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Lol the Bezant deal and project is small fry compared to this, it's not even comparable.

As Mike Ralston has explained, project level finance will be $xm for y% of Orom cross, which will put an instant valuation on Blencowe's remaining share of Orom cross. My guess is it will be $50m for 20-25% of Orom cross, valuing BRES share at $150-200m. This will bput a valuation on the project that can't be argued with.

Having a financed deal will also add enterprise value for the anticipation of P2 funding.

It's mad, every man and his dog knows this is undervalued and the positivity here is growing with more and more investors starting to catch on! The tide will turn soon.

$45m is peanuts when expected to generate over $4bn in cash flow and the potential for even more.

Seems to me Mike had a gagging order with NDAs and Market abuse rules. All he can do is reiterate what they have said. I dont buy the narrative that they havn’t been able to resolve P1 funding yet. The project is too attractive. Im certain it’s a case of waiting for their preferred partner. The longer this goes on the more likely a bigger deal than expected will be announced IMO.

Https://www.dfc.gov/media/press-releases/dfc-board-approves-25-billion-new-strategic-investments-advancing

Would like to bet Blencowe have been a lot more prudent and thorough in their DFS than most and none of them have the profile Orom Cross will have with US Government funding.

Have to remember not all graphite is the same. Unlike other resources, graphite has individual characteristics and only the highest purity graphite is of high value and demand. Blencowe are at the highest level.

The qualification of end product sets them apart. Ensuring they have sales channels pre production sets the funding case.

Blue sky….. theres an estimated 2bn tonnes! That can supply the word many times over for years.

If you look at the share price after the DFS, we are seeing a similar pattern here from about 1p higher level and i believe it will kick on from here in an upward trajectory and pass through that year high.

We are £40m mcap with £2m cash. Looking for $45m/£33m of funding for P1. Its basically valuing the project at giving away 46% for -$45m and then not adding a premium for being funded.

Remember POSCO invested -$40m in Mahenge for 19%.

I am expecting a deal at around 20/25% for $45m, valuing Blencowe share of Orom cross at $135m-$180m without applying any premium for it being funded. So a minimum upside on a deal for P1 should be 248% which is just over 21p when including the cash. Thats low end for me. I would expect a funded P1 to add 20-40% of the investment valuation. So 25p upwards low end.

There are companies out there that would love to be in a position to have one funding option. To have multiple parties at both stages wanting to get involved in one of the mist significant graphite projects on the globe is incredible. 1 month, 2,3,4 it will happen

PJ… Mike would say the same thing if funding was announced tomorrow or in 4 months time. As should be the case. We know funding partners have been engaged throughout so we know its not new. They have had 6 months with the DFS now and the confidence level is hight its a case of when and who, not if this will be funded.

Not sure saying they have several interested parties in the data room that have signed NDAs for both P1 and P2 is uncomfortable! Thats the point of an NDA… you cant say anything until it materialises. Especially after a material DFS model update.

Despite the fact the company have said project level funding and that the new broker is not to raise cash?!

Net free cash = $4.4bn

For a $170m odd investment.

Let that sink in

And its only going to get bigger with new offtakes, production increases

They are being very sensible unlike other companies are quoting higher production rates without consideration for securing sale contracts. They can produce more if they can sell more and you only see interest in the product going up.

IRR is a bit kf a red herring here.

Initial capex is flat so its not costing more

Net cash flows are up significantly

An IRR can change when a project gets bigger where cash flows are weighted towards the end if the project as more cash flows are discounted.

This is a mega RNS. Great update. Cannot see any world where this isnt funded and in production within 18 months.

Net cash up significantly

EBITDS $333m per year.

And they also state so many things in the pipeline not included including Safeloop.

Iyan and Beehive, not included. Beehive could match this NPV on its own.

The costs of the drill have been capitalised under non current assets.

They are 1 week earlier than normal with half year… looks to me with news promised clearing the path for a juicy update

POSCO paid $40m for around 20% of Mahenge. NPV $1.4bn 36% IRR.

Blencowe suggesting a material upgrade from $1.1bn NPV 96% IRR.

We should be one for a great deal with competition from interested parties

Having over £2m in the bank is a nice positive for where we are at post drill

I think its likely they are working with a partner likely DFS) to get the project to where it needs to be. And once it is, it will move forward quickly

Its unbelievable where this is sitting. They are saying $1.1bn project is only the start, we can do a lot better, and in turn get a bigger and better deal.

Maybe they could have been more transparent and said they are going to hold off finance and rework a larger DFS. But whats not to like. No doubt restricted behind ndas and market regs too.

Pathway is clear now. Big things are coming

Remember what caused the run up to 12p after a low DFS impact? No me neither because timing wasnt when expected. It will happen again IMO. Start moving when people least expect ahead of material news