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#BRES Blencowe Resources PLC – Orom Cross Graphite DFS NPV10 up 15% to US$1.254bn
Blencowe Resources Plc (LSE: BRES) is pleased to announce an update to the commercial model underpinning the Definitive Feasibility Study (“DFS”) for the Orom-Cross graphite project in Uganda, reflecting a number of developments since the initial DFS was published in December 2025.
The updated model incorporates revised assumptions and inputs since the initial DFS, including new high value offtakers, updated pricing, costings and timings, expanded reserves incorporated into the mine plan, and increased confidence in product mix and saleability based on ongoing testwork and commercial engagement. Importantly, these improvements have been achieved without any increase in capital spend to deliver the project.
The revised commercial model increases Net Present Value10 (“NPV10“) by 15%, from US$1.087 billion to US$1.254 billion over the initial 15-year life of mine (“LOM”). While IRR has moderated versus the initial model due to updated inputs (specifically timing of capital spend), the revised DFS model continues to demonstrate robust economics with increased free cash generation.
Highlights
· NPV10: +15% to US$1.254 billion (initial 15-year LOM); IRR10: 51%.
· Net Free Cash: +120% to US$4.466 billion over LOM with increased volumes and prices for high grade purified graphite products from beneficiation facility, reflecting global demand.
· Average Annual EBITDA: +45% to US$333 million p.a.
· Capex: unchanged for both phases (P1 US$45m; P2 US$125m). Competitive internationally given infrastructure proximity.
· Commercial progress: several new offtake agreements, including high value niche sales, now reflected within revised DFS model.
· Market shift: western markets actively seeking purified products ex-China supports higher volume sales expected in highest value products.
· Expandables included: additional downstream processing pathway for expandable graphite and associated sales incorporated.
· Tenders submitted: applications submitted into several sizeable graphite tenders; outcomes expected to become clearer in Q3 2026.
· Strategy: downstream beneficiation / higher-value upgraded products remains core (including USPG and expandables).
Commercial Model and Scaling
Orom-Cross is expected to scale-up production in line with expected increased demand from offtakers for both concentrates and purified products. The Company’s view is that the project is less constrained by what it can produce than by what it can contract and sell into higher-value pathways, particularly as all upgraded products are now qualified and commercial terms for these are more evident.
Blencowe believes demand for natural flake graphite and upgraded products will continue to grow, specifically from Western markets seeking non-Chinese supply, while supply growth may remain constrained, thus supporting the opportunity for new entrants with scalable, high-quality product pathways and beneficiation.
Following successful bulk sample testing in 2025, the Company has continued engagement across multiple markets and sectors. Several new offtake agreements have been signed (including higher-value niche sales) and these are now reflected in the revised DFS model. Growth in net cash flow and NPV is largely the result of increased volumes of purified products sold as well as higher pricing for these as expected from Western markets. The Company expects to provide updates as further milestones are reached and disclosure is permitted.
The revised model reflects improved reserve confidence from the Stage 7 programme and incorporates the updated mine plan assumptions, providing greater assurance around production volumes and scalable operations over time.
Capital Framework and Phasing
Importantly, the revised DFS model reflects updated operating inputs (including fuel and equipment assumptions) without any increase in anticipated capital spend required to deliver the project:
· Phase 1 Production (P1): US$45 million (project equity-led pathway; faster start-up)
· Phase 2 Production (P2): US$125 million (scale-up and in-country downstream capability; predominantly debt-led)
This phasing supports a staged approach to de-risk execution while maintaining the long-term vision to deliver upgraded products in-country.
Blencowe notes the capital requirements are in the lowest percentile internationally and are highly competitive by industry standards, particularly as they cover both the Orom-Cross mining and processing operation and the beneficiation facility near Gulu.
Downstream Pathway and Non-China Demand
The Company’s long-term strategy to deliver upgraded purified products remains core, including uncoated spheronised purified graphite (“USPG”) and expandables. Where appropriate, the Company expects to utilise third-party processing partners to upgrade in the interim while progressing in-country capability.
Demand for non-Chinese graphite products (particularly purified products) continues to build as Western markets seek supply chain resilience. The Company believes Orom-Cross’ expanding inventory, product options and developing commercial pathway significantly strengthen the project’s strategic relevance.
