Blencowe Resources (LSE:BRES) has upgraded the commercial assumptions supporting its Definitive Feasibility Study for the Orom-Cross graphite project in Uganda, resulting in a significant increase in the project’s estimated value. The updated model has raised the project’s net present value (NPV10) by 15% to US$1.254 billion, while maintaining the previously forecast two-phase development capital expenditure of US$170 million.
The revised projections reflect a combination of factors, including a larger reserve base, additional offtake agreements, improved pricing assumptions for purified graphite products and a more favourable product mix. As a result, projected net free cash flow over the initial 15-year mine life has more than doubled to US$4.466 billion, representing a 120% increase from earlier estimates.
Management believes the updated economics reinforce Orom-Cross’s potential to become a major supplier of graphite outside China, particularly as demand grows for secure and diversified supply chains supporting battery manufacturing and energy transition technologies. The project’s strategy increasingly focuses on downstream processing and value-added products, including uncoated spheronised purified graphite and expandable graphite, which command higher margins than traditional concentrate sales.
To support development, Blencowe is pursuing a phased funding approach. The company is targeting approximately US$45 million of predominantly project-level equity financing for Phase 1, followed by around US$125 million of mainly debt financing for Phase 2. At the same time, management continues to progress tender submissions, engage with European battery-sector initiatives and pursue infrastructure improvements that could strengthen the project’s commercial attractiveness and strategic importance.
Despite the enhanced project economics, the company’s outlook remains influenced by its current financial position. Blencowe continues to operate without revenue and remains loss-making, with negative operating and free cash flow that deteriorated during 2025. Technical indicators also remain relatively weak, with the share price trading below key short-term moving averages and momentum measures remaining subdued. Traditional valuation metrics offer limited support given the absence of earnings.
More about Blencowe Resources Plc
Blencowe Resources Plc is a natural resources development company focused on advancing the Orom-Cross graphite project in Uganda. The project contains significant natural flake graphite resources and is being developed to supply both graphite concentrate and higher-value processed graphite products.
The company is positioning Orom-Cross as a strategically important source of non-Chinese graphite for Western markets, targeting demand from battery manufacturers, electric vehicle supply chains, energy storage applications and a range of industrial end markets seeking secure and diversified raw material supplies.
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