Investment Case10 Jul 2025 10:09
✅ Investment Case for Blencowe Resources
1. High‑quality graphite with strategic positioning
Orom‑Cross (Uganda) is a globally significant graphite project: a large, shallow, open‑pit deposit with a 21-year mining licence, high‑purity product, and low operating and capex metrics .
Metallurgical tests confirm premium large and coarse flake graphite—ideal for battery and industrial markets
blencoweresourcesplc.com
2. Strong validation via institutional backing
Received US$5 million from the U.S. International Development Finance Corporation (DFC) to support the DFS, with another tranche upcoming
Recently received an Expression of Interest from the African Finance Corporation (AFC) for both debt and equity backing—an A3‑rated multilateral lender with US$12.3 billion in assets
blencoweresourcesplc.com
3. Recent milestones & de‑risking catalysts
Deep drilling confirmed mineralisation remains open below 100 m, extending resource potential beyond current JORC resource of 24.5 Mt @ 6% TGC
Ongoing drilling and updated resource estimates feed into the DFS, expected mid‑2025.
Signed offtake MOUs and progressing bulk‑sample tests with tier‑one buyers and SPG downstream JV formation
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4. Clear path to value uplift
A successful DFS, resource expansion, project financing, and binding offtake deals could re‐rate the stock from exploration to development stage.
Joint downstream processing JV targeting SPG (99.95% purified graphite) provides upside through higher margin, value‑add products
blencoweresourcesplc.com
5. Operates in favorable jurisdiction with incentives
Uganda offers stable governance, attractive tax incentives, and supportive mining regulations
Key Risks to Monitor
Financing execution
Full development capital must still be raised—reliant on institutional partners like DFC/AFC and binding offtake/finance agreements.
Execution delays
DFS, drilling, and external events could slow project progression.
Market sensitivity
Graphite prices are influenced by broader battery/EV demand, potential supply-side disruptions.
Exploration dilution
Planned drill funding and processing JV may involve equity dilution (e.g., 25M share placing, warrants issued earlier)
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Investment Timeline & Catalysts
Q2–Q3 2025: DFS completion, resource upgrade, and further drilling results.
Mid‑2025: Final project financing package (DFC/AFC/joint equity).
H2 2025 onwards: Binding offtake agreements; potential transition into SPG JV.
2026: First phase of project development initiation.