Uganda Value-Add and In-Country Beneficiation
Blencowe’s long-term strategy is to maximise in-country value-add in Uganda through the production of upgraded graphite products, including USPG and expandables, supported by beneficiation capacity near Gulu. This approach aligns with Uganda’s broader objectives around local processing and value addition, skills transfer and industrial development, while strengthening Orom-Cross’ positioning within resilient, non-China supply chains.
Infrastructure and On-Site Progress
· Upgrade and sealing works have commenced on the road from Kitgum to Orom-Cross, managed and paid for by the UK Government, improving logistics to Mombasa port. This project is expected to be completed ahead of ramp up of Orom-Cross (P2 Production) and thus supports higher volumes moved from site.
· A first permanent camp was completed at Orom-Cross in 1Q 2026 to house contractors during mine construction, which will commence following funding.
Next Steps
The Company will continue to pursue value enhancement across Orom-Cross as further test work is delivered, tenders are completed, and as strategic relationships progress.
· Tenders:
The Company has submitted applications into several sizeable, strategic graphite tenders and expects greater clarity on outcomes in the next quarter (Q3 2026). Successful outcomes will underpin expected volume growth for both concentrate and upgraded product streams.
· SAFELOOP:
Significant progress has been made within the EU’s SAFELOOP initiative (developing a Gen3 lithium-ion battery for deployment in standardised EV buses across the European continent) but no sales for this initiative have been included in any DFS modelling to date.
· Price and product mix: continued improvements from higher-value niche sales and upgraded products.
Additional upside under evaluation but not yet modelled include industrial diamonds, further micronisation, speciality defence/energy applications, ultra-high purity (99.99% TGC) products, tenders underway and Project SAFELOOP (all subject to commercial terms).
As the project advances, the Company is focused on ensuring Orom-Cross is understood by a broader pool of sophisticated capital, supported by improved research coverage and institutional engagement. This will become a central part of Blencowe’s corporate strategy over forthcoming months as the Company seeks to bring more institutional shareholders onto the register.
Funding Strategy and Near-Term Priorities
The combination of low upfront capex, staged development, and downstream exposure positions Orom-Cross within a limited subset of graphite projects capable of meeting both return-thresholds and strategic supply chain requirements to attract the required capital.
Blencowe continues to progress two complementary funding pathways alongside ongoing commercial and development activity:
1. Phase 1 Production (P1) – US$45m (project-level focus):
· Primary focus is securing P1 equity funding, with a preference for project-level funding to minimise dilution at the plc level.
· The Company notes that several interested P1 investment partners have signed NDAs and are conducting due diligence in the data room as part of their internal financial decision-making processes.
· P1 is designed to establish an operating and sales track record and support downstream qualification from site, and to deliver pricing visibility which is critical to debt funding.
2. Phase 2 Production (P2) – US$125m (predominantly debt):
· P2 funds ramp-up mining to scale as well as in-country downstream processing capability near to Orom-Cross and is expected to be funded predominantly via debt.
· Expressions of interest and diligence pathways for debt providers are underway as they typically take longer than equity-led funding.
· DFI-style routes, including DFC, continue to be considered as potential debt funding pathways for P2 (not considered within P1 equity).
Several interested P1 funding parties have signed NDAs and are conducting due diligence in the data room. The Company is progressing all parties as efficiently as possible and will provide updates when there is substantive progress suitable for announcement.
Updated Production Pathway (as reflected in the model)
The updated DFS incorporates a refined staged plan:
· P1: delivers up to 20,000tpa of 97% TGC concentrate at Orom-Cross plus up to 3,000tpa spheronised graphite from in-country beneficiation at a proposed facility near to Gulu.
· P2: delivers up to 70,000tpa of 97% TGC concentrate plus up to 10,000tpa USPG and expandables from in-country beneficiation.
The Company notes that all subsequent phases of growth beyond P2 Production are driven by demand and contracted sales, with Orom-Cross not constrained by potential production so much as by sell-through of higher-value product streams.
Blencowe CEO Mike Ralston discusses the updated DFS with Vox in the interview below:
www.voxmarkets.com/articles/interview-with-blencowe-resources-0de98ba
Executive Chairman Cameron Pearce commented:
“This DFS model update reflects tangible progress across Orom-Cross. NPV10 increases to US$1.254 billion and net free cash rises to US$4.466 billion, while capital spend remains unchanged across both Phase 1 and Phase 2. While IRR has moderated versus the prior model due to updated inputs, the economics remain highly robust and the uplift in NPV and cash generation is the key outcome for project funding and delivery.
