have been successfully tested as a performance enhancing additive to the negative active material in valve regulated advanced lead-acid batteries.
Apollo/AETC have established that HSAED Orom-Cross graphite enhances the high-rate partial state of charge performance of advanced valve regulated lead-acid batteries in new applications including start-stop and grid energy storage. Over the past six months the partners have been constructing a demonstration prototype battery which exceeds military specifications for the 4HN battery, with plans to begin pilot scale production in the USA.
Blencowe is extremely encouraged by the results of the program and the potential for higher value niche offtakes for the spheroidisation rejects generated at its proposed beneficiation facility in Uganda. Developing higher value markets for this material would support the Company’s objective of achieving maximum utilisation of the Orom-Cross concentrates processed through the facility.
Market for Advanced Lead-Acid Batteries
AETC’s production flowsheet for the manufacture of graphite for lithium-ion battery anodes generates an ultra-high purity by-product stream suitable for supply chains of lead-acid, alkaline, hearing aid, reserve (thermal) lithium primary batteries, supercapacitors and fuel cells.
Advanced lead-acid technologies continue to serve critical applications across grid storage, telecommunications, military systems and data centres, providing an additional addressable market for Orom-Cross products.
• Lead-acid batteries consume very significant amounts of graphitic carbon
• An average lead acid battery can be assumed to have approximately 1,500 Wh capacity
• The global lead acid battery market generated approximately 450 GWh of energy in 2021, equivalent to approximately 300 million batteries. An average battery contains around 0.5 kg of expander, including approximately 0.25 kg of graphite and carbon. On this basis, the global lead-acid battery market represented approximately 75,000 tonnes per annum of graphite and carbon demand in 2021.
• Since the mid-2000’s, advanced forms of natural and expanded delaminated graphite have increasingly been incorporated into advanced lead-acid battery systems.
Executive Chairman Cameron Pearce commented:
“This latest test programme with AETC and Apollo Energy opens another significant potential market opportunity for Orom-Cross graphite within the large lead-acid battery sector, demonstrating enhanced performance, higher capacity, greater charge acceptance and longer battery life.
This sets Orom-Cross apart and it means our graphite can add real value in a market that already consumes tens of thousands of tonnes of graphite each year and operates outside the Chinese supply chain.
These findings build on earlier work by American Energy Technologies under the SAFELOOP programme, where Orom-Cross achieved 99.99 wt%C purity and recorded the highest performance score ever seen by AETC for a natural graphite project. Together, they reinforce Orom-Cross as a globally competitive, next-generation graphite source suited to multiple battery technologies.
As we move the project towards first production, we will keep adding further options to our broader marketing strategy, particularly in higher value western markets. These results also continue to validate the quality of our product and demonstrate how Orom-Cross can successfully differentiate from peers in what it sells and to whom.”
APPENDIX TO ANNOUNCEMENT
Positive Effects of High Surface Area Graphite
· High surface area graphite serves as a capacitive buffer to absorb current at higher rates, which increases as the graphite surface area increases. This improves the dynamic charge acceptance and charge efficiency under high-rate charging conditions such as in “stop-start” duty and micro-HEVs.
· Graphite extends the area of the electrode microstructure giving additional surface for lead to be deposited on charging, thereby improving cycling performance.
· Graphite obstructs the growth of lead sulphate crystals by maintaining channels to allow irrigation throughout the electrode thereby extending cycle life, also to prevent stratification of flooded-type cells.
· Graphite forms a conductive network to reduce polarization.
· Forms a smaller and more uniform mass transfer network promoting uniform progress of the electrochemical reaction.
· When a large number of conventional lead-acid cells are connected in series – such as in full hybrid and battery EVs – the divergence in state-of-charge resulting from normal driving is virtually eliminated when graphite is incorporated, thereby eliminating the need for an equalization charge
These independent studies by leading graphite technical experts continue to demonstrate Orom-Cross’s rare combination of high purity, superior conductivity, and multi-market adaptability, which are all qualities sought by energy storage and defence-related agencies worldwide.
