Blencowe Resources
Primary ticker: LSE:BRES
Stage of development: Exploration, Development
Primary minerals: Graphite, Nickel
Project to promote: OROM-Cross Graphite Project
Project location: Uganda
Website:www.blencoweresourcesplc.com
BBlencowe Resources is developing the world class Orom-Cross graphite project in Uganda and is currently nearing completion of the final Definitive Feasibility Study (DFS) stage, prior to decision to mine. Pre-qualification of end products as purified graphite has been completed following bulk sample testing and tier-one OEMs are now assessing samples as next step before moving onto offtake agreements.
A combination of low costs (both start-up capital and operating costs) and high purity of end products gives Orom-Cross a unique advantage to most of its peers. Furthermore, Blencowe has sought to become involved in the lucrative downstream processing of graphite and has entered a relationship with one of the most experienced purified graphite producers worldwide, to build and operate an SPG (spheronised purified graphite) facility in Uganda. This strategy has significant advantages for Blencowe, including substantial cost reductions to Orom-Cross and participation in considerable returns generated by this SPG facility. Demand for purified graphite produced ex-China is high and premium prices are expected for this SPG product delivered from Uganda.
Recently Blencowe announced it was fully accredited with the Minerals Security Partnership, a highly influential quasi-Government organisation designed to combat the reliance on China for all critical minerals at the purified stage. Blencowe already has a strong relationship with the US Government through the Development Finance Corporation (DFC), via a US$5 million grant awarded to the Company in 2023, and DFC are expected to play a cornerstone role in the funding solution for Orom-Cross project implementation.
Most recently Blencowe has announced a role within the SAFELOOP consortium, which is a European Commission (EC) initiative (under their £100 billion Project Horizon umbrella) to build a Gen3 Li-ion battery for standardised EV buses which the EC wants to roll out across the European continent from 2027. Blencowe will be the exclusive supplier of all natural flake graphite into SAFELOOP and this has significant advantages as indicative prices for graphite concentrate sold into this project are more than double Asian market prices, and ramped up target volumes are substantial. SAFELOOP provides a tier-one Western offtaker for annuity sale income ahead at very low-cost project entry to Blencowe.
Blencowe is differentiating from the market in these and other ways as it sets out Orom-Cross to become a leading graphite producing asset in the medium term.
Major shareholders:
RAB Capital – 10%
Jangada Mines Plc – 9.5%
JUB Capital – 8.2%
Management ownership – 8%
Financials
Management Profile
Mr Michael Ralston – CEO
Mr Ralston is a Chartered Accountant with 25 years’ experience successfully developing businesses worldwide, including several in Africa where he has considerable expertise. He has been a senior executive and board member for several junior listed resource companies over the past 17 years and he has raised over A$300m in debt and equity over that period. He brings a wealth of corporate and management experience and he has been involved in developing at least three mining companies from start-up through to production. Mr Ralston was previously MD of Balamara Resources Ltd, which developed two large scale coal projects in Poland, and before that CFO of Kangaroo Resources Ltd, which developed several coal projects in Indonesia into production, before trade sale to a major Indonesian coal producer for A$600m in 2010. Mr Ralston is currently Non-Executive Chairman of ASX listed Trigg Minerals Limited.
What is your rationale for taking part in 121 Mining Investment?
Blencowe is looking for investors at a project level to join in the development of the OROM-Cross project.
What recent news would you like to highlight to investors attending?
Blencowe has recently announced selection as graphite concentrate supplier to EC SAFELOOP Program.
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Complete offtake testing, complete further 7000m drilling program, continue DFS engineering studies, continue SPG DFS.
6 Months:
Complete SPG DFS, complete project project DFS and annouce to market.
12 Months:
Commence Stage 1 plant construction.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
The lack of knowledge of the complexities of the graphite market within the wider investment community. We are continuing to inform markets in plain english of the critical nature of graphite in the EV markets as well as the wider uses of graphite.
What do you think makes your company such a compelling investment?
Size, very long mine life, granted mine lease and approvals, favorable political environment, Low capital and operating costs and downstream integration
What are the top 3 key investor takeaways?
Potential, undervalued