Just as importantly, the revised model now reflects additional commercial inputs, including new offtake agreements and the inclusion of expandables. We have also submitted into several sizeable graphite tenders and expect greater clarity on outcomes for these in the next quarter.
Funding remains the key gatekeeper. We continue to progress Phase 1 equity discussions, alongside longer-dated Phase 2 debt pathways, and we will update the market as and when appropriate.
Additionally, as Orom-Cross advances, we are also focused on ensuring the enlarged investment case is understood by a broader pool of sophisticated capital, supported by improved research coverage and institutional engagement.”
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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#SVML Sovereign Metals LTD – March 2026 Quarterly Report
Sovereign Metals Limited (ASX:SVM, AIM:SVML, OTCQX:SVMLF) (Sovereign or the Company) is pleased to provide its quarterly report for the period ended 31 March 2026 including advances made at its Kasiya Rutile-Graphite Project (Kasiya or the Project) in Malawi.
HIGHLIGHTS DURING AND SUBSEQUENT TO THE QUARTER
Kasiya Definitive Feasibility Study Delivers Outstanding Results
• Pre-tax NPV8 of US$2.2 billion on capital expenditure to first production of US$727 million – an NPV to capex ratio of 3.0x
• Steady state annual EBITDA of US$476 million and pre-tax, unlevered free cash flow of US$452 million; total revenue of US$16.2 billion initial 25-year mine life with potential for multi-generational mine life extensions
• Operating cost of just US$450/t product (FOB Nacala) – underpinning strong margin resilience across commodity cycles
• Positioned to become the world’s largest producer of both natural rutile (222ktpa) and natural flake graphite (275ktpa) – two commodities designated as Critical Minerals by the United States and the European Union
• DFS completed under the oversight of the Sovereign-Rio Tinto Technical Committee, with workstreams aligned with IFC Performance Standards; World Bank/IFC Collaboration Agreement in place as potential co-lead mandated lead arranger for project financing
• Data obtained from Pilot Mining Program, completed with technical input from Rio Tinto, provided real-world inputs and validation across key DFS workstreams
• Heavy rare earth potential not included in DFS – evaluation of monazite by-product from rutile tailings stream now underway
Mineral Resource Estimate Significantly Upgraded
• Total Rutile Mineral Resource increased to 2.1 billion tonnes at 0.96% rutile for 20.3Mt contained rutile, with 0.95% TGC for 20.0Mt contained graphite (Measured, Indicated & Inferred)
• Measured and Indicated contained rutile surged 32% to 16.1Mt (1.65 billion tonnes at 0.98% rutile) – a material increase in resource confidence
• First-ever Measured Resource declared – the highest confidence JORC Code category – covering at least the first six years of planned operations
• Resource upgrade delivered the classification standard required for a bankable DFS and a critical milestone on the path to project financing
Offtake Momentum: Mitsui (Rutile) and Traxys (Graphite) MOUs Signed
• Non-binding MOU signed with Mitsui for up to 70,000 tonnes per annum of Kasiya natural rutile concentrate (TiO2 >95%) over an initial four-year supply period from first production, with potential five-year extension – equates to over 50% of Phase 1 rutile production
• Japan is the world’s second-largest producer of titanium sponge after China and supplied over 70% of US titanium sponge imports in H1 2025, underscoring the strategic importance of securing reliable natural rutile feedstock
• Non-binding MOU signed with Traxys North America LLC – one of only three trading houses selected to procure critical minerals for the U.S. Government’s US$12 billion Project Vault strategic reserve – for approximately 40,000 tonnes per annum of Kasiya graphite in Phase 1, increasing to up to 80,000 tonnes per annum as the Project expands
• Traxys MOU contemplates an initial focus on the high-value refractory market, with potential to include flake graphite to serve battery anode supply chains
Strategic Heavy Rare Earths Recovered at Kasiya
• Monazite concentrate containing exceptionally elevated levels of heavy rare earth elements recovered from the rutile tailings stream at Sovereign’s Lilongwe laboratory
• Preliminary analysis confirmed significant valuable heavy rare earth content with an average DyTb ratio of 2.9% and 11.9% Yttrium, and valuable light rare earth content, including 21.8% NdPr ratio – heavy rare earth ratio approximately 7x higher for both DyTb and Yttrium than the five largest global rare earth producing mines, suggesting potential for Kasiya to produce a very high value rare earth product
• Monazite recovered from material that would otherwise be discarded – potential third revenue stream at near-zero incremental cost, with no parallel rare-earth processing circuit required