Summary
· 3-Plate Negative Limiting Cells fabricated and tested: C/25 Capacity established as approximately 25Ah.
· Preliminary Cycling Results show that for the Negative Active Material (NAM), the Blencowe Non-Spherical Fines (spheroidisation rejects) additive has a higher specific capacity compared to Control and the (non-graphite added) HE-1511.
· High-Rate Full Charge (HRFC) Test 100-90% SOC @ 1C rate Blencowe similar to Control; both lower voltage drop than HE-1511
· High-Rate Partial State of Charge (HRPSoC) Test 60-50% SOC @ 1C Rate Blencowe superior to Control; both have a much lower voltage drop than Control.
· 100A Discharge (4C) Blencowe Lowest Voltage Drop.
· Typical Capacity Sequence for large number of Shallow Cycles.
Conclusion
During the testing, the Negative Active Material (NAM) – Blencowe Non-Spherical Graphite Fines performance was comparable and superior to the Control Samples and both were superior to the cells without the Graphite addition to the NAM.
Both Graphite Samples enhanced the HRFC, HRPSoC and High-Rate Discharge characteristics (better recovery and lower voltage drop).
This work demonstrates that the Blencowe Non-Spherical Graphite Fines (Spheriodization rejects) are suitable for addition to the Negative Active Material of Apollo Valve Regulated Lead-Acid Batteries for energy storage and Start-Stop Vehicular Applications where batteries are subject to large charge and discharge pulses.
Combined, these independent studies by leading graphite technical experts continue to demonstrate Orom-Cross has a rare combination of high purity, superior conductivity, and multi-market adaptability, which are all qualities sought by energy storage and defence-related agencies worldwide.
Test Results Summary
Comparison – Blencowe vs Control vs HE-1511
The chart below illustrates the clear and consistent performance advantage of Orom-Cross graphite over the control material across the discharge cycles, confirming stronger energy retention and reduced performance degradation over time.




For further information please contact:
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Blencowe Resources Plc |
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Sam Quinn (Director) |
Tel: +44 (0)1624 681 250
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Sasha Sethi (Investor Relations) |
Tel: +44 (0) 7891 677 441 |
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Tavira Financial (Joint Broker):
Jonathan Evans |
Tel: +44 (0)20 3192 1733 |
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Oak Securities (Joint Broker):
Mungo Sheehan / Jerry Keen |
Tel: +44 (0)20 3973 3678 |
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Cavendish (Joint Broker):
Neil McDonald / Peter Lynch / Hanna Leijonmarck |
Tel: +44 (0) 20 7908 6000 |
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Cavendish note – Blencowe Resources #BRES Anti-radar coatings = high-value defence offtake potential

Blencowe Resources’ development and testing partner American Energy Technologies is testing the material in advanced antiradar/electromagnetic interference (EMI) shielding applications for Unmanned Aerial Vehicles (UAVs) and other defence-related platforms.
Blencowe is engaged with three European manufacturers of advanced aerial platforms, with one potential offtake relationship at an advanced commercial stage, subject to ongoing flight testing and final documentation. Indicative market pricing for the specialist ultra-fine M635 97% TGC material approaches US$20,000/t FOB manufacturing plant.
Separately, discussions around a strategic ally significant ‘Tier 1’ offtake agreement are well advanced, with final technical and commercial inputs being completed . We reiterate our SOTP based target price of 47.9p (representing 561% upside) and Buy recommendation.
Link here to view the full note
#BRES Blencowe Resources PLC – High-Value Defence Applications for Orom-Cross
Blencowe Resources Plc (LSE: BRES) is pleased to report an update on the progress of the ongoing application component testing utilising Orom-Cross graphite concentrates produced from its 100%-owned Orom-Cross Graphite Project in Uganda.
In July, Iain Wearing, the Company’s COO, visited development and testing partner American Energy Technologies (“AETC”) in Chicago for an update on several important programmes currently underway using Orom-Cross graphite products.
