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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
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 – Rocket Component Testing Programme
Blencowe Resources Plc (LSE: BRES) is pleased to announce that graphite concentrate from its Orom-Cross Graphite Project in Uganda has been used in a rocket component testing programme in the United States (California), with the initial test firing successfully completed and early observations indicating encouraging performance in high-temperature applications.
The Company provided Orom-Cross graphite concentrates to American Energy Technologies Company (“AETC”) who manufactured mouldings designed for use in rocket propulsion nozzles, including defence-related test applications. These nozzles were developed to evaluate the replacement of a percentage of the synthetic graphite typically used in such components and to assess the suitability of Orom-Cross material in high-temperature environments.
A recent test firing programme was attended by representatives from Pluto Aerospace, Purdue University and various US Government Agencies alongside Blencowe’s Chief Operating Officer Iain Wearing. The programme successfully completed the planned test runs, and data is now being analysed by the parties involved. Blencowe expects to provide further updates as additional milestones are reached.
The testing application was conducted with Pluto Aerospace on its hypersonic sub-orbital rocket platform in the initial programme. Further testing is planned and, subject to programme scheduling and technical outcomes, orbital testing is expected in the latter half of 2026.
In parallel, AETC has also been testing graphite-based coatings applied to rocket fin components to evaluate durability under hypersonic conditions and icephobic properties (surfaces designed to repel ice, prevent ice formation, or significantly reduce ice adhesion), with potential applicability across military and civilian aircraft environments. While the recorded data remains under analysis, initial observational performance has been encouraging, and the Company will update the market as results become available.
Strategic relevance and Next Steps
· Real-world validation: live firing provides an important proof point beyond laboratory testing
· Specialty market potential: propulsion nozzle and coating applications may represent another niche, high-value pathway for a portion of Orom-Cross production
· Military and space programme applications: the more value-enhancing strategic relationships Blencowe and AETC can build within US Government agencies, and associated technology providers, the more likely offtakes and/or funding from this direction
· Programme progression: further testing is planned/expected, subject to counterparties’ schedules, qualification requirements and programme timing
The Company notes that elements of these programmes involve both government and commercial stakeholders and are subject to strict confidentiality and third-party processes. Accordingly, Blencowe will provide updates as and when disclosure is permitted and appropriate in line with its regulatory obligations.
Executive Chairman Cameron Pearce commented:
“These latest tests are an encouraging validation step to highlight the importance of high-quality graphite in specialist defence, aerospace and energy applications. We thank AETC for their support in enabling real-world evaluation of Orom-Cross material.
Proof that Orom-Cross product stands up to the most rigorous testing validates both the quality of our products as well as the use of graphite within these applications.
Demonstrating performance in live rocket test conditions with various US Government agencies in attendance showcases Orom-Cross graphite at the highest levels. With further testing phases planned, including orbital testing expected in the latter half of 2026, we believe this supports higher-value offtake pathways beyond standard concentrate sales. These all help to continuously add more value to our overall Orom-Cross strategy and our commercial model.”
Image 1: Pluto Aerospace hypersonic sub-orbital test vehicle prior to firing (California, USA).
Image 2: Graphite-based coating trial on fin components (durability and icephobic testing).
Image 3 – Graphite coating on specialist military and aerospace products
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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#BRES Blencowe Resources PLC – High Value Synthetic Diamond Manufacture
Blencowe Resources Plc (LSE: BRES) is pleased to announce the results of additional test work confirming that graphite concentrates from the Orom-Cross Project are suitable for the manufacture of synthetic industrial diamonds, further validating the quality, versatility and downstream optionality of the Company’s graphite feedstock.
The test work was undertaken by American Energy Technology Co. (“AETC”) in Chicago and forms part of Blencowe’s value-addition programme focused on demonstrating commercially viable, non-China downstream applications for Orom-Cross graphite.
Crucially, the test work achieved a diamond conversion yield of 53.6wt%, exceeding the typical industry benchmark of approximately 50%. AETC notes that this threshold is widely regarded as critical in determining whether synthetic diamond production can be undertaken economically outside China, given the highly competitive cost structure of the industry. Conversion yields below this level typically necessitate lower-cost Chinese processing to remain viable.
Production of industrial diamonds provides Orom-Cross with another significant value-adding enhancement opportunity beyond sale of graphite as concentrates and Blencowe will be seeking offtake opportunities in this sector ahead as it continues to drive towards first production.
Synthetic Diamond Test Work – Highlights
· Successful synthesis of robust industrial diamonds from Orom-Cross graphite concentrate
· All diamonds produced were mono-crystalline, a higher-value structure than polycrystalline alternatives
· Average particle size of 50-60 microns, with oversized diamonds up to 350-500 microns
· Conversion yield of 53.6wt%, supporting cost-competitive production outside China
AETC further observed that many natural graphites, including several deposits across East Africa, are less suitable for synthetic diamond manufacture due to thicker, less compressible flake structures, which inhibit efficient diamond formation. In contrast, the fine, compressible flake characteristics of Orom-Cross graphite proved highly conducive to diamond synthesis, representing a distinctive quality signature of the deposit.
Strategic Context
Synthetic diamond manufacture is a specialised, high-value industrial market where feedstock quality and conversion efficiency directly influence cost competitiveness. These results confirm that Orom-Cross graphite meets the technical thresholds required to support economically viable diamond production outside China, opening additional downstream pathways alongside the Company’s core battery and energy transition strategy.
This optionality further differentiates Orom-Cross as a high-quality, non-China graphite source, aligned with increasing Western focus on secure supply chains, local processing and advanced manufacturing.
Importantly, the confirmation of multiple high-value end markets strengthens the overall Orom-Cross development case and supports Blencowe’s ongoing funding and offtake processes. In parallel, the Company continues to progress drilling and resource definition across the project, with remaining assay results from the Iyan and Beehive programmes expected to be reported progressively, building toward sequential JORC resource updates.
Cameron Pearce, Blencowe’s Executive Chairman commented:
“This work highlights a fundamental characteristic of Orom-Cross graphite: its quality extends beyond battery applications into demanding industrial uses where conversion efficiency and cost competitiveness are critical. Achieving mono-crystalline diamond formation at conversion yields above industry benchmarks reflects the compressibility and structural integrity of our graphite, which continues to differentiate the project.
As further drill results and technical validation are delivered, Orom-Cross continues to mature as a scalable, high-quality graphite development. This progress strengthens the underlying project fundamentals and is directly supporting funding and offtake discussions currently underway, as we advance toward the next resource update.”
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
|
|
Sasha Sethi (Investor Relations) |
Tel: +44 (0) 7891 677 441 |
|
Tavira Financial (Joint Broker)
Jonathan Evans |
Tel: +44 (0)20 3192 1733 |
|
Oak Securities (Joint Broker)
Calvin Man /Mungo Sheehan / Jerry Keen |
Tel: +44 (0)20 3973 3678 |
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