• DyTb and Yttrium are all subject to Chinese export controls introduced in April 2025 and further tightened against Japan in January 2026 – the elements underpin permanent magnets for defence systems, aerospace thermal barrier coatings, radar and laser systems
Next Steps
Over the quarter ending June 2026 and beyond, Sovereign will:
• Advance post-DFS workstreams, including finalisation of the Environmental and Social Impact Assessment
• Advance offtake discussions and progress towards binding definitive agreements with Mitsui, Traxys and other strategic counterparties
• Undertake further work to characterise the monazite mineralisation at Kasiya, including detailed mineralogical characterisation, assessment of heavy rare earth concentrate recovery rates through the proposed Kasiya flowsheet, and evaluation of potential scale and economics of rare earth production as a by-product
• Continue the Company’s community and social development programs in Malawi
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Enquiries |
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Frank Eagar, Managing Director & CEO South Africa / Malawi +27 21 140 3190 |
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Sapan Ghai, CCO London +44 207 478 3900 |
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Broker |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Link here to view the full announcement
#BRES Blencowe Resources PLC – DFS Results Confirms Outstanding Economics
Blencowe Resources Plc (LSE: BRES) is pleased to announce results of the recently completed Definitive Feasibility Study (“DFS”) for its 100%-owned Orom-Cross graphite project in Uganda. The DFS assesses an initial 15 year Life of Mine (“LOM”); with only ~2% of the deposit drilled, the Company expects significant Life of Mine extensions as further drilling converts additional resources to reserves.
The DFS has been managed and signed off by Independent consultants, CPC Engineering (“CPC”), one of the world’s leading graphite technical experts responsible for feasibility work on tier-one developments such as ASX listed Syrah Resources’ Balama project and ASX listed Black Rock Mining’s Mahenge project.
The DFS showcases Orom-Cross as a Tier-1 graphite project, delivering strong margins from a low capital base, and incorporating a downstream beneficiation facility to produce uncoated spheronised purified graphite product (“USPG”) in-country.
Completion of this independent DFS marks the single most important technical milestone in the Company’s history and formally transitions Orom-Cross into the financing and development phase.
DFS Highlights:
· Net Present Value (NPV10): US$1.087 Billion
· Internal Rate of Return (IRR10): 96%
· All in Sustaining Costs (AISC): US$485/t over LOM (lowest quartile globally)
· Free Cash Flow: US$2.034 Billion over initial 15 years LOM
· Average Annual EBITDA: US$230 million per annum over LOM
· Phase 1 Production (“P1”): Smaller scale, fast-track operation targeting first production in 1H-2027 (20,000 tpa concentrate with micronised products)
· Downstream Value-Add: In-country beneficiation facility to produce purified graphite.
· Phase 2 Production (“P2”): Expansion to 70,000 tpa concentrate and 20,000 tpa USPG nearby.
· Scalability: Long-term pathway to 175,000 tpa concentrates and 80,000 tpa purified products.
· Offtake: Non-binding offtake agreements already in place for all planned P1 Production.
· Lowest Quartile Total Capital Requirement of US$160 million comprising:
o US$40 million for P1, delivering up to 20,000 tpa concentrate
o US$120 million for P2, lifting up to 70,000 tpa concentrate and up to 20,000 tpa USPG
o Significant contingency included within these capital estimates.
· All further expansions post-P2 to be funded entirely from internal cash flow
Project Strategy
Orom-Cross will commence with P1 Production, a smaller-scale, fast-track development delivering up to 20,000tpa of 96% TGC concentrates by 1H-2027. P1 is designed to be profitable from first production, materially reducing financial risk. Offtake agreements covering all planned P1 volumes are already in place.
With the DFS now complete, the immediate next step is securing the P1 project financing package, which becomes the Company’s primary corporate focus. This funding package will initiate ordering, construction and commissioning. Once P1 production begins and product quality is demonstrated at scale the Company expects additional offtake interest, particularly given the scarcity of new high-quality graphite projects coming online.
Within two years of P1 commissioning, Blencowe intends to implement P2 Production, expanding mine output up to 70,000tpa of concentrate. A downstream beneficiation facility will be built near to Orom-Cross to upgrade small flake concentrate to 99.95% TGC USPG, initially producing up to 20,000tpa. This facility will expand in sync with mine scale-up and will serve as a long-term captive offtaker for Orom-Cross concentrates over life of mine. This will position Orom-Cross among the few commercial-scale producers of 99.95% USPG outside of China, and the first in Africa.