The latest work further demonstrates the potential for Orom-Cross graphite products to access specialist, high-value markets beyond conventional concentrate sales. This supports Blencowe’s strategy to continually optimise its product and sales mix towards higher-value applications as the Project advances towards production.
Highlights
· Orom-Cross graphite products being tested in advanced anti-radar / electromagnetic interference (“EMI”) shielding applications for Unmanned Aerial Vehicles (“UAV”) and other defence-related platforms
· Blencowe currently engaged with three manufacturers of advanced aerial platforms in Europe
· One potential offtake relationship now at an advanced commercial stage, subject to completion of ongoing flight testing and finalisation of documentation
· Specialist ultra-fine M635 97% Total Graphitic Carbon (“TGC”) material used in this application has indicative market pricing approaching US$20,000/tonne FOB manufacturing plant
· Latest UAV and anti-radar coating programmes build on previous successful aerospace and rocket propulsion testing, demonstrating continued progression from technical validation towards commercial end-use adoption
· Orom-Cross material currently being used in high-fidelity demonstration projects in real application environments
· Further evidence of Blencowe’s strategy to continually upgrade its sales mix towards higher-value graphite products and specialist Western markets
· Existing non-binding offtake coverage already exceeds planned P1 production of 20,000tpa, while the Company continues to build the broader sales book required for P2 production
· P1 funding discussions continue to advance in parallel, with the Company focused on securing the optimal project-level funding structure
Blencowe Resources is working with its development partners and several manufacturers of UAV technology platforms in Europe to develop formulations for EMI shielding coatings on top of advanced mobile aerial platforms. This anti-radar pigment is very topical for drone manufacturing as well as other defence applications.
In addition to its superb electrical conductivity, testing indicates that Orom-Cross graphite exhibits preferential naturally occurring characteristics of particular relevance to reducing the electromagnetic signature on objects to which this graphite is applied.
Experimental work has also demonstrated highly pronounced hydrophobic properties within natural crystalline flake graphite from Orom-Cross. These characteristics are beneficial for advanced aerial platforms applications where equipment may be exposed to fog, rain and other adverse atmospheric conditions.
Advanced Offtake Discussions
Blencowe Resources has engaged with three manufacturers of advanced aerial platforms, with one offtake relationship now at an advanced stage for application-ready dry powder pigment based on ultra-fine M635 97% TGC flake originating from Orom-Cross.
Commercial documentation is being progressed, with completion subject to final technical inputs and the outcome of ongoing flight testing.
Indicative market pricing for material used in this specialist application approaches US$20,000/tonne FOB manufacturing plant, demonstrating the potential value available from niche applications compared with conventional graphite concentrate sales.
Material from Orom-Cross is currently being used in high-fidelity demonstration projects in real application environments. The Company will update the market as this potential offtake progresses towards execution.
This opportunity represents the latest stage in a broader commercialisation pathway that has seen Orom-Cross graphite successfully tested across multiple aerospace, defence and advanced materials applications.
Offtake and Funding Strategy
Blencowe has already secured non-binding offtake coverage exceeding the planned 20,000tpa P1 Production volume and continues to optimise its sales portfolio as higher-value applications and counterparties emerge.
The Company’s strategy is to progressively replace lower-value sales opportunities with higher-value product pathways where appropriate, while simultaneously building the broader offtake book required to support the planned 70,000tpa P2 Production target.
In parallel, P1 funding discussions continue to advance. The Company remains focused on securing a project-level funding structure that supports development of Orom-Cross while minimising dilution at plc level and will update the market when there is substantive progress suitable for announcement.
Separately, as previously referenced, the Company continues to advance discussions around a potentially strategically significant tier one offtake. This process is now well advanced, with final technical and commercial inputs being completed. The Company will provide a further update if and when appropriate.
Photo: Blencowe COO, Iain Wearing holding sample of dry-powder pigment prior to shipment

Executive Chairman Cameron Pearce commented:
“This latest work further demonstrates the quality and versatility of Orom-Cross graphite products and the value that can be captured by moving beyond conventional concentrate sales into specialist, higher-value applications.
