Strategic and Corporate Update

Blencowe advances Orom-Cross but still lacks binding funding and offtake deals.

What the company is saying

Blencowe Resources plc frames this as a comprehensive progress update for its 100%-owned Orom-Cross Graphite Project in Uganda, emphasizing technical milestones, project economics, and leadership continuity. The company highlights the appointment of Iain Wearing as Interim CEO, citing his 40 years of mining experience and a personal investment of approximately £500,000 in prior capital raisings as evidence of alignment with shareholders. The announcement stresses the completion of a DFS with a post-tax NPV10 of US$1.254 billion and a 51% IRR, and a Phase 1 capex estimate of US$45 million. Management underscores ongoing efforts to secure project-level funding, convert non-binding offtake discussions into binding agreements, and complete technical workstreams to advance toward construction. The company also details high-purity graphite test results (99.99% carbon), non-binding offtake MOUs, and participation in advanced battery and aerospace qualification programs. The tone is confident, presenting technical and commercial progress as a strong foundation for imminent funding and commercialisation, while acknowledging that key agreements remain non-binding and subject to further negotiation.

What the data suggests

The DFS, independently managed by CPC Engineering, models a post-tax NPV10 of US$1.254 billion and a 51% IRR over a 15-year mine life, with Phase 1 capex estimated at US$45 million. The Beehive Mineral Resource estimate brings the total project resource to 64.3Mt, with an Ore Reserve of 23.08Mt at 5.18% TGC. High-purity testwork in both Europe and the US achieved 99.99% carbon purity, supporting claims of suitability for advanced battery and aerospace applications. The company has raised £3 million in December 2025 and states that current cash is sufficient for overheads, product qualification, and the Phase 1 financing process, but not for construction. All offtake agreements referenced are non-binding, including a MOU with YUNASKO for 500 tonnes per annum over five years, and no binding sales or revenue commitments are disclosed. Product qualification and pilot programs (e.g., 100 cells/month US battery line, Mach 5.5 rocket test) are at various stages of development, with commercial outcomes still pending. Engagements with the Government of Uganda and potential financiers are ongoing, but no definitive funding or government support has been secured. The data shows strong technical progress and credible resource scale, but no near-term revenue or binding commercial agreements.

Analysis

The announcement is upbeat and highlights a series of technical and corporate milestones, including a new interim CEO, updated DFS results, and successful high-purity testwork. However, many of the commercial and financial benefits remain forward-looking: project-level funding is not yet secured, offtake agreements are non-binding, and product qualification is ongoing. The capital expenditure for Phase 1 is significant (US$45 million), but there is no evidence of binding funding commitments or near-term revenue. While the DFS figures (NPV, IRR) are impressive, they are modelled projections, not realised outcomes. The company’s cash position is described as sufficient for ongoing activities, but there is no disclosure of profitability, cash flow, or operating results. The tone is optimistic, but the gap between narrative and realised progress is material, with most commercialisation and funding milestones still to be achieved.

Risk flags

• ●Project-level funding for Phase 1 (US$45 million) is not yet secured, leaving the company reliant on ongoing discussions with strategic, institutional, and development-finance counterparties. Without binding commitments, the timeline to construction and production remains uncertain.
• ●All offtake arrangements are currently non-binding, including the MOU with YUNASKO for 500 tonnes per annum. The absence of binding sales contracts means there is no guaranteed revenue stream to underpin project economics.
• ●While the DFS projects a high NPV and IRR, these are modelled outcomes based on assumptions about product pricing, costs, and market demand. Realisation of these figures depends on successful funding, construction, and conversion of technical qualification into commercial orders.
• ●Technical achievements, such as 99.99% carbon purity and successful product qualification in battery and aerospace applications, are positive but do not themselves guarantee commercial adoption or sales. The transition from technical validation to commercial scale remains a key execution risk.
• ●Potential government support or financing from Uganda is still under discussion, with no formal commitments or approvals disclosed. Delays or lack of support could impact project economics or timelines.

Bottom line

Blencowe's update demonstrates credible technical progress and resource scale at Orom-Cross, with a DFS showing a US$1.254 billion NPV10 and 51% IRR, and high-purity graphite validated for advanced applications. However, the company has not yet secured the US$45 million needed for Phase 1 construction, and all offtake deals remain non-binding, leaving the pathway to revenue and project de-risking unresolved. The appointment of an experienced Interim CEO with personal financial commitment adds credibility but does not substitute for institutional capital or binding contracts. Investors should focus on whether Blencowe can convert ongoing funding and offtake discussions into binding agreements and move to construction. Until then, the opportunity remains high-potential but unproven, with execution and financing as the main hurdles.

Announcement summary

(LSE:BRES) Blencowe Resources plc has provided a comprehensive update on the development and financing of its 100%-owned Orom-Cross Graphite Project in Uganda, as well as changes in executive leadership. The Board has appointed Iain Wearing, previously Chief Operating Officer, as Interim Chief Executive Officer with immediate effect, to ensure continuity across technical, operational, and funding workstreams while the search for a permanent CEO continues. Mr Wearing, a mining engineer with over 40 years of experience, has held senior roles at Rio Tinto, Barrick, Anaconda/Glencore, and Resolute, and has invested approximately £500,000 in cash through previous company capital raisings. The updated Definitive Feasibility Study (DFS) model estimates capital expenditure of US$45 million for Phase 1 of the project. The company is actively evaluating a range of project-level funding structures and is engaged in multiple commercial discussions and due diligence processes with strategic, institutional, and development-finance counterparties, including the US International Development Finance Corporation (DFC), which supported the DFS through a technical assistance grant. The company raised £3 million in December 2025, and subsequent warrant and share option exercises have further strengthened its cash position, which is currently sufficient to support corporate overheads, ongoing product qualification, and the Phase 1 project financing process. The DFS published in December 2025, managed by CPC Engineering, reported a post-tax NPV10 of US$1.254 billion and a post-tax IRR of 51%, using a 10% discount rate over an initial 15-year mine life. The Beehive Mineral Resource estimate announced in May 2026 increased the total project Mineral Resource to 64.3Mt, with an Ore Reserve of 23.08Mt at 5.18% total graphitic carbon (TGC). High-purity processing testwork by Alkeemia in Europe and American Energy Technologies Co. (AETC) in the United States achieved 99.99% carbon purity. Blencowe is the exclusive natural flake graphite supplier to the EU-funded SAFELOOP programme, with anode composites containing more than 68% natural graphite. A non-binding offtake MOU with YUNASKO provides for an initial 500 tonnes per annum of purified medium flake graphite over the first five years of production. Apollo Energy Systems, AETC, and Blencowe are developing a laboratory prototype for 4HN military battery specifications, with a US pilot line targeting 100 cells per month. Testing of Orom-Cross products in anti-radar and electromagnetic interference shielding applications is ongoing, with engagement with three European manufacturers, including one advanced commercial-stage offtake relationship. Orom-Cross graphite was used in a US rocket flight reaching Mach 5.5, with further orbital testing planned for Q4 2026. The company continues to engage with the Government of Uganda, including recent meetings with President Museveni, regarding project development, local value addition, and potential financing or support mechanisms. Cameron Pearce, Executive Chairman, and Iain Wearing, Interim CEO, both commented on the company's progress, focus on securing Phase 1 funding, and advancing towards production.

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