Beyond P2 Production, Orom-Cross is expected to expand in stages toward 175,000tpa concentrate and 80,000tpa USPG, funded entirely by internally generated cash flow and marking a pathway to becoming an industry leading producer of both concentrates and high-value purified graphite, aligning with accelerating global demand for ex-China graphite supply.
Sales and Marketing
· Blencowe continues to use leading global graphite sales and marketing specialists, expanding commercial networks and progressing additional offtake opportunities.
· In 2025, 700 tonnes of Orom-Cross raw material was processed and bulk sample end products were delivered to graphite end users worldwide for extensive test work and evaluation.
· Non-binding offtakes covering all P1 volumes will convert to binding agreements on P1 financing.
· SAFELOOP (EU Gen3 battery initiative) volumes remains outside the DFS as the programme remains under development; however, a substantial additional Tier-1 offtake opportunity will likely emerge from 2028 onwards once SAFELOOP commercialises.
· Continued interest from battery, industrial and specialty-materials sectors reinforces the strategic importance of reliable, high-quality ex-China graphite supply.
Orom-Cross will continue to scale in line with contracted market demand, ensuring disciplined and commercially led expansion. Ongoing engagement with a broad global end-user network remains central to the expansion strategy.
Next Steps: Pathway to P1 Funding and First Production
Completion of the DFS provides Blencowe with a fully defined, independently verified and finance-ready project, marking the transition into the execution phase of development.
Together with its corporate advisor WaterBorne Capital, the Company is advancing a financing solution for P1 Production with active engagement underway with:
· Development finance institutions (DFIs)
· Strategic industry partners
· Institutional investors
· Government and quasi-government funding bodies
Several promising structures are under evaluation. Blencowe’s target is to secure P1 financing by end-1Q 2026, enabling ordering, shipping and construction through 2026, and first production targeted for 1H 2027.
Importantly, the Company expects P1 financing to be primarily funded through non-Blencowe plc equity structures. The combination of strong DFS economics, low capex, secured offtake and integrated downstream value-add support a balanced funding package designed to minimise plc equity dilution.
P2 financing is expected to adopt a more traditional debt-plus-strategic-partner approach. With the DFS complete, formal engagement will now begin with groups that have shown interest, including the US Development Finance Corporation (DFC), the African Finance Corporation (AFC), and other Tier-1 institutions. P2 financing will run in parallel with P1 execution, supporting a rapid scale-up to commercial production.
All expansions beyond P2 are expected to be funded entirely from internally generated cash flow. Blencowe believes that demand for all its products will rise substantially over the next few years, especially once Orom-Cross is in production, and the Company needs to prepare for scaled growth.
SPG Beneficiation Facility
The downstream graphite beneficiation facility will be constructed near Gulu, approximately 150 kms from Orom-Cross and adjacent to existing hydropower infrastructure. The facility will:
· Process Orom-Cross concentrate into battery-ready 99.95% TGC USPG.
· Utilise low-cost, renewable hydroelectricity available through Ugandan national grid.
· Produce both high-value USPG and saleable by-products.
· Expand modularity in line with mine output.
· Function as a long-term captive offtaker for up to 50% of Orom-Cross concentrate (small flake concentrate).
This integrated upstream-downstream model positions Blencowe as one of the very few ex-China suppliers capable of providing high-specification purified graphite to global battery and industrial markets.
Key Performance Indicators
The following represents the KPIs for Orom-Cross initial operations as envisaged within the DFS:
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KPI |
Value |
Comments |
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Initial Life of Mine |
15 years |
Further infill drilling will extend this LOM substantially |
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NPV10 |
US$1.087 Bn |
Compares favourably to PFS (NPV8 US$482M) including a higher discount rate used Incorporates both Orom-Cross and downstream beneficiation facility |
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IRR10 |
96% |
Strong IRR indicates significant returns on capital |
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Capital required – P1 Production
Capital required – P2 Production |
US$40M
US$120M |
Initially produce up to 20,000tpa concentrate and micronised products Ramp up to 70,000tpa concentrate and up to 20,000tpa USPG Most key infrastructure already at site |
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Average Operating cost over LOM (AISC) |
US$485/t |
Lowest quartile costs in graphite market ensures less dependency on graphite prices having to increase for success |
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Average Selling price over LOM |
US$1,240/t US$2,310/t |
Average for all concentrates sold from Orom-Cross Average for USPG and waste sold from beneficiation facility |
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Average annual production over LOM |
97,000tpa 56,500tpa |
All concentrates from Orom-Cross Uncoated spheronised purified graphite (USPG) |
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Average EBITDA over LOM |
US$230M pa |
High profitability once commercial scale is reached |
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Net Free Cash over LOM |
US$2.034 Bn |
Significant free cash delivered from full project with mine life likely to extend well beyond the initial 15 years |
Capital Comparison (PFS vs DFS)
Whilst the full capital requirement has risen since the PFS (2022) there are several important factors to consider in making comparisons:
· Orom-Cross will have a smaller, lower risk initial phase (P1) production which was not part of the PFS scope.