Blencowe has already more than covered the 20,000tpa P1 Production volume through existing non-binding offtake agreements. Our strategy now is to continually optimise that sales portfolio as higher-value opportunities emerge, while at the same time building the broader offtake book required to support P2 Production.
This particular defence application is a good example. Our Orom-Cross graphite is already being used in real-world testing environments, and the potential offtake relationship has progressed to an advanced commercial stage, subject to completion of the remaining technical work and documentation.
Funding remains the key gatekeeper to first production and we continue to advance P1 funding discussions in parallel. Our focus remains on securing the right project-level structure for Orom-Cross, rather than simply the quickest capital available.
Western customers are increasingly seeking high-quality graphite products from non-Chinese sources to reduce geopolitical and supply-chain risk. We believe Orom-Cross is exceptionally well positioned for this shift, and the emergence of specialist opportunities such as these further strengthens the commercial case for the Project.“
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Blencowe Resources Plc |
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Sam Quinn (Director) |
Tel: +44 (0)1624 681 250
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Sasha Sethi (Investor Relations) |
Tel: +44 (0) 7891 677 441 |
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Tavira Financial (Joint Broker):
Jonathan Evans |
Tel: +44 (0)20 3192 1733 |
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Oak Securities (Joint Broker):
Mungo Sheehan / Jerry Keen |
Tel: +44 (0)20 3973 3678 |
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Cavendish (Joint Broker):
Neil McDonald / Peter Lynch / Hanna Leijonmarck |
Tel: +44 (0) 20 7908 6000 |
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Cavendish – Graphite – Projects best positioned for value creation
Blencowe has adopted a partnership-based approach that provides exposure to multiple purification technologies
In our view, the strongest projects are those capable of serving multiple end markets. By selling higher value coarse flakes into industrial applications while upgrading lower-value fine flakes into BAM, they diversify revenue streams, reduce dependence on any single end market and maximise value capture across the full flake size distribution. They also reduce downstream capital requirements and improve capital efficiency, as only the lower-value fine fractions require further processing to achieve attractive margins. Blencowe and EcoGraf are examples of developers pursuing this dual-market strategy.
Some developers have sought to manage BAM-related risks through development strategies. Blencowe, for example, has outlined a five-phase development plan designed to reduce technical, commercial, market and financing risks.
Phase 1 (P1) is effectively a commercial-scale validation phase for the concentrator. During P1, downstream production is to occur via toll processing with technical partners. This should enable participation in higher value product markets without the immediate capital investment and execution risks associated with constructing downstream processing infrastructure, while also allowing customer qualification to begin before committing capital to an owned downstream plant.
Blencowe is ultimately targeting in-house production of USPG (uncoated spheronised graphite). This strategy captures a meaningful proportion of downstream value uplift while minimising risk by allowing customers to undertake coating and other final processing steps within their own supply chains or via toll processing. Coating and associated processing are the most capex-intensive downstream steps, while endusers often have exacting requirements and may have their own proprietary coating technologies.
Finally, the phased development strategy also reduces execution and market risk. P1 and P3 provide operational and commercial validation before construction of the first full-scale concentrator and downstream modules, respectively. Subsequent capacity additions are intended to be demand-led, reducing the risk of committing capital ahead of market demand.
Purification technology provides another point of differentiation. Conventional Chinese graphite purification typically relies on hydrofluoric acid (HF), which is highly effective but presents environmental and permitting challenges associated with handling hazardous chemicals and waste streams.
EcoGraf has developed proprietary HF-free purification technology (HFfree®) and intends to deploy multiple downstream facilities located close to end-users, with mid-stream (shaping) operations planned at Ifakara in Tanzania, near the Epanko mine.
Blencowe, meanwhile, has adopted a partnership-based approach that provides exposure to multiple purification technologies. Its agreement with AETC provides access to thermal purification, while Alkeemia’s proprietary HF-based process is designed to reduce the environmental footprint of conventional HF purification while retaining the technical advantages of the established process.
