Blencowe Resources (LSE:BRES) has reported further progress in developing high-value applications for graphite from its Orom-Cross project in Uganda, with testing indicating potential uses in advanced defence technologies and a premium offtake arrangement moving towards commercialisation.
Work conducted with partner American Energy Technologies has demonstrated the suitability of Orom-Cross graphite for specialist anti-radar and electromagnetic interference shielding coatings. These materials could be applied to unmanned aerial vehicles and other defence platforms where reducing radar signatures and controlling electromagnetic interference are important operational requirements.
Blencowe is currently working with three European UAV manufacturers as it seeks to move these applications from technical testing towards commercial adoption. One potential offtake relationship has reached an advanced commercial stage and involves ultra-fine M635 material grading 97% total graphitic carbon.
Indicative pricing for this specialist graphite product is close to $20,000 per tonne, substantially increasing the potential value compared with conventional graphite concentrate. Orom-Cross material is already being incorporated into high-fidelity demonstration projects as part of the ongoing evaluation process.
The latest developments support Blencowe’s strategy of increasing the proportion of production directed towards specialist, higher-margin graphite markets. The company has previously undertaken testing for aerospace and rocket propulsion applications and is now seeking to convert successful technical validation into commercial demand.
Non-binding offtake commitments have already exceeded the planned 20,000 tonnes per annum of production envisaged for Phase 1 at Orom-Cross. Blencowe is continuing to pursue additional agreements as it looks towards a potential Phase 2 production target of 70,000 tonnes per annum.
Alongside its commercial discussions, the company is progressing project-level financing options intended to support the development of Orom-Cross while limiting dilution for existing shareholders. Establishing a broader portfolio of premium offtake agreements could strengthen those funding discussions and reinforce the project’s position within Western-aligned graphite supply chains.
Blencowe is targeting markets seeking alternatives to Chinese graphite supplies, particularly across defence, aerospace and advanced materials industries where supply security and specialist product characteristics can command higher prices.
The company’s broader financial profile remains challenging. Blencowe currently generates no revenue and continues to report recurring losses, while operating cash flow has deteriorated. Technical indicators are also bearish, with the shares trading below key moving averages and MACD remaining negative.
A relatively low-leverage balance sheet provides some support, although negative earnings and the absence of a dividend continue to limit the usefulness of conventional valuation measures.
More about Blencowe Resources Plc
Blencowe Resources Plc is a London-listed resources company developing the 100%-owned Orom-Cross Graphite Project in Uganda.
The company’s strategy centres on producing high-quality graphite concentrates for specialist and higher-value applications, with a particular focus on Western markets seeking non-Chinese sources of critical raw materials. Orom-Cross is being positioned to serve industries including defence, aerospace and advanced materials while helping customers diversify geopolitical and supply-chain exposure.
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