· Orom-Cross will deliver 70,000tpa concentrates by P2 in the DFS, versus 50,000tpa at startup within the PFS.
· The DFS includes micronisation plant and equipment which was not part of the PFS scope.
· The DFS also incorporates a 20,000tpa downstream beneficiation facility, compared to zero downstream production in the PFS.
· Inflation since 2022 has increased capital and operating cost inputs across the sector.
Despite these factors, Orom-Cross delivers a significantly more profitable operation for the capital deployed, as demonstrated by the increase in valuation metrics:
· NPV10: US$1.087Bn in DFS vs NPV8: US$482M in PFS
· IRR10 96% in DFs vs 49% in PFS
· Higher discount rate used in (10% DFS versus 8% PFS)
Project Benchmarking
Orom-Cross compares extremely favourably with global graphite peers, demonstrating:
· Lowest-quartile capital and operating costs.
· Robust margins and over US$2 billion in free cash flow over initial 15-year mine life.
· With only ~2% of the licence drilled, substantial additional reserve growth and life of mine extensions is anticipated as new graphite deposits are incorporated.
· Premium product quality supporting strong pricing and long-term demand.
A further updated JORC resource is anticipated in 1Q 2026, incorporating results from an additional 192 step-out holes, including new deposits at Iyan and Beehive.
De-Risking
The DFS together with its world class KPIs, materially de-risks Orom-Cross across technical, financial and commercial dimensions. All capital and operating assumptions have been generated using current input costs validated by technical experts CPC Engineering.
Local infrastructure is largely already in place, and preparatory works can begin immediately following completion of P1 financing.
Non-binding offtake agreements cover all planned P1 Production and these will transition to binding status post-financing. Additional offtake interest is expected post-DFS, particularly given the diverse mix of Western and Asian end-users currently testing Orom-Cross products, including Tier-1 groups such as US DoW, and the EU SAFELOOP initiative.
The Company’s Community Agreement and strong Ugandan Government support provide a stable local operating platform, and key technical relationships (AET, TaiDa Graphite, ADT and others) remain in place, while Orom-Cross’s Minerals Security Partnership accreditation continues to support engagement with strategic funders and offtakers.
As the project advances toward construction, Blencowe will expand its executive and operational teams to support the transition to P1 production.
Market Outlook
Blencowe believes that demand for natural flake graphite, particularly high-purity anode material such as that produced at Orom-Cross and the SPG facility, will grow materially over the medium term. Graphite remains an essential, non-substitutable component of lithium-ion batteries used for energy storage and EVs. Supply is forecast to tighten sharply as global decarbonisation accelerates.
Orom-Cross is exceptionally well positioned as a near-term producer with a defined development pathway. Once in production, the Project will be highly leveraged to rising graphite prices, with its low operating costs ensuring strong margins across a wide range of market conditions. Any future supply deficits or price increases would further amplify the already robust DFS economics.
With a diverse network of relationships across Western and Asian markets, Blencowe intends to prioritise niche and premium applications to maximise returns – a strategy that will strengthen further as purified USPG output commences. The Project also benefits from additional drilled but undeveloped deposits (Beehive and Iyan) that can be rapidly converted to support higher production if required.
Cameron Pearce, Executive Chairman commented:
“I would like the thank the entire Blencowe team and all our associated consultants for their exceptional work over the past two years to deliver this outstanding DFS. Achieving such strong NPV and IRR metrics from a relatively low capital base is a world-class outcome. It is rare to see a project with such consistently strong fundamentals across scale, cost structure, margins and downstream potential.”
“This Study marks a transformational moment for Blencowe clearly demonstrating the scale, quality and longevity of Orom-Cross as we move into the financing and development phase. The DFS confirms Orom-Cross as a Tier-1 graphite project and our focus now turns to the financing process and delivering first production as our next major goals.”