Blencowe Resources June 26 Buy at 7.8p. Price target 47.9p
Full Cavendish note here
#BRES Blencowe Resources PLC – Investor Presentation and CEO Interviews
Blencowe Resources Plc (LSE: BRES), the graphite development company focused on the Orom-Cross Graphite Project in Uganda, is pleased to provide shareholders with links to a number of recent investor communications, including an updated corporate presentation, a live investor Q&A hosted by SmallCapPix and a CEO interview with FocusIR.
The materials provide further detail on the Company’s recent operational progress, enlarged resource base, updated DFS economics, downstream beneficiation strategy, and the opportunity emerging for secure, scalable non-China graphite supply.
Updated Corporate Presentation
The Company’s updated corporate presentation covers recent project milestones, updated DFS economics and Blencowe’s strategy to move into higher-value downstream graphite products.
The presentation is available to view here:
https://blencoweresourcesplc.com/wp-content/uploads/2026/07/Blencowe-Presentation-July-2026.pdf
SmallCapPix X Spaces Interview and Investor Q&A
The recording covers the 168% JORC Resource increase, DFS re-optimisation, downstream beneficiation progress, offtake strategy and Phase 1 funding pathway.
The recording is available here:
https://youtu.be/9VIR_Ubs9xM?is=5ZdjCvQHAyGphmM3
FocusIR Interview
CEO Mike Ralston discusses global graphite market dynamics and the growing opportunity for new producers outside China to supply Western markets. The interview is available here:
https://media.focusir.com/blencoweresources
Commenting on the publication of these materials, CEO Mike Ralston said:
“There has been considerable progress across Blencowe in recent months, and we believe it is important that shareholders and prospective investors have easy access to the latest materials explaining where the Company is now positioned and where we are heading. The updated presentation, interviews and investor Q&A bring together the recent resource growth, DFS re-optimisation, downstream strategy and funding pathway for Orom-Cross.”
Blencowe encourages shareholders and prospective investors to view these materials for further insight into the Company’s strategy, recent progress and the rapidly evolving global graphite market.
Company Newsletter
Investors and stakeholders can register for the Company’s newsletter to receive future news, video updates and event invitations directly:
For further information please contact:
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Blencowe Resources Plc |
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Sam Quinn (Director) |
Tel: +44 (0)1624 681 250
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Sasha Sethi (Investor Relations) |
Tel: +44 (0) 7891 677 441 |
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Tavira Financial (Joint Broker):
Jonathan Evans |
Tel: +44 (0)20 3192 1733 |
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Oak Securities (Joint Broker):
Calvin Man / Mungo Sheehan / Jerry Keen |
Tel: +44 (0)20 3973 3678 |
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Cavendish (Joint Broker):
Neil McDonald / Peter Lynch / Hanna Leijonmarck |
Tel: +44 (0) 20 7908 6000 |
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Cavendish – Blencowe Resources #BRES Site for Gulu Downstream has strong infrastructure. Reiterates buy.

Blencowe Resources has secured (via option to purchase) a preferred site for the downstream processing operations associated with its 100%-owned Orom-Cross flake graphite project in Uganda. Located c35km north of Gulu, the 100-acre site provides direct access to low-cost hydro-linked grid power, a permanent water source and sufficient space to accommodate future expansions as Orom-Cross and downstream capacity ramp-up in tandem.
Orom-Cross combines a large, scalable resource base with favourable orebody characteristics and metallurgy, a flake size distribution skewed towards higher-value larger flakes, good infrastructure (eg low-cost hydropower) and strong ESG credentials. The project is positioned to benefit from an ongoing structural shift in global graphite markets. Western OEMs and governments are intensifying efforts to reduce reliance on China for critical minerals and we understand they are prepared to pay premium prices for reliable long-term supply of high quality ex-China graphite as a result.
In our view, Blencowe is well differentiated versus peers that remain heavily exposed to commoditised small-flake concentrate markets. We reiterate our SOTP-based target price of 47.9p (representing 539% upside) and Buy recommendation.
Full note here