“With the Project now considerably de-risked, graphite markets improving, and a clear pathway to become a major ex-China supplier, we believe Blencowe is exceptionally well positioned for a meaningful re-rating as investors realise the scale of the opportunity ahead.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
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Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
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Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
#BRES Blencowe Resources PLC – Stage 7 Drilling Program Update
Blencowe Resources Plc (LSE: BRES) is pleased to report that all three deep holes drilled at the Beehive deposit within its Orom-Cross Graphite Project have intersected significant continuous mineralisation to depths below 100 metres, more than three times deeper than the original 30-metre production horizon.
Importantly, all three holes ended within mineralisation, confirming the orebody remains open at depth and reinforcing the Project’s long-term scale and value potential.
The holes, each angled to a vertical depth of 100 metres (120 metres total length), form part of the Stage 7 resource definition programme designed to materially enhance both the upcoming JORC Resource upgrade and the ongoing Definitive Feasibility Study (DFS). Notably, the Beehive deposit – which sits outside the current 24.5Mt JORC Resource – is demonstrating significant depth and grade potential. These results are expected to underpin a material uplift in resource tonnage and overall project valuation.
This deep drilling builds on an extensive drill programme comprising 221 resource holes, 8 geotechnical holes, and 6 deep holes, collectively forming the foundation for a robust and substantial JORC Resource update.
A substantial number of assays are now pending. Consistent positive results from these will support an expanded Resource base, longer mine life, and ultimately a materially higher Net Present Value (NPV) for Orom-Cross. This will also ensure a steady stream of newsflow into both the JORC upgrade and ongoing strategic engagement – reinforcing investor visibility and confidence as Blencowe advances toward development.
Highlights:
· All three deep holes at Beehive delivered wide graphite intercepts from 30 metres to end-of-hole at 100m.
· All three deep holes ended in mineralisation, confirming the orebody remains open at depth.
· Two rigs are now drilling three further deep holes at the Northern Syncline deposit, 3km to the north of Beehive.
· Over 230 holes drilled to date as part of the wider DFS programme, with assay results expected to provide steady newsflow.
· Infill drilling campaign completed, which unlocks the next US$0.75M DFC tranche of grant funding.
· Assays pending from substantial number of holes; results to feed into upgraded JORC, DFS, and funding strategy
· Results will feed into the upgraded JORC Resource, DFS, and strategic engagement underway.
Ongoing Programme and Forward Workstreams
Two rigs are now drilling three additional deeper holes at the Northern Syncline deposit, targeting similar vertical ~100 metre extensions as observed at Beehive.
Final core logging and sample preparation from Beehive is nearing completion, with assays to be submitted shortly. The volume of assays pending from over 230 holes is expected to provide a steady stream of results and project de-risking milestones through the remainder of 2025.
Following successful completion of the recent infill drilling campaign (as referenced in the Company’s prior update), Blencowe expects to receive the next US$0.75 million tranche of the US International Development Finance Corporation (DFC) grant funding shortly. This payment reflects continued strong support for Orom-Cross from the US Government and underscores the importance of delivering a comprehensive, high quality DFS.
Work across all DFS streams continues to advance in parallel, including geology, engineering, infrastructure, and ESG. The DFS is expected to play a pivotal role in unlocking value through strategic offtake partnerships and securing project-level funding – such as with DFC – and other parties already engaged in early-stage discussions that could see full-scale development financing aligned to the Definitive Feasibility Study’s completion.
Executive Chairman Cameron Pearce commented:
“We are delighted with the new deep drilling results from Beehive which confirm wide graphite zones extending well below the previous 30 metres horizon and it is significant that we are still finishing in mineralisation below 100 metres on all holes. This speaks to the scale and depth potential of the Orom-Cross deposit. Importantly, we still do not know how deep this orebody goes and that is an exciting position to be in. Independent geologists Minrom have previously suggested Orom-Cross could host over two billion tonnes of graphite and success within both the recent step out drilling at Beehive and these deep holes go a long way to validating that view.”
“We are now drilling the Northern Syncline deposit where three more deep holes are underway, and if we can replicate these Beehive results across such a broad footprint Orom-Cross will continue to establish itself as one of the largest and most robust graphite projects globally. These results, alongside the JORC upgrade, ongoing offtake agreements, DFS progress, and advancing funding strategy, set the stage for a news-rich period ahead that can deliver substantial value accretion for shareholders.”
Importantly, the confirmation of deeper mineralisation has the potential for a material positive increase on the overall NPV of Orom-Cross as we factor these extensions into mine life and Project scale.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
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Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
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Tavira Securities Jonathan Evans |
Tel: +44 (0)20 3192 1733
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#SVML Sovereign Metals – Kasiya Expanded Scoping Study Results
Sovereign Metals Limited (the Company or Sovereign) is pleased to announce the results of the Expanded Scoping Study (Scoping Study or Study) for the Company’s Kasiya Rutile Project (Kasiya or the Project) in Malawi.
In April 2022, Sovereign announced a new JORC Mineral Resource Estimate (MRE) for Kasiya which confirmed the Project as the world’s largest rutile (titanium dioxide) deposit and one of the world’s largest flake graphite deposits.
The Expanded Scoping Study based on the April 2022 MRE confirms that Kasiya will be one of the world’s largest and lowest cost producers of natural rutile and natural graphite with a carbon-footprint substantially lower than current alternatives while significantly contributing to the social and economic development of Malawi.
KEY EXPANDED SCOPING STUDY HIGHLIGHTS
· Significant increase in NPV and EBITDA from the 2021 Initial Scoping Study with lower operating costs for a relatively small increase in Capex to first production
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US$1,537M |
36% |
US$12,038M |
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After Tax NPV8 |
After Tax IRR |
LOM Revenue |
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(↑79%) |
(No change) |
(↑92%) |
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US$323M |
US$320/t |
US$372M |
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Ave. Annual EBITDA |
Operating Cost |
Capex to 1st Production |
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(↑101%) |
(↓10%) |
(↑12%) |
· Potential to become a major producer in both the natural rutile and graphite markets with steady state production of 265,000 rutile and 170,000 tonnes of graphite with a 25-year mine life
· Low capital costs to first production due to exceptional existing available infrastructure offering significant cost reductions and providing optionality and scalability
· Low operating cost and high margins due to deposit size, zero strip ratio of soft, friable high-grade mineralisation from surface, amenability to hydro-mining, conventional processing, deposit location and low transport costs
· Extremely favourable market fundamentals as rutile (titanium) and natural graphite deemed critical raw materials for the US and EU based on economic importance and supply risk
· Natural rutile market in structural deficit with current global supply estimated to decline 45% in the next three years with graphite demand set to soar as electric vehicle production is forecast to increase 12-fold by 2040
· Natural ESG benefits for Kasiya:
o Substantially reduced CO2 emissions for both rutile and graphite compared to current alternatives, including substantial Scope 3 emissions reductions for pigment production from rutile compared to alternative feedstocks
o Significant social and economic benefits for Malawi including job creation, fiscal returns, training and continued community social initiatives
· Study based on conservative commodity price estimates. Long-term rutile price (real) of US$1,254/t versus current spot price of +US$2,200/t1 and long-term natural graphite basket price (real) of US$1,085/t versus current equivalent spot price of US$1,223/t2
Managing Director, Dr Julian Stephens commented
“The Expanded Scoping Study demonstrates Kasiya is a Tier 1 minerals project being the largest natural rutile resource and one of the largest graphite resources in the world. Both minerals are classified on the Critical Minerals lists of the US and EU and rutile is in extreme market supply deficit. In light of these factors, Kasiya is seen as a highly strategic project with the potential to be a major supplier in both rutile and graphite markets.
The project benefits from existing high-quality infrastructure and has inherent ESG advantages. Natural rutile has a far lower carbon footprint compared to other titanium feedstocks used in the pigment industry, and natural graphite is a key component in lithium-ion batteries – crucial to de-carbonising the global economy. Further, the vast majority of power for the planned Kasiya mining operation will be supplied by renewable hydro and solar – giving the mine itself a very low carbon footprint.
The future development of the Kasiya Rutile Project will bring substantial benefits to Malawi in terms of GDP, royalties, taxes, employment and training, local business opportunities and community development.”
ENQUIRIES
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Dr Julian Stephens (Perth) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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Nominated Adviser on AIM |
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RFC Ambrian |
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Bhavesh Patel / Andrew Thomson |
+44 20 3440 6800 |
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Joint Brokers |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Varun Talwar |
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Optiva Securities |
+44 20 3137 1902 |
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Daniel Ingrams |
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Mariela Jaho |
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Christian Dennis |
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To view the announcement in full including all illustrations and figures, please refer to the announcement at http://sovereignmetals.com.au